Methods Of Financial Analysis Research Articles

Система комплексной оценки финансово-хозяйственной деятельности организаций бюджетной сферы на основе годовой бухгалтерской отчетности

In order to achieve an increase in public services quality and at the same time optimize budget expenditures there has been consistently formed the system that encourages budget institutions to develop various income-generating activities. The current practice of “dual” financing forces us to revise existing approaches to planning and evaluating the financial and economic activities of state institutions. The methods of financial analysis of budgetary institutions, the system of indicators of financial stability complex assessment, efficiency and effectiveness of their activities are considered. In order to form a system of economic indicators for a comprehensive assessment of the financial and economic activities of public sector organizations, a comparative analysis of the reporting of budgetary and commercial organizations was carried out, modern systems and methods of financial analysis of accounting statements were studied and methodological recommendations describing a specific system of indicators for assessing the performance of budgetary institutions were formed. The system under consideration involves carrying out analytical procedures sequentially from collecting information and express analysis, which allows determining the need, direction and scope of further analysis, to a detailed assessment of the financial stability, efficiency and effectiveness of the institution's activities (both in general by state assignment and income-generating activities, and directly by the efficiency of the use of property). The need for relevant and objective methods of analysis and evaluation is confirmed as a tool that contributes to improving (with correct application) the quality of services and the efficiency of budgetary institutions financial and economic activities. The formed system of indicators can be used to conduct internal and external monitoring and forecasting of the budgetary institutions activities, regardless of the field of activity, as well as the basis for the analytical techniques formation or improvement.

Application of Financial Big Data Analysis Method Based on Collaborative Filtering Algorithm in Supply Chain Enterprises

At present, the financial situation of China’s supply chain finance is still relatively unstable, and there are still some problems between supply chain enterprises and banks such as asymmetric information, insufficient model innovation and high operational risks. Based on this, this paper proposes and constructs a risk control model of financial big data analysis based on collaborative filtering algorithm. The purpose of this study is to realize the resource integration of supply chain enterprises and optimize the logistics chain, financial chain and information chain through the analysis of financial big data based on collaborative filtering algorithm, provide quality services for supply chain enterprises and good support for solving the financing problems of small and medium-sized enterprises. In order to verify the feasibility of the model, an experimental analysis is carried out. The experimental results show that this model has good scalability and operability, and the algorithm itself also has good scalability. The results of empirical analysis further verify that the design method in this paper has a good recommendation effect in terms of matching degree and user satisfaction. Compared with other risk control models, it is more practical and feasible. This research has certain practical significance for the financial management of supply chain enterprises.

USE OF LEASING IN ACTIVITIES ENTERPRISES AND RATIONALE FOR SELECTION ITS FORMS

The article discusses the possibilities of using financial and operational leasing by an enterprise, methods of accruing leasing payments. The purpose of this study is to identify the most cost-effective sources of financing for the renewal of fixed assets. One of the options for solving this problem can be leasing, which combines many effective forms and methods of investment and allows you to take into account the interests of all parties to the transaction. Materials and methods. The object of the study was the main production assets of enterprises, the subject – an assessment of the effectiveness of the use of leasing in the activities of enterprises. The informational basis of the article was made up of: regulatory and legislative materials regulating leasing activities, theoretical foundations of leasing, reporting by Dorex JSC, Internet sources. The methodological apparatus of the study is represented by the following scientific methods: economic and statistical analysis, the method of financial ratios, financial and economic analysis. Results. Thanks to such a tool as leasing, the lessee acquires the opportunity to use the property necessary for its activities without a one-time mobilization of its own or borrowed resources. Three main methods for calculating lease payments used by domestic economists are identified. In the course of the study, using the example of Dorex JSC, the optimal form of leasing was chosen, as well as a comparison of sources of financing for the acquisition of fixed assets and an assessment of the effectiveness of the use of leasing in the activities of the organization in question. Conclusions. The use of leasing can be an effective way to mobilize and expand production, allowing to reduce the tax burden and ensure the stability of the enterprise.

