Balance Sheet Analysis Research Articles

Central Bank Digital Currencies and Financial Stability: Balance Sheet Analysis and Policy Choices

Central Bank Digital Currencies and Financial Stability: Balance Sheet Analysis and Policy Choices

Balance Sheet Analysis with the Aim of Improving Financial Reporting: A Case Study of DCCB Raipur, India

This paper presents in the form of a case study the process of analysis of the balance sheet and income statement of the District Central Cooperative Bank (DCCB) Raipur. The research presented in the paper is based on the analysis of the official set of basic financial reports, as well as other publicly available data on the DCCB Raipur. As the time component is very important for research of this type, that reports were observed in the paper during only current and the previous years, ie for the period 2021-22. The aim of the research is to assess the financial result and financial position of a given company by examining the structure and dynamics of total income and the distribution of total income, profitability and opportunities to improve the financial position. The results of the research indicate that the bank's strong financial position and profitability are attributed to its efficient operations and strategic financial management, as evidenced by the substantial growth in net income. The bank has effectively managed its assets and liabilities to achieve strong financial health. This positive trend indicates the bank's ability to generate sustainable profits and maintain its competitive edge in the market.

Financial analysis of rural tourism in Catalonia and Galicia pre‐ and post COVID‐19

AbstractThis article analyses the financial health of Catalan and Galician rural tourism businesses between 2019 and 2021 by examining their profitability and solvency, in order to assess their survivability over the period affected by the COVID‐19 pandemic. To this end, we classify firms into groups with similar financial health. The article uses accounting data from the SABI (Iberian Balance Sheet Analysis System) database and the Compositional Data (CoDa) methodology, which offers a reliable analysis of sectoral financial statements, and is immune to the statistical problems of classical ratios (skewness, non‐normality, non‐linearity, and outliers, among others). The classification with the k‐means method reveals three groups with distinct financial profiles. None have a positive return on equity. One cluster is under special financial distress, with high indebtedness, low liquidity and an extremely negative margin. The size of this cluster increases during the 2020 lockdown but returns to normal in 2021.

The metamorphosis of external vulnerability from ‘original sin’ to ‘original sin redux’: currency hierarchy and financial globalization in emerging economies

How has financial globalization changed the nature of external vulnerability of emerging economies? To answer this question, we first present an overview of the changes in international capital flows and cross-border stocks involving emerging economies from the 1970s to the COVID-19 crisis and then identify relevant recent shifts in financial globalization. We adapt the concept of currency hierarchy to the most recent features of financial globalization. We deploy a stylized balance sheet analysis to better understand the metamorphosis of these economies’ vulnerabilities. We find the occurrence of the phenomenon of ‘original sin’ during financial internationalization. In contrast, in more recent times of financial globalization, the diversification of financial flows and investors and the increase of securities denominated in domestic currency have created additional channels of vulnerability, labeled as ‘original sin redux’. We find that the private sector in Southern economies is mostly exposed to these new vulnerabilities. At first sight, it is good news because it preserves the fiscal space of Southern States in the case of capital outflows. However, it might create new contingent liabilities for the public sector. We call for capital account regulation in a broad sense to target these new complex vulnerabilities.

The Role Of Business Diversification, Education And Development Activities On Business Performance Of Construction Companies Listed In Indonesian Stock Exchange

The aim of this research is to analyze the development of companies in the capital market, especially in the accounting aspect. The companies in this study consist of a large number of subsidiaries, associated companies, and multi-group companies. This is an applied study that uses developments in accounting doctrine, particularly those that influence balance sheet analysis, comparison of financial statements over time, and ratios. The analysis results indicate an increase in stock prices, followed by a general decline the following year, likely due to changes in the economic cycle. Regarding the debt situation, there has been a significant increase. Despite this, increases continued, reaching figures that would be difficult to maintain in the future. The following year, the figure decreased due to the crisis and the disinvestment process mentioned earlier. From this analysis, it appears that the construction group experienced significant challenges in managing their debt and assets over the period, which is reflected in their share price movements, turnover, and results. The composition and variations of the group's balance sheet showed major changes during the period, mainly due to the expansion of lines of activity that required large investments in permanent structures. This situation is unsustainable and requires significant disinvestment. This shows that the capital and financial management of these groups play a very important role in maintaining the stability and growth of their companies. Additionally, we must carefully make investment decisions and manage debt to avoid creating unwanted risks in the future.

