A credit risk analysis approach using the Fleuriet model

Abstract

Objective: To construct a model that can assess the credit risk in Brazilian publicly-traded companies, using indicators from Fleuriet’s model of financial analysis. Method: Methodologically, the research was defined as quantitative, with a descriptive design. The financial statements were collected from Economática and the website BM&FBOVESPA. The sample consisted of 121 companies, being 70 solvent and 51 insolvent, from different sectors. Results: For the financial structure, working capital and working capital requirement indicators, the companies seek to achieve a constant growth model, expanding or gaining markets, in view of the continuing need for additional working capital over time. The results found for the liquidity thermometer demonstrate the importance of the financial accounts called treasury account to calculate the company’s short-term corporate liquidity and solvency. Finally, financial indebtedness as a structural index contributed significantly to the model. Contributions: This study can contribute to the Brazilian literature by evidencing that some of the indicators in Fleuriet’s model are significant to assess the credit risk in Brazilian publicly traded companies.