Methods of Company Evaluation and Its Faults Cover Image

Metody komplexního hodnocení podniku a jejich nedostatky
Methods of Company Evaluation and Its Faults

Author(s): Marek Vochozka
Subject(s): Business Economy / Management, Accounting - Business Administration
Published by: Vysoká škola evropských a regionálních studií, z. ú.
Keywords: company; evaluation; bankruptcy model; credibility model;

Summary/Abstract: Companies are evaluated by more or less sophisticated instruments. Methods of company evaluation can be understood as a counterpart of financial analysis made according to Schmallenbach’s group. Financial analysis is an instrument that is very effective in partial results. If the results are presented autonomously or in a wrong context, we get an inaccurate idea of the financial situation of the evaluated company. On the other hand the bankruptcy credibility methods give us very clear, understanding results. However, we can see a disadvantage in their inaccurate calculation and in the basis of used models (they were created on the basis of statistical evaluation of real companies in certain regions). The aim of the contribution will be the fault identification of chosen bankruptcy and credibility methods and problems with their application in practice.

  • Issue Year: 2011
  • Issue No: 1
  • Page Range: 50-55
  • Page Count: 6
  • Language: Czech