Methodological issues of financial analysis in oil construction companies
Keywords:
Financial analysis, oil company, industry characteristics.
Abstract
This paper aims to propose the technique of financial analysis in oil construction companies by setting up and evaluating average industry values reflecting influence of external and internal factors using a data set from 2014 to 2018. Different approaches have been considered to assess financial state; set of financial ratios was chosen. Our findings showed unreasonableness of usage next financial ratios due to oil industry characteristics: ratio of security own funds, real value of the property ratio, maneuverability capital ratio. Analysis revealed deviations regarding next indicators: cash ratio, returns on assets ratio, financial autonomy ratio, ratio of own and borrowed funds. To improve financial ratios the matrix of management decision-making was elaborated, which may be useful if ratios above or below industry average value.
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References
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Dimitropoulos P., Asteriou D., Koumanakos E. The relevance of earnings and cash flows in a heavily regulated industry: Evidence from the Greek banking sector. Advances in Accounting, 26(2) (2010): 290–303. DOI: http://dx.doi.org/10.1016/j.adiac. 2010.08.005.
Dontsova L.V., Nikiforova N.A. Comprehensive analysis of financial statements. Fourth edition. Perspectiva, 2015
Efimova O.V. Financial analysis: modern tools for making economic decisions: the textbook. Economika, 2013.
Fayoumi El. The balance sheet effects of oil market shocks: an industry level analysis. Journal of Banking & Finance 95 (2018): 112-127. DOI: https://doi.org/10.1016/j.jbankfin.2017.12.011
Judge F., McAuliffea F. et al. A lifecycle financial analysis model for offshore wind farms. Renewable and Sustainable Energy Reviews 103 (2019): 370-383. DOI: https://doi.org/10.1016/j.rser.2018.12.045
Gazprom. The official website. http://www.gazprom.ru (accessed April 30, 2005).
Hosaka T. Bankruptcy prediction using imaged financial ratios and convolutional neural networks. Expert systems with Applications, 117 (2019): 287-299. DOI: https://doi.org/10.1016/j.eswa.2018.09.039
Ivanov P. Identifying the critical areas in the public finance of territorial entities of different levels from the perspective of the national security of the Russian Federation. Economic Analysis: Theory and Practice,7 (454) (2016):142-152.
Jiang H. Accounting restatements and audit quality in China. Advances in Accounting, 31(1) (2015): 125–135. DOI: http://dx.doi.org/10.1016/j.adiac. 2015.03.014.
Kalak E, Hudson R. The effect of size on the failure probabilities of SMEs: an empirical study on the US market using discrete hazard model. International Review of Financial Analysis, 43(2016):135–145. DOI: http://dx.doi.org/10.1016/j.irfa.2015.11. 009.
Klimova, N.I., Krasnoselskaya, D.Kh., and Khamzina, D.R. 2018. An empirical study on the relationships between sales revenue of oil company and industry specific and exogenous characteristics. Journal of Applied Economic Sciences, Volume XIII, Winter, 8(62): 2261 – 2268.
Kovalev V. Financial analysis: methods and procedures. Perspectiva, 2014.
Linares-Mustarós S., Coenders G., Vives-Mestres M. Financial performance and distress profiles. From classification according to financial ratios to compositional classification. Advances in Accounting. Volume 40(2018):1-10. DOI: https://doi.org/10.1016/j.adiac.2017.10.003
Lukoil. The official website. http://www.lukoil.ru (accessed 30.04.19)
Lee M,. Financial Analysis of National University Hospitals in Korea. Osong Public Health and Research Perspectives 6(5)(2015): 310-317. DOI: https://doi.org/10.1016/j.phrp.2015.10.007
OPEC: Annual Statistical Bulletin 2017https://www.opec.org/opec_web/en/publications/202.htm (accessed 30.04.19)
Pokki H., Virtanen J., Karvinen S. Comparison of economic analysis with financial analysis of fisheries: Application of the perpetual inventory method to the Finnish fishing fleet. Marine Policy 95(2018): 239-247. DOI: https://doi.org/10.1016/j.marpol.2018.05.022
Rosneft. The official website. https://www.rosneft.com (accessed 30.04.19)
Savitskaya G.V. Analysis of the economic activity of the enterprise. Second edition. Perspectiva, 2010
Transneft. The official website. http:// www.transneft.ru (accessed 30.07.19)
Published
2019-09-26
How to Cite
Khamzina, D., Goloviznin, S., Nogovitsina, O., Sarapulova, A., Aygumov, T., & Arishina, E. (2019). Methodological issues of financial analysis in oil construction companies. Amazonia Investiga, 8(22), 203-215. Retrieved from https://www.amazoniainvestiga.info/index.php/amazonia/article/view/306
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