A general model based on the DuPont system of financial analysis for identification, analysis and solution of a potential crisis in a business

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F20%3A10244895" target="_blank" >RIV/61989100:27510/20:10244895 - isvavai.cz</a>

Výsledek na webu

<a href="https://doi.org/10.14254/1800-5845/2020.16-4.5" target="_blank" >https://doi.org/10.14254/1800-5845/2020.16-4.5</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.14254/1800-5845/2020.16-4.5" target="_blank" >10.14254/1800-5845/2020.16-4.5</a>

Jazyk výsledku

angličtina

Název v původním jazyce

A general model based on the DuPont system of financial analysis for identification, analysis and solution of a potential crisis in a business

Popis výsledku v původním jazyce

The purpose of this article is to create a general model using the data commonly available in the managerial accounting system for the signalization of a possible potential crisis. The critical level of the input variables influencing the return of equity (ROE) and return on sales (ROS) was theoretically determined based on the DuPont system of financial analysis. To determine actual amount of the input variables for the test of their critical amount in a real company, we considered their average amount based on a simple arithmetic mean. For the real analysis in a potentially threatened company, we considered one month as a time unit for the time interval in a range of 14 months. We determined the average actual amounts of the input variables using confidence intervals. Because of the relatively small sample, we used Student&apos;s t-distribution for the construction of confidence intervals of the input variables. An analytical model-based system approach based on analysis of the complex value chain was used. By the means of logical derivations and test-ing this analytical model-based system approach in a real company, we proved, that this model enables not only to determine the critical level of the input variables leading to a crisis in a business but also to calculate their new adjusted amount, which the business needs to reach so that a potential crisis can be solved. The presented theoretical model was successfully applied to solve a real potential crisis in a particular Czech company, which supports the correctness and practical applicability of this general model. There are two main advantages of this model: 1) it can use the data commonly available in the managerial accounting system, 2) this model is generally valid, i.e., it can be used in any business producing goods or services.

Název v anglickém jazyce

A general model based on the DuPont system of financial analysis for identification, analysis and solution of a potential crisis in a business

Popis výsledku anglicky

The purpose of this article is to create a general model using the data commonly available in the managerial accounting system for the signalization of a possible potential crisis. The critical level of the input variables influencing the return of equity (ROE) and return on sales (ROS) was theoretically determined based on the DuPont system of financial analysis. To determine actual amount of the input variables for the test of their critical amount in a real company, we considered their average amount based on a simple arithmetic mean. For the real analysis in a potentially threatened company, we considered one month as a time unit for the time interval in a range of 14 months. We determined the average actual amounts of the input variables using confidence intervals. Because of the relatively small sample, we used Student&apos;s t-distribution for the construction of confidence intervals of the input variables. An analytical model-based system approach based on analysis of the complex value chain was used. By the means of logical derivations and test-ing this analytical model-based system approach in a real company, we proved, that this model enables not only to determine the critical level of the input variables leading to a crisis in a business but also to calculate their new adjusted amount, which the business needs to reach so that a potential crisis can be solved. The presented theoretical model was successfully applied to solve a real potential crisis in a particular Czech company, which supports the correctness and practical applicability of this general model. There are two main advantages of this model: 1) it can use the data commonly available in the managerial accounting system, 2) this model is generally valid, i.e., it can be used in any business producing goods or services.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

<a href="/cs/project/EE2.3.20.0296" target="_blank" >EE2.3.20.0296: Výzkumný tým pro modelování ekonomických a finančních procesů na VŠB-TU Ostrava</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)<br>S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2020

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Montenegrin Journal of Economics

ISSN

1800-5845

e-ISSN

—

Svazek periodika

16

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

ME - Černá Hora

Počet stran výsledku

12

Strana od-do

55-66

Kód UT WoS článku

000590139700005

EID výsledku v databázi Scopus

2-s2.0-85095841854