allanssematimba / Company-Bankruptcy-Prediction

This project aims to determine the likelihood of a company facing bankruptcy, a crucial aspect of financial analysis and investment decision-making.

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Company Bankruptcy Prediction ML Project

Introduction

This is a machine learning project that predicts the bankruptcy of a company using various financial features. The project includes data preprocessing, model selection, and evaluation. The best-performing model has an accuracy of 96.63%.

Prerequisites

The following packages are required to run the project:

  • numpy
  • pandas
  • scikit-learn
  • matplotlib

Data

The data used in this project is obtained from a public dataset and contains financial information of companies. The features used in the project are selected based on their relevance to the bankruptcy prediction task.

Preprocessing

The data is preprocessed to handle missing values, outliers, and scaling issues. The preprocessing steps include:

  • Train-test split
  • Standard scaling

Models

The following machine learning models are used to predict the bankruptcy of a company:

  • Logistic Regression
  • K-Nearest Neighbors
  • Decision Tree
  • Support Vector Machine (Linear and RBF kernel)
  • Neural Network
  • Random Forest
  • Gradient Boosting

Dimensionality Reduction

To improve the performance of the models, the number of features is reduced using PCA (Principal Component Analysis).

Results

The performance of each model is evaluated using accuracy, and the best-performing model is Support Vector Machine with an RBF kernel, achieving an accuracy of 96.63%.

Conclusion

This project provides a framework for predicting the bankruptcy of a company using machine learning algorithms. The best-performing model can be used as a reference for future projects with similar objectives.

How to run the code

  • Clone the repository
  • Install the required packages
  • Run the bankruptcy_prediction.py file

Contributing

Contributions are welcome and appreciated. To contribute, create a pull request with your changes.

License

This project is licensed under the MIT License.

About

This project aims to determine the likelihood of a company facing bankruptcy, a crucial aspect of financial analysis and investment decision-making.


Languages

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