Key Financial Indicators Research Articles

Financial management of an environmental enterprise

The article examines financial management of environmental enterprises from the standpoint of evaluating the results of financial analysis and specifics of its implementation. Increasing the competitiveness of environmental organisations in the Russian Federation and ensuring their prospects in the face of sanctions and restrictions at this stage of development is becoming increasingly relevant. The authors propose a methodology for financial analysis of industrial and environmental activities of an enterprise based on the calculation of key financial and private environmental indicators of environmental enterprises. The novelty of this study lies in an integrated approach to financial management based on the results of the analysis of financial and private environmental indicators of environmental organisations, covering the financial and environmental aspects of their activities. The integrated approach to financial management is innovative because it is founded on the close relationship between financial and environmental activities of enterprises. The presented article develops analytical support and methodological tools of the analysis for use by environmental enterprises, with consideration to their specifics, in order to improve the efficiency of financial management. The practical significance of this article lies in the analytical provision of effective financial management for the sustainable development of environmental enterprises.

Investigating the Nexus Between Energy Transition Reporting Practices and Corporate Efficiency in the European Agri-Food Sector

The research paper investigates the nexus between energy transition reporting practices and corporate efficiency of listed European companies from the agri-food sector. The study relies on key energy-related and financial indicators and logistic regression analysis conducted on 219 EU business entities publishing their financial and non-financial reports between 2004 and 2023. Based on the distribution of financial metrics in the sample, we assumed that entities reporting data on energy transition, either partially or fully, could achieve higher profitability and simultaneously have lower liquidity than non-reporting companies. The panel data model indicated a strong relationship between the reporting status of a business entity, its revenue, and the time variable, demonstrating that the likelihood of providing information on energy transition was associated with the size of a company and increased systemically over time. However, further regression analysis revealed a lack of a persistent, significant relationship between the key financial indicators and the entities’ energy transition reporting status. Considering the substantial changes in the EU regulatory environment associated with introducing CSRD, we conclude that with increasing legal pressure over time, companies will gradually shift towards standardized industry-related reporting practices, resulting in more consistent and transparent evidence of their energy transition strategies.

The Interconnectedness of Earnings Management, Corporate Governance Failures, and Global Economic Stability: A Critical Examination of the Impact of Earnings Manipulation on Financial Crises and Investor Trust in Global Markets

This study critically examines the interconnectedness of earnings management, corporate governance failures, and their impact on global economic stability and investor trust. Focusing on the Enron (1993–1995) and Wirecard (2015–2019) scandals, the research identifies key financial and governance indicators that contributed to these collapses, including CEO duality, weak board oversight, and manipulated financial reporting. Data for the analysis were drawn from corporate financial reports, macroeconomic indicators sourced from the World Bank, and stock market data from MarketWatch. Financial ratio assessments and regression models reveal a statistically significant negative relationship between GDP growth and abnormal returns for Enron (p = 0.014), while inflation had a strong positive impact on abnormal returns in both cases (p < 0.001). Time series analysis was applied to assess the macroeconomic consequences of corporate collapses on global financial markets. The findings demonstrate how declining GDP growth and rising inflation amplify market responses to governance failures. Recommendations include enhancing corporate governance frameworks, intensifying regulatory enforcement, and fostering global regulatory cooperation to safeguard financial markets and restore investor trust.

A Financial Analysis and Valuation of Apple, Inc.

Abstract: This paper will take an in-depth look at Apple's financial performance and provide a detailed comparative analysis with its main competitors. Apple, as the world's leading technology giant, has always been known for its innovative products and strong market influence. However, in an increasingly competitive tech industry, continued financial health is key to its success. This paper first compares the performance of Apple and its competitors in key financial indicators such as liquidity, debt repayment ability and profitability. This comparison not only reveals Apple's financial position in the industry, but also helps us understand its robustness in responding to market movements. Next, this paper analyzes Apple's financial report of the latest year in detail, and deeply discusses the change trend of its revenue, expenditure, profit and other key financial data. This analysis is able to capture Apple's financial performance and strategy in the face of global economic fluctuations and changes in market demand. Finally, this paper will discuss Apple's business strategy and the business risks it faces. This includes its product innovation strategy, market expansion plans and potential risks due to factors such as technological change, market competition and global policy changes. Through a comprehensive analysis of Apple's business model and go-to-market strategy, this paper aims to provide a comprehensive perspective on how Apple can maintain its leadership position in a dynamic market.

