Keywords
Altman Z-Score model
risk management
accounts receivable
financial management
How to Cite
Abstract
This study examines the impact of accounts receivable on financial insolvency among companies in Colombia’s industrial sector during the period 2018–2022. To achieve its objective, the research employed a quantitative, correlational approach. The methodology included statistical analyses to assess the dispersion of observations and the correlation between variables, offering in-depth insights into financial management practices. The results indicate that, on average, industrial companies face a low probability of insolvency—a positive finding. However, the rising standard deviation and high variation coefficients over time suggest increasing disparities in the sector’s financial health. The main recommendation is that effective management of accounts receivable helps mitigate insolvency risk; however, this should be complemented by sound accounting practices and regular assessments of client solvency to improve liquidity.
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