Financial Analysis Tools Research Articles

Highlighting the Urgent Need for Reforms in the Face of Financial Failures at State-Owned Enterprises in Iraq

General Background: The financial analysis of companies' reports is critical for assessing their past performance, forecasting future results, and identifying operational strengths and weaknesses. Specific Background: Financial failure, which occurs when a company cannot generate adequate returns to cover costs and capital expenses, poses significant risks to stakeholders. For state-owned companies, the implications of financial failure are especially profound, given their integral role in national economies, such as Iraq's. Knowledge Gap: There is limited understanding of the extent to which state-owned companies in Iraq utilize financial analysis to predict financial failure, particularly in the context of economic transitions and privatization pressures. Aims: This study aims to evaluate the dependence of Iraqi state-owned companies on financial analysis as a predictive tool for financial distress and to identify the key factors contributing to their financial failures. Results: The research reveals that 42% of the companies examined have experienced financial failure, as measured by the Argenti index. Contributing factors include employment challenges, insufficient financing, and the transition from a socialist to a capitalist economy, which has left companies vulnerable to privatization. Novelty: The study provides novel insights into how economic transition impacts the financial stability of state-owned companies, highlighting the practical application of the Argenti index in diagnosing financial weaknesses. Implications: The findings underscore the urgent need to support state-owned enterprises by revitalizing the industrial sector, improving administrative efficiency, and adopting more systematic financial analysis tools. Additionally, the research recommends creating an accessible information center for investors and creditors, which would enhance transparency and support decision-making. This approach could help mitigate financial distress and attract new investment, ultimately contributing to Iraq’s economic recovery. Highlights: Financial analysis helps predict failures in state-owned companies. 42% of companies fail, based on the Argenti index. Privatization and economic shifts increase financial risk. Keywords: Financial analysis, Argenti index, state-owned companies, financial failure, privatization

Financial multidimensional assessment of a green hydrogen generation process via an integrated artificial intelligence-based four-stage fuzzy decision-making model

It is widely accepted that there is an urgent need to make green hydrogen (GH2) projects financially viable to reduce global warming. However, any form of improvements to these GH2 projects lead to substantial cost increase. Due to this cost increase, making many improvements negatively affects the financial profitability of hydrogen projects. This is why there is a need for new advanced financial priority analysis tools so that it is easier to develop GH2 projects globally. Accordingly, the aim of this study is to identify and then define the most important factors affecting GH2 generation projects. To achieve this aim, this work proposes a new fuzzy multi-criteria decision-making model based on artificial intelligence (AI). First, experts are weighted with AI technique. Second, the missing evaluations are filled via a recommender system. Third, criteria weights are calculated by the M-SWARA technique integrated with quantum picture fuzzy rough (QPFR) sets. Finally, GH2 energy generation processes are listed by the QPFR-VIKOR approach. Overall, the main contribution of this study is the generation of a comprehensive AI oriented fuzzy decision-making model to make a detailed evaluation with respect to the financial potential improvements of the GH2 generation projects. The main originality of this model is the consideration of AI to calculate the weights of the criteria. Similarly, another benefit of the proposed model, that increases its superiority against other models, is the completion of missing evaluations by experts thanks to the recommender system. It is concluded that the most important criterion affecting green hydrogen investments is organizational effectiveness.

Working Capital Management of TATA Steel Limited

The current study focuses on Tata Steel Limited's working capital management. The primary goal is to execute a liquidity analysis on the company. Working capital management ensures that a business functions smoothly by keeping an eye on and making the most use of its current assets and liabilities. The liquidity analysis assists firm stakeholders in evaluating the company's liquidity status. The study is based on secondary data taken from the company's annual report. We analyzed the data using financial ratio analysis tools. The optimal amount of liquidity may reduce costs while contributing more to the success of a company.

