Assessing the Vulnerability of a Business: The State of Its Health

Alessandro Capocchi ()
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Alessandro Capocchi: University of Milano-Bicocca

Chapter Chapter 4 in Vulnerability and the Corporate Immune System, 2023, pp 55-80 from Springer

Abstract: Abstract It may seem unusual to use the term “immune system”—which occurs in the specific context of the physical health of individuals—about companies. Indeed, being economic actors with a life of their own and destined to last over time, companies have their own “immune system” that is well reconciled with the organicist and mechanistic vision introduced in Italian economic-business science by Aldo Amaduzzi. The role of the “immune system” for the company is significant, considering the high market turbulence and high complexity in contemporary socioeconomic systems worldwide. For these reasons, in this chapter, we highlight the main accounting tools that allow the assessment of the company’s state of health along three integrated dimensions: asset composition, financial correlation, and economic performance. Asset composition and financial correlation are related to the balance sheet analysis, whereas economic performance is related to the profit and loss statement (P&L) analysis.

Keywords: Immune system; Company; Accounting tools; State of health; Asset composition; Financial correlation (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-30254-1_4

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DOI: 10.1007/978-3-031-30254-1_4

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