ACFI3310 Coursework: Thomas Cook Bankruptcy Risk Evaluation

This report, prepared as a memorandum to a potential shareholder, assesses the bankruptcy risk faced by Thomas Cook Ltd. It employs the Beaver, Altman, and Argenti models to evaluate the company's financial health. The Beaver model utilizes financial ratios to predict bankruptcy, highlighting a significant drop in cash flow. The Altman model, with a Z-score of 0.902 in 2018, indicates a high probability of bankruptcy. The Argenti model identifies multiple defects, including an autocratic chief executive and issues with management and accounting, resulting in a concerning score of 25. The analysis concludes that Thomas Cook was likely to go bankrupt, advising against investment in the company. The report includes detailed appendices with analyses of the Beaver, Altman, and Argenti models, providing a comprehensive overview of the financial and non-financial factors contributing to Thomas Cook's downfall, including poor planning and high debt.