Methods Of Financial Analysis Research Articles

Human Resource Management Factors in Financial Analysis of Securities Companies

The outcomes of financial analysis serve as the basis for crucial decision-making in business operations. However, many small-scale securities companies tend to overlook this aspect. This study aims to investigate the relationship between financial analysis activities and business outcomes of small-scale securities companies in Vietnam. Data were collected from 92 respondents working in 27 small-scale securities companies (with owner equity of less than 250 billion Vietnamese Dong), holding positions such as management (directors, assistant directors, financial directors, chief accountants) and staff (financial and accounting personnel) involved in financial and accounting operations of Vietnamese securities companies. Sampling was conducted selectively from September 2023 to December 2023. Utilizing quantitative research, the Partial Least Squares Structural Equation Modeling (PLS-SEM) method was employed using SPSS 20 and AMOS 20 software. Results indicate that Financial Analysis Method (MAF) and Financial Analysis Content (variable FAC) positively influence financial analysis activities of small securities companies. Recommendations to enhance securities companies' business outcomes include (i) employing the EVA technique in financial analysis, (ii) improving management capabilities in financial report analysis, (iii) enhancing the skills of accounting and financial staff, and (iv) applying and operating professional ethical principles.

Balanced Business Decision-making for Clinical Practices: Fulfilling "Mission" and "Margin".

Clinical practices, both private and academic, need to be profitable to sustain themselves and grow. To manage them and drive profits, one needs leadership that has a well-rounded understanding of multiple facets. When business decisions are based on financial data alone, they meet the goal of profit margin but alienate clinicians; when made using clinical data alone, they fulfill the clinical mission but ignore the bottom line. Here, we explain the benefits of a sound business-minded leadership that integrates the nuances of financial data, the cadence of clinical practices, and the value of resources, and makes meaningful business decisions. These decisions create a strong bond between physicians and their administrative leaders, aligning their "mission" (provide better care), and their "margin" (profitability and growth). We explain critical aspects of each source of information and how to use them together to make business decisions. Recognizing that clinicians may not have access to methods of financial analysis, we also supply a prepopulated Excel spreadsheet that has all equations baked in, so that it can be readily used, filling in their own data to generate financial ratios. This work explains how sound decisions can be made using financial metrics, clinical data (here, plastic surgery), and resource utilization, to identify areas that can be improved and take steps to achieve results.

Greenhouse Gas Reduction Potential and Economics of Green Hydrogen via Water Electrolysis: A Systematic Review of Value-Chain-Wide Decarbonization

Green hydrogen generated via water electrolysis has become an essential energy carrier for achieving carbon neutrality globally because of its versatility in renewable energy consumption and decarbonization applications in hard-to-abate sectors; however, there is a lack of systematic analyses of its abatement potential and economics as an alternative to traditional technological decarbonization pathways. Based on bibliometric analysis and systematic evaluation methods, this study characterizes and analyzes the literature on the Web of Science from 1996 to 2023, identifying research hotspots, methodological models, and research trends in green hydrogen for mitigating climate change across total value chain systems. Our review shows that this research theme has entered a rapid development phase since 2016, with developed countries possessing more scientific results and closer partnerships. Difficult-to-abate sectoral applications and cleaner production are the most famous value chain links, and research hotspots focus on three major influencing factors: the environment; techno-economics; and energy. Green hydrogen applications, which include carbon avoidance and embedding to realize carbon recycling, have considerable carbon reduction potential; however, uncertainty limits the influence of carbon reduction cost assessment indicators based on financial analysis methods for policy guidance. The abatement costs in the decarbonization sector vary widely across value chains, electricity sources, baseline scenarios, technology mixes, and time scenarios. This review shows that thematic research trends are focused on improving and optimizing solutions to uncertainties, as well as studying multisectoral synergies and the application of abatement assessment metrics.

