A Financial Distress Prediction Model Based on Sparse Algorithm and Support Vector Machine

Table 2

Grouping of characteristics of the company.

Characteristics grouping	The company’s information reflected by each indicator group	Number of features
Profitability	An index that reflects the profitability of an enterprise	40
Solvency	An indicator that reflects a firm’s ability to repay long-term and short-term debt with its assets	17
Growth ability	An indicator that reflects the future development trend and speed of an enterprise	20
Operation ability	Indicators that reflect the operational capability of an enterprise	11
Cash flow	An indicator that reflects the amount of cash and cash equivalents in and out of an enterprise in a period	14
Dividend capacity	An indicator that reflects the distribution of the current year’s earnings to shareholders	6
Capital structure	An index that reflects the relationship between the total capital of an enterprise and its composition and proportion	16
Earnings quality	An index that reflects the reliability of information related to the economic value of an enterprise expressed by accounting earnings	10
Index per share	According to the total number of shares discovered by the enterprise to measure all aspects of the enterprise information index	21
Dupont analysis index	An indicator that plays an integral role in the Dupont financial analysis system	6
Market transactions	An indicator that reflects the stock of a listed company traded in the secondary market	10
Corporate governance	An indicator that reflects the distribution of power within a company	8