scholarly journals Financial Risk Assessment: Case of „Lietuvos Geležinkeliai“, AB

2019 ◽  
Vol 2 (1) ◽  
pp. 19-29
Author(s):  
Viktorija Skvarciany ◽  
Laura Germanaitė
Keyword(s):  
Risk Assessment ◽  
Risk Analysis ◽  
Credit Risk ◽  
Financial Risk ◽  
Liquidity Risk ◽  
Freight Transportation ◽  
Short Term ◽  
Financial Report ◽  
Net Profit ◽  
Key Indicators

AbstractThis research paper focuses on the analysis of the financial risk of Lietuvos geležinkeliai, AB (eng. Lithuanian Railways), which activities are passenger and freight transportation by rail. In order to assess the financial risk of the leading company areas of financial risk were identified and are as follows: liquidity risk, credit risk and market risk. However, due to limited access to statistics only financial report of the organisation were analysed and, hence, just liquidity and credit risk were investigated. Consequently, the limitation of the current research is that only two categories of financial risk were analysed. For the purpose of financial risk analysis, the key indicators of liquidity and credit risk were distinguished from the literature. The results showed that the biggest problem of the company is too small short-term assets and the profitability indicators, which were strongly influenced by net profit (loss).

Financial Risk of Conventional and Islamic Banks: Does Institutional Quality Matter?

2021 ◽  
Vol 12 (3) ◽  
pp. 510-524
Author(s):  
Normaizatul Akma Saidi Et.al
Keyword(s):  
Credit Risk ◽  
Financial Risk ◽  
Liquidity Risk ◽  
Islamic Banks ◽  
Government Effectiveness ◽  
Regulatory Quality ◽  
Level Data ◽  
Conventional Banks ◽  
The Relationship ◽  
Conventional And Islamic Banks

Banks play a significant role in financing the economy and take on risky financial activities based on information and trust as they specialized companies with their own specificities. This study was propelled to unravel the determinants that affect financial risk (liquidity risk and credit risk) for conventional and Islamic banks. The bank-level data of conventional and Islamic banks in the regions of Middle East, Southeast Asia, and South Asia between 2006 and 2014 were collected from the Bankscope, which is a commercial database produced by the Bureau van Dijk. Thus, for conventional banks the obtained results exhibited significantly positive relationship between regulatory quality towards liquidity risk. Then, the relationship between regulatory quality towards credit risk was negatively significant for conventional banks. Meanwhile, as for Islamic banks, the relationship between government effectiveness and regulatory quality towards financial risk was insignificant. Hence, the regulators or policymakers are able to identify specific mechanism to improve the risk management of these banks as well through this study.

Financial Risk Management

2016 ◽  
pp. 301-311
Author(s):  
Mirela-Madalina Stoian ◽  
Rares-Gabriel Stoian
Keyword(s):  
Risk Management ◽  
Credit Risk ◽  
Financial Markets ◽  
Financial Risk ◽  
Liquidity Risk ◽  
Financial Risks ◽  
Basic Principles ◽  
Financial Risk Management ◽  
Management Framework ◽  
Risk Management Framework

The present paper intends to serve as an introduction into the financial risk management universe. It starts with the basic assumption that performance of an organization is inseparable from the risks it is facing. Any organization should have in place the necessary tools to identify, assess and constantly measure the risks it is exposed to. The paper focuses in defining the basic principles in creating a viable risk management framework that keeps track of three major categories of identified financial risks: market risk, credit risk and liquidity risk. Emphasis is put on the models to measure these types of risks but also on the tools an organization can use in order to reduce them. The second part of the paper is dedicated to recent events that shaped and shocked financial markets and illustrate the consequences faced by organizations when risks are not properly assessed and the risk management models in place are based on dangerously unrealistic notions.

scholarly journals Rasio Likuiditas, Rasio Solvabilitas, Rasio Rentabilitas Koperasi Jasa Keuangan Syariah Di Jawa Tengah

2014 ◽  
Vol 15 (01) ◽  
Author(s):  
Rahmat Nuryanto ◽  
Muhammad Tho'in ◽  
Herlina Kusuma Wardani
Keyword(s):  
Research Data ◽  
Ratio Analysis ◽  
Short Term ◽  
Current Ratio ◽  
Financial Report ◽  
Net Profit ◽  
Mass Group ◽  
Quantitative Descriptive ◽  
Solvency Ratio ◽  
Profitability Ratios

This study aims to determine the ratio of liquidity, solvency and profitability which is the financial performance of KJKS Mass Group Sragen. The research method has been done in the form of quantitative descriptive percentage. The research data is obtained from financial report of KJKS Mass Group Sragen. The results showed that: (1) Based on the liquidity ratio shows the amount of good or liquid in the analysis of Current Ratio is 122.01% in 2012 and 153.11% in 2013, while the Cash Ratio analysis shows good results because it is still far below predefined standards; (2