Современная терминология и классификации в инвестиционном анализе

The article is devoted to the issues of improving the methodological provisions of investment analysis, which form of the basis for the projects of industrial enterprises strategic development. The purpose of the study is to develop fundamental theoretical aspects and methodological approaches to investment analysis as an integral function of complex management system of an economic entity. Both general scientific and applied research methods were used: analysis, synthesis, quantitative and qualitative methods of economic and investment analysis. A critical review of scientific and methodological publications and practical developments of modern Russian and foreign authors in the field of investment analysis is summarized. Directions for improvement of organization, content, methods of investment analysis and its information support have been developed, contributing to the quality of investment projects of manufacturing companies. Based on the generalization of the existing approaches to investment project activities and investment analysis practice, a conclusion is made regarding the necessity to update and supplement the terminological apparatus and specific typologization of objects within the scope of the research topic. Specified definitions of a number of fundamental concepts and terms are proposed, taking into account the specifics of project solutions of manufacturing companies. Special attention is paid to the practical use of financial analysis methods to assess the feasibility of investment project and substantiate the forecasts of its effectiveness.

STRATEGIC CONTROLLING TOOLS IN THE MANAGEMENT OF UKRAINIAN AGRICULTURAL COMPANIES

The subject of the study is the system of strategic control in an organisation, which is necessary for agri-food companies in the context of implementing the principles of sustainable development. Methodology. The following economic research methods were used in the study: monographic method (when studying scientific sources and reviewing thematic literature; studying the directions of sustainable development of business entities in the agri-food sector of Ukraine); scientific abstraction and generalisation (when studying various methodological approaches to determining the content of controlling); abstract and logical method (when determining the role and place of strategic controlling in the management system of agri-food companies, formulating conclusions based on the results of the study); methods of analysis and synthesis (when substantiating a set of tools for strategic controlling by elements of its system). The aim of the study is to supplement the methodological framework of the strategic controlling system for managing companies in the agri-food sector. Results. Controlling is an important management function, and its effectiveness determines the success of an organisation in achieving its goals and objectives. In modern conditions, strategic controlling can be combined with two main approaches – as a management philosophy and as a management function and mechanism. The system of strategic controlling is determined by a set of complex factors of the external and internal environment that determine the possibility of achieving the long-term goals and objectives. The implementation of sustainable development goals and objectives by agri-food companies creates new requirements for the strategic controlling system, the main of which are transparency, flexibility, inclusiveness, openness and efficiency. In order to successfully achieve the planned targets of sustainable development, the strategic controlling system should use a set of tools that is determined by the nature and effect of the relevant elements. It is proposed to use benchmarking, ABC-analysis, SWOT-analysis, PESTEL-analysis, methods of expert evaluation, CVP-analysis, financial analysis, network graphs and methods of expert forecasting as the main tools for strategic controlling of agri-food companies.

A Financial Performance Analysis of Indian Oil Exploration & Drilling Sector

Purpose: The study of financial performance analysis in the Indian oil and drilling sector serves a critical purpose in providing stakeholders with insights into the economic health, operational efficiency, and strategic positioning of companies within this industry. By analysing key financial metrics such as profitability, liquidity and valuation ratios, stakeholders including investors, policymakers, and industry participants can assess the sector's overall stability, growth potential, and risk exposure. Moreover, such analysis facilitates informed decision-making processes related to investment allocation, risk management strategies, policy formulation, and strategic planning. Understanding the financial performance of companies within the Indian oil and drilling sector is imperative for stakeholders to navigate the complexities of this dynamic industry, capitalize on opportunities, and mitigate potential challenges effectively. Oil Exploration and Drilling companies listed on the Bombay Stock Exchange were selected for the study. Design/Methodology/Approach: Five BSE listed Oil Exploration and Drilling companies are considered for the present research work and analysed by using profitability, liquidity and valuation ratios. Findings/Result: Selected Oil Exploration & Drilling sector companies listed on the BSE were the subjects of this study's analysis of their Profitability, Liquidity & Valuation ratios. The websites of Money Control and the BSE provided the majority of the time series data used in the study on three different ratios, Profitability, Liquidity & Valuation. Five years, from 2019 to 2020 to 2022–2023 are included in the analysis of Profitability, Liquidity & Valuation. It is recommended that investors can invest their money into ONGC, Reliance, and Oil India, Petronet LNG LTD. in order to maximise their investments. Originality/Value: This study employs the financial analysis method to analyze profitability, liquidity and valuation of the selected Oil Exploration & Drilling Sector. Paper Type: Empirical research

