Methods Of Financial Analysis Research Articles

The Application of Artificial Intelligence Technology in the Asset Management of Start-Ups in the Context of Deep Learning

With the coninuous improvement and development of artificial intelligence (AI) technology, this technology has been used in the asset management of companies. To improve the asset management level of Chinese start-ups, firstly, back-propagation neural network (BPNN) has been studied in depth, and an evaluation system of the company's asset quality has been established. Secondly, the BPNN is integrated with the evaluation indicators of asset quality, and an evaluation model of asset quality based on BPNN is constructed. Next, start-up A is taken as the experimental object; the evaluation score of the asset quality of A company is input into the model, which proves that there is still a certain gap between the asset management level of start-ups and mature companies. Finally, to find out the problems of the company's asset quality, the traditional financial analysis method is used to carry out a specific microanalysis of the evaluation indicators of its asset quality. In view of the existing problems, suggestions are put forward for prudent investment, improve inventory operation efficiency, increase investment in R&D and innovation, improve the quality of sales outlets, and increase the proportion of high-quality intangible assets. The asset quality evaluation system for start-ups established here includes 19 evaluation indicators. The BPNN-based asset quality evaluation model selects 5 mature companies in the same industry as sample companies. The scores of the evaluation indicators of asset quality of the 5 sample companies in the past three years are normalized and input into the model. The model contains 19 nodes of the input layer, 39 nodes of the hidden layer, and 1 node of the output layer. The target error rate is 0.001, the learning rate is 0.1, the number of training times is 1000, and the training function is the trainlm function. This research has a certain reference for the application of AI technology in the asset management of start-ups.

FOREIGN EXPERIENCE OF DIGITALIZATION AT AGRO-INDUSTRIAL COMPLEX ENTERPRISES

Article data studied are the organizational and economic relations that arise in the process of evaluating the effectiveness of digitalization of enterprises in the agro-industrial complex. Research methods: content analysis of scientific literature on the research topic; comparative analysis; methods of financial and economic analysis; expert survey; statistical methods for analyzing the relationship and series of dynamics. The novelty of the study lies in the development of a methodology for assessing the effectiveness of digitalization of agro-industrial enterprises, based on an integrated approach, including the use of statistical and expert assessments, and involving the calculation of the index of the level of digitalization and the integral effect of the introduction of digital technologies, taking into account the industry characteristics of companies, which allows us to assess the rationality of the use of resources in the process of digital transformation of business processes of organizations. The practical significance of the study lies in the use of the developed methodology for assessing the development of a company, tracking the dynamics of its digitalization and conducting a comparative analysis with other enterprises in the industry. KEYWORDS: agro-industrial complex, digitalization, foreign experience

Analyzing the relevance of capitalization parameters in the income approach for business valuation

Subject. The article addresses capitalization parameters (income, financial result, cash flow) in the income approach to valuation. Objectives. The purpose is to develop methodological approaches to verification and confirmation of relevance of parameters in the income-based approach to business valuation. Methods. The study rests on general scientific and special methods of cognition, including the structuring, comparison, modeling (matrix models to analyze the distribution and redistribution of cash flows), formalization, methodology for generation and analysis of cash flow statements under indirect method, techniques and methods of financial analysis. Results. Confirmation of capitalization parameters in the income approach to business valuation model assumes two prerequisites being met simultaneously, i.e. securing the owner’s income from business ownership and retaining specified business performance indicators. Capitalization parameters for compliance with these two criteria were verified, using the matrix models for financial resources distribution. This enabled monetary security of profit, which, under the prevailing financial proportions, is not invested in either current or investment activities, and can be distributed among owners without affecting further business development and without attracting external borrowings. Conclusions. The permissible multivariance of capitalization parameters in the income approach to business valuation forms a significant range of possible estimates and the uncertainty of final result. Increased accuracy is achieved through the procedure for verification of initial parameters for synchronous compliance with requirements, namely, securing the owner’s income from business ownership and retaining specified business performance indicators.

Methods of financial performance analysis of industrial clusters in Russia

В статье рассмотрены основные признаки и понятие кластера, дана оценка развития промышленных кластеров в России. Рассмотрены основные подходы к анализу финансовых результатов кластеров, а также выявлены особенности в исследовании эффективности работы промышленных кластеров и их резидентов.

