Technology of Predictive Analysis of Entity’s Financial Stability Based on Linear Constrains
E.V. Negashev
E.V. Negashev, Ph.D., associate professor of the Accounting, Analysis and Audit Department of the Financial University under the Government of the Russian Federation, Moscow, Russia.
Manuscript received on November 12, 2019. | Revised Manuscript received on November 25, 2019. | Manuscript published on 30 November, 2019. | PP: 5032-5038 | Volume-8 Issue-4, November 2019. | Retrieval Number: D8208118419/2019©BEIESP | DOI: 10.35940/ijrte.D8208.118419
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This paper describes the technology for the predictive analysis of a business entity’s financial stability through the contemporary concept of equilibrium stability of a system. Analyzing the capability of business transactions to restore the financial equilibrium in the forecast period (where such financial equilibrium is disturbed as of the end of the reference period) is the most important part of the predictive analysis. In this paper, the author explains the structure, content of, and algorithms for this part of the predictive analysis of financial stability. The author has developed the general linear inequality to set the limits for the values of future business transactions that restore the financial equilibrium of a business entity.
Keywords: Canonical Criterion Function tor Financial Condition, Financial Equilibrium, Financial Equilibrium Stability, Matrices of The Effect of Business Transactions on The Asset and Liability Sides of the Balance Sheet Model, Vector Of Business Transactions.
Scope of the Article: Industrial, Financial and Scientific Applications of All Kind.