Investment Feasibility Analysis Using Discounted Cash Flow Valuation Method (Case Study: Gold Mine in Pit A PT XYZ)

Investment in the mining sector carries a high risk, so a comprehensive financial evaluation is required to ensure project feasibility. This study assesses the financial feasibility of gold mining investment in Pit A, PT XYZ, for the period 2025 to 2036. The purpose of this study is to evaluate the feasibility of the project through the analysis of key financial indicators such as Net Present Value (NPV), Internal Rate of Return (IRR), and Payback Period (PBP) using the Discounted Cash Flow (DCF) method. The DCF method was chosen due to its ability to project future cash flows and incorporate them into a comprehensive assessment of the potential benefits and risks of the project. In addition, sensitivity analysis was conducted to see the effect of changes in important variables such as revenue, cost of goods sold (COGS), and capital expenditure (capex) on the financial results of the project. The results show that the project is financially viable, with a positive NPV of US$404.16 million, an IRR of 52.10%, and a PBP of 3.32 years, all of which indicate a strong return on investment. Further sensitivity analysis shows that the project remains robust under various scenarios of changes in key variables. This study contributes to the investment evaluation literature in the mining sector by offering a more integrated approach to addressing investment uncertainty and risk through the combined use of the DCF method and sensitivity analysis.

Future Development Analysis Based on the Price Reduction Trend of Tesla

The electric vehicle (EV) market is developing rapidly, while the complexity of the market is growing along with the growing prosperity of the market, continuous technology innovation, and frequent policy adjustments. As a leading pioneer in the electric vehicle market, Tesla's development trends have had a significant impact on the market and other companies in the market. Tesla's price cut may especially affect the brand positioning of other companies in the industry, and they follow its price cut strategy, leading to a price war in the whole market. It urges them to adjust their strategies to maintain their market position and profitability. Therefore, the paper elaborates and focuses on Tesla's financial data from 2021 to 2023 and price reduction strategies, and uses key financial indicators, such as revenue growth, cash flow, and return on investment, to predict the future development trajectory of Tesla. This paper, through Tesla's financial analysis and future trends, provides reference and guidance for investors, markets, or companies seeking to follow suit.

Analysis of Financial Stability in Indian Automobile Industry

The Indian automobile industry plays a pivotal role in the nation's economic landscape, contributing significantly to GDP, employment, and technological advancement. In recent years, the sector has faced considerable challenges, including shifting consumer preferences, regulatory changes, economic uncertainties, and the impact of global disruptions such as the COVID-19 pandemic. This paper aims to analyze the financial stability of the Indian automobile industry by evaluating key financial indicators, such as profitability, liquidity, and solvency. It also explores the industry's adaptability in the face of macroeconomic challenges, including supply chain disruptions, rising input costs, and changing regulatory landscapes related to environmental standards. Furthermore, the paper assesses the influence of government initiatives like the Production-Linked Incentive (PLI) scheme and electric vehicle adoption on the overall financial health of the sector. By employing both qualitative and quantitative analyses, the study provides insights into the sustainability and resilience of the Indian automobile industry, highlighting the critical factors that determine its financial stability and its potential for future growth in a dynamic economic environment.

Analisis Kinerja Keuangan Bank BUMN dan Bank Swasta Indonesia: Studi Komparatif

Purpose: This study assesses and compares the financial performance of state-owned and private banks in Indonesia from 2019 to 2021. This study focuses on evaluating key financial indicators to monitor the financial structure and efficiency of banking institutions continuously amid increasing competition in the banking sector. Methodology: This study utilizes several financial ratios and applies independent sample t-tests to analyze the financial performance of state-owned and private banks. The key ratios analyzed include (Equity to Total Assets Ratio), ECTAR (Equity to Customer Assets Ratio), IMAEAR (interest margin to average earnings assets ratio), LLCR (Loan Loss Coverage Ratio), DTCR (Debt to Capital Ratio), LDR (Loan to Deposit Ratio), and CAR (Capital Adequacy Ratio). Results: State-owned banks are financially weaker than private banks. Furthermore, there is no significant difference in the average financial performance of state-owned and private banks when measured using EATAR and ECTAR ratios. However, clear differences are observed between these two banking groups in terms of the IMAEAR, LLCR, DTCR, LDR, and CAR ratios. Limitations: This study is limited to the analysis of financial performance from 2019 to 2021, which may not fully capture long-term trends or the impact of external economic conditions, such as global financial crises or regulatory changes. Additionally, this study focuses only on a specific set of financial ratios. Contribution: This study contributes to the body of knowledge by providing a comparative analysis of the financial performance of state-owned and private Indonesian banks. It offers valuable insights for banking institutions, regulators, and investors on how financial performance differs across banking groups, highlighting areas where state-owned banks may need to improve their financial strength.

