According to Altman (1983)the amount of working capital in relation to total assets is an important component in predicting the failure of a company,while measures of return on capital employed (ROCE)can not help predict failure

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Altman's Z-score model for predicting bankruptcy indeed considers the working capital to total assets ratio as an important component, but it also includes measures of profitability and productivity, such as return on assets (ROA), which is conceptually similar to ROCE, indicating that profitability measures also play a role in predicting company failure.

According to Altman (1983)the Amount of Working Capital in Relation