Using Sherrod Model to Predict Financial Failure in Commercial Banks Operating in Libya Case Study of United Bank for Trade and Investment during the Period 2019-2023

Abstract

This study aimed to identify the effect of using the Sherrod model as one of  the financial forecasting models by determining the calculated value of the financial ratios adopted in this model and expressing bank liquidity, financial leverage and profitability rates, based on the financial data included in the financial statements of United Bank for Trade and Investment for the period from (2019 - 2023). The study reached a set of results, the most important of which are: The financial ratios adopted in the Sherrod model contributed significantly to determining the degree of risk experienced by the sample bank, as well as its ability to predict financial failure before it occurs through the calculated value (Ƶ), which showed that the bank is in a stage where it is difficult to predict financial failure despite the low margin of safety due to the low volume of net profits for the bank throughout the study period