Abstract
This research aims to reach the best set of ratios derived from the list of cash flows and profitability ratiosthat can be used to predict the distress of industrial companies listed on the Iraq Stock Exchange at an early date inorder for the management to intervene to take appropriate corrective measures, and to achieve this, (22) were used.Ratio, for a sample consisting of 8 companies, half of which are distressed and the other half are non - distressed, forthe period (2017-2018). (5) ratios were reached, through which the research objectives could be achieved, and thefollowing model was formulated:Z = 28.431 x 1 + 11.514 x 2 + 2.233 x 6-9.587 x 10-29.365 x 17The accuracy of the model was also tested in predicting the distress of industrial companies listed on the Iraq StockExchange a year before the distress, and the degree of accuracy was 87.5%.
