Correspondence of safety margin to the level of bankruptcy risk and financial stability
|The value of safety margin||Level of bankruptcy risk and financial stability|
|0.5–0.8||A company is financially sound. The risk of bankruptcy is minimal.|
|0.2–0.5||A company is financially fragile. The risk of bankruptcy is moderate.|
|<0.2||A company is in financial difficulty. The risk of bankruptcy is high.|
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