Venture capital as a way to develop an innovative model of the Russian economy

The article studies the way to develop an innovative model of the Russian economy by organizing venture capital investment. The purpose of the study is to analyze structural changes in the venture investment mechanism in Russia that have been occurring against the background of Russia’s special operation in Ukraine since February 24, 2022. The objectives of the study include identifying the role and significance of venture capital in the Russian economy transformations. The author used the methods of statistical, financial, dialectical and logical analysis. The system approach is fundamental, as it allowed to identify all the essential characteristics of structural changes in venture investment mechanism in the changed economic environment. The time period of the study is 2017–2022. The study analyzes the data from international organizations, analytical centers, mass media, and official sources. A review of the literature has been made and various approaches of scientific research considered. The main functions of venture capital have been highlighted and sources of its formation by directions given, and differences in the regulatory framework governing the Russian and other countries’ venture capital industry identified.

Analisis Financial Distress dengan Metode Altman Z-Score Modifikasi, Grover dan Zmijewski pada KSPPS BMT Ummat Sejahtera Abadi Jepara Tutup Tahun Buku 2018 – 2022

The purpose of this study was to recognize early warning signs of bankruptcy through financial distress analysis at KSPPS BMT Ummat Sejahtera Abadi Jepara by applying the Modified Altman Z-Score Method, the Grover Method and the Zmijewski Method. The type of research applied is quantitative research with descriptive descriptions. The object of research is the financial reports of KSPPS BMT Ummat Sejahtera Abadi Jepara at the close of the 2018 - 2022 financial year. The statistical study in this study uses the calculation of financial ratios at KSPPS BMT Ummat Sejahtera Abadi from the financial distress analysis method. The conclusion of the study showed that KSPPS BMT Ummat Sejahtera Abadi Jepara did not face financial distress in the results of the modified Altman Z-Score method above the cut off value > 2.60, the score for 5 consecutive years was 3.7. 3,825. 4,145. 4,027. 3,978. The same results show that the KSPPS BMT Ummat Sejahtera Abadi Jepara is in good health with the score on the Grover Method showing a number above the cut off G ≥ 0.01, namely 2018 (0.76), 2019 (0.77), 2020 (0.84) , 2021 (0.79), 2022 (0.799). Likewise the score on the Zmijewski Method shows a number less than 0, namely -3.28. -3.40. -3.62. -3.97. -3.95 means that KSPPS BMT Ummat Sejahtera Abadi Jepara is in good health, not facing financial distress and far from symptoms of bankruptcy.

Analysis of financial statements based on the perspective of strategic management: A case study of Midea group in China

The main purpose of this paper is to address the existing gap in traditional analysis methods by integrating strategic management and environmental aspects, and to establish a theory of quality analysis of corporate financial conditions. This paper uses the method of combining enterprise strategy and financial statement analysis to analyse the quality of assets, profit and cash flow of enterprises, and then evaluates the allocation of strategic resources, the effect of strategy implementation and the ability of strategic support. This study demonstrates that the application of the theory of financial condition quality analysis can enhance the assessment of enterprises in terms of their market expansion ability, strategic layout ability, and internal governance ability, and this approach is aligned with the requirements of users. Based on the link between strategic management and financial statement analysis, this paper establishes a theoretical framework for financial position quality analysis. The theoretical framework of financial condition quality analysis established in this paper solves the limitations of traditional financial analysis methods and existing financial quality analysis theories, and opens up a new way for corporate financial analysis. Based on the analysis framework, this paper analyses the three aspects of Midea Group's cost management, diversified strategic layout and global breakthrough strategy, and puts forward suggestions for the future development of the enterprise.

Financial and Sports Results of Public Sector Enterprises Operating Professional Sports Clubs

This article analyses the extent of state ownership and examines whether there are differences in business and sports activity results between state-owned and private entities running football clubs in the Polish Ekstraklasa. The study examined a panel of 100 entities (N) comprising 26 enterprises running football clubs whose male teams participated in Ekstraklasa games during five seasons: 2016/2017, 2017/2018, 2018/2019, 2019/2020 and 2020/2021. The study covered five consecutive financial years ending in 2017, 2018, 2019, 2020 and 2021. The statistical and financial analysis method was applied. The financial and sports results of state owned and private enterprises in the period of 2017-2021 were compared based on selected ratios. The mean and median values of the variables taken for analyses (financial and sports ratios) were calculated. A non parametric Kruskal-Wallis test was applied to assess the differences between the ratios for the groups of enterprises under study. The analysis revealed that state-owned companies and local government units are major shareholders in Polish professional football clubs. Examination of the financial results of public and private enterprises that run such clubs revealed statistically significant differences between most of them. Among the three groups of enterprises, those run by local government enterprises achieved the worst financial results measured by profitability, financial liquidity, debt, team cost and equity. The best financial situation was observed in the state-owned enterprises. Although no statistically significant difference was found in the sports achievements between the groups of clubs, the privately owned enterprises had better results (the median and the mean values) than the other enterprises concerning the number of points and a higher place at the end of the season.

