Application Of Financial Analysis Research Articles

Application of Financial Analysis in Enterprise Risk Control

Application of Financial Analysis in Enterprise Risk Control

Application of Financial Analysis in Enterprise Financial Management

The rapid development of economic level makes the competition between enterprises more and more fierce. In the competition, financial analysis plays an indispensable role in enterprise financial management. This paper expounds the relevant concepts of financial analysis, explores the role of financial analysis in enterprise financial management, finds the relevant problems of financial analysis in enterprise financial management, and briefly expounds how to strengthen financial analysis within the enterprise, which is more conducive to the effective implementation of enterprise financial management.

Application of Financial Analysis in Determining the Possibilities of Human Capital Development.

Application of Financial Analysis in Determining the Possibilities of Human Capital Development.

Financial Analysis as a Basis for Creation of the Financial Plan of the Selected Business Entity – Case Study

Research background: Authors mentioned in the Research describe a financial analysis as first step of a financial planning process. It is an effective tool in the evaluation of a company’s financial efficiency on the basis of data from financial reports, where the individual data are sorted, aggregated and measured. The analysis usually consists liquidity, activity, profitability indicators and debt ratios. The result of the analysis should evaluate financial health and subsequently predict future of the focused company. Purpose of the article: The scope of this article is a practical application of financial analysis of the company. The main sources of information include financial statements balance sheet and income statement over the period of the last 3 years. Other sources are information obtained from employees of the company and information gained by studying a literature. Methods: The analysis process begins by identifying the main objectives and targets, continues by the methodical procedure, analysis of indicators and an interpretation of the analysis results. The main objective of the analysis is to evaluate the assets, the sources and the overall economic situation of the company. The key indicators that are the status and development of current and non-current assets, the status and development of equity and liabilities and a profit development. Findings & Value added: The financial analysis of a focused company was applied for the last 3-year time period. The worst status of the indicators occurred in the second year and after the subsequent intervention of the company management the result improved to sustainable status.

Apple Inc.: An Application of Financial Analysis, 2003–2018

Since its launch out of a garage in 1976, Apple Inc. had transformed from a computer-manufacturing company to the undisputed leader in diversified consumer electronics and media. Unparalleled financial performance along almost every metric followed, and in September 2018, Apple's market capitalization topped $1 trillion, the first time a US publicly traded company reached that mark. Using the company's financial statements, this case provides a longitudinal view of Apple over 2003–2018. Using these data, students can perform a variety of financial analyses in order to assess how Apple has evolved over time. These include computations of traditional analysis metrics (e.g., ROE and gross margin), but also critical valuation inputs (e.g., free cash flow and implied terminal growth). This case is used at Darden in the second-year Financial Statement Analysis course. It would also be suitable in earlier accounting and finance courses, and even executive education programs, wherein the objective is to review financial statements and discuss critical financial metrics. Excerpt UVA-C-2420 Rev. Apr. 10, 2019 Apple Inc.: An Application of Financial Analysis, 2003–2018 Quality is much better than quantity. One home run is much better than two doubles. —Steve Jobs, 1955–2011 As of 2018, Apple Inc. had been one of the best-known companies in the world for over four decades, unarguably reaching iconic status. Steve Jobs, Apple's deceased cofounder and CEO, was widely regarded as one of the elite group of visionaries whose ideas and products significantly changed the world. Since its launch in a garage in 1976, with handmade personal computers as its first product offering, the company had adapted and innovated, staying true to creating unique, high-quality electronic devices that carried mass appeal. Over the years, Apple had transformed from primarily a computer-manufacturing company to the undisputed leader in diversified consumer electronics and media. Unparalleled financial performance along almost every metric followed. Since 2003, total sales had increased over 20 times. Profit margins more than doubled. And in September 2018, Apple's market capitalization topped $ 1trillion, the first time a US publicly traded company reached that mark. . . .

Measuring Solvency In The Turkish Public Transportation Industry

Financial analysis is a combined effort of knowledge and experience to obtain relevant ratios and elaborate on the results. The study is an application of financial analysis on Istanbul Public Transportation Company. As seen in the literature review section of the study public transportation companies require high subsidies by governments which is a factor to consider in the research. The research period is 2014-2016. It is a comparative study with the inclusion of Izmir – ESHOT and Ankara – EGO public transportation companies. The results are therefore compared with industry averages computed by the average of public transportation companies of three big cities in Turkey. The research is based on 7 selected ratios, 3 for measuring liquidity and the remaining 4 for measuring solvency. The ratios used in this paper are current ratio, acid test ratio, cash ratio, total debt ratio, debt equity ratio, equity multiplier, and long term debt ratio. According to the results, the companies have a very low current ratio which means they operate with low liquidity. Solvency analysis also reveal that, there are high degrees of leverage and negative shareholders’ equity. The research shows that companies might struggle to repay debts without government support

Choosing the best model in fuzzy Bayesian statistics and its application in financial analysis

Analysts generally use closing price and normal distribution assumption for a model’s distribution in financial analysis. However, stock price fluctuation is reflected by a set of four values, namely opening, highest, lowest and closing prices. We therefore include the highest and the lowest prices to take into account more information in the hope of ending up with a more exact result as data contains a ranges of values instead of one only (i.e. the data is a form of fuzzy number). Moreover, the assumption that data is normally distributed is not always satisfied and Jacque Bera or Chi square tests are often employed to test the data’s normality. The tests require the use of pvalue which is quite controversial at present. This paper employs fuzzy Bayes point estimator to choose the most suitable distribution. On a sample of 9 stocks with large capitalization in Vietnam from their listed dates until November 06, 2015, we found that some stocks have prices distributed more reasonably than normal distribution and some are not.

