Financial Soundness Index for the Private Corporate Sector in Colombia

Número: 
898
Publicado: 
Clasificación JEL: 
L25, G30, G32, C3
Palabras clave: 
Firms’ Financial Soundness, principal component analysis, Financial Ratios, Composite Indices

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Luis E. Arango, Leonardo Bonilla-Mejía, Luz Adriana Flórez, Luis E. Arango
Julián Andrés Parra-Polanía, Constanza Martínez-Ventura

This paper has as main objective to build a composite metric of nancial soundness for the private corporate sector in Colombia. Instead of relying on the individual and sometimes restrictive nancial ratio analysis approach, the purpose of this document