Theoretical aspects of the use of factor analysis in the analysis of the financial condition of the company Cover Image

Теоретичні аспекти використання факторного аналізу при аналізі динаміки фінансового стану підприємства
Theoretical aspects of the use of factor analysis in the analysis of the financial condition of the company

Author(s): Maxim Zagreba
Subject(s): Economy, Business Economy / Management, Micro-Economics, Accounting - Business Administration, Socio-Economic Research
Published by: Кіровоградський національний технічний університет
Keywords: financial condition; factor analysis; forecasting dynamics; the principal component analysis

Summary/Abstract: The purpose of this paper is the formation of an effective method for assessing the financial condition of the company and its dynamics , allocation of principal components , their theoretical interpretation and use in forecasting the onset of the financial crisis at the company.The article describes the theoretical aspects of assessing the financial condition of the company and its dynamics using factor analysis and in particular the principal component. An example of specific calculations and the use of principal component analysis to predict the financial crisis of the enterprise.Using factor analysis and principal component analysis helps to explain the large number of signs of a small number of components. Also used in the calculations , the main components can be given theoretical interpretation that will be used in the formation of the study's conclusions.