Published in Scientific Papers. Series "Management, Economic Engineering in Agriculture and rural development", Vol. 25 ISSUE 2
Written by Rumyana ANGELOVA, Dimitrina STOYANCHEVA, George ZHELYAZKOV

This article aims to develop criteria for classifying the most commonly used financial diagnostic models based on the scientific literature related to the theoretical and methodological assumptions of financial insolvency. On this basis, we assess the models' applicability by considering the specifics of Bulgarian conditions - difficulties, limitations in their application, advantages and disadvantages. The practical study focuses on enterprises operating in the agricultural sector which allegedly have been the subject of bankruptcy proceedings. The authors attempt to reveal to what extent the diagnostics using financial sustainability analysis methods provide an accurate forecast of the risk of insolvency and, hence, bankruptcy. The present study seeks answers to the following questions: are there any methodologies that stand out with a highest degree of coincidence of the forecast with the actual status quo of "declared bankruptcies"? Which indicators are characteristic of the agricultural sector, and what makes the applicability of the methods in which they participate most suitable for testing?

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