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The Use of Statistical Process Control Tools for Analysing Financial Statements Cover

The Use of Statistical Process Control Tools for Analysing Financial Statements

By: Janusz Niezgoda  
Open Access
|Jun 2017

Abstract

This article presents the proposed application of one type of the modified Shewhart control charts in the monitoring of changes in the aggregated level of financial ratios. The control chart x̅ has been used as a basis of analysis. The examined variable from the sample in the mentioned chart is the arithmetic mean. The author proposes to substitute it with a synthetic measure that is determined and based on the selected ratios. As the ratios mentioned above, are expressed in different units and characters, the author applies standardisation. The results of selected comparative analyses have been presented for both bankrupts and non-bankrupts. They indicate the possibility of using control charts as an auxiliary tool in financial analyses.

DOI: https://doi.org/10.1515/foli-2017-0010 | Journal eISSN: 1898-0198 | Journal ISSN: 1730-4237
Language: English
Page range: 129 - 137
Submitted on: Jan 4, 2017
Accepted on: Jan 4, 2017
Published on: Jun 16, 2017
Published by: University of Szczecin
In partnership with: Paradigm Publishing Services
Publication frequency: 2 issues per year

© 2017 Janusz Niezgoda, published by University of Szczecin
This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 License.