Evaluating financial risk management in corporation financial security systems

Systemic risks are relevant to most segments of financial and economic activity, which creates the threat of financial instability of enterprises. Financial security, in this case, implies the state of financial soundness; it is expressed through various parameters including the level of solvency, financial stability, business activity, and efficiency of management. These questions are specific to each indicator, and this paper aims to understand their relations and how changes in them can result in risks. It elaborates the risk analysis and assessment procedure that uses a set of common financial analysis tools and determines key financial coefficients. Liquidity ratios, solvency ratios, profitability ratios, and the risk exposure metrics are the key areas that the research is based on. Correlating the financial indicators from a rich dataset from Yahoo’s Stock market data, regression analysis is used to determine these relationships between these indicators and risk management factors. A positive relationship between liquidity ratios and profitability is detected points to the fact that, firms with high liquidity levels are more capable of attaining good financial health and returns. It establishes the need for the development of a credible risk management structure that would lower threats to fiscal and economic activities. In light of this, the research shows that the liquidity and solvency management lowers financial risk and improves return for companies. The regression analysis was conducted to ascertain the degree of predictability of each independent variable to the dependent variable and the findings revealed that approximately 94 percent of each independent variable is predictable of the dependent variable that able to establish as much as 5% of the total variability in profitability, with the PE ratios being an indication of this aspect, was attributed to stock prices, as a result, the firm must be keen on its financials. This paper explores the employability of the proposed methods and models to assess the risks with high accuracy and supports optimum decision making in regard with the needed security of the enterprises. By adopting these methodologies, the businesses can observe and estimate risks which exist in the future which would help them to avoid certain issues or dangers and also pave the way for the improvements of the financial stability of the businesses. On this note, the study establishes the fact that incorporating the notion of total risk management into the framework of analyzing business and making financial decisions is inevitable in maintaining corporate financial stability and realizing perpetual economic solidity. This research enriches the literature on financial risk management, as it outlines viable strategies for the protection of enterprise financial sustainability.

Analisis Rasio Profitabilitas Dan Rasio Aktivitas Sebagai Dasar Penilaian Kinerja Keuangan PT. Sepatu Bata Tbk

PT Shoes Bata Tbk is a company engaged in the manufacture of leather shoes, canvas shoes, casual and sports shoes, injection/slop sandals and industrial footwear safety mats. Financial performance is a description of the financial condition of a company which is analyzed using financial analysis tools, usually the measure used is the ratio. Research conducted by the author to analyze the financial performance of PT Shoes Bata Tbk based on profitability ratios and activity ratios. The profitability ratio can be measured by Gross Profit Margin, Net Profit Margin, and Return on Investment. Where Gross Profit Margin and Net Profit Margin are ratios that measure the company's ability to earn profits on sales, Return on Investment is a ratio that measures the company's ability to use all assets owned to generate profits after tax. The activity ratio can be measured by Receivable Turnover, which is a ratio that measures the company's ability to quickly manage the level of accounts receivable turnover. Inventory Turnover is a ratio that shows how quickly inventory turns over in sales activities. And Total Asset Turnover is a ratio that measures a company's ability to create sales using all the assets it owns. The aim of this research is to find out and analyze the financial performance of PT SEPATU BATA Tbk during 2016-2021 based on the two ratios. This research uses a descriptive qualitative approach method. The data source used is secondary data in the form of profit/loss financial report data and balance sheet reports. The results of this research indicate that the financial performance of PT Shoes Bata Tbk for the 2016-2021 period based on GPM is considered very good because the company was able to reduce the cost of goods sold, resulting in high sales and high gross profit. NPM is considered not good because the net profit generated is less with quite high sales. ROI is considered very poor because the high total assets are not commensurate with the net profit generated. RT is considered very good because it increases every year. IT is considered very poor due to the decrease in cost of goods sold and increase in average inventory each year. TAT is considered quite good because the company is able to manage its assets well. Financial performance as measured by the profitability ratio and activity ratio can be said to be less efficient, because the components of the profitability ratio and activity ratio are still low and do not reach good company standards.

