Effect of Profitability Ratio on Bankruptcy Prediction of Dairy Cooperative Societies in Meru County, Kenya

Many sectors of the economy across globe are concerned with avoidance bankruptcy in order to operate as going concerns. The purpose this study was analyse influence financial analysis on prediction for dairy cooperative societies Meru County, Kenya. objective determine profitability ratio hypothesis derived from study. research anchored value maximisation theory. Descriptive and correlational designs were used. target population 13 County that operation had audited statements period (2017-2021). A census survey all conducted. checklist used collect secondary data, which analysed using descriptive statistics a bivariate model. significance predictor variable tested t-statistic, overall model f-statistic at 5% level significance. findings presented form tables graphs. established statistically significant positive relationship between (coefficients=12.415, p=0.017<0.05) management is encouraged closely monitor indicators profitability. would be important policymakers, such farmers who key stakeholders societies. Scholars researchers find being great interest since gap further has been provided