Financial Analysis Of Companies Research Articles

Финансовые аспекты моделирования устойчивого роста в проектах развития энергетических компаний

The goal of this study is to elaborate the recommendations of managing the energy companies’ financial results for maintaining their sustainable growth. According to determined criteria various models of sustainable growth were chosen and tested. Some of them which showed the best prediction power were taken for the further study. Financial analysis of companies’ reports was done and the evidence about the existence of a pattern in forming their financial results was given. The factor analysis was carried out in order to find the impact of changes in external environment on the net income. The main factors that influence the amount of net profit and the sustainable growth ratio and the quantitative extent of their impact are determined. Final recommendations are the set of financial tools, using ones will increase the effectiveness of business of energy companies.

Ethics And Social Responsibility as Performance Indicators of The Accounting Professional in The Ecuadorian Environment

The work performance of accounting professionals, under traditional paradigms, was measured by their ability to analyze financial statements and determine the economic performance indicators of organizations, however today, in addition to technical aspects, they must possess related competencies. to social responsibility and ethics, in such a way that their work has a positive impact on society by carrying out work with transparency that allows keeping clear accounts. With the objective of evaluating the importance of the qualities social responsibility and ethics in the evaluation of the performance of the accounting professional in the Ecuadorian environment, a systematic review was carried out, through the bibliographic consultation of 200 articles in the database of indexed journals in Scopus, Latindex, Scielo, and Google Scholar, selecting the articles that describe the importance of considering social relevance and respect for ethical standards and values, within the professional actions of Ecuadorian accountants. As a result of the review, 36 articles were selected, which highlight that in Ecuador, despite the existence of a code of ethics for the profession, the paradigm shifts that tend to measure the efficiency of companies due to their relationship with society, respect for environment and transparent management of accounts, in addition to the well-known financial indicators, forces a change in the profile of the Ecuadorian accounting professional and with it the training plans of university institutions, this new vision of the accounting practice leads to the conclusion that an exercise of greater transparency will be observed during the financial analysis of companies, especially those linked to the public sector, which are characterized by high levels of corruption.

Business Performance Evaluation Practice in Manufacturing Sector in Latvia

The manufacturing sector plays an important role in promoting Latvia’s economic growth; this sector is one of the largest sectors of the Latvian economy. Performance can be described as one of the most important categories of economic analysis; however, there is no consensus among researchers on the business performance indicators, their measurement and evaluation methods. The research is based on the analysis of special literature and scientific publications, the evaluation of the financial ratios used in the financial analysis of companies by Latvian institutions, the results of an expert survey, and data from the Official Statistics Portal of Latvia. Literature analysis, expert surveys, correlations, multiple linear regression and forecasting methods were used in the research. The aim of the research is to identify and summarize the performance evaluation practices of manufacturing companies in Latvia. As a result of the research, the business performance evaluation practice in the manufacturing sector was analyzed, the significance of the financial ratios used in the financial analysis in the business performance evaluation in the manufacturing sector and the existence of statistically significant correlations between the financial analysis indicators of manufacturing companies and the key business indicators of manufacturing companies were identified and evaluated.

Financial Risk Estimation with KNN Classification Algorithm on Determined Financial Ratios