Pengaruh Rasio Efisiensi dan Rasio Efektifitas PAD Terhadap Belanja Modal Pada Kabupaten/Kota di Jawa Barat

APBD in the form of capital expenditure allocation requires good management in order to obtain effective and efficient results. Therefore, good financial performance is needed, which is measured using financial analysis tools in the form of ratios. The ratios used in the analysis of government financial performance are efficiency ratios and PAD effectiveness ratios. This research was conducted with the aim of knowing the effect of the efficiency ratio and the effectiveness ratio of PAD on the allocation of capital expenditure in districts/cities in West Java. This study uses a quantitative research type where the data used is secondary data in the form of financial reports by taking the 2018-2022 budget realization report. The samples used in this study amounted to 42 samples. The analytical tools used in this study are Data Normality Test, Product Moment Correlation Analysis, Multiple Correlation, Multiple Regression Analysis, Partial Test (t test) and Simultaneous Test (f test), Coefficient of Determination. The results of the study partially show that there is no effect of the efficiency ratio on capital expenditure in regencies/cities in West Java. Partially there is no effect of the effectiveness ratio on capital expenditure in districts/cities in West Java. The results of the study simultaneously show that there is no effect of the efficiency and effectiveness ratio of PAD on capital expenditure in regencies/cities in West Java.

Using Financial Statements Analysis as a Tool on Identifying the Solvency of SMES And Its Relation with Forensic Accounting; Evidence from Albania

Objective: The study aims to determine the impact of e-learning on learning outcomes in the Jordanian Objective: Accounting professionals who are directly responsible for the preparation of the reports must use the principles and techniques of Forensic Accounting which help them to investigate legitimate financial activity and conduct due diligence reviews to properly assess the activity of economic entities. This paper identifies the importance of financial statement analysis tools and techniques in this process, being identified as Fraud Indicators of financial statements indicators. Theoretical Framework: Business development plays a vital role in economic development, so the effective and efficient management of activities carried out by businesses is to a great importance. But their identification in financial report is also object of fraud activities, a phenomen, which is turning into a headline of the day, especially for developing countries and also in Albania. Method: In the study are been taken into consideration the financial statement of 70 SMEs that carry out commercial activity and that through financial statements reports it was studied how “red flags” can be identified in financial reporting indicators to further investigate whether fraud conditions are met or not. The paper tests the relationship between two important indicators for every economic entity, which are liquidity and profitability as the most studied indicators. Results and Discussion: Data analysis showed that there was a significant statistical relationship between liquidity and performance indicators, which serve as a starting point for going into further use of technical forensic accounting techniques by professionals. Originality/Value: This study contributes to the literature with an empirical study on techniques and principles of Forensic Accounting and Financial Statements Analysis. Solvency analysis helps us to identify those transactions for which accounting professionals and not only should focus to further deepen the investigations based on the techniques and principles of forensic accounting. Based on the findings of this study as well as those of other researchers, we recommend to professionals that the use of financial statement analysis instruments in the investigation process is a key factor.

The Impact of Financial Analysis Tools on Optimizing the Financial Decision of the Bank of Baghdad for the Period (2013-2022)

The Impact of Financial Analysis Tools on Optimizing the Financial Decision of the Bank of Baghdad for the Period (2013-2022)

ANALISIS KINERJA KEUANGAN BANK UMUM KONVENSIONAL KBMI 3 TAHUN 2017-2022

In general, the purpose of an established company is to make a profit for its owners. A company that performs well can generate high profits with a long period of time and is able to attract investors to invest its funds. One form of information that can be used to determine the condition and development of a company is the financial statements reported at the end of each period as a report on management accountability for the management of a company. Company performance is a description of the financial condition of a company that is analyzed with various financial analysis tools, so that it can be known about the good and bad financial condition of a company that reflects performance achievements in a certain period. This study aims to analyse the financial performance of core capital group (KMBI) 3 banks using Otoritas Jasa Keuangan (OJK) report data for the period 2017 - 2022 which is processed using the Eviews application. The results of the study found that Capital Adequacy Ratio (CAR) has a significant positive influence on company performance in this case Return On Asset, Non Performing Loan (NPL) does not have a significant effect on Return On Asset, Loan To Deposit Ratio (LDR) has a significant positive influence on Return On Asset and Operating Expense to Opeating Income (BOPO) has a significant negative influence on Return On Asset. Key words: Financial Performance, Commercial Banks, Core Capital Bank Group 3

V4RIN: visual analysis of regional industry network with domain knowledge.