Exploring the nexus of oil price shocks: Impacts on financial dynamics and carbon emissions in the crude oil industry

This empirical study delves into the intricate interplay between oil price shocks (OPS) and their dual impacts on both carbon emissions and the financial performance of the crude oil industry. Utilizing a sophisticated econometric approach, the study employs a Nonlinear ARDL model to meticulously scrutinize the enduring and immediate associations between oil prices and key financial indicators such as stock prices, dividends, and profit ratios of oil exploration industries. Given the significant fiscal and ecological transformations in China during this period, the chosen factors provide a robust framework for measuring changes at both microeconomic and macroeconomic levels, contributing valuable insights to sustainable economic development strategies. Our findings elucidate a statistically significant influence of OPS on the financial performance of the oil industry, particularly in the short term. The increase in the volatility level of OPS manifests a discernible decline in stock prices and profit ratios. Intriguingly, the study further uncovers a nuanced facet of OPS, revealing a prolonged and beneficial impact on carbon emissions in the long term. More importantly, heightened oil prices serve as a catalyst, motivating oil exploration companies to intensify production and exploration activities, thereby increasing carbon emissions in a direct relationship. The implications of these findings are pivotal for policy making, underscoring the imperative for decision-makers and industry stakeholders to pivot towards cleaner, more sustainable energy sources. The research augments the ongoing discourse surrounding the intricate nexus between energy costs and carbon emissions, furnishing invaluable insights that could steer the development of policies geared towards fostering sustainability and mitigating the adverse effects of climate change.

УПРАВЛІННЯ РИЗИКАМИ ЯК ДІЄВИЙ ІНСТРУМЕНТ ЗРОСТАННЯ КОНКУРЕНТОСПРОМОЖНОСТІ СУБ’ЄКТА ГОСПОДАРЮВАННЯ

The article deals with issues related to the analysis of financial and economic activities of an enterprise. The methods for its realization are also investigated. Modern risks faced by business structures encourage the formation of effective management. Risk-oriented management should be viewed as a monolithic approach to understanding and predicting the likelihood of risks. Risk management is an effective tool for improving the competitiveness of a business entity. However, in order to detect certain changes in financial and economic results, effective control over the company's key financial indicators must be exercised. This results in the company's ability to implement measures aimed at protecting and enhancing the competitiveness of the business entity, its profitability, economic growth, efficiency of financial resources, solvency, use of labor and material resources, as well as the efficiency of the company as a whole. For a modern society, it is extremely important to form a clear vision of modern risks and their connection with the competitiveness of a business entity. This implies understanding the circumstances of the risk of minimizing it and identifying the consequences. Russia's armed aggression has created new threats and problems for the development of our country in general and its economy in particular. Without an efficiently functioning economy, it is impossible to win a war, so it is increasingly important to identify credible threats. Before establishing the probability of risks for a particular business entity, it is necessary to analyze the main financial indicators of its work. Based on the results obtained, the presence of dangers to the business environment of this entity is determined. The most effective methods for determining the financial condition are the analysis of relative indicators and the DuPont method. Together, they provide a complete assessment of the enterprise's performance. Recommendations for analyzing the financial condition based on an integrated approach are substantiated. Their expediency was confirmed in the calculations on the example of PJSC "Motor Sich".

A Comprehensive Study of Techno Economic Viability (TEV) Report of Various Projects

This paper provides a comprehensive analysis of the TEV process, focusing on its application to both greenfield and brownfield projects across various sectors, including manufacturing, infrastructure, energy, and services. The study aims to guide decision-makers by bridging technical assessments with financial analysis to establish project profitability and sustainability. A Techno-Economic Viability (TEV) Study serves as a crucial tool in the decision- making process for both lenders and investors. It offers a detailed assessment of a project's technical feasibility, economic viability, and overall sustainability. It delves into the dual aspects of technical feasibility and economic viability, emphasizing their roles in influencing investment decisions across a wide spectrum of industries, including manufacturing, infrastructure, energy, and services. The findings from this research also illustrate real-world applications, highlighting two case studies with an emphasis on key financial indicators such as the Debt Service Coverage Ratio (DSCR) and Internal Rate of Return (IRR), which are used to measure a project’s ability to meet debt obligations and generate profits. Keywords: Techno Economic Study, Financial Viability, Technical Feasibility, Financial Modelling, Risk Analysis, Investment Decision

The impact of new VAT enforcement on financial performance: Evidence from Saudi Arabia non-financial listed companies using the event study and ARMA model

