Corporate Financial Analysis Research Articles

A Study on the Application of Python in Corporate Financial Analysis

This article examines the application value, current status, and challenges of Python in corporate financial analysis and proposes targeted solutions to enhance its extensive use in financial practices. Currently, despite Python being recognized as a key tool to bolster corporate financial analysis due to its robust capabilities in data processing and analysis, its application in finance departments is limited by several core issues: a general lack of programming knowledge among finance professionals, insufficient operational training, and a lack of policy guidance for digital technology transformation. To address these issues, the paper puts forward five recommendations: 1) leverage the guiding role of governments and accounting associations; 2) continuously improve higher education programs for finance and accounting talent, integrating programming skills with traditional accounting courses; 3) strengthen university-enterprise cooperation and deepen teachers' enterprise practice; 4) develop comprehensive internal training and incentive mechanisms within companies; and 5) transition from abstract application guidelines to detailed application instructions. These strategies aim to significantly enhance the Python application skills of finance personnel, drive the digital transformation of the financial industry, and thereby generate greater value for businesses.

Analysis of financial statements based on the perspective of strategic management: A case study of Midea group in China

The main purpose of this paper is to address the existing gap in traditional analysis methods by integrating strategic management and environmental aspects, and to establish a theory of quality analysis of corporate financial conditions. This paper uses the method of combining enterprise strategy and financial statement analysis to analyse the quality of assets, profit and cash flow of enterprises, and then evaluates the allocation of strategic resources, the effect of strategy implementation and the ability of strategic support. This study demonstrates that the application of the theory of financial condition quality analysis can enhance the assessment of enterprises in terms of their market expansion ability, strategic layout ability, and internal governance ability, and this approach is aligned with the requirements of users. Based on the link between strategic management and financial statement analysis, this paper establishes a theoretical framework for financial position quality analysis. The theoretical framework of financial condition quality analysis established in this paper solves the limitations of traditional financial analysis methods and existing financial quality analysis theories, and opens up a new way for corporate financial analysis. Based on the analysis framework, this paper analyses the three aspects of Midea Group's cost management, diversified strategic layout and global breakthrough strategy, and puts forward suggestions for the future development of the enterprise.

Does neglecting the instruments of financial failure play a role in the bankruptcy of companies?

Corporate financial analysis tools are an important factor in corporate efficiency. Low-quality accessories for corporate financial analysis tools really brutally violate the interests of shareholders and can lead to the collapse of the business. The paper examines the development of models for predicting financial crises and compares the capabilities of existing models that can help alert management to current activity regarding an economic decision to buy shares or make loans. In the example of the NCA RUIBA company, Kida and Sherrod models were considered for predicting the financial failure of a firm. Based on the results of the calculations, it can be noted that NCA RUIBA had a good financial position when calculating the indicators according to Kida’s model, and according to the calculated data of the Sherrod model, the organization relies on external financing through high-risk loans, which is associated with the growth of non-current liabilities, especially long-term and medium-term ones. The results suggest that although corporate financial analysis tools alone are not sufficient to accurately predict financial distress, they can increase the predictive power of financial indicators and macroeconomic factors.

Analyze The Financial Position of a Business Based on its Profitability. Empirical Evaluation at Baoviet Life Corporation

The article evaluates the financial position and profitability of the business through the profit ratio. Using the research method of collecting and analyzing data, the research team presented an overview of the research contents such as the theoretical basis of corporate financial analysis, profitability assessment, and calculation method calculation of the rate of profit. To illustrate how to calculate and apply the profit margin method in practice, the research team has conducted an empirical assessment of the profitability ratios at Baoviet Life Corporation. The research results show that the business results, the rate of return on invested capital, total assets, and equity of the insurance enterprise are not good, the profit rate has decreased continuously for five years. At the same time, through the analysis method, which is the exclusion method and the Dupont method, the research team also points out the factors that need to be considered and changed to help the profitability of the business better. The research results confirm the importance of profitability ratios when evaluating the business results of enterprises because, in the financial statements of Baoviet Life Revenue Corporation, Profits increased continuously but profitability decreased.

