Artikel
Usefulness of K-means Method in Detection Corporate Crisis
Market situation and business environment of construction companies influence significantly decisions met by this group of entities. These decisions are reflected in financial statements, later on. The evaluation of financial condition, which aims at diagnosing corporate crisis, must not disregard a market situation. Taking this assumption into account a classification of publicly quoted construction companies using k-means method was conducted. This procedure enabled to divide the examined sample into five clusters of companies characterized by ‘the best’, ‘good’, ‘acceptable’, ‘weak’ and ‘the poorest’ financial condition. The application of the aforementioned algorithm helped also to determine levels of financial ratios typical for each cluster. This kind of analytical approach is particularly useful for investors, since it informs how particular companies perform in comparison to their competitors.
- Language
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Englisch
- Bibliographic citation
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Journal: European Financial and Accounting Journal ; ISSN: 1805-4846 ; Volume: 5 ; Year: 2010 ; Issue: 2 ; Pages: 53-70 ; Prague: University of Economics, Faculty of Finance and Accounting
- Classification
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Management
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
Bankruptcy; Liquidation
Accounting
- Subject
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Numerical taxonomy
Cluster analysis
K-means method
Financial situation
Current ratio
Average collection period
Return on sales ratio
Liabilities payment time
Assets turnover
Return on assets
- Event
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Geistige Schöpfung
- (who)
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Dyczkowska, Joanna
- Event
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Veröffentlichung
- (who)
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University of Economics, Faculty of Finance and Accounting
- (where)
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Prague
- (when)
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2010
- DOI
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doi:10.18267/j.efaj.49
- Handle
- Last update
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10.03.2025, 11:46 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Dyczkowska, Joanna
- University of Economics, Faculty of Finance and Accounting
Time of origin
- 2010
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