This paper examines the influence of the new 15 % Value Added Tax (VAT) enforcement on non-financial listed companies in Saudi Arabia. By comparing financial data from 2019, before the VAT implementation and the COVID-19 pandemic, with data from 2020, during both the VAT increase and the pandemic, the research aims to uncover the consequences of this tax policy change. Utilizing charts, tables, and an event study analysis approach with the Autoregressive Moving Average (ARMA) model, we investigated key financial indicators such as Shareholders' Equity (SE), Total Income (TI), Total Revenues (TR), Net Income (NI), Total Expenses (TE), Other Changes in Operating Activity (COA), and Cash at the End of the Period (CEP). The findings reveal significant financial impacts, highlighting companies' challenges due to the increased tax burden. Shareholders' Equity dropped from an average of 11.55 million to 4.57 million, and Total Income and Total Revenues decreased from approximately 1.73 million to 316,234 and from 1.95 million to 331,605, respectively. Net Income sharply declined from 406,109 to 74,624, and Total Expenses decreased from about 1.18 million to 223,495. Other Changes in Operating Activity shifted from a negative mean of −168,936 to a positive 523,520, and Cash at the End of the Period fell from 1.99 million to 666,663. These results suggest that the VAT increase has significantly strained companies' financial performance, emphasizing the need to consider such tax reforms carefully, particularly in developing countries. The study concludes that while the VAT increase aims to enhance government revenues, it imposes substantial financial strain on companies, potentially leading to long-term economic repercussions. Policymakers should consider these implications and implement practical measures to optimize the VAT system and support business resilience in the face of such reforms.

Board Size and Corporate Performance in the Industrial Property Sector in Malaysia

This research investigates the relationship between the size of the board of directors and the financial performance of publicly listed industrial property firms in Malaysia. The study examines secondary data from annual reports, financial statements, and corporate governance disclosures, focusing on key financial performance indicators such as Return on Assets (ROA), Return on Equity (ROE), and Net Profit Margin (NPM). The study reveals significant correlations between board size and financial performance using correlation analysis and multiple regression. The findings provide valuable insights for regulators, investors, and business leaders, emphasizing the importance of refining corporate governance standards to ensure long-term financial success in Malaysia's industrial property sector.

Developing an Early Warning System for Financial Networks: An Explainable Machine Learning Approach.

Identifying the influential variables that provide early warning of financial network instability is challenging, in part due to the complexity of the system, uncertainty of a failure, and nonlinear, time-varying relationships between network participants. In this study, we introduce a novel methodology to select variables that, from a data-driven and statistical modeling perspective, represent these relationships and may indicate that the financial network is trending toward instability. We introduce a novel variable selection methodology that leverages Shapley values and modified Borda counts, in combination with statistical and machine learning methods, to create an explainable linear model to predict relationship value weights between network participants. We validate this new approach with data collected from the March 2023 Silicon Valley Bank Failure. The models produced using this novel method successfully identified the instability trend using only 14 input variables out of a possible 3160. The use of parsimonious linear models developed by this method has the potential to identify key financial stability indicators while also increasing the transparency of this complex system.

Climbing university rankings under resources constraints: a combined approach integrating DEA and directed Louvain community detection

AbstractOver recent years, scholarly interest in universities’ allocation and effective utilisation of financial resources has been growing. When used efficiently, financial resources may improve universities’ quality of research and teaching, and therefore their positions in world university rankings. However, despite the relevance of financial efficiency to university placement in academic rankings, universities’ total available financial resources appear much more significant. In the present study, we propose an innovative methodology to determine realistic ranking targets for individual universities, based on their available financial resources. In particular, we combine data envelopment analysis, as developed by Banker et al. (Manag Sci 30(9):1078–1092, 1984), and a directed Louvain community detection algorithm to examine 318 universities across five countries, considering their ARWU scores alongside key financial indicators (i.e., long-term physical capital, total operating revenues). We identify clusters of universities with similar financial profiles and corresponding ARWU scores, as well as universities that have optimised their use of financial resources, representing benchmarks for similar universities to emulate. The approach is subsequently applied to Italian universities, as a specific national case. The findings may be useful for policy makers and university managers seeking reliable strategies for climbing academic rankings, particularly in countries with limited public investment in higher education.