Computational intelligence model based on GA-BP neural network

Since the birth of the secondary stock market, the prediction of the stock price trend has become a research direction concerned by many people. Aiming at the problem of non-stationary and non-linear stock price forecasting, this paper builds a computational intelligence model to improve the neural network with genetic algorithm. The results show that, compared with other models, the GA-BP neural network model proposed in this article can effectively improve the prediction of the rise and fall of the HS300 index, and the withdrawal range is small when the market falls. The research of this paper enriches the method of financial time series data analysis, which can not only provide decision-making reference for investors, but also help to enhance the cognition of financial market rules. The model can significantly reduce the forecast error and improve the model fitting ability.

Pengaruh Rasio Profitabilitas, Likuiditas, Solvabilitas, Struktur Kepemilikan Institusional, dan Struktur Kepemilikan Manajerial, Terhadap Kesulitan Keuangan (Dengan Model Altman Z-Score) (Studi Pada Perusahaan Manufaktur Yang Terdaftar di Bursa Efek

This study aims to see how the development of the financial performance of manufacturing companies listed on the Indonesia Stock Exchange for the last 3 years from 2017 to 2019 using the financial ratio analysis method. The financial ratios used are Profitability, Liquidity, Solvency, Institutional Ownership Structure, and Managerial Ownership Structure. The results showed that in general the financial ratios of manufacturing companies listed on the Indonesia Stock Exchange fluctuated, but among them there were several companies that had good financial ratios and poor financial ratios.

ANALYSIS OF THE FINANCIAL CONDITION OF THE ENTERPRISE AND ITS RELATIONSHIP WITH MANAGEMENT ACCOUNTING

The need to study this topic is due to the requirement of time and the need to find alternative ways to improve the management system of the enterprise. The issue of providing enterprises with information about financial resources and their optimal distribution for the needs of sustainable development and further work is important, as it has a significant impact on the overall financial condition.The purpose of the work is to reveal the essence of the financial condition of the enterprise, to study the information support of financial analysis and to disclose its relationship with management accounting at Ukrainian enterprises.The study identified the need to analyze the financial condition of the enterprise and its economic interpretation. The interrelation of information support of financial analysis and management accounting is substantiated. It establishes and characterises interaction of main methods of financial analysis and directions of managerial accounting. The main methods of financial analysis for the study of the financial condition of the enterprise are considered, as well as the issues of normative values of the main financial indicators: their comparison in domestic and foreign enterprises are highlighted. The information support of the financial condition analysis is analyzed. The main factors of significant influence on the financial condition, which are taken into account in the analysis, are investigated.As a result of the study, the methodological support of financial analysis was improved by studying its relationship with the components of management accounting. A number of proposals have been introduced: the use of a systematic approach to the analysis of the financial condition of enterprises, improving the quality of information support for the analysis of the financial condition and the use of management accounting as a key tool in planning, evaluating and monitoring the results of economic entities.The researched topic is quite promising and is subject to further disclosure in the study of enterprise strategies, approaches to management and analysis of financial reporting indicators

ANALYSIS OF FINANCIAL PERFORMANCE AT THE KP-RI KOPEKA SAVING AND LOAN COOPERATION (KSP) KOPEKA INDRAGIRI HULU REGENCY

In essence, the financial performance of a cooperative can be measured and viewed through financial statements by analyzing financial statements. The financial report is a financial list that is directly related to the financial position and financial operations, both of which provide information regarding the financial condition of the cooperative. In the measurement of financial position, the elements that are directly related are assets, liabilities and equity. One of the analytical techniques is ratio analysis which can provide clues that describe the condition of KSP KP-RI Koppeda, Indragiri Hulu Regency, especially in the financial sector.This study aims to test and analyze financial performance using financial ratio analysis methods: (1) Liquidity Ratio which is calculated based on Current Ratio and Quick Ratio, (2) Solvency ratio calculated based on Debt to Equity Ratio and Debt to Total Assets Ratio, (3) Profitability Ratio calculated based on the Net Rate of Return On Investment and Return On Equity. The object used in this study is financial performance in the form of a Balance Sheet and Profit and Loss Statement of KSP KP-RI Kopeka, Indragiri Hulu Regency for the period 2016 to 2020. The data used is secondary data. The data analysis method used was quantitative descriptive analysis technique, which is an analysis that describes by calculating the ratios in the financial statements using certain formulas.The results showed that the financial performance of the Savings and Loans Cooperative (KSP) KP-RI Kopeka, Indragiri Hulu Regency was in poor condition, both from the ratio of liquidity, solvency and profitability. This situation is illustrated by the condition of current assets that have not been able to meet current liabilities. And their own capital and total assets have not been able to meet the total debt. And Cooperatives have not been able to generate the remaining operating results from their own capital and total assets used.

