ANALYSIS OF FINANCIAL STATEMENTS AS AN INSTRUMENT FOR PREDICTING INSOLVENCY: A CASE STUDY OF A PUBLICLY TRADED COMPANY IN THE PROCESS OF EXTRAJUDICIAL REORGANIZATION

Abstract

The effective analysis of financial statements and economic-financial indicators can be a great ally for companies that seek to identify financial problems early, since by identifying possible difficulties in advance, it is possible to avoid insolvency. Thus, the objective of this work is to analyze the performance from 2021 to 2023 of a large retail company, in addition to understanding the main aspects of Law 14.112 of 2020, presenting the types of financial statements and economic-financial indicators that contribute to the early identification of financial difficulties and analyzing the financial statements released by this organization. With this purpose, through a qualitative research, a bibliographic research was carried out to analyze the theoretical concepts used in this article, characterizing the research as explanatory. In addition, the documents released by the studied company were analyzed to verify its financial and economic situation between the years 2021 and 2023, classifying this research as documentary and case study. The results showed that since 2021 the statements and indicators pointed out that the company was becoming unable to meet its payments and the state of insolvency was imminent. It is concluded that the request for out-of-court reorganization announced in 2024 could have been avoided through effective and early analysis of the data and with assertive decision-making by the organization's management.