Application of Engineering Science Model Based on Fuzzy Sets in Enterprise Financial Evaluation Index

With the continuous development of society and the increasingly fierce competition among enterprises, it is necessary to analyze the production and operation conditions of enterprises in a timely and effective manner. In the context of the development of information technology, many companies analyze financial data, and corporate financial analysis indicators are the analysis of various report data of the company’s operations, which can effectively reflect the company’s debt repayment, operation, profit, and development capabilities. Enterprises can judge the operation status of the enterprise and make strategic changes in time according to the indicators of enterprise financial analysis. However, due to the large amount of operational data of enterprises and different relationships among different types of data, the analysis of enterprise financial data is not accurate enough when using traditional enterprise financial analysis indicators for analysis. This paper established an engineering scientific model through fuzzy sets and improved the data analysis ability of enterprise financial analysis indicators in enterprises by means of fuzzy analysis. By comparing the enterprise financial analysis indicators of the engineering science model based on fuzzy sets and the traditional enterprise financial analysis indicators, the experimental results showed that the average financial information analysis accuracy of the enterprise financial analysis index based on the engineering science model based on fuzzy sets and the traditional enterprise financial analysis index are 84% and 74%, respectively. Therefore, applying the engineering science model based on fuzzy sets to the corporate financial analysis indicators can effectively improve the accuracy of financial information analysis.

Enterprise Financial Report under the Background of Big Data

With the rapid development of information technology, the era of big data management has come. This is both a challenge and an opportunity for the financial management of SMEs. The data age provides a more comprehensive and accurate analysis platform for corporate finance, but it also has a great negative impact on traditional corporate financial management methods. Therefore, under the background of big data analysis, corporate finance will face new challenges. In order to manage corporate finance, it must continue to innovate and reform. This article will discuss the issues of corporate financial analysis in the context of big data analysis, understand the relevant knowledge and theories of the company’s financial statements on the basis of literature data, and then build a corporate financial sharing platform based on big data, and make use of the platform the cited algorithm is tested, and the test results show that the algorithm in this paper has a greater advantage in clustering time than the k-means algorithm.

Building the Korean Sentiment Lexicon for Finance (KOSELF)

This study aims to verify and establish a Korean sentiment lexicon suitable for corporate financial analysis. When analyzing existing sentiment lexicons, the KOSAC and KNU (Kunsan University) dictionaries developed based on Korean are weak because they are used for general purposes. The Harvard IV and Loughran and McDonald (2011) have the disadvantage of being translated from English. In this study, the Korean Sentiment Lexicon for Finance (KOSELF) is constructed and presented. To verify its usefulness, text data from about 20,000 analyst reports published in Korea from 2016 to 2018 are collected from the Hankyung Consensus web page. After calculating the sentiment variables of negative and positive word frequency using five sentiment lexicons for each report, the recommendation and target price changes are regressed on these sentiment variables. The sentiment variables from the newly-constructed KOSELF in this study have a significant relationship with the analyst’s recommendation and target price change. Even when the sentiment variables calculated through the other four sentiment lexicons are added, it shows better performance. Our work has practical significance in that it proposes a Korean sentiment dictionary that can be used for finance.

Methodology of Industry Statistics: Averages, Quantiles and Responses to Atypical Value

The paper notices troublesome aspects of compiling industry statistics for the purpose of inter-enterprise comparison in corporate financial analysis. Whilst making a caveat that this issue is unbeknownst to practitioners and underrated by theorists, the goal of the paper is two-fold. For one thing, the paper demonstrates that financial ratios are inclined to frequency distributions characteristic of power-law (fat) tails and their typical shape precludes a simple treatment. For the other, the paper explores different approaches to compiling industry statistics by considering trimming and winsorizing cleansing protocols, and by confronting trimmed, winsorized as well as quantile measures of central tendency. The issues are empirically illustrated on data for a great number of Slovak construction enterprises for two years, 2009 and 2018. The empirical distribution of eight financial ratios is studied for troublesome features such as asymmetry and power-law (fat) tails that hamper usefulness of traditional descriptive measures of location without considering different possibilities of handling atypical values (such as infinite and outlying values). The confrontation of diverse approaches suggests a plausible route to compiling industry statistics that consists in reporting a 25% trimmed mean alongside 25% and 75% quantiles, all applied to trimmed data (i.e. data after discarding infinite values). The paper also highlights the sorely unnoticed fact that the key ratio of financial analysis, return on equity, may easily attain non-sense values and these should be removed prior to compiling financial analysis; otherwise, industry statistics is biased upward regardless of what measure of central tendency is made use of.

Discussion on Corporate Solvency Taking Gree Electric Appliance as an Example

The analysis of solvency is an important part of corporate financial analysis. It is of great significance for improving the solvency of enterprises and promoting the healthy development of enterprises. This article takes Gree Electric Appliance Co., Ltd. as an example. From the important indicators of measuring the solvency of enterprises, the paper analyzes the ratios of current ratio, quick ratio, cash ratio, asset-liability ratio, equity ratio, interest guarantee multiple and other indicators. Short-term solvency and long-term solvency, and make reasonable recommendations.

