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Regional Economics: Theory and Practice
 

A comprehensive model to evaluate financial condition of a company

Vol. 16, Iss. 3, MARCH 2018

PDF  Article PDF Version

Received: 5 September 2017

Received in revised form: 27 December 2017

Accepted: 18 January 2018

Available online: 15 March 2018

Subject Heading: ECONOMIC-MATHEMATICAL MODELING

JEL Classification: C15, С38, С53, D61, D81

Pages: 551–566

https://doi.org/10.24891/re.16.3.551

Nikitin V.V. I.N. Ulianov Chuvash State University, Cheboksary, Chuvash Republic, Russian Federation
vvn22@yandex.ru

ORCID id: not available

Danilov I.P. I.N. Ulianov Chuvash State University, Cheboksary, Chuvash Republic, Russian Federation
dip41@yandex.ru

ORCID id: not available

Nazarov A.A. I.N. Ulianov Chuvash State University, Cheboksary, Chuvash Republic, Russian Federation
xukvagpam@yandex.ru

ORCID id: not available

Bobin D.V. I.N. Ulianov Chuvash State University, Cheboksary, Chuvash Republic, Russian Federation
dimbobin@mail.ru

ORCID id: not available

Importance The article deals with methodology formation for developing an integrated index to evaluate the financial condition of a company in the current period and on a short-term horizon.
Objectives The purpose of the study is to reasonably combine different models for integrated evaluation of company's financial condition.
Methods In the study, we employ the principal components method being a version of factor analysis.
Results We provide a generalized criterion and illustrate it on the OAO Promtractor data. The consolidated findings on the enterprise are in line with the preliminary analysis of its financial standing. The results of the analysis may be of interest not only to company managers and owners, but also to economic partners.
Conclusions The offered methods of building a generalized criterion to evaluate the financial condition of a commercial enterprise enable to perform a multi-criteria analysis of the target of research and avoid excessive sensitivity of estimates to adding new data.

Keywords: assessment model, bankruptcy, multivariate statistical analysis, financial projections

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