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

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.

Authors and Affiliations

Maxim Zagreba

Keywords

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  • EP ID EP355643
  • DOI -
  • Views 58
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How To Cite

Maxim Zagreba (2014). Theoretical aspects of the use of factor analysis in the analysis of the financial condition of the company. Центральноукраїнський науковий вісник. Економічні науки., 25(), 455-461. https://europub.co.uk/articles/-A-355643