Assessment on bankruptcy analysis of commercial bank of Ethiopia

Abstract

Bankruptcy is a state of insolvency where in the company or the person is not able to repay the creditors the debt amount. Bankruptcy prediction is of importance to the various stakeholders of the company as well as the society on the whole. The purpose of my research is study the analysis bankruptcy and sustainability position of commercial banks in the Ameya branch. Many Banking sector, which will been declared sick. The researcher used judgmental sampling techniques. The research shall make analysis by distributing structured questioners developed by researcher for individual respondents. The researcher concluded that high level of debt position, low level of liquidity ratio, low level of leverage ratio, low earnings before interest and tax are the main cause of bankruptcy in commercial Bank of Ethiopia Amaya branch and finally the researcher recommended that minimizing the firms leverage through financial restructuring, improving the efficiency of the firm asset through reduction of expenditure are assumed by the researcher.