Trend Analysis Method Application for Determining Risks of Crisis Occurrences in Business
Journal: Oblik i finansi (Vol.1, No. 64)Publication Date: 2014-06-30
Authors : Nataliya Klymash;
Page : 138-143
Keywords : trend analysis; afunctional relation; Beaver ratio; inventories turnover ratio; crisis occurrences;
Abstract
The Article provides grounds for theoretical and methodological provisions of objective assessment of independent factors influencing formation of risk indicator for business risk occurrence. Scientific approaches to the concept of financial crisis in company activity and choice of methods for bankruptcy risk detection have been considered. Using correlation and regressive analysis, the economic-and-mathematical model has been built to find linear dependence between Beaver ratio and inventory turnover ratio. This economic-and-mathematical model researched through respective ratios makes it possible to assert that there is close link between Beaver ratio and inventory turnover ratio. It has been found that inventory formation and usage process directly influences Beaver ratio which is one of the company's crisis occurrence indicator. Given the above, the author resumes that this process should be done through logistics approaches to inventories which would allow formation of a unified information system required for exercising control over inventory development and usage.
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Last modified: 2014-08-08 16:43:53