Motivation components of personnel management at enterprises

Methods. Methods of analysis and synthesis, empirical methods, methods of induction and deduction, graphic and logical methods, methods of financial, economic and statistical analysis were used in the process of researching the components of personnel management of enterprises. The methodological basis of the research is the index method, the results of which allow evaluating the main components of the enterprise personnel management. Results. The article provides a detailed analysis of statistical data and survey results regarding the main motivational components of personnel management at enterprises. The dependence between indicators of economic activity and components of personnel motivation was revealed. The article substantiates the main motivational components of personnel management, improves the structuralfunctional model of the dependence of quantitative and qualitative indicators and the motivational component of personnel management of the enterprise, which synthesizes a comprehensive approach to taking into account all important directions of improvement of motivational processes of personnel management. Novelty. It consists in justifying the need to take into account motivational components when planning and improving the scientific and methodological foundations of the development of a structural and functional model of personnel management and a system for evaluating the economic activity of the enterprise. Practical value. Evaluation of the motivational components of the personnel management of the enterprise is the basis for building effective models of the development of enterprises, which is an analytical tool for organizing the vertical and horizontal connections of the management system of the multi-level and multifunctional management decision-making system, taking into account the properties of the interdependent influence of performance indicators and establishing the safety parameters of individual trajectories of the development of personnel management .

RE-ENGINEERING OF BUSINESS PROCESSES OF MACHINE-BUILDING ENTERPRISES: INCREASING THE EFFICIENCY OF COMMERCIAL ACTIVITIES

The main purpose of the article is a theoretical and methodological substantiation of the choice of the optimal form of re-engineering for machine-building enterprises in modern conditions of a changing external environment. The object of the study is the business processes, commercial activities and financial potential of machine-building enterprises. The scientific task is to present a modern methodological approach to choosing the form of re-engineering that is better for a mechanical engineering company in the context of its current state. For this purpose, methods of financial analysis, matrix analysis and ranking were used. In addition, such auxiliary methods as graphical and abstract-logical were used. As a result of the research and calculations, a ranking of key indicators of the financial potential of machine-building enterprises was determined and carried out. An approach to determining the level of efficiency of business processes is presented. The author's vision of the matrix for choosing the optimal form of re-engineering is proposed. The practical value of the results obtained is revealed in the possibility of applying the proposed approach in the activities of machine-building enterprises in Ukraine. The study is limited by taking into account the specifics of the activities of machine-building enterprises exclusively when selecting indicators and ranking them. Prospects for further research are considered through the prism of applying the developed methodological approach to other industrial enterprises in Ukraine.

Efficiency-cost, micropropagation, bioreactors, temporary immersion systems

Objective: to estimate the production price of strawberry “mother” plant of the CP-Jacona variety in both TIS and TS, and to compare these prices with the price of the imported “mother” plant. Design/Methodology/Approach: micropropagation methods have been used as an effective means for the mass production of pathogen-free plants, in small spaces and relatively short periods of time. In particular, in vitro Temporary Immersion Systems (TIS) applied to the production of strawberry “mother” plants have been shown to offer technological and quantitative benefits, as well as a higher proliferation rate, compared to the in vitro Traditional System (TS). Despite the benefits of TIS, these systems have not been evaluated in terms of the price at which the “mother” plant can be produced and whether it is a profitable option to supply strawberry producers. The traditional method of financial analysis was applied. Results: the price of the CP-Jacona variety plant obtained from the third production period through TIS was lower than the price of the imported Festival or Camarosa varieties. Findings/Conclusions: both the high production rate and the low rate of loss from handling in TIS were fundamental aspects to obtain lower prices than those of imported varieties.

Profitability ratio analysis to assess the financial performance

Financial ratios become an illustration in consideration materials to explain the values in the financial statements. All aspects of the business sector are crucial in paying attention to financial management in banking, industry, manufacturing, and retail. This is because the financial sector applies financial principles in an institution to create optimal value to make decisions and appropriately manage resources owned by the company. This study uses data analysis based on financial statements by measuring, knowing, illustrating, and comparing charts in financial statements, especially the balance sheet and profit and loss. Ratio analysis uses a method of financial statement analysis that looks at a certain period of years and then compares financial statements with different years through sections of the financial statements. This study aims to develop a model for reviewing financial statements from financial performance. This research is expected to make theoretical contributions to the literature in this context, including in the context of financial and banking management.

Cost-benefit Analysis and Financial Feasibility of Rosemary Production in Southern Ethiopia

This study was conducted at Wondo Genet Agricultural Research Center experimental field from January 2018 to March 2021. The study examined the financial feasibility of WG-Rosemary-III rosemary variety for fresh herbs and WG-Rosemary-II rosemary variety for dry herb production. For this study, both rosemary varieties were planted on 100m2 land areas with an intra and inter-row spacing of 60cm. All cost and benefit data were collected during the cultivation period. The study utilized financial analysis methods such as net present value (NPV) and benefit-cost ratio (BCR) to analyze the feasibility of their production. The study found that the net present value of production of WG-rosemary-III for fresh herbs was ETB 2,603,219.63 per hectare in its entire three years of production, indicating that its production is financially feasible. The benefit-cost ratio of production of WG-rosemary-III for fresh herbs was 7.94 which indicates that a 1 ETB outlay for this rosemary production results in a net return of ETB 6.94 per hectare. Besides, the net present value of production of WG-rosemary-II for dry herb was ETB 1,186,051.02 per hectare in its entire three-year course of production, which indicates that its production is financially feasible. The benefit-cost ratio of production of WG-rosemary-II for dry herbs was 4.22 which indicates that a 1 ETB outlay for this rosemary production results to gain a net return of ETB 3.22. The results indicate that the production of these rosemary varieties is profitable. Therefore, the government and other concerned stakeholders should further scale up the production of these rosemary technologies through training and awareness creation for farmers and investors through extension agents, thereby these rosemary technologies are utilized as a significant source of income and contribute to the enhancement of household well-being.

Evaluating the Financial Feasibility of Renewable Energy Integration in Construction Sector

This important study details how economically viable renewable energy systems are in building and construction. The document begins with an intriguing discussion of renewable energy's role in sustainable development and environmental protection. For this article, a thorough literature review examines theoretical frameworks and financial analysis methods that support adding renewable energy systems to construction projects.This study examines many scholarly journals, industry reports, and conference papers using a qualitative secondary research design and the new Onion Framework. Using ideas, real-world data, financial evaluations, and case studies, layered analysis can reveal complex details about renewable energy systems' building industry profitability. A full comparison is in "Results." This section includes numbers and case studies that demonstrate the financial importance of switching to renewable energy. Show how upfront costs, payback periods, IRR, and comparative cost analyses differ between traditional and renewable energy systems using tables and figures. This research is combined with others in the discussion to explain how renewable energy systems affect construction costs. In addition to economic benefits, it suggests more research on regional differences and policy changes. This study suggests renewable energy systems in construction could be profitable. Although these systems require different initial investments, they may be cost-effective over time. It shows how important renewable energy strategy is for financially and environmentally sustainable building.

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.

Changes in SME Business Due to COVID-19—Survey in Slovakia and the Czech Republic

The objective of the paper is to analyse and compare the consequences of the coronacrisis on the entrepreneurship of small and medium-sized enterprises (SMEs) in Slovakia and the Czech Republic with the aim of identifying the determinants of changes in entrepreneurship. The secondary empirical research was carried out based on the analysis of secondary and primary data. The analysis used economic indicators of SMEs, governmental measures and surveys of the views of entrepreneurs. The analysis used data from statistical databases and official reports from government institutions and non-governmental organisations (NGOs), as well as data from primary surveys conducted by NGOs. Descriptive statistics, financial analysis and cross-comparison methods were used to process the data. The results revealed changes in the business of SMEs in the Czech Republic and Slovakia during the crisis, such as the adaptation of business strategies, improvement of flexibility and acceleration of digitalisation processes. These changes highlighted the importance of building business agility. The summary of the main changes in SME business based on both secondary data and primary surveys and the perception of state anti-pandemic aid by managers as feedback to governments represent the main contributions of the paper.