Analyzing the financial situation of companies is very important today. Thanks to early analysis, companies can improve their financial situation and be saved from bankruptcy. Until now, many studies have been carried out on the financial analysis of companies. Data mining techniques are widely used in many different areas of the financial sector. In this study, data mining classification technique has been used to determine the financial risk status of companies. The data set has been created by using the balance sheets taken from the Kamu Aydınlatma Platformu (KAP) between 2013 and 2018 of different companies serving in the manufacturing industry. There are a total of 1027 records in the data set. On these records, the financial ratios determined for that year for each firm have been calculated and recorded in the database. The Springate model has been used to determine the financial success of the companies. Springate formula consists of 4 financial ratios. Springate score value is calculated by multiplying these ratios with certain coefficients. If the calculated score value is less than 0.862, the firm is considered unsuccessful, else the firm is considered successful. In this context, the Springate score has been calculated for each record and the companies have been labeled as successful or unsuccessful according to the score value. In this study, the KNN (K-Nearest Neighbor) algorithm has been used for classification. The KNN algorithm classifies the new element to be classified by looking at its proximity to its k neighbors. KNN algorithm needs learning data to classify unclassified data. In this study, cross validation method has been used for determining learning data and the data to be classified. According to the cross validation method, the data set is divided into n groups. For each group, the selected group creates the data to be classified. All other groups (n-1 groups) are used as learning data. Then the classification process is applied and the results are stored. After the classification process is completed for all groups, the statistical summary of the results is checked. In this study, the dataset was divided into 10 groups and the classification results have been evaluated. When the results have been examined, it has seen that the algorithm has make a successful classification with a rate of 88.42%. Thus, the financial risk estimation of the companies has made with the classification technique applied on the determined finance model.

Permintaan Investor dan Karakteristik Keuangan terhadap Keputusan Pembayaran Dividen

Dividend payment decision is an essential policy of companies to provide investors’ expectation of investment returns. This research is aimed to prove the catering theory of dividend and financial characteristics affecting corporate decisions in dividend payments. The study was conducted on a manufacturing company published on the Indonesia Stock Exchange (IDX). Analyzing the prediction of catering theory and financial analysis of companies in making dividend payments is conducted using the logistic regression method. This research is a quantitative research and moreover manufacturing companies as research sample were used from 2014 to 2018. Financial statements were obtained from the Indonesia Stock Exchange (IDX). The result of this study indicated that investors’ demand has positive effect on dividend payment decisions. Hence, companies consider catering in dividend payment decisions. While corporate financial characteristics such as free cash flow have positive effect on dividend payment decisions, profitability has no influence on dividend payment decisions and moreover, leverage has a negative influence on dividend payment decisions.
 Keywords: Catering Theory, Investor Demand, Free Cash Flow, Profitability, Leverage

Strategic Financial Analysis of Company in the Sphere of International Medical Tourism

Nowadays international medical tourism is getting increasingly popular in Russia. The number of companies specializing in outbound tourism is growing every year despite the tightening of the Government requirements to them. The paper focuses on the comparative analysis of the main costs in the formation of a medical tourist product, as well as the current financial situation of the company on the example of a travel agency LLC “Medical Treatment Abroad — LEZARD” . The methodological basis of the study is the matrix of financial strategies of Franchon and Romanet. There are three main indicators of the matrix being used as the calculation parameters: the calculation of financial activity, economic activity, financial and economic activity of the company. The authors tried to give a conclusion about the prospects for the development of the subject according to the analysis results of the company as well as nationwide. The paper formulated some guidances how to expand the range of the company’s products in order to maximize profits and possible bankruptcy of the company. The theoretical and practical significance of the study lies in the fact from the analysis results make it possible to forecast concerning the future stability and financial sustainability of LLC “UCIC Treatment Abroad”.

Method for assessment of financial status of agricultural companies and diagnostics of critical situations

In modern economic conditions, efficiency and quality of assessment of prospects for development of business entity are the key to the best timely management decision making, contributing to increase in efficiency of economic entity. Efficient methods for assessing the financial status of agricultural companies and diagnosing critical situations allows to determine the threat of bankruptcy at the earliest stages and to use all the possibilities to neutralize it. Improving the methodology for conducting financial analysis of companies’ solvency in order to identify symptoms of crisis situations in organizations of agro-industrial complex more accurately and timely through the development of new diagnostic methods adapted to the existing conditions of economic activity is an urgent task of scientific research of local and foreign researchers. Probability of eliminating the consequences of negative impact on the economy of companies of agro-industrial complex depends on timely and accurate diagnostics of critical situations. The paper dwells on the areas of improvement of methodological approaches for assessment of financial status of agricultural companies. Taking into account the generalization of local and foreign experience, new models and directions for improving the methods for assessment of the financial status of agricultural companies and diagnosing economic insolvency (bankruptcy) existing in the country are proposed, including features for assessing the financial status of peasant farms. The problems discussed in the paper are of interest within the framework of the developed model of fundamental diagnostics based on the method of expert assessments of the major risks probability, which impact can adversely affect the financial status of an agricultural company and lead to economic crisis, as well as method for assessing the economic efficiency and financial status of peasant (farm) business, taking into account specifics of accounting and specifics of agricultural production.

