FINANCIAL SITUATION ANALYSIS IN IDENTIFYING RISKS OF ECONOMIC INSOLVENCY: A CASE STUDY OF GENERAL MOTORS

Abstract

Abstract
The article examined the role of financial situation analysis in the early
identification of economic insolvency risks using General Motors as a case study. A
systematic assessment of liquidity, solvency, profitability, and cash flow indicators was
conducted. The findings substantiated that financial analysis supported improved
managerial decision-making and risk reduction. The Altman Z-score model was
applied to determine the probability of bankruptcy and evaluate the level of financial
stability. The results confirmed that regular monitoring of financial indicators and the
application of forecasting models contributed to strengthening corporate resilience and
preventing crisis situations.
Keywords: financial situation analysis, economic insolvency risk, bankruptcy,
Altman Z-score, liquidity, General Motors, risk management, leverage, cash flow.