Customers’ classification by the using mathematics methods

Companies, as well as financial institutions, deal with the same problem – verification of credibility of and enterprise. How can they identify enterprises with real threat of insolvency? One of the ways are various scoring models oriented on evaluation of the failure probability. This possibility is, however, very demanding on information about financial behaviour of a given subject. Our article discusses the utilisation of cluster analysis to identify similarities of companies and their distribution into groups. The aim of this contribution is to show what possibility are hidden in utilization of the cluster analysis and test by using of cophenetic correlation coefficient. The firms’ distribution in the class may be used to determine strategy for granting trade credits.

Abstract licence: CC BY-NC-ND

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