Abstract
The instability of the economic situation, combined with the systematically important nature of the construction industry, attracts attention to the financial viability of construction companies constituting the basis for the successful implementation of their activities in market conditions. The article examines the bankruptcy statistics of Russian construction companies, analyzes the issues of assessing and predicting insolvency and discusses the utility of applying well-known models, in particular, the Altman’s modified five-factor model, in Russian situation. The dynamics of the financial indicators used in the model and Altman's Z-score for construction companies belonging to the “construction of buildings” sector and different in scale of activity are analyzed. The groups of companies are represented by the conditional companies having the median value of all indicators, Conclusions are drawn regarding the probability of bankruptcy for companies belonging to different groups, and regarding the directions for improving the methods for diagnosing the bankruptcy of construction companies.
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