Evaluating the Financial and Administrative Performance using Financial Analysis Methods Field Study in a Selected Iraqi Company

The main aim of this research is to explain the role of financial analysis in evaluating financial and administrative performance in business establishments. A review is made to the methods of financial analysis, emphasizing the role of financial ratio analyzes in the aforementioned evaluation by choosing an Iraqi company trying to identify the company's financial and economic efficiency. Different ratios and indicatorsare used for this purpose, by analyzing and discussing the implications of the company and identifying the strengths and weaknesses in its activities. The research is based on the hypothesis that the use of financial analysis and the various financial ratios and understanding their implications is a necessary step for evaluating the performance of various business activities. The research concluded that there are many activities in the sample company are considered good, while some of them appeared weak and require suitable attention and consideration by the company’s management.

Impact of COVID-19 on the economic-financial health of the company REIPROACERO S. A., during the periods 2019-2020

This research article focused on evaluating the economic-financial situation of the company REIPROACERO SA, through the application of financial analysis methods and financial ratios, in order to determine the impact caused by the COVID-19 pandemic. On the other hand, within the investigative process the scientific method is applied, since it allowed to have an approach to the fact of interest, having contact with the data and information and real facts, which provided clues for the formulation of hypotheses and antecedents, building knowledge and leading to the verification of the same. Likewise, the qualitative descriptive approach was used, since the Financial Statements of the company, obtained from the Superintendencia de Compañias, Valores y Seguros, were analyzed; with a documentary design because information was obtained from scientifically recognized sources such as journals, articles in order to scientifically strengthen research. Where the results obtained showed excessive liquidity, low profitability and poor portfolio rotation.

Which is the Better Financial Risk Early Warning Mechanism, Traditional or Cashflow?

Purpose - Because traditional financial risk early warnings are often based on information of accounting profit that can be manipulated, they can cause information distortion, especially in small and medium-sized enterprises(SMEs). Therefore, this study aims to compare the existing early warning method with the early warning mechanism of financial risk from the perspective of cash flow and to determine which method is better. Design/Methodology/Approach - The study uses Taizhou Tongjia Hardware Company as an example, and uses the case study and financial analysis methods to compare the company’s financial situation from both the traditional financial and the cash flow perspectives. Findings - We find the traditional financial statement data show that the earnings over the past five years have been rising, however, the company’s capital structure is seriously imbalanced and the enterprise is facing serious financial risks. Therefore, the results were derived that the company needs to establish an early financial risk warning mechanism from the perspective of cash flows. Research Implications - This study can help companies improve their early warning mechanisms and properly evaluate and address financial risks.

The Effect of Auditors' Use of Analytical Procedures in the Light of ISA 520 on Audit Quality: Evidence from Jordan

This study aims to demonstrate the effect of auditors' use of analytical procedures in the light of audit standard 520 (ISA 520) on the audit quality from the point of view of external auditors in Jordan. Moreover, the study sought to make valuable recommendations to develop audit methods and address weaknesses to take advantage of financial analysis methods. To achieve the objectives of the study, questionnaire was developed included (35) questions distributed to a sample of auditors practitioners of the audit profession and numbered (64) auditors, have been recovered, (60) of them were collected, and all of them, were used in analysis; One sample t-test was used to test the hypotheses of the study. the researcher found: There is a statistically significant impact of auditors' use of analytical procedures on the quality of audit for both: the auditor 's use of financial ratios and the comparing financial ratios and extracted information with predetermined standards (financial analysis standards), also there are no statistically significant differences on the impact of auditors' use of analytical procedures on the quality of audit attributable to personal variables (educational qualification, specialization, duration of service). Finally, researchers Finally, the researcher made some recommendations to develop the audit process, the most important of them: The supervisory authorities shall ensure that Audit offices and auditors should comply with international auditing standards in general and in the field of analytical procedures based on the International Auditing Standard (520), as well as Standard No. (220) on Quality Auditing in particular. and professional standards and meet the wishes of users of financial statements to achieve quality control and be subject to peer review.