A Study on Financial Performance Analysis in Greenergy Bio Refineries Pvt Ltd Bengaluru

The learning speaks that the financial performance analysis at Greenergy Bio Refineries private Ltd company Bengaluru. The impartial of this study is to comparison the current financial performance with previous four years and to study the prevailing financial position of company. The information that used in this study, comparative balance sheet, comparative balance sheet analysis, and it is to be recommend that the company can quintessence on their cumulative this level of the current asset. Consequently, the company advances this financial position.

Sustainability and the environmental impact of the tourism industry: An analysis of the hotel sector in Catalonia, Spain

Purpose: This research examines policies aimed at reducing the environmental impact of the hotel sector in Catalonia, Spain in 2020 and how they are communicated to stakeholders through corporate websites. It applies academic criteria to identify key aspects that are relevant to tourism.Design/Methodology: This study conducts a descriptive analysis of Catalonia's hotel sector in 2020, utilizing SABI (Iberian Balance Sheet Analysis System) data. It selects the top 48 companies in the hotel sector that are legally required to report their annual accounts in the regular format. The study then systematically evaluates their websites to assess the availability and transparency of information on environmental sustainability.Findings: Sustainable tourism, marked by non-financial indicators such as environmental impact, energy/water usage and waste generation, is a very important issue for stakeholders in the hotel industry, including governments, owners, investors, and customers. The sector's reporting methods are crucial for effectively communicating environmental policies to these parties. While many companies have implemented strategies to assess and reduce their environmental impact, there is still considerable room for improvement, particularly in communicating these efforts to the various stakeholders.Research limitations/implications: This research, while rigorous, has certain limitations that suggest directions for future studies. A primary constraint involves data reported at a group level by hotel companies, which complicates obtaining specific data for the Catalonia region, particularly for hotel groups with an international presence. Another significant limitation is the reliance on indirect data collection, based on the companies' self-reported environmental policies posted on their websites.Practical implications: By identifying and knowing the environmental policies of the hotel industry over the analyzed period, we can help the industry itself to improve the sustainability of its environmental efforts and make it more attractive to all stakeholders.Social implications: The study highlights the importance of environmental policies and the achievement of the UN Sustainable Development Goals (SDGs) in the hotel industry. This industry plays an important role in achieving the UN SDGs, which offer significant benefits for business, such as access to new markets, better risk management and long-term sustainability, as well as social benefits. This is increasingly expected by both consumers and investors.Originality/Value: This study examines the commitment and information transparency of the Costa Brava hotel sector in terms of environmental sustainability, as well as its communication strategies. This is achieved primarily through the analysis of corporate websites, comparing the information and indices to those of other entities in the sector. The relevance and value of this analysis stems from the recognition that, despite the efforts made to improve the sector, further progress needs to be made in order to make it more attractive to stakeholders.

A balance sheet analysis of monetary policy effects on banks

Monetary policy operations affect bank balance sheets (BBSs). This study develops a balance sheet model to examine the impacts of monetary policy operations on banks' ability to supply funds. That ability is assessed using the balance sheet capacities provided by regulatory risk management instruments. The balance sheet approach views a monetary policy operation as a transaction between the central bank and a commercial bank, modeling the transaction as multiple changes to the BBS. This study identifies and distinguishes the effects of multiple changes in the BBS on balance sheet capacity. A balance sheet change resulting from a monetary policy operation may positively or negatively affect balance sheet capacity. Thus, a monetary policy may have a positive and a negative effect simultaneously. Positive (negative) effects result from balance sheet changes that reduce (increase) bank risks, as measured by regulations. As regulatory stringency decreases, the positive effects increase, whereas the negative effects remain unchanged. A BBS capacity channel of monetary policy is also shown.

