The evaluating the financial health of an inter-company network - evidence from the automotive industry

The aim of this paper is to assess the financial health of firms involved in an interfirm network based on supplier-customer relationships.A real fragment of the automotive supply network was analysed.The financial health of each part of the network was assessed using a combination of the following bankruptcy and solvency models: IN01 model, Index Solvency, Taffler's model and Kralick's QT.The results of the bankruptcy models, K-means cluster analysis and functional analysis were complemented by core periphery analysis.By using these methods together, it was possible to identify the centre and periphery of the network and assess the differences in their financial health.