Analyzed by statistical methods of analysis

Statistical methods of analysis

Statistical methods for financial analysis are broad tools to help financial manager can inspect bases with financial data and make rational decisions manager. The first step in the application of statistical methods is the recruitment and organization of the database with financial data. It has a base of financial data, the financial analyst may initially develop two introductory statistical methods for financial analysis:

- Analysis by financial ratios.

- Analysis by frequency allocations.

Can then proceed to the calculation of averages, variance and probability distributions, which identify opportunities and scope of statistical methods for financial analysis acquire a finished look.

Statistical method for financial analysis by financial ratios.

Statistical methods of analysis

The definition of the value of a financial variable is a good basis for its importance by comparing it with a similar amount, resulting in an attitude. For example, information that three clients are "bad" debtors is unimportant for the financial analyst compared the information that 5% of our customers default on their obligations. A similar proportion is even greater utility if it is supplemented with information that those 5% of our customers accumulate 10% of its total sales. Hence, determining the ratios required to analyze two dimensions. One of them falls reader ratio and the other in the denominator. Specifically, there are no strictly defined rules that ratio can be improved, in terms of technical significance for the analysis. (Video 1) presents the application of the statistical method of analysis using financial ratios. 

Paradoxically in the example considered is that depending on the purpose of analysis drawn conclusions can be highly contradictory. In comparison with data 200X+1year. It can be seen that the increase in customers with 1% led to an increase in receivables in arrears by 20% (based sales company). If comparing the absolute amounts of the changes in receivables in arrears will be that change is 260% (1800/500 = 2.6 times). Other things being equal, this means that the new 1% customers in arrears hold 20% of the company's sales, resulting in substantial adverse effects.

Putting the statistical ratios allows to ascertain not only the current meanings, but a series of values ​​of the observed magnitude.