The regional industry network (RIN) is a type of financial network derived from industry networks that possess the capability to describe the connections between specific industries within a particular region. For most investors and financial analysts lacking extensive experience, the decision-support information provided by industry networks may be too vague. Conversely, RINs express more detailed and specific industry connections both within and outside the region. As RIN analysis is domain-specific and current financial network analysis tools are designed for generalized analytical tasks and cannot be directly applied to RINs, new visual analysis approaches are needed to enhance information exploration efficiency. In this study, we collaborated with domain experts and proposed V4RIN, an interactive visualization analysis system that integrates predefined domain knowledge and data processing methods to support users in uploading custom data. Through multiple views in the system panel, users can comprehensively explore the structure, geographical distribution, and spatiotemporal variations of the RIN. Two case studies were conducted and a set of expert interviews with five domain experts to validate the usability and reliability of our system.

Environmental Risk Identification and Green Finance Development Based on Multi-scale Fusion Recognition Network

AbstractThis paper aims to enhance the resilience of financial enterprises against environmental risks by leveraging financial data analysis tools. The approach involves designing environmental risk assessment indicators and rating criteria. The study utilizes a convolutional neural network model extended by a multi-scale feature fusion module to analyze environmental risk information in the industry. The proposed model achieves impressive results with accuracy (Acc), precision (P), recall (R), and F1 scores reaching 99.09, 96.31, 95.32, and 95.64, respectively. These metrics outperform those of comparison models. The success of this model is anticipated to pave the way for the transformation of green finance through automated industry-level environmental risk assessment. Furthermore, the method’s adaptability extends beyond environmental risks, offering a scalable solution for identifying and assessing environmental risks in various contexts.

FACTOR INFLUENCING STOCK PRICE OF BSE AN ANALYSIS OF COMPANY PERFORMANCE MATRICS

FACTOR INFLUENCING STOCK PRICE OF BSE AN ANALYSIS OF COMPANY PERFORMANCE MATRICS

ДІАГНОСТИКА ЙМОВІРНОСТІ БАНКРУТСТВА ПІДПРИЄМСТВ

Formulation of the problem. In the period of today's complex challenges - the conduct of military operations on the territory of Ukraine, the consequences of the pandemic, an unfavorable investment climate, and others - the detection of the probability of bankruptcy of enterprises is of particular importance. Timely detection of the onset of crisis phenomena using various methods and models and the adoption of precautionary measures ensure the avoidance of financial instability in the future. Therefore, conducting a timely diagnosis of the probability of bankruptcy is relevant, because there is a growing need for effective financial management in order to achieve the goals set by enterprises in the long term. The purpose of the research is to build a methodology for diagnosing the probability of bankruptcy of enterprises based on various bankruptcy models, based on the conditions of their activity, and to form forecasts of their further development on this basis. The object of the research is the process of constructing a diagnosis of the probability of bankruptcy of aviation industry enterprises. The method of the research - its became modern methods and principles of scientific knowledge, methods and techniques for evaluating bankruptcy diagnostics, tools of financial and economic analysis, models for forecasting further development, which allowed to combine existing approaches for multifaceted assessment of the probability of bankruptcy and identification of factors affecting the unstable activity of enterprises. The hypothesis of the research there was an assumption about the possibility of building a methodology for diagnosing the probability of bankruptcy of enterprises using modern, widely used methods of assessing bankruptcy, financial analysis of the results of operations and forming forecasts of further stable development. The statement of basic materials. The article examines the main stages of diagnosing the probability of bankruptcy of aviation enterprises, which provides an opportunity to determine the factors that generate unstable activity, develop appropriate countermeasures to avoid problem areas, and predict the improvement of development conditions. It is emphasized that each individual enterprise can use its own methods of assessing the probability of bankruptcy, which require the development of further specific anti-crisis measures, but the proposed method allows a comprehensive and thorough approach to the prompt detection and avoidance of crisis phenomena at enterprises. The originality and practical significance of the research is confirmed by the approbation of the proposed methodology for diagnosing the probability of bankruptcy at aviation industry enterprises. Conclusions and perspectives of further research. It has been proven that the use of the proposed methodology for diagnosing the probability of bankruptcy at enterprises allows recognizing and identifying threats, predicting their consequences, making operational decisions regarding the elimination of threats and adjusting the strategic goals of the enterprise's development. Further research will be aimed at assessing the probability of bankruptcy of enterprises in priority sectors of the national economy and developing measures for their recovery activity.