Countercyclical Financing as a Tool for Facilitating Investment Activity in Russia: An Overview of Approaches

Aim. The presented study aims to investigate the use of the project financing mechanism to increase the investment activity of businesses and to identify opportunities for the allocation of cyclical risks and the corresponding development of project financing conditions.Tasks. The authors briefly overview the investment climate and investment activity of large businesses in Russia; provide a general description of the project financing mechanism in the implementation of investment projects and the allocation of risks among participants; consider the factor of price volatility and the proposed structuring of project financing with allowance for potential changes in prices for the project’s products.Methods. This study uses general scientific research methods (analysis, synthesis, induction, deduction), including analysis of public information through the example of major Russian companies, analysis of the key indicators of investment activity, analysis of risk allocation options in the financial flows of projects. Specific methods of financial analysis are also used to examine the results of the implementation of investment projects.Results. The key indicators of investment activity of the major Russian companies are presented. The possibility of using the mechanism of project financing and risk allocation among participants is determined.Conclusions. The investment activity of a considerable part of large Russian businesses is moderate. At the same time, there is a huge potential for growth using either internal funds (profits, accumulated cash balances) or project financing instruments. An example of using the mechanism of accelerated repayment of debt financing is provided.

Analisis Kelayakan Usaha Pengolahan Kopi Pada Koperasi Serba Usaha Asosiasi Petani Kopi Manggarai (Ksu Asnikom) Di Kota Ruteng, Kabupaten Manggarai

Coffee is one of the plantation commodities that have a fairly high economic value. Now many people are trying their luck by building a coffee processing business to add to the selling value of coffee. The Manggarai Coffee Farmers Association (KSU ASNIKOM) is a coffee processing business entity established on July 14, 2010 chaired by Mr. Lodo Vadirdman. This research aims to find out the feasibility of coffee processing business at KSU ASNIKOM and the obstacles faced by KSU ASNIKOM. The research method used is the purposive sampling method. Data is analyzed with descriptive analysis methods and financial feasibility analysis methods. Descriptive analysis methods consist of aspects of market and marketing and organizational management and financial proper analysis methods are viewed from NPV, NET B/C, GROSS B/C, PP, IRR, PR The results of descriptive analyst methods show from the market and marketing aspects of the coffee sales process from KSU ASNIKOM conducted directly by KSU to Buyyer. Coffee sales through auctions, exports, also participate in coffee exhibition activities. In terms of organizational management aspects KSU ASNIKOM has had a plan from the beginning of its establishment about processing and marketing and has its own logo for KSU ASNIKOM. The results of the financial feasibility analysis showed the results of npv calculation of 340,407,191 > 0 with the criteria if npv > 0 then the business is worth continuing, the IRR value of 123% > discount rate (12%) is worth running, gross value B / C of 1.09 > 1, with gross value criteria B / C > 1 then the business is worth continuing, Nett Value B / C of 3.45 > 1, with the criteria of Nett value B / C > 1 then the business is said to be worthy to continue, Profitability Ratio value of 1.27 > 1, with the criteria of PR value > 1 business is profitable, and pp or period of return on investment that has been issued is for 3 years. The obstacles faced by KSU ASNIKOM are inadequate infrastructure facilities such as damaged roads and also the influence of bad weather makes coffee drying more time consuming.

Research on Adidas International Development Strategy under COVID-19

Affected by COVID-19, Adidas' global net sales in 2020 decreased by 3.756 billion euros compared to 2019. Adidas's net sales worldwide decreased by 3756 million euros in 2020 compared to 2019. This article will analyze the changes in Adidas's operation situation and competitiveness under the impact of COVID-19. At the same time, combined with the 2016-2020 financial statement data publicly disclosed by Adidas, this article will analyze the specific impact of COVID-19 on Adidas' financial status and provide a more in-depth interpretation of the financial statements. The goal of this article is to analyze Adidas' future development strategy and make recommendations by analysing the impact of COVID-19 so that it can better meet the needs of external interests and internal management. Many scholars' relevant research is mostly on the development strategy research at the macro level. However, there is a lack of strategic research on the micro-enterprise level after being affected by COVID-19. This article first reviews the literature and expands new research directions based on existing research. Then, this article will use the PEST method to analyze the changes in Adidas's external macro environment under the influence of COVID-19 and apply the theory and methods of financial statement analysis to specific applications. Then this article will combine Potter's five forces model analysis method to further analyze Adidas' external environment and industry environment under the influence of COVID-19. Finally, this article will conclude and put forward development strategy recommendations.

