Methodology of the Integrated Analysis of Company's Financial Status and Its Performance Results

Information about company's financial status and its performance results is very important for the objective evaluation of company's position in the market and competitive possibilities in the future. Such information is provided in the financial statement. It is important to apply and investigate this information properly. The methodology of company's financial status and performance results integrated analysis is recommended in this article. This methodology consists of these three elements: 1) research of absolute financial indicators variation; 2) calculation and estimation of relative financial indicators (these are the elements of a traditional finance analysis);  3) standardization and analysis of indicators. Applying this methodology it is enough to use 8–10 indicators to estimate financial status and performance results of small and medium entities and 15–20 indicators to estimate financial status and performance results of large entities. The methodology of company's financial status and performance results integrated analysis allows calculating variations of absolute financial indicators and to reveal the grounds of these variations and to suggest the decisions to improve the current situation for the management of the company. The third element of this analysis - standardization and analysis of indicators, allows revealing the aspects of commercial – industrial activities. Application of all three elements of integrated analysis will help company's management to evaluate current financial status of the company and its performance results and to make proper management decisions that will guarantee the succession of company's activity and good financial results in the future.