A Study on Financial Fraud at Kangmei Pharmaceutical Based on the GONE Theory

In light of the frequent occurrence of financial fraud, this paper takes the financial fraud case of Kangmei Pharmaceutical as a research case. Drawing from relevant studies by domestic and international scholars and considering the prevalent occurrences of financial fraud at home and abroad, this paper employs case analysis and financial information comparative analysis methods. Using the actual case of Kangmei Pharmaceutical's financial fraud as an example, it summarizes the main fraudulent methods employed by Kangmei Pharmaceutical, including inflating revenue, forging accounting documents, establishing an unreasonable equity structure before financing, and fabricating profits through "related-party transactions." This paper also analyzes the motives for Kangmei Pharmaceutical's financial fraud in detail from four aspects of the GONE theory: Greed, Opportunity, Need, and Exposure. Additionally, it proposes governance measures and insights for countering financial fraud from these four perspectives. Finally, specific recommendations are presented based on the analysis results. This paper aims to provide innovative approaches and means for publicly listed companies to seek effective governance of financial fraud, regulate market operation, cultivate an ecosystem conducive to the healthy development of all parties, and protect the rights of investors in compliance with legal requirements.

An Analysis of Huawei's Financing Decisions, Investment Decisions, and Operational Decisions

Enterprises play a crucial role in the integration of research, technology, and economic development, and their significance within the scientific and technology innovation system remains prominent. The decision-making process pertaining to funding, investment, and operations holds significant importance in the business activities of an enterprise. The rationality of these decisions directly influences the long-term success of the enterprise. Hence, it is imperative for organizations to thoroughly evaluate all facets when making decisions in order to mitigate the likelihood of encountering risks associated with financing, investment, and operational decision-making. This study utilizes a literature review approach and financial statement analysis method to gather and arrange relevant literature on the topic. Data tables are collected, and key information is derived from them. Finally, the findings are organized and summarized. This paper presents an analysis of Huawei's financing decisions, investment decisions, and operational decisions by drawing upon relevant literature from both domestic and international sources. The study also incorporates some specific case studies of Huawei to illustrate these concepts. The paper highlights several successful strategies implemented by Huawei that are worthy of emulation. In conclusion, the findings of this study provide valuable insights and recommendations to assist enterprises in making informed investment and financing decisions, thereby facilitating improved operational performance and overall development.

The effect of analysis using financial ratios in improving the quality of financial reports

The aim of the study was to demonstrate the impact of analysis using financial ratios in improving the quality of financial reports. To achieve the purpose of the study, a questionnaire was prepared consisting of (36) questions, including (28) questions to measure the independent variable (financial ratios) and (8) questions to measure the dependent variable (improving the quality of financial reports). The questionnaire was distributed electronically, and (47) questionnaires were obtained of the respondents' responses, all of them were subjected to analysis, and a linear regression test was used to test the hypotheses. The study reached several results, including There is a statistically significant effect of the analysis using financial ratios as a whole in improving the quality of financial reports. There was also a significant effect of analyzing using financial ratios separately (capital structure ratios, profitability ratios, liquidity ratios, turnover ratios, and market ratios) in improving the quality of financial reports. The study also found a set of recommendations, including the need for responsible authorities: to explain the importance of using financial analysis methods through financial ratios to evaluate the performance of enterprises and identify their strengths and weaknesses. And the need to conduct appropriate training and courses for workers in using financial analysis methods in general and analysis using ratios in particular because It has a role in improving the quality of financial reports.