SCIENTIFIC AND METHODOLOGICAL SUPPORT OF FINANCIAL EXPRESS ANALYSIS OF SMALL INDUSTRIAL ENTERPRISES OF UKRAINE

The subject of research of this work is the current direction in the financial activities of small industrial enterprises – financial express analysis. The purpose of the study is to develop a scientific and methodological basis for a simplified procedure of financial supervision of small industrial enterprises in the country in order to provide qualified assistance to managers of small industrial enterprises in the financial sphere of their activities. The article solves the following tasks: study of the state of small industrial enterprises and their role in the development of Ukraine's economy, definition of "financial supervision", development of algorithm for financial express analysis of small industrial enterprises, choice of directions for financial express analysis of small industrial enterprises financial supervision, the formation of a bank of input data on four components, testing of scientific and methodological support on the example of a particular enterprise. The following methods are used: theoretical generalization, retrospective analysis, comparative analysis, analytical, analysis and synthesis, rapid analysis. The following results were obtained: the method of financial express analysis of a small industrial enterprise was proposed on the basis of financial supervision; selected areas of financial analysis under a simplified procedure; the scheme of algorithm of carrying out procedure of financial supervision is developed; the bank of the input data which are necessary for the decision of the set task is formed; substantiation of the choice of applied mathematical models is carried out; the experimental approbation of the offered scientific and methodical approach to carrying out the financial express-analysis on the factual basis of the real small industrial enterprise is carried out; appropriate recommendations were given to the management of the researched enterprise. Conclusions: It is determined that in the current unstable economic conditions, small industrial enterprises need professional assistance of consulting orientation in financial activities. Obtaining up-to-date relevant information on the financial condition of small industrial enterprises is a very important task that requires a rapid financial analysis of their activities. The study of this issue showed the lack of consensus of analysts on the directions and methods of financial rapid analysis. This led to the need and feasibility of developing for the management of small industrial enterprises under a simplified procedure of an orderly methodology of financial rapid analysis on the basis of financial supervision.

The Use of Financial Analysis in Predicting the Failure of the Joint-Stock Industrial Companies - An Applied Study on a Sample of Iraqi Industrial Companies

The failure of companies is one of the most important topics that prompted many writers and researchers to study them, due to the negative effects it may have on the national economy and on society as a whole. There are many methods of financial analysis in predicting failure, including the Altman model. As Altman's equation was applied to the data obtained from the list of financial position and profit disclosure for the study sample companies and listed on the Iraq Stock Exchange, and the results of the analysis for the years of study appeared varying for the general period from 2012 to 2017, as well as the recurrence of failure of some companies during the years of study where the value was (Z) is low ((for the year 2013 the value of Z (1.43) for the Iraqi Carpet and Furniture Company)), ((and for the year 2014 the value of Z (0.25), (-175.61), (1.70), (1.47), (1.62), for the company Al-Kindi for the production of vaccines and patient medicines, the National Company for Chemical and Plastic Industries, the Iraqi Company for the manufacture and marketing of dates, Baghdad for the manufacture of packaging materials, and the Iraqi carpets and furnishings, respectively)).

