Digital technologies in the practice of financial analysis
Abstract. The article investigates current trends in the digitalization of financial analysis. The influence of digital technologies on the practice of financial analysis is analyzed, two key areas of transformation are identified: expanding the volume of data with automated calculations and increasing the availability of financial information in electronic form. Particular attention is paid to the limitations of existing automated financial analysis systems, which, despite their ability to process large volumes of data, cannot fully replace expert assessment. Using the example of a solvency analysis of a specific enterprise, it is demonstrated that automated systems provide only a superficial description of the financial condition, without revealing the underlying causes or taking into account the specifics of the business model. The author concludes that for making management decisions, a deeper analysis is necessary, taking into account non-formalized data and the specifics of the company`s activities.
Keywords: digitalization of financial analysis, automation of calculations, information base for analysis, expert systems, financial ratios, business model, non-formalized data.
Highlights:
- digitalization has significantly expanded the information base for financial analysis by automating data collection and calculation of indicators, but it has not fundamentally changed the methodology of interpretation of results;
- existing automated financial analysis systems are limited to providinga descriptive characterization of a company`s financial condition, without revealing underlying causes or taking into account the specifics of a business model;
- effective management decision-making requires a deeper analysis that considers non-formalized data, industry specifics, and peculiarities of the company`s business model, which remains the prerogative of human analysts.
Elvira V. Kondukova - Ryazan Institute (branch) of the Moscow Polytechnic University, Ryazan, Russia