Assessment of latent indicators in financial analysis for implementation of the concept of sustainable development

• Main Authors: I.V. Zamula, V.V. Travin, Yu.K. Olishevska
• Format: Article
• Language: Ukrainian
• Published: Zhytomyr State Technological University 2019-06-01
• Series: Вісник Житомирського державного технологічного університету: Серія: економіка, управління та адміністрування
• Subjects: latent signs; methods of evaluating latent signs; financial analysis; evaluation of qualitative indicators
• Online Access: http://ven.ztu.edu.ua/article/view/175097/175347
• ISSN: 2617-5630; 2617-5630

The economic situation in Ukraine is unstable, and each day it is more difficult for companies to continue their businesses and not to go bankrupt. There are also many other external and internal factors that significantly affect the activities of the company and which can not always be estimated parametrically, but they have a considerable impact on the financial condition of the enterprise. Therefore, the analysts, both internal and external, are faced with an important and difficult task: to take into account all the factors that influence the financial condition of the enterprise, in particular latent signs, as much as possible. At the same time, the main problem is the complexity of identifying the list and assessing such features, thus, the study is directed exactly at solving this problematic issue. The use of latent features in the financial analysis is possible, desirable and even necessary element for enterprises that want qualitatively, accurately and fully carry out the analysis that will enable them to control the activity fully, and timely take measures to prevent problem situations. However, it is necessary to take into account the accuracy of the results obtained. Therefore, it is needed to choose such methods for assessing the latent features, which are used for the evaluation of the chosen method by the highest indicators in order to prevent the subjectivity of the expert’s opinion, and which are the most influential in evaluating the selected latent symptom. In general, among the analyzed methods of evaluation, the easiest to use during the financial analysis of the enterprise activities we consider: the taxonomic analysis; 2) the cluster analysis using the STATISTICA program, rating estimation (distance method). According to the results of the analysis of the evaluation methods of latent signs, their drawbacks are identified, namely: complexity, laboriousness, subjectivity in the formation of results, the high cost of software products that make it easier to calculate. Therefore, the prospect of further research is to create the methodology for calculating latent indicators that will be publicly available due to the ease of calculation.