Comparative Analysis of Adani Power and Tata Power Financial Statements

This report provides a comprehensive analysis of the financial statements of Adani Power and Tata Power, two prominent players in India's power sector. The study includes a company overview, objectives, trend analysis of balance sheets and profit and loss accounts, and insightful interpretations. Key findings reveal the impact of the pandemic on both companies, a comparison of their financial aspects, and noteworthy trends in shareholder funds and total liabilities. Adani Power showcased profit resilience, while Tata Power faced consistent losses during the pandemic, shedding light on their performance in a rapidly evolving energy landscape.

Political Stability and Performance of Financial Institutions in Pakistan

The purpose of the present study is to analyze the impact of political stability on the performance of financial Institutions in Pakistan. This is the first study in the context of Pakistan that analyzes the performance of financial institutions during the period of political stability. The study's sample period was from 2008 to 2017 because, for the first time in Pakistan, two pure political governments completed their electoral term since the country's independence in 1947. The data is collected from the balance sheet analysis provided by the State Bank of Pakistan on its official website. For the data analysis, the study used the CAMEL analysis technique. The CAMEL analysis technique was also used by the IMF in 2020 to analyze the performance of underdeveloped and developing countries of the world. The results show that the performance of locally owned financial institutions (MCB Bank, United Bank Limited, and Allied Bank) in Pakistan increased during this period. Still, foreign-owned bank's performance is not good even if they cannot fulfill the minimum requirement established by the State Bank of Pakistan. The results contribute to the efficiency theory of financial institutions. Further, the study suggests that the researchers can test the significance of the results by changing sectors to confirm, modify, accept, or reject the results.

Analisis Prediksi Kebangkrutan Perusahaan Asuransi Kerugian Di Indonesia

The application of the bankruptcy model using the Altman Z-score model is carried out to predict financial difficulties by using balance sheet analysis which can reflect the company's financial performance. Insurance companies are needed to minimize risks and uncertainties for futureprotection. Altman's Z-score model is analyzed through the calculation results if it is smaller than <1.1 it is concluded that the company is at high risk, if the calculation results are 1.1-2.6 it is concluded that the company is prone to bankruptcy, and if the calculation result is> 2.6 itcan be said that the company is healthy. So that the probability of bankruptcy can be estimated using the Z- score Altman method. This modeling can be used by insurance companies in making decisions. (MMG) Keywords: Bankruptcy, Financial Performance, Altman's Z-score Method

A.P. Rudanovsky and his ideas of balance sheet analysis as an enterprise model.

This article is devoted to the contribution to the development of Russian accounting by one of the outstanding scientists of the XX century Alexander Pavlovich Rudanovsky. Particular attention is paid to balance sheet as a central category in the researcher’s works. In Rudanovsky’s works the balance sheet can be considered as a model in the modern sense of economic relations. Despite the fact that Rudanovsky’s ideas were not subsequently developed by Soviet economists, they were highly appreciated and inspired post-Soviet researchers to updated concepts. Thus, the study of its theoretical provisions remains relevant.

Determinants of environmental certification in Portuguese hotel companies

Abstract There are many responsible business and investment initiatives in the field of environmental performance, and among these, certification is a targeted mechanism. In this work, we intend to study the determinants of environmental certification of hotel companies, analysing the Portuguese case. The empirical study considers hotel companies established in Portugal that may operate one or more hotel units. The information retrieved from the Portuguese National Tourism Registry and Iberian Balance Sheet Analysis System database was coded, and a database was built in the SAS software. Variable and data analysis was conducted using descriptive statistics, variable correlations, and the Tobit regression model. The results indicate that affiliation to a brand, hotel classification and hotel size are factors that explain environmental certification, but the return on sales was not statistically significant in this study. These results are important to understanding the determinants of environmental certification in hotel companies since, as a topic of research, it has had little attention prior to the study for the Portuguese case, thus reinforcing the importance of this research. The study also reveals the restricted sample of hotel companies with environmental certification in Portugal, which did not allow computing other study variables that would improve the empirical work.