Multipliers Based on Oil And Gas Production and Reserves as National Vertically Integrated Oil Companies’ Indicator of Lucrativeness for Investors. Part II

Subject. The article investigates ratios of market capitalization to production and proven reserves held by 25 major public oil and gas corporations within 2008 through 2018. Objectives. I trace key trends in ratios of market capitalization to production and proven reserves in major public oil and gas corporations. The article also determines what caused such transformation for the analyzable period and indicates whether such multipliers are applicable to business valuations in the oil and gas sector. Methods. I use methods of comparative, financial and economic analysis, and summarize materials of financial statements. Results. The analyzable multipliers were found to be applicable to business valuation of oil and gas corporations. If a company has oil refining and petrochemisry segments in its architecture, it will have a favorable effect on ratios. The company will also benefit if its profitability is higher than that of competitors. National companies and their indicators are seen to be influenced by the country factor, which should be taken into account for purposes of business valuation. Ratios depend on the availability of proven reserves. This aspect influences the multiplier of ratio of market capitalization to proven reserves. Therefore, it is advisable in case of similar proven reserves in comparable companies. Hence, it is more preferable to use the multiplier of the ratio of market capitalization to production. Conclusions and Relevance. It is acceptable to use the multiplier with reference to the information on production even if the profitability goes down and the debt burden increases in the listed sector of the global oil and gas industry, while the ratio based on proven reserves is more reasonable as an auxiliary indicator. The findings can be used to appraise the possible value of oil and gas assets as part of the comparable approach. They can also underlie measures for raising the market capitalization of public oil and gas companies.

Financial Analysis of SUNING.COM in China Based on the Harvard Analysis Framework

The number of internet users in China continues to rise and the country has begun promoting e-commerce development since 2011. Various supportive policies have created an ideal environment for the development of e-commerce. Under their combined effect, Chinese e-commerce market has developed rapidly. The COVID-19 pandemic’s impact has compelled retail enterprises that insist on operating offline chain stores to realize the defects of the traditional model and the need to transform to the e-commerce model. SUNING.COM is an enterprise that started its transition to e-commerce earlier than its competitors. It has made certain achievements in e-commerce but also exposed many problems. This paper takes SUNING.COM as the research object, analyzes its problems, proposes countermeasures, and provides a certain reference significance for the development of e-commerce enterprises. Considering the limitations of traditional financial analysis methods, this study adopts the more systematic and rigorous Harvard analysis framework to carry out a detailed analysis from four aspects: strategy, accounting, finance, and prospect. The analysis finds that SUNING.COM has both opportunities and risks, slow inventory turnover, high operational risks, poor solvency, and insufficient profitability. In response to the problem, the suggestions are as follows: First, SUNING.COM should give full play to the advantages of its offline retail stores, build a community-based e-commerce platform, and reshape its own brand image. Second, they should speed up the implementation of corporate projects and accelerate the release of restricted funds. Third, they must optimize the main business structure, eliminate non-essential businesses, and improve the online and offline dual line business model. Fourth, they must optimize the debt structure of enterprises, reduce current liabilities, and reduce the risk of bad debts.

Peculiarities of formation of potential of telecommunications enterprises

The purpose of the article – to analyze the peculiarities of forming the potential of a telecommunication enterprise and to suggest ways to increase the efficiency of its use. Research methodology. In the process of preparation of the article the methods of analytical, statistical and financial analysis were used. A scientific novelty is the proposal to use effective indicators of economic efficiency of the enterprise, such as profitability, profitability, cost, return on resources, investment, etc. to assess the effectiveness of the formation and use of the potential of the telecommunications enterprise. Conclusions. 1. The study of trends in the formation of the potential of telecommunications enterprises in Ukraine has determined that the pace of its development corresponds to the basic principles and principles of the concept of economic development and strategy of information society development adopted in Ukraine. The development of the economy of telecommunications enterprises is facilitated at the state level by developing new legislation in the information and telecommunications technologies sector in Ukraine, discussing and adopting new strategies for digital transformation aimed at using big data, blockchain, cloud technologies, robotics and the Internet of Things. 2. It is determined that the potential of a telecommunications enterprise is a unity of organizational, technical and information capabilities that contribute to the preparation and adoption of management decisions and influence its development. Features of capacity building determine the following components that ensure its functioning: software and hardware; personnel; information (databases); organizational, marketing, technical, technological, etc. 3. The system of financial indicators for definition of efficiency of functioning of the formed potential of the telecommunication enterprise is offered. 4. To ensure the formation of a strong potential of the telecommunications company in the work identified a number of key measures, including the creation of information systems, ensuring its operation by special staff, information security, creating new digital products and services, e-commerce and digital marketing. business analytics and big data management, etc. Key words: telecommunication enterprises, capacity building, potential structure of telecommunication enterprise, evaluation indicators, state support.