Probability of Default - Logit model

[janee]

Could you help me determining which ratios I could use for calculating the probability of default using a logit model.
I have the following variables for firms : default age numberemployees scheme fixedassets currentassets cash totalassets totalliabilities shorttermdebt equity currentliabilities financialdebt netcurrentassets workingcapital netsales operatingincome ebit netincome retainedearnings cashflow addedvalueoveremployee.

The data is of 500 firms, but im stuck in finding proper ratios to have PDs which make sense.
Thanks in advance

 

[ShaktiRathore]

Hi if i can help
Proper ratios could be as,
1)operating margin=operating income/net sales
2)profit margin=net income/net sales
3)debt/equity ratio
4)debt ratio=total debt/assets
5)current ratio=Curent asset/current liability
6)Asset T/o=Sales/Assets
Thanks