An expert system for financial ratio analysis Online publication date: Wed, 03-May-2006
by Gary P. Moynihan, Vineet Jain, Robert W. McLeod, Daniel J. Fonseca
International Journal of Financial Services Management (IJFSM), Vol. 1, No. 2/3, 2006
Abstract: Financial analysis interprets a company's past and present financial health and predicts its future condition. Although company financial statements contain a wealth of information to support this analysis, their interpretation may be complicated. Experts in this field are limited. This research focuses on automating the current practice of financial ratio analysis to identify the various features that need to be incorporated into the system. This involves calculating the ratios, establishing the relationships between the ratios, determining the technique for accurately forecasting the financial statements and/or ratios, developing heuristics for analysing the ratios and providing a system for recommendations. A prototype expert system was then developed. The system is capable of performing five types of analysis: liquidity, leverage, turnover, profitability, and past performance. The output of the system is a list of conclusions and recommendations based on these analyses.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Financial Services Management (IJFSM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook