Accounting and balanced business analysis of the insolvency (bankruptcy) risk and of the company competitiveness in time of global economic crisis

Abstract

The article presents interesting and improved methods of business analysis, emphasizing on the bankruptcy risk prediction and comparative competitiveness estimation. The paper handles strategic, current and operative financial business analysis, such as “SWOT - Analysis”,” Balanced Scorecard Method of Analysis”, “Z-Score Analysis”, and business metrics. The author presents a real life practical example of the engine production industry. The presented tools can be widely used for different industries, thus being highly valued especially in times of economic and financial crisis. The balanced scorecard analysis (BSc) has emerged as a decision support tool at the strategic management level. Many business leaders now evaluate corporate performance by supplementing financial data of Accounting Analisys with goal-related measures from the following perspectives: customers, internal business processes, learning and growth. It is argued that the BSc concept can be adapted to assist those managing business functions, organizational units and projects.