Factors Affecting Insurance Companies Profitability in Ethiopia

Background: Every firm is most concerned with its profitability. One of the most frequently used tools of financial profitability analysis is the profitability ratio. The aim of this study was determinants of Insurance company’s profitability of in Ethiopia. Methodology: To comply with the research objectives, the researcher focused on secondary data, which are obtained from annual reports of individual insurance companies and NBE. Both Descriptive statistics (frequency, percentage, mean, variance, etc.) and the Econometrics model (multiple linear regression model) were used to achieve the objectives of the study, and to analyze the data. Results: The average and standard deviation for the profitability of insurance companies measured by using Return on assets (ROA) for Ethiopian insurance companies was 0.117 and 0.08, respectively. The result showed that the age of the company, Firm Growth, Company Size, Leverage, and market share are highly significant predictors of insurance companies' profitability in Ethiopia.

Analisis Kinerja Keuangan BMT Al-Ittihat Pekanbaru

BMT financial performance is a description of the financial condition of a BMT which is analyzed using financial analysis tools, so that it can be known about the good and bad financial condition of a company which reflects work performance in a certain period. Good financial performance can be assessed from the results of analysis that obtain performance in accordance with established standards. The resulting problem formulation is how the financial performance of BMT AL-Ittihad Pekanbaru increases its revenue. The analytical method used is a quantitative descriptive method, percentage, namely by explaining existing data which is then processed and produces results in the form of a presentation. The ratio analysis used in measuring finances is the carren ratio, asset turnover, net profit margin and rate of return, investment (ROI). The overall analysis carried out produces stable ratio figures. Financial performance that occurs in BMT Al-Ittihad Pekanbaru's income quite stable in terms of cost efficiency because if operational expenditure (costs) increase then income increases and conversely if operational expenditure (costs) decrease then income decreases. The research results show that the remaining business results are obtained from income minus operational expenses (costs). The stability of the remaining business results of BMT Al-Ittihad Pekanbaru is proven to increase every year, meaning that BMT Al-Ittihad Pekanbaru's income every year is always greater than expenses.The remaining business results for the last five years can also be maintained in stability, such as in 2018 the net profit obtained was relatively large compared to 2019 but accompanied by small costs so that the profit generated was also relatively stable In 2019, the remaining operating results decreased from 2018 by 0.44%, but coupled with an increase in costs, the profits generated were also relatively stable. In 2020, the remaining operating results increased by 0.43%, but coupled with the increase in costs, the profits generated were also relatively stable. In 2021, net profit decreased by 0.23%, coupled with an increase in costs, the resulting profit was also relatively stable. In 2021 it will decrease again and increase to 0.42% Keywords: Carren Ratio, Asset Turn Over, Net Profir Margin dan Rate of Return Invesment (ROI).

Comparative Analysis of the Financial Performance of Pt Manjadaduasatudua Indonesia Before the 2018-2019 Pandemic, the 2020-2021 Pandemic Period and After the 2022 Pandemic Economic Journal

Financial performance is a description of the company's financial position analyzed by financial analysis tools, which can describe the company's performance achievements. This study aims to determine and compare the condition of financial performance at PT Manjadaduasatudua Indonesia before the 2018-2019 Pandemic, the 2020-2021 pandemic period and after the 2022 Pandemic. The analysis method used in this thesis research is a descriptive method which aims to analyze each data that has been processed and then draw conclusions. The type of research used is qualitative. The results showed that the financial performance of PT Manjadaduasatudua Indonesia before the 2018-2019 Pandemic under study had decreased, further decreased and was even declared FAILED when the 2020-2021 pandemic occurred, and the financial performance of PT Manjadaduasatudua Indonesia after the 2022 Pandemic tried to start over to improve the company in a better direction.