Green Bond Financing for New Energy Power Cell Companies

Purpose – As the global environmental pollution and energy crisis become increasingly serious, green finance has emerged as a crucial instrument for achieving sustainable development. The combination of the new energy industry and green bonds provides low-cost, long-term financial support for green and low-carbon projects, helping new energy companies develop and achieve China’s dual carbon goals. Design/Methodology/Approach – This study analyzes the issuance, financing drivers, and effects of the green bonds of Chinese new energy power battery companies using the event study method and financial analysis method, taking the issuance of green bonds by Findings – The main motivation for CATL to issue green bonds is to attract stakeholders, optimize the financing structure, and achieve sustainable development goals. The company has shown good market, financial, and environmental effects after issuing green bonds. Research Implications – This study combines green bonds with new energy industry financing, further enriching the concept of green finance and environmental governance theory. Further, it proposes four insights from information disclosure, investment group, regulatory mechanism, and enterprise level. The results of this study provide reference for new energy battery enterprises to carry out green bond financing, which is of certain significance to promote the healthy development of China’s green bond market.

ESG analytics in investment decision making: in search for material information

Subject. The article considers approaches to determining information that is material for corporate reporting and analyses the way they affect the usefulness of the information presented to stakeholders and required for decision making. The choice of a particular approach determines the identification and formulation of material topics, information sources, and the target audience. Users need to understand the principal approach of the company to determining material information in corporate reporting in order to avoid controversies and unreasonable decisions.Objectives. The purpose of our study was to analyse approaches to defining material information for non-financial reporting and assess their impact on the usefulness of the information for stakeholders, primarily for investors.Research methods. The research involved using methods of comparative, logical, and financial analysis. The materials analysed were standards of financial and non-financial reporting, including frameworks and guidelines. The analysis was performed in order to define the concept of material information and requirements for it as well as suggested methods of identification of material topics and parameters to be presented in corporate reports of organisations. The following standards were analysed: GRI standards; standards by the International Sustainability Standards Board (ISSB); standards of the Sustainability Accounting Standards Board (SASB); Corporate Sustainability Reporting Directive (CSRD), and recommendations on disclosure of financial consequences of climate change of the Task Force on Climate-related Financial Disclosures (TCFD). The analysis of information disclosure practices was performed based on the sustainability statements of leading Russian companies operating in oil and gas industry and in steel industry for 2019-2021. We also used data from ESG ratings and rankings of Russian rating agencies.Results and discussion. The results of our study showed that while basic approaches to defining materiality suggested by leading international initiatives in corporate reporting have a lot in common, there are still crucial differences. The main difference is the focus on either the impact of external factors on the company (financial materiality) or the impact of the company on the society and environment (impact materiality). The understanding of these differences can help stakeholders to integrate the ESG information in the decision making process and use it to substantiate the decisions made. The problems revealed by the study, as well as the dynamic nature of the assessment of materiality of ESG data make it difficult to regulate the process of non-financial disclosure as compared to the disclosure of financial data. At the same time, the existing methods of determining material ESG information, taking into account industry specifics and based on the analysis of the organisation’s activities, its context, and requirements of the stakeholders, make it possible to find a practical solution to the problem.Conclusions. The conclusions and results of the study can be used to develop recommendations on public non-financial reporting for Russian companies taking into account the requirements of stakeholders.

Investment Value of an Enterprise in New Energy Vehicles: A Case Study of BYD Company

Purpose – In recent years, new energy vehicles have undergone qualitative changes and witnessed a doubling of trading volume. Most of the existing research on new energy vehicles derive valuation methods from traditional automobile companies. This paper aims to establish an effective investment value analysis model and determine a reasonable investment range through comprehensive analysis of the internal and external environment of the company, so as to provide investors with more specific references for investment value. Design/Methodology/Approach – Based on value investment theory, this study compares several major domestic listed new energy vehicle companies and combines financial analysis and valuation methods. Taking BYD, a leading domestic automobile company, as an example, it analyzes the current investment value in the field of new energy vehicles to assist investors in making better investment judgments. Findings – This study comprehensively compares the financial status of BYD and several major new energy vehicle companies in terms of profitability, solvency, and development capability. Using the PE valuation method, the study concludes that in the short term, the valuation of listed companies in the new energy vehicle sector is generally too high, indicating a certain bubble, and investors should exercise caution. In the medium to long term, investors can sustain their focus. Research Implications – This study provides a comprehensive, objective, and rigorous research method for stock valuation by comparing financial data, PE, and PB. Investors should analyze the impact of changes in financial data, policy changes, and technological advancements on the valuation of investment enterprises. In the future, they can intervene within a reasonable valuation range to obtain greater returns with lower risks.

ФІНАНСОВИЙ АНАЛІЗ УПРАВЛІННЯ ФІНАНСОВИМ СТАНОМ ПІДПРИЄМСТВА ТА ПРИХОВАНІ МОМЕНТИ НЕДОЛІКУ ТАКОГО АНАЛІЗУ

The study was conducted to assess the effectiveness of modern methods of financial analysis for decision-making in the field of managing the financial condition of small businesses, in particular for the future. When formulating the objectives and analys

Analyze The Financial Position of a Business Based on its Profitability. Empirical Evaluation at Baoviet Life Corporation

The article evaluates the financial position and profitability of the business through the profit ratio. Using the research method of collecting and analyzing data, the research team presented an overview of the research contents such as the theoretical basis of corporate financial analysis, profitability assessment, and calculation method calculation of the rate of profit. To illustrate how to calculate and apply the profit margin method in practice, the research team has conducted an empirical assessment of the profitability ratios at Baoviet Life Corporation. The research results show that the business results, the rate of return on invested capital, total assets, and equity of the insurance enterprise are not good, the profit rate has decreased continuously for five years. At the same time, through the analysis method, which is the exclusion method and the Dupont method, the research team also points out the factors that need to be considered and changed to help the profitability of the business better. The research results confirm the importance of profitability ratios when evaluating the business results of enterprises because, in the financial statements of Baoviet Life Revenue Corporation, Profits increased continuously but profitability decreased.

Using the Tobin Q model to evaluate the impact of credit risks on the bank’s market value during the corona pandemic

PurposeThis paper aims to assess the impact of credit risk on the market values of private banks during the corona pandemic.Design/methodology/approachThis study is identifying critical issues of credit risk at six great private banks. A conceptual framework is designed based on the Tobin Q model for investigating study hypotheses. Quantitative financial analysis methods have been used for processing data, such as financial ratios, arithmetic mean and multiple linear regression.FindingsThe most important result of this study is the lack of influence of credit risk on the market value of selected banks. Because the dimensions of credit risk have critical importance in increasing or decreasing the market value, these banks must continue to adopt quantitative financial analysis to measure credit risks to avoid their risk.Originality/valueThis study elaborates the need for financial indicators to help assess the market value of banks during the economic crises caused by the closure of commercial institutions during the corona pandemic. There is continued increase in bank credit to support these institutions, borrowers and cash withdrawals, which may affect their market reputation.

Pattern classification on specifics of public sector investments and budgeting principles

The aim of the study is to find patterns in an exact complete data set containing the annual budget of all municipal subjects in the Czech Republic over the past 20 years. The focus of the analysis is on which resources could enable the development of and investment in municipal assets, especially estate property. The financial and real estate analysis (FAMA) method was chosen, which provides comparable indicators to calculate the debt service and other related features of subject performance on a municipal level. These indicators demonstrate whether municipal subjects follow responsible budgeting principles and/or how they utilize their own resources. Comparing similar studies using mentioned data and methodology there is a gap between context of data in time a relation chosen indicators. The reason of obstacle is to put data in time-series and properly analyze them. This appropriate items of indicators are aggregated so all the connections between them and other items are lost. In enormous amount of data study uses classification tools to unfold hidden patterns how does municipal budgeting develop in time without knowing details about each case in context of debt and assets. Study convert time dimension to static indicator of its dynamics a using pure K-Means classification conclude having 6 different clusters which differ each other in some of indicators. Within broader context of those clusters we propose an overview of municipal budgeting strategies. In big cities dominates financing of investment by debt and the rest of clusters differs usually significantly with small impact of their population size that is one of determinants budget income therefore essential budget part.

NVIDIA's Financial Strategy and Operation Strategy Analysis

NVIDIA is a global leader in visual computing that focuses on building products that enhance the human-computer interaction experience of personal and professional computing platforms. This paper mainly analyzes NVIDIA's financial strategy and operational strategy. What NVIDIA does will be especially important amid the coronavirus pandemic and the rapidly changing semiconductor industry. This paper applies SWOT, financial report analysis and other methods to specifically analyze NVIDIA's FCF, net profit and other data, and tries to explore NVIDIA's current financial strategy, operating strategy and basic operation situation at the present stage, to put forward suggestions and prospects for NVIDIA's financial strategy and operating strategy. It is known that NVIDIA, as the leader of the semiconductor industry, is still in a leading position in terms of volume. But NVIDIA’s operation crisis has been revealed. It needs to better play its advantages in GPU and other aspects to continue to firm up and expand its leading position in the industry.

Portfolio Designed Based on Markowitz Model in Terms of Wine Industry of China

Contemporarily, China's Wine industry has a special social status because of the prevalence of the culture of drinking. Since the 21st century, the Wine industry has flourished, and the stock price has risen sharply, which makes it become the favorite object of plenty of investors. Facing the unexpected COVID-19, the Wine industry recovered and maintained a rising trend immediately after a short blow, showing its strong risk resistance. In order to find the best investment strategy for Wine industry, this paper applies the financial analysis method to screen out stocks worth investing and the Markowitz modelto determine the optimal portfolio as a reference for investors with quantitative analysis. To be specific, several typical stocks in the industry are chosen and the effective frontier is obtained. According to the models, the performances of the optimal case are illustrated and demonstrated. These results shed light on guiding further exploration of Wine industry and other similar industries.

Analysis of the probability of crisis events as a determinant of the financial security of food industry enterprises

Analysis of the probability of crisis events as a determinant of the financial security of food industry enterprises

Information Technology Investment Benefit Analysis Using the Cost Benefit Analysis Method and Ranti's Generic IS/IT Business Value Method

The rapid development of technology affects society. The development of information technology affects the business world today. To overcome all this, companies need breakthroughs by utilizing technology, namely e-commerce. Every organization or company needs to make information technology investments to be able to ensure better performance. The purpose of this study is to find out the benefits resulting from the investment in information technology in the form of online shopping applications by one fashion retail company in Indonesia, namely PT. XYZ. Information technology investment calculation methods used in this study are the financial statement comparison analysis method, Ranti's generic IS/IT business value method, and the cost-benefit analysis method. Through calculations that have been carried out using Ranti's generic IS/IT business value method and the cost-benefit analysis method, it has been determined that the information technology investment is beneficial for the company.

Business Management and Methods of Predictive Financial Analysis of Companies’ Activity

The prediction of the future situation of an enterprise can be made by means of one-dimensional and multidimensional discriminant analysis methods. Generally, these discriminant analyses use the financial ratios methods. The prediction of the future situation of an enterprise can be made by means of one-dimensional and multidimensional discriminant analysis methods. Generally, these discriminant analyses use the financial ratios methods. The article aims to apply one-dimensional discriminant analysis in specific conditions of economic practice. The empirical part of the research proves that this method can better warn against nearing bankruptcy by predicting whether a business will or will not be sustainable. The analysis of multiple scientific works has established that the reliability of one-dimensional discriminant analysis methods can differ from multidimensional discriminant analysis methods. The research conducted verified the above in a group consisting of prosperous and non-prosperous business entities. The research was conducted based on the sample of enterprises surveyed and showed that one-dimensional discriminatory methods had higher reliability than multidimensional ones. The research does not guarantee that a 100% reliable method will be found; however, it provides for the use of a combination of multiple methods and the assumptions on which these existing methods work.

Measuring corporate M&A performance from a two-dimensional perspective of economic and social benefits

With the development of digital economy, Chinese companies have set off waves of M&A boom. The current mainstream methods of measuring corporate M&A are based on corporate finance level such as event study method and financial analysis method. Based on the literature research method, this paper points out the problems of the relatively single perspective and narrow scope of the measurement of M&A based on corporate finance. To this end, this paper uses the hierarchical analysis method (AHP) to comprehensively measure the economic and social benefits of M&A enterprises from the perspective of corporate finance and social contribution, constructs a corporate M&A performance evaluation model, and establishes a corresponding evaluation index system to promote a more comprehensive, scientific and reasonable measurement of M&A enterprise performance and promote sustainable development of enterprises.