Improving Leasing Viability: A comprehensive analysis of customer credibility checks and trustworthiness

The contemporary leasing landscape is marked by increasing complexity and risk, necessitating rigorous customer credibility checks as a critical safeguard for lessors. This research paper delves into the multifaceted realm of customer credibility checks, shedding light on their paramount importance in the leasing industry. Central to this study are the diverse methods employed to assess customer credibility. Comprehensive coverage is provided on widely adopted approaches, including credit rating, GST analysis, balance sheet analysis, cash flow analysis, and profit and loss analysis. Through detailed examination, the paper unveils the strengths and limitations of each method, facilitating a nuanced understanding of their applicability in different leasing scenarios.

German Public Banks, Competition, and Risk: Deregulation of Landesbanks and German Vulnerability to Crisis

This article uses historic and balance sheet analysis to argue that financial deregulation and competitive pressures in financial markets motivated German Landesbanks, large public banks that historically served small and medium enterprises and funded public expenditure, to engage in risky financial practices that precipitated their failures in the 2008 Global Financial Crisis. By contrast, Sparkassen, public municipal-level savings banks that maintained a lending-based model, protected households and small businesses from credit crunches following the Global Financial Crisis. The article shows that pressuring public banks to maximize profits negates the benefits these institutions can offer, while increasing economic instability overall.

Managing government commissioning and philanthropic expectations: earnings management in Australian nonprofit disability service providers

PurposeThe purpose of this study is to investigate the prevalence of earnings management in the Australian not-for-profit (NFP) disability service providers sector, as well as to understand the motivations for and implications of such practices. This research is important for stakeholders, such as members and funders, as well as the broader Australian community, considering the significant financial resources allocated to these organizations from the public purse.Design/methodology/approachThe authors employ a longitudinal dataset containing financial data from 154 Australian NFP disability service providers, collected over a two-year period (2015–2016). Through the analysis of detailed balance sheets and income statements, the authors seek to uncover evidence of earnings management practices in this sector. The study’s results provide valuable insights into the behaviour of the charitable human services sector.FindingsThe findings reveal that Australian NFP disability service providers engage in earnings management practices, primarily aimed at reducing reported profits to meet the normative financial expectations of stakeholders, such as public sector funders and philanthropists. The executives of these organizations strive to report profits close to zero, being cautious not to report a loss, which might raise concerns about their sustainability.Originality/valueThe authors contribute to the existing literature on earnings management in the NFP sector by focussing on Australian disability service providers, an area that has been under-researched due to a lack of suitable data. The results offer insights into the incentives and implications of earnings management practices in this sector and highlight the need for a revaluation of accounting standards, reporting requirements and audit arrangements applicable to the NFP sector.

Objective Performance Evaluation of the Islamic Banking Services Industry: Evidence from Pakistan

Purpose — The study documents the performance of the Islamic banking services industry (IBSI) in light of the Islamic finance objectives, notably financial stability, equitable distribution of wealth, and social responsibility. Design/Methodology/Approach — After drawing the performance evaluation framework based on the objectives, the research conducts a balance sheet analysis of the IBSI in Pakistan for 32 quarters (2013Q4–2021Q3). The analysis examines sources and uses of funds by looking at the application of financial contracts and sectoral distribution of financing. Objectively classified data trends are reported through graphs. Findings — Findings suggest that the domestic IBSI has shown progress in achieving primary and intermediate objectives, including commercial performance, contribution to equitable wealth distribution, and financial stability. However, the industry’s in-practice business models lack any significant contribution to the social sector, which represents a more advanced objective. Originality/Value — The contributions to the literature include development of a performance evaluation framework based on Islamic finance objectives, and documentation of findings on the IBSI’s achievements in Pakistan. Research Implications — The study recommends that regulators develop a legal framework for business models of the IBSI. It also recommends that managers of domestic Islamic banks include the social sector as well as agricultural and rural areas in financing and investment portfolios. Article Classification — Research paper