The Role of Capital Structure in ABCT

We argue that the application of financial analysis, especially that of duration, clarifies and supports the application of the average period of production in ABCT. We also suggest that the focus in the recent ABCT literature should be more on the average period of production (APP) and less in the stages of production as depicted in Hayek’s triangle in Garrison’s model.

The Application of Financial Analysis in Business Management

With the application of financial analysis in business management with the development of economy, enterprises are facing increasingly complex environment. Enterprise modern management is the trend. Financial management is an important part of strengthening the capacity of corporate financial analysis. It has an irreplaceable role to improve their core competitiveness, but this aspect currently in China is still not taken seriously enough. In business management, through the analysis of accurate and comprehensive financial indicators can be more systematic and comprehensive understanding of the enterprise, it can provide a favorable support to make correct and reasonable judgments and decisions, so as to formulate a more comprehensive fit enterprise systems and strategies, a more reasonable and effective, targeted measure for enterprises’ sustainable development is important. Its implementation enables businesses to sustainable development.

Financial Analysis and Bankruptcy Risk Identification Model Used by Companies Operating in Poland – Empirical Study Results

Financial analysis and bankruptcy risk assessment models are applied to assess an economic position and to identify risks to business activity. The assessment is conducted based on data from financial statements which in Poland can be prepared in accordance with both domestic and international accounting standards. Bankruptcy risk identification models which based on historical or prospective data allow identifying a probability of such an event started to appear in Poland a few years following the political changes of 1989. Currently, there are over 15 models developed by different authors and described in detail in the literature. The aim of this article is to present the results of an empirical study (survey study) on the application of financial analysis and bankruptcy risk identification models which was conducted among the largest Polish companies. The study results show that Polish companies apply tools of financial analysis to assess the economic position not only of their own entity, but also competition and business partners, and bankruptcy risk assessment models developed according to and adjusted to the Polish economic circumstances.

Assets Held for Sale and Discontinued Operations – Evaluation of Liquidity – Determination of Ratio – or Necessity of Adjustment?

The change in the use of an asset results from economic conditions and requires that a company revalue the asset and adjusts its value by costs of sale or liquidation. The current value of the asset determined in that way influences the financial result of the company and enables the movement of value from non-current assets to current assets. This change has an impact on the evaluation of financial situation and financial ratios.The aim of this article is to describe principles of measurement and presentation of assets held for sale and application of financial analysis in order to assess risks by potential investors. The purpose of this work constitutes part of a wide-ranging discussion on the directions of changes in financial reporting and principles of effective investing.

Software Reliability Testing using Monte Carlo Methods

Monte Carlo method is used in this paper to test the software reliability. The Monte Carlo method is a technique that can be used to solve mathematical or statistical problems. Monte Carlo simulation uses frequent sampling to determine the properties of some phenomenon. There have been very rare uses of such simulation methods for software testing. This paper provides an accurate algorithm for testing software based on Monte Carlo Methods. The results would decide the percentage reliability of the software. This scheme has a number of applications in financial analysis, Econometric, statistics, software testing, fault detection in circuits and many more.

Qualitative-probabilistic-network-based modeling of temporal causalities and its application to feedback loop identification

Modeling and analysis of time-series data attract much attention in data mining and knowledge discovery community due to their many applications in financial analysis, automation control, etc. In such applications, time-series data usually contain several attributes that may be causally dependent in historical time slices. Dangerous feedback loops of attributes’ dependent relationships can make the system collapse due to amplification or oscillation of attribute values. Motivated by efficient analysis of causalities in time-series data, we propose a temporal qualitative probabilistic graphical model in this paper. From given time-series sample data, we construct the structure of the temporal qualitative probabilistic network (TQPN) and derive the corresponding qualitative influences on directed edges. We then present the approach for TQPN reasoning with time-series features. Consequently, positive time-series feedback loops are defined, and the approach to identify them is proposed. Preliminary experiments show that our proposed method is not only feasible but also efficient.

Financial analysis and strategic management

Applications of financial analysis and planning models to strategic management are presented and discussed in this article. The authors first define the concept of strategy and the nature of strategic problems, then present a useful organizing paradigm of the strategic management field. Against that backdrop, financial analysis applications are discussed. Various financial analysis and planning models are reviewed, focusing on their usefulness to strategic management. Suggestions for future research directions are raised and considered.