Journal of Siberian Federal University. Humanities & Social Sciences / Expanding the Functional Capabilities of Ratio Analysis in Financial Diagnostics of Organizations

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Issue
Journal of Siberian Federal University. Humanities & Social Sciences. 2025 18 (6)
Authors
Kalnitskaya, Irina V.; Konyukova, Olga G.
Contact information
Kalnitskaya, Irina V. : Financial University under the Government of the Russian Federation Moscow, Russian Federation; ORCID: 0000-0002-4800-4014; Konyukova, Olga G. : Financial University under the Government of the Russian Federation Moscow, Russian Federation; ; ORCID: 0009-0009-4764-523X
Keywords
ratio analysis; financial diagnostics; financial ratios; financial analysis
Abstract

The importance of ratio analysis in the financial diagnostics of organizations is based on its functionality for evaluation of the financial condition, credit investigation, bankruptcy prediction, and rating assessment. There are some difficulties in the use of ratio analysis for the financial diagnostics of organizations. They include challenges in the conceptual framework of financial ratios, methods of their calculation, determination of the best range of financial ratios for the financial diagnostics in its areas, selection of a base for a comparative analysis. The expansion of the functionality of ratio analysis for the financial diagnostics of organizations is achieved by solving urgent problems of ratio analysis. As a result, the purpose of the study is to identify the difficulties in using ratio analysis for the financial diagnostics of organizations and suggest ways to resolve them, which will expand its functionality. To reveal the problems of the conceptual framework of ratio analysis and its component structure, a comparison of financial ratios in the areas of financial diagnostics in software products for the financial analysis is made. Based on the results of the analysis of financial statements of organizations in various industries, financial ratios are systematized into several blocks: identical ratio names and their calculated values (what should be ideally), identical ratio names and their different calculated values, different ratio names and their identical calculated values. The major problem of ratio analysis for the financial diagnostics of organizations is the selection of a base for comparing the financial ratio values. The solution to the problems of expanding the functionality of ratio analysis as a financial diagnostic tool should be comprehensive, taking into account the industry approach and the specifics of organizations

Pages
1104–1116
EDN
PFBMRC
Paper at repository of SibFU
https://elib.sfu-kras.ru/handle/2311/156192

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