Problemy związane z zastosowaniem analizy wskaźnikowej w ocenie kondycji finansowej przedsiębiorstw
Problems connected with the application of financial ratios for the purposes of evaluating company’s financial position and performance

Summary/Abstract: Today’s enterprises compete on the global market. The decline in global trade and investment barriers, as well as free flow of goods, services and capital are the most important factors underlying globalization. Businesses face intense competition not only from their domestic rivals but also from overseas and multinational corporations. As permanent analyzing of enterprise’s performance is a vital component of modern management, it is crucial for all businesspeople to acquire the ability of evaluating their financial standing and performance. Financial analysis (especially ratio analysis) is the most widespread tool which allows to monitor the company’s finance. In spite of all their merits, financial ratios have also many flaws, of which a good analyst should be aware. The purpose of this article is to present the advantages and disadvantages of financial ratios and to examine some significant problems connected with their application in analyzing and assessing the company’s financial standing and performance.

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