Financial analysis of companies concerned about human rights

Consumer demand for low prices juxtaposing with a company's need for profitability drives corporations to minimise the costs of goods within their supply chains. This has led some unethical business managers to engage in human exploitation within company supply chains. However, consumers also demand that human rights are not violated in the making of the goods they buy. Thus, corporations are being held accountable for monitoring human rights within their supply chains. The purpose of this paper is to examine the financial performance of Fortune 500 companies that have shown concern over human rights within their supply chains. Since there is a financial cost in safeguarding human rights within supply chains, this paper seeks to determine if companies concerned about human rights suffer financial loss. The 92 concerned companies in the sample, compared to the average company in top industries, were found to have some significantly different financial performance ratios.

Financial analysis of companies concerned about human rights

Financial analysis of companies concerned about human rights

Financial analysis of Serbian companies undergoing privatization

This study presents a financial analysis of companies undergoing the process of privatization in the Republic of Serbia (RS). A total of 182 of such companies were examined and compared to an equal number of randomly chosen companies of comparable size. The results revealed a significant gap between the financial performances of the two samples. For that reason, the companies undergoing privatization need to undergo radical changes for the purpose of achieving a higher level of profitability and preventing further losses. Given that these companies pose a significant challenge for the Serbian economy, the author believes that this study will serve as a reference for further research. In addition, this manuscript shall present the comparative analysis of the total net loss of the observed companies and the gross domestic product of the RS, as well as between the corresponding number of employees for the year 2013.

Problems with the application of conventional financial ratios in corporate risk measurement

One of the enterprises’ biggest fears is a potential bankruptcy situation. This is the reason there are a lot of people who try to anticipate it. To be aware of the actual and expected future situation of a company is in the interest of all those who are related. This topic has come to the fore after the economic and financial crisis of 2008. Companies, their creditors and internal stakeholders should be aware of the liquidity and solvency situation of a given company, because its deterioration can cause serious problems for all of them. During the financial analysis of companies, the problem of liquidity indicators showing bad signals can often be experienced, although there is no visible sign of difficulty in their operation. In other cases, the situation is just the opposite, i.e. liquidity ratios are adequate, but still, the business faces payment issues. How could it happen? The purpose of this study is to present indicators which can measure more accurately and reliably the actual liquidity position of a company.

Análise financeira de empresas da construção civil por comparação com índices-padrão

The speed of information in the globalized and technological era has brought profound changes in thebehavior of people, whether as customers or managers of companies, each seeking the best the markethas to offer. Therefore, this market has become quite selective. In this context, companies have sought toremain highly competitive and ahead of the competition. For a company to gauge it position in the market,it requires a financial and economic analysis to serve as a basis for comparison with its industry of expertise.Thus, this work proposes a form of financial analysis of companies in comparison with the standard indices,which provide a criterion for evaluating the economic and financial situation of companies, according to thereview of literature studied here. This is a form of assessment that reduces the induction of error due to theelimination of subjectivity of analysts. In the case of this study, the analysis will be based on a pattern. Thecomparison of an index of a company with its own standard index will show whether the situation of thatcompany is better, worse or similar to the industry standard. This research will be conducted in companiesfrom the construction sector. This sector was chosen because of the unique moment it lives today within the national economy. The importance with which the federal government has handled the issue of roadinfrastructure and housing in Brazil has benefited the industry, thus providing better conditions for the nation’sdevelopment.