Financial Reporting and Analysis: Evaluating Property, Financial Position, and Results in Business Entities

Abstract

Financial analysis is essential for evaluating company performance, providing insights into assets, capital, and financial health. This research highlights the importance of key indicators like profitability, efficiency, and stability in supporting strategic decisions and managing risks. The paper further examines the utility of discriminant models, such as Altman's Z-score and models tailored to Polish market conditions, for early detection of financial distress and potential bankruptcy. It provides a comparative analysis of multiple models, including those by Gajdka and Stos, Hadasik, Hołda, and Sojak and Stawicki, evaluating their efficacy in forecasting financial risk.The study applies these models to assess the financial standing of Wawel S.A., a prominent confectionery producer in Poland, exploring its financial statements, operational performance, and risk indicators. The findings reveal the nuanced applications and limitations of discriminant models, emphasizing the importance of adapting methodologies to local market conditions and the unique characteristics of individual enterprises. This research contributes to the broader discourse on financial risk management, offering practical insights for businesses, analysts, and policymakers.Copyright© 2024 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.