Аналіз грошових потоків у системі управління фінансово-господарською діяльністю суб’єктів аграрного бізнесу в умовах дисфункції соціально-економічного розвитку

The article is devoted to the analysis of cash flows in the system of management of financial and economic activities of subjects of agrarian business in the context of dysfunction of socioeconomic development. In the process of preparing the article, such general scientific methods as generalization, analysis, synthesis, tabular and monographic, as well as methods of financial analysis were used. According to the results of the study, it is found that in the conditions of dysfunction of socioeconomic development, the following challenges for the financial and economic activities of the subjects of agricultural business are increasing: complication of logistics, decrease in demand, lack of own financial resources, instability of the exchange rate, complexity of planning and forecasting activities. A relatively positive forecast for the profitability of agricultural enterprises in the field of crop production in 2024 is specified. Insufficient demand, labor shortages, the so-called «other factors» (these include the challenges of martial law) are identified as the factors that most hinder agricultural activity. Based on the processing of reporting data of PJSC «Lebedyn Seed Plant», the leading agricultural enterprise of the Cherkasy region, it is determined that 2022 was a kind of «peak» of socioeconomic dysfunction, negatively affecting the indicators of the financial and economic activities of the enterprise. Attention is focused on the fact that in 2023 the enterprise demonstrated a partial improvement in indicators, but the analysis of cash flows allows us to conclude that there is a generally low level of liquidity, which may adversely affect the solvency of this economic entity. Prospects for further research are related to the study of financial management instruments that can be used to improve the efficiency of the financial policy of enterprise. Thus, it is expedient to analyze the possibilities of using financial leverage in order to optimize the structure of equity and debt capital and increase the profitability of activities. The main methodological challenge for the implementation of analytical calculations is the complexity of forecasting performance indicators.

РОЛЬ ФИНАНСОВОГО ПЛАНИРОВАНИЯ В ИНВЕСТИЦИОННЫХ СТРАТЕГИЯХ

The article reveals the role of financial planning in investment strategies, as an integral element of successful management of an organization in a modern economy, which allows one to formulate the organization’s investment goals, determine the direction of financial resources and evaluate the expected economic effect. The authors characterize the methods of financial analysis in the context of financial planning and practical implementation at the enterprise in accordance with the organization’s development strategy. The investment goals that the organization sets for itself when implementing investment strategies are structured in tabular form. The importance of integrating investment aspects in financial planning is emphasized, taking into account the influence of digital tools on the demand for the company’s products and services. The importance of financial planning for making informed management decisions when choosing optimal investment instruments and sources of financing that allow an enterprise to effectively manage risks, optimize the capital structure and orient strategic priorities in accordance with the transformation of the business environment is summarized.

ANALYSIS OF RISKS IN THE FINANCIAL SECURITY MANAGEMENT SYSTEM OF BUSINESS ENTITIES

Financial and economic activity is exposed to numerous systemic risks, which are a threat to the financial security of enterprises. The criterion for ensuring financial security is the appropriate level of the company's financial condition. The financial condition of the enterprise is a complex concept and is characterized by the system of indicators – financial coefficients: indicators of liquidity, financial stability, business activity, and management efficiency. The interrelationship and mutual determination between the indicators that cause the occurrence of risk when one of them changes is established.A range of factors that comprehensively characterize the financial and economic activity of the enterprise has been determined and developed risk analysis and assessment methodology, which includes the following stages: preparatory stage; construction of an algorithm for quantitative assessment of risk in the financial security system; interpretation of the results of an integrated risk assessment in the financial security system; determining the priorities of risk management in the system. The methods of financial analysis (horizontal, vertical, coefficient, analysis of business activity and financial stability) were applied and a quantitative assessment of risks was carried out. The indicators-coefficients of the enterprise's functioning are calculated and given an interpretation.The conclusion was formed that the construction of an effective risk management system and its universal functional component of risk analysis are current issues, as they allow to develop a set of measures to minimize threats and risks of conducting financial and economic activities of economic entities. Therefore, the correct assessment of risk with the help of the proposed methods and models of financial analysis for individual economic situations and business entities is effective and has value, as it gives the opportunity to make the optimal decision in specific situations and characterizes the criterion feature of financial security of industrial enterprises – liquidity, financial stability, business activity, profitability.