A Financial Feasibility Study of Fiber Optic Infrastructure in Region A – West Java PT XYZ – A Case Study


 
 
 PT XYZ is a provider of high-quality internet service via fiber optic cables. The company plans to develop a new 500 kilometer fiber optic network in Region A -West Java to serve customer segments business to business (B2B), business to government (B2G), and business to consumer (B2C). This article intends to conduct a financial feasibility study in connection with the development of the project. This research method is qualitative with a case study type. The nature of this research is descriptive. This research was conducted in 2023 at PT XYZ. The types of data used in this research are primary data and secondary data. Primary data collection techniques use in-depth interview techniques; while the secondary data collection technique uses the study-desk method. The data analysis method in this article uses a financial feasibility study, with five financial analysis tools, namely NPV, IRR, DPP, PI, and WACC. The research results show that the development of fiber optic infrastructure in Region A by PT XYZ is feasible based on NPV, IRR, DPP, PI and WACC calculations. The implication of this research is, for the management of PT XYZ, to make it even more feasible, steps should be taken in accordance with controlling action, both controlling revenue and controlling expenditure.
 
 

Financial Analysis and Performance Evaluation of Lululemon Athletica

This article analyzes and evaluates the financial condition of Lululemon Athletica, focusing on aspects such as market volatility, profitability, liquidity, solvency, efficiency, growth potential, and financial leverage. The analysis aims to assist investors, analysts, and stakeholders in understanding Lululemon Athletica's financial performance and its ability to adapt to economic changes. The article emphasizes the importance of financial data and provides an overview of commonly used financial analysis tools and methods. It also includes a cash flow analysis of Lululemon and discusses the company's financial status, including key financial ratios and indicators. Overall, Lululemon's financial status is relatively stable, with minor fluctuations in certain areas. However, the company's return on assets shows high volatility, suggesting a need for improvement in asset utilization efficiency. Investors are advised to consider various financial indicators and tools when analyzing Lululemon Athletica's financial health and market performance.

A unified formula of the optimal portfolio for piecewise hyperbolic absolute risk aversion utilities

We propose a general family of piecewise hyperbolic absolute risk aversion (PHARA) utilities, including many classic and non-standard utilities as examples. A typical application is the composition of a HARA preference and a piecewise linear payoff in asset allocation. We derive a unified closed-form formula of the optimal portfolio, which is a four-term division. The formula has clear economic meanings, reflecting the behavior of risk aversion, risk seeking, loss aversion and first-order risk aversion. We conduct a general asymptotic analysis to the optimal portfolio, which directly serves as an analytical tool for financial analysis. We compare this PHARA portfolio with those of other utility families both analytically and numerically. One main finding is that risk-taking behaviors are greatly increased by non-concavity and reduced by non-differentiability of the PHARA utility. Finally, we use financial data to test the performance of the PHARA portfolio in the market.

Comparative Analysis Of Financial Performance Of Bank Bpd Diy And Bank Jateng For The 2019-2022 Period

This research aims to determine the comparison of financial performance between BPD DIY and Bank Jateng (formerly: BPD Jateng) in the 2019-2022 period. Research Method – This study uses descriptive analysis, this study uses financial ratio analysis tools, normality test, independent Sample T-test if the data is normally distributed, and Mann Whitney test if the data is not normally distributed. Findings - The conclusion of the research and discussion above, it can be said that Bank BPD DIY and Bank Jateng show significantly different financial performance as shown by the CAR ratio, while the ratio of NIM, ROA, NPL, and BOPO has no significant difference in financial performance. Implication – This research is expected to be a reference for consideration to analyze the comparison of BPD DIY and Bank Jateng and other banks in the future.