The method of financial analysis of agricultural organizations in the Krasnodar region

Nadezhda Zhminko () and Albina Zhminko ()
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Nadezhda Zhminko: Kuban State Agrarian University
Albina Zhminko: Kuban State Agrarian University

Economy of region, 2014, vol. 1, issue 2, 161 - 170

Abstract: In the present conditions of economic development, an important factor in the growth potential of the business entity is timely and qualitative assessment of the prospects for its financial and economic activities and potential bankruptcy. To date, analysis of financial condition is carried out by applying the traditional method of analysis, or with the help of rating and discriminant Express models. At the same time, the traditional approach to the analysis of financial condition and bankruptcy forecasting economic entity, being essentially consuming, has a significant disadvantage due to the subjectivity of compiling information on the calculation of the set of indicators, which greatly affect the quality and direction of the terminals built on its basis. Advantages and discriminant rating Express models in contrast to the traditional approach is to have a single integral index and the possibility of developing a solid scale of its gradations that solves the problem of interpreting the results of the analysis while increasing its objectivity. Express models created as a result of each of the identified approaches separately having certain advantages have distinct disadvantages due exclusively feature algorithms rating or solely discriminant modeling. Rational combination of rating and discriminant approach allows to overcome the disadvantages inherent in each of the algorithms separately, allowing the simulation to absorb their positive aspects. Insufficient elaboration commonly used rating and discriminant modeling requires the needs to improve the analytical algorithm for constructing express model characterized by a high degree of reliability and timeliness of the information about the diagnosis conducted financial condition and potential bankruptcy organization.

Keywords: discriminant analysis; rating analysis; rapid method; the analysis of financial condition (search for similar items in EconPapers)
Date: 2014
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