Adamowicz, KrzysztofNoga, Tomasz2022-11-292022-11-292018-05-19Adamowicz,K. & Noga,T. (2018). Identification of financial ratios applicable in the construction of a prediction model for bankruptcy of wood industry enterprises. Folia Forestalia Polonica, 60(1) 61-72. https://doi.org/10.2478/ffp-2018-0006https://doi.org/10.2478/ffp-2018-0006https://hdl.handle.net/20.500.14096/82© 2018 Krzysztof Adamowicz et al., published by Sciendo. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License - https://creativecommons.org/licenses/by-nc-nd/4.0/legalcode . The Version of Scholarly Record of this Article is published in Folia Forestalia Polonica, Series A – Forestry, 2018, Vol. 60 (1), 61–72, available online at https://sciendo.com/article/10.2478/ffp-2018-0006 . Keywords: early warning systems; prediction; financial risks; bankruptcy; financial ratios; wood industry; Europe; Poland.At present, many early warning systems (EWS) are available. Most EWSs have been constructed based on data coming from various branches of economy. As a result, the effectiveness of these models in specific sectors of the national economy is frequently insufficient. There are no models dedicated to a specific branch, particularly the wood industry. Based on the Polish homogenous financial data supplied by the wood industry, it was decided to identify respective indexes, which may be used to construct a sector prediction model for bankruptcy in the wood industry. This study presents an analysis of indexes applied in 10 most popular EWSs used in Poland. In the course of the research process, a total of 5 financial ratios (FRs) were selected as best fitting to the investigated branch of economy. These included: profit from sales/balance sheet total, total income/mean annual total assets, operating costs/current liabilities, (operating profit – depreciation)/sales of products and equity capital/total debt.enResearch Subject Categories::FORESTRY, AGRICULTURAL SCIENCES and LANDSCAPE PLANNING::Area economics::Forest economicsIdentification of financial ratios applicable in the construction of a prediction model for bankruptcy of wood industry enterprisesArticle