Linking occupational accidents and construction firm survival

Introduction: This paper examines the relationships between the reported accidents of workers in construction firms and the probability of those firms’ survival. Method: Between 2004 and 2010, a sample of 344 Spanish construction firms from Majorca were selected. The study built panel data with the reported official accidents from the Labor Authority records and the firm survival or mortality from the Bureau van Dijḱs Iberian Balance Sheet Analysis System database. The hypothesis is that a higher number of accidents directly affects the probability of the company surviving in the sector. By using a probit regression model with panel data, the relationship between these two variables were explored to test the hypothesis. Results: The study found evidence that an increment in accidents decreases the probability of the company continuing to operate, or worse, going bankrupt. The results can be useful to highlight the importance of defining policies to control those accidents effectively, since this may be a key factor in the sustainability, competitiveness, and growth of the construction sector for the economy of a region.

Utilization Of Selected Methods of Managerial Economics in Aviation Companies

The article is focused on the areas of management in aviation companies by way of applying selected methods of managerial economics, applicable under the constantly changing conditions entailing high level of risks. Attention is paid separately to the characterizing the external environment, applying the systems- based views, balance sheet analysis and controlling. The core of the publication is on selected methods representing the pillars of company economics and can be adapted by managers with purely technical background. The aviation industry is a complex and competitive market that requires companies to make strategic decisions in order to stay competitive and profitable. This paper examines the utilization of selected methods of managerial economics in aviation companies. Specifically, it explores how airlines use economic analysis to make decisions related to pricing, revenue management, cost control, and investment. The paper begins by providing an overview of managerial economics and its relevance to the aviation industry. It then explores several specific methods of managerial economics, including demand analysis, cost analysis, pricing strategies, and investment analysis. Each of these methods is discussed in detail, highlighting how they can be used to inform decision-making in aviation companies. The paper also examines case studies of successful airlines that have effectively utilized these methods of managerial economics. These case studies demonstrate how airlines have used economic analysis to optimize pricing, increase revenue, control costs, and make strategic investments. Overall, the paper concludes that the utilization of selected methods of managerial economics is crucial for the success of aviation companies. By analyzing data and making informed decisions based on economic principles, airlines can stay competitive and profitable in a constantly changing market. As such, the paper provides a valuable resource for aviation managers and researchers seeking to better understand the role of economics in the aviation industry. Keywords - Economics, management, levels of control, methods of economical analysis, managerial skills

A study on financial performance analysis of HDFC bank

The study entitled the financial performance analysis and Company. The objective of this study is to compare the current financial performance with last five years and to study the existing financial position of Company. The data used in this study is secondary data through annual report. The data that used in this study, comparative balance sheet, common size balance sheet, comparative balance sheet analysis ,that the current liabilities is higher than the current asset in every year and it is to be suggest that the company can concentrate on their increasing the level of the current asset. So the company improves this financial position. The study of financial performance on The Company has revealed the great deal of their various financial aspects for five years. Findings of the study, Table shows, current assets and current liabilities over a period of 10 years from 2012-2013 to 2021- 2022. The Interest Incidence % (times) mean 25.65 and its Standard Deviation is 24.25 Coefficient of Variation is 23.40 and CAGR is 23.28 Interest Incidence % (times) is high during period 2013– 2014. It indicates the firm is fluctuation trend in this ratio during the whole study period 2013-14 - 2021- 2022.Conclude this study. It helps to understand the working of the bank. From the study of financial performance of HDFC BANK it can be concluded that the bank has satisfactory position with regard to profitability and the bank needs to improve its liquidity and solvency.