The Use of Statistical Process Control Tools for Analysing Financial Statements

Niezgoda Janusz ()
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Niezgoda Janusz: Cracow University of Economics Faculty of Management Department of Statistics Rakowicka 27, 31-510 Kraków, Poland

Folia Oeconomica Stetinensia, 2017, vol. 17, issue 1, 129-137

Abstract: This article presents the proposed application of one type of the modified Shewhart control charts in the monitoring of changes in the aggregated level of financial ratios. The control chart x̅ has been used as a basis of analysis. The examined variable from the sample in the mentioned chart is the arithmetic mean. The author proposes to substitute it with a synthetic measure that is determined and based on the selected ratios. As the ratios mentioned above, are expressed in different units and characters, the author applies standardisation. The results of selected comparative analyses have been presented for both bankrupts and non-bankrupts. They indicate the possibility of using control charts as an auxiliary tool in financial analyses.

Keywords: control charts; synthetic variable; financial analysis (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:foeste:v:17:y:2017:i:1:p:129-137:n:10

DOI: 10.1515/foli-2017-0010

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