Evaluation of the revised Z'-score model as a predictor of a company's financial failure

Under contemporary business conditions, there are numerous models used for the assessment of a company's financial situation and prediction likelihood its bankruptcy. These have been mainly developed using information. One them is Altman Z-score model. The model separates financially successful stable companies from those having difficulties in headed This paper explains importance prudential information, basic statements indicators presents research aimed at evaluating applicability revised Z'-score Federation Bosnia Herzegovina (FBiH). Based on analyzes activities 50 large manufacturing FBiH. achieved relatively good result assessing with as it correctly classified 10 out 20 companies; other were not incorrectly into but they placed grey zone. proved completely reliable classification all 30 businesses. results indicate that may be predictor failure definitely tool assist while making decisions. However, due to specific environment FBiH, recommended an additional rather than indicator predicting failure.