Analyzing the Financial Performance of Manufacturing Firms: A Focus on Return on Equity, Return on Assets and Return on Sales

The research aims to delve into the financial performance of manufacturing firms, with a specific focus on key financial indicators such as Return on Equity (ROE), Return on Assets (ROA), and Return on Sales (ROS). These indicators are commonly used to assess a company's profitability, efficiency, and overall financial health. The study involved the analysis of the financial statements of selected manufacturing firms to compare and evaluate their performance based on these metrics. Return on Equity (ROE) measures a company's profitability relative to the equity of its shareholders. Return on Assets (ROA) indicates how efficiently a company is using its assets to generate earnings. Return on Sales (ROS) measures a company's ability to generate profits from its revenue. The research aims to provide valuable insights into the financial health and efficiency of manufacturing companies. The findings may have implications for various stakeholders, including investors, industry practitioners, and the companies themselves. Investors can use the insights to make informed decisions about their investment choices, while industry practitioners can gain valuable knowledge about improving financial performance. Additionally, Rwandan companies themselves can use the findings to identify areas for potential improvement in their financial management and operations.

Strategic Management of Clean Energy Investments: Financial Performance Insights by Using BWM-based VIKOR and TOPSIS Methods

Market share of renewable energy companies increases with the increase in green-energy production. Companies increase their investments depending on the increase in energy production and can provide capital by offering the company to the public. Companies are traded in the exchange market in order to fund their increasing investments and access a large investor base. The increase in the market values of clean energy companies in recent years draws attention of investors. The study aims to identify key financial indicators that influence company growth and investment value by analyzing companies listed in the S&P North America and Europe Clean Energy Index. Therefore, the study evaluates the financial performance of clean energy companies using Best-Worst Method (BWM)-based VIKOR and TOPSIS methods to provide investors with a comprehensive assessment of investment opportunities in the clean energy sector. Also, the comparison of the two methods will contribute to the literature. The sample of this study consists of 10 big companies in S&P North America and Europe Clean Energy Index. Financial tables and exchange market data of the companies for the years 2019, 2020, and 2021 were used in this study. Remarkably, the analysis findings of the two methods differ from each other. The findings reveal significant insights into the financial health and growth potential of clean energy companies, offering valuable guidance for future.

A Study of the Performance of Urban Co- Operative Banks

This study examines the performance of urban cooperative banks, focusing on key financialindicators, governance structures, and customer service. The research aims to provide insights into thechallenges and opportunities faced by these banks in today's competitive banking landscape. Byanalyzing data from multiple urban cooperative banks across different regions, this study sheds light onthe factors contributing to their success or shortcomings. The findings will offer valuable guidance forpolicymakers, regulators, and the banking industry as a whole to enhance the sustainability andefficiency of urban cooperative banks while ensuring they continue to play a vital role in serving localcommunities.

Financial Analysis of China's New Energy Vehicle Industry under the Harvard Analytical Framework: A Case Study of BYD Company Limited and NIO Inc.

As the climate conditions continue to deteriorate, countries around the world are joining the ranks of energy conservation and emission reduction, bringing more energy-saving and environmentally friendly new energy products into the public eye. Enterprises represented by new energy vehicles have thus received considerable attention. This paper is based on the Harvard Analysis Framework and focuses on BYD Company Limited (hereafter referred to as BYD) and NIO Inc. (hereafter referred to as NIO) as research subjects. It delves into the new energy industry from four dimensions: strategy, accounting, finance, and development, in the context of the broader environment. The analysis reveals similarities and differences in some key financial indicators between the two companies, explains the reasons behind these differences, summarizes the current industry situation, and forecasts future development prospects. By comprehensively applying the Harvard Analysis Framework, the article not only understands the financial performance of BYD and NIO but also provides a reliable basis for decision-making for investors and governments. Through this analysis, the paper aims to support the sustainable development of the new energy vehicle industry, further promoting its healthy growth.

Research on the Impact of BYD Group’s Green Innovation on Corporate Financial Performance under the Background of “Dual Carbon”

With the increasingly severe global climate change problem, the “dual carbon” goals (peak carbon emissions and carbon neutrality) have become a common focus of international attention. The report of the 20th National Congress of the Communist Party of China clearly emphasizes the need to accelerate the green transformation of development models, implement comprehensive strategies for frugal development, support the growth of green and low-carbon industries, and promote the concept of green consumption. At the same time, “Made in China 2025” also elaborates on the strategic concept of innovation-driven and green development centered, and strives for breakthroughs in key industries such as new energy vehicles. In such a macro environment, adopting green innovation measures by enterprises not only contributes to ecological protection but also has an undeniable impact on their economic performance and overall value. This article takes BYD Group as a case study to explore in detail the positive effects of green innovation on its economic performance. We first systematically organized and analyzed BYD’s specific practices in green innovation; Then, by examining three key financial indicators, BYD’s current financial situation was analyzed in depth; On this basis, combined with research data, the positive impact of green innovation on BYD’s financial performance was revealed; Finally, based on the analysis results, relevant suggestions are proposed to provide reference for the sustainable development of enterprises in the context of “dual carbon.”