<abstract xmlns="http://www.w3.org/1999/xhtml"><p> 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.</p></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.

The Use of Statistical Process Control Tools for Analysing Financial Statements

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International Public License.

{"article-title":"The Use of Statistical Process Control Tools for Analysing Financial Statements"}

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...

The Use of Statistical Process Control Tools for Analysing Financial Statements

Published Online: Jun 16, 2017

Page range: 129 - 137

Received: Jan 04, 2017

Accepted: Jan 04, 2017

DOI: https://doi.org/10.1515/foli-2017-0010

Keywords
control charts, synthetic variable, financial analysis

© University of Szczecin

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International Public License.

The Use of Statistical Process Control Tools for Analysing Financial Statements

Published Online: Jun 16, 2017

Page range: 129 - 137

Received: Jan 04, 2017

Accepted: Jan 04, 2017

DOI: https://doi.org/10.1515/foli-2017-0010

Keywordscontrol charts, synthetic variable, financial analysis

© University of Szczecin

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International Public License.

Keywords
control charts, synthetic variable, financial analysis