Application of synthetic measure to assess and model the financial condition of a company

Abstract

Enterprises should regularly analyze the results of their operations, as well as their financial condition. The source material for the analysis of the financial condition are financial statements. They present a picture of the property and financial condition of the enterprise for a certain period of time. The purpose of the article is to examine the usefulness of a synthetic measure for assessing the financial condition of enterprises. The CRITIC-TOPSIS method was used in the analysis. The study of financial condition provides information for evaluating and correcting the activities carried out. The increase or decrease in synthetic measures must be considered as a way to assess the effects of the financial condition to date. The assessment of financial condition using subindices of evaluation, i.e. liquidity, debt, profitability, as well as the synthetic measure can indicate trends in the studied area, positions in the industry, the situation of the unit. The syn-thetic measure of financial condition can complement the traditional ratio analysis.