Thorstein Veblen’s 1904 contributions to q and insider/outsider analysis

AbstarctThe early 20th century saw the first steps in a tradition of leading economists explaining the link between corporate finance, investment and capital valuation. The writings of Keynes, and Tobin deal with the development of an investment theory based on the financial structure. However there is no mention Veblen, whereas he made an early American analysis of corporate governance structure. Our work is based on a critical review of the literature, which is guilty of omissions, lack of accuracy and errors of formalization. So that, we focus on the reasons why Veblen’s corporate financial analysis should not be forgotten.

SETTING STRATEGY USING VALUE CHAIN ANALYSIS: CASE STUDY ON PT. SARASWATI GRIYA LESTARI, TBK

The purpose of this research is to discuss about the application of value chain analysis model by using Crain and Abraham (2008) model consisting of upstream and downstream analysis. The model is applied to PT Saraswati Griya Lestari, Tbk which manages three-star hotel and fivestar hotel. This research describes the value chain in the company from the upstream to the downstream side. Through the discussion of the application of the model, this study provides several alternative strategies that can be applied by the company.The research method used is case study which aims to present structured, factual, and accurate information about the object that is under study. The case study method is used to identify the value chain in the company engaging in hotel services through upstream activities up to the downstream side. This study uses SWOT analysis method to identify strategic strengths and weaknesses, as well as threats and opportunities that can be followed up by the company. This study identifies a number of strengths and weaknesses of firms based on (for example) corporate financial analysis. The results of the analysis are set forth in the IFAS and EFAS tables.Based on value chain analysis from upstream to downstream, the company allows to apply relevant strategies to the character of products and services offered by PT Saraswati Griya Lestari, Tbk. This study provides a managerial impact on the company that is under study, i.e. the company can apply the application of setting strategy to achieve company goals and can improve the components that are considered less. Keywords: downstream analysis, EFAS, IFAS, SWOT analysis, setting strategy, upstream analysis, value chain analysis

SETTING STRATEGY AT FIVE-STAR HOTEL USING VALUE CHAIN ANALYSIS: CASE STUDY ON PT. SARASWATI GRIYA LESTARI, TBK

The purpose of this research is to discuss about the application of value chain analysis model by using Crain and Abraham (2008) model consisting of upstream and downstream analysis. The model is applied to PT Saraswati Griya Lestari, Tbk which manages five-star hotel. This research describes the value chain in the company from the upstream to the downstream side. Through the discussion of the application of the model, this study provides several alternative strategies that can be applied by the company. The research method used is case study which aims to present structured, factual, and accurate information about the object that is under study. The case study method is used to identify the value chain in the company engaging in hotel services through upstream activities up to the downstream side. This study uses SWOT analysis method to identify strategic strengths and weaknesses, as well as threats and opportunities that can be followed up by the company. This study identifies a number of strengths and weaknesses of firms based on (for example) corporate financial analysis. The results of the analysis are set forth in the IFAS and EFAS tables. Based on value chain analysis from upstream to downstream, the company allows to apply relevant strategies to the character of products and services offered by PT Saraswati Griya Lestari, Tbk. This study provides a managerial impact on the company that is under study, i.e. the company can apply the application of setting strategy to achieve company goals and can improve the components that are considered less.

CASH FLOW INDICATORS USE IN FINANCIAL ANALYSIS

The article contains information about a cash flow indicators use in financial analysis. Article target is to describe what information cash flow indicators can deliver and describe their use in corporate financial analysis and cash flow forecasting. The research topic problem involves cash flow indicators interpretation which is necessary to give a more accurate financial analysis. For financial analysis to be as accurate as possible, it is necessary to link a number of factors, variations and possible future problems trough all financial statements, including cash flow. The result of the process should be based on a profit-making and on increasing the value of corporate in the long term.

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.

Relationship Analysis between Profitability and Capital Structure of the Food Industry Listed Companies

This study aims to analyze the relation between profitability and capital structure of the food industry listed company and improve their capital structure. According to income rank of the food industry listed companies in China on August 1, 2014, provided by Chinese commerce intelligence network, this study makes a study on the growth level and operating status of the food industry listed companies from their panel data of third quarter report in 2014 and the profitability of enterprises is one of the important content of corporate financial analysis; corporate capital structure directly affects the business performance and long-term development. This study selects 4 indicators which mainly affect the profitability of enterprise, uses the method of factor analysis to make the comprehensive evaluation score on the 21 representative food industry listed companies in China, and carries on the correlation analysis and regression analysis to the assets and liabilities rate of the enterprise which is a main index to reflect the capital the structure, obtains the relationship between profitability and capital structure of the food industry listed companies.

Support Vector Machines Networks to Hybrid Neuro-Genetic SVMs in Portfolio Selection

Corporate net value is efficiently described on its stock price, offering investors a chance to include a potentially surplus value to the net worth of the overall investment portfolio. Financial analysis of corporations extracted from the accounting statements is constantly demanded to support decisions making of portfolio managers. Econometrics and Artificial Intelligence methods aim to extract hidden information from complex accounting and financial data. Support Vector Machines hybrids optimized in their components by Genetic Algorithms provide effective results in corporate financial analysis.

Corporate Governance and Corporations Law: The Case of Jack-in-the-Box Inc.

There has been substantial activity and discussion in the public and private sectors about corporate account ability and the quality of corporate disclosure. These issues have had substantial impact on many US companies, Japanese banks and European companies, particularly those that grew through mergers and acquisitions. Many companies have had to restate their financial statements. Service companies and technology companies now account for a substantial portion of the US economy and many modern economies. The growth of this type of entity (particularly by mergers and acquisitions) presents numerous public policy, legal, regulatory and accounting issues. Some of these companies have substantial in tangible assets, the accounting for M&A and investments can be manipulated to affect reported assets and earnings. The exchange of securities and conflicts of interest inherent in such transactions can affect financial statements - all of these factors can distort strategic planning, legal analysis, performance analysis and credit analysis. Fraudulent conveyance has typically not been considered in detail in many real life transactions (processed by law firms, the SEC, accounting firms and banks), and in published materials on corporate transactions, even though fraudulent conveyance is the major means of unfair and illegal wealth transfer and fraud in corporate transactions. This paper highlights some of these issues, and illustrates the role and benefits of proper legal analysis in corporate transactions, and the convergence of corporate financial analysis and legal analysis and tax/accounting analysis. This paper also presents reasons for changes in the disclosure and accounting requirements for intangible assets, regulatory approval processes for M&A and recapitalizations, and accounting for mergers and acquisitions. All financial data is as of April 2000.

Corporate governance, credit risk and legal reasoning – the case of Encompass Services Inc.

Corporate accountability and quality of corporate disclosure have impacted on many companies and banks, particularly those grown through mergers and acquisitions (M&A) and companies have had to restate their financial statements. The growth of service and technology companies (particularly by M&A) presents numerous public policy, legal, regulatory and accounting issues. Some of these companies have substantial intangible assets and the accounting for M&A and investments can be manipulated to affect reported assets and earnings. The exchange of securities and conflicts of interest in such transactions can affect financial statements – all of these factors can distort strategic planning, legal analysis, performance analysis and credit analysis. Fraudulent conveyance has typically not been considered in detail in many real life transactions (processed by law firms, the SEC, accounting firms and banks), even though it is the major means of unfair and illegal wealth transfer and fraud in corporate transactions. This paper highlights some of these issues, and illustrates the role and benefits of proper legal analysis in corporate transactions, and the convergence of corporate financial analysis and legal analysis and tax/accounting analysis.

Learning the language of business at Sabre

AbstractSabre Holdings had to grow up fast. It was spun off from American Airlines in 2000—and then September 11, 2001 slammed the entire airline industry. Yet Sabre came close to achieving its 2002 profitability plan—in large part because employees controlled expenses. And they had learned both why and how to do that through an innovative, experiential learning initiative that linked corporate financial analysis with daily work activity. © 2003 Wiley Periodicals, Inc.

Corporate Governance, Credit Risk and Legal Reasoning - The Case of Encompass Services Inc.

There has been substantial activity and discussion in the public and private sectors about corporate accountability and the quality of corporate disclosure. These issues have had substantial impact on many US companies, Japanese banks and European companies, particularly those that grew through mergers and acquisitions. Many companies have had to restate their financial statements. Service companies and technology companies now account for a substantial portion of the US economy and many modern economies. The growth of this type of entity (particularly by mergers and acquisitions) presents numerous public policy, legal, regulatory and accounting issues. Some of these companies have substantial intangible assets, the accounting for M&A and investments can be manipulated to affect reported assets and earnings. The exchange of securities and conflicts of interest inherent in such transactions can affect financial statements - all of these factors can distort strategic planning, legal analysis, performance analysis and credit analysis. Fraudulent conveyance has typically not been considered in detail in many real life transactions (processed by law firms, the SEC, accounting firms and banks), and in published materials on corporate transactions, even though fraudulent conveyance is the major means of unfair and illegal wealth transfer and fraud in corporate transactions. This paper highlights some of these issues, and illustrates the role and benefits of proper legal analysis in corporate transactions, and the convergence of corporate financial analysis and legal analysis and tax/accounting analysis. This paper also presents reasons for changes in the disclosure and accounting requirements for intangible assets, regulatory approval processes for M&A and recapitalizations, and accounting for mergers and acquisitions. All financial data is as of April 2000.