NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

SCHOOL OF BUSINESS MANAGEMENT

Data Analytics For Business

FTMBA, Trimester 3, 2021-22

Submitted To Faculty: Dr. Manisha Sharma

Submitted By: Group 9 – I Year

Team Member SAP ID Roll No

Naman Wadhwa 80512100250 D010

Narenther MS 80512100406 D011

Abhay Kumar Singh 80512100251 D016

Pranjal Verma 80512100238 D046

Alok Mishra 80512100180 H021

Rupal Mittal 80512100252 H028

 Company Bankruptcy Prediction using ML models on KNIME

About Project

In this project, we'll utilise the dataset to see if a firm is on the edge of going bankrupt. We
have a number of factors that may be used to predict a company's bankruptcy condition,
which can be a Boolean value of 1 or 0 based on financial data points from various firms in
the dataset.

Early detection of indicators that a firm is likely to enter involuntary bankruptcy and the
ability to salvage it can assist decrease the economic losses that bankruptcy implies, both
quantitatively and qualitatively. To avoid bankruptcy, it is common to examine the evolution
of several financial ratios.

For this study, we have used Kaggle's Company Bankruptcy Prediction data set where there
are round about 95 variables which have been included in this report, including Return on
Assets , Bankrupt Class Label and various financial indicators. These defined data points will
be utilised to train and evaluate the bankruptcy prediction model.

We all know that the financial markets are affected by bankruptcy in a variety of ways, and
hence these kinds of early warnings can help in turn to avoid these events in future. Investor
profitability along with portfolio management can be definitely be affected, as well as their
capacity to take smarter investment judgments.

Analysis and Outcome

The selected dataset would be divided into a known 8:2 ratio where we have about 80% of
the data values being used to train the machine learning model for “Teaching” it to take its
own decision and the remaining 20% would be used to test the models and eventually the
best fit along with accuracy would be chosen. This will help to determine our best pick
among various machine learning models and take a much informed decision. This would
help banks to predict a company's bankruptcy risk before it occurs, allowing them to secure
their investments or take corrective measures to avert it.

Following the forecast and training of the model, we will also assist in the crucial decision-
making process in order to safeguard financial markets, as well as devise measures for the
company's management to prevent imminent bankruptcy.

References

Dataset : https://www.kaggle.com/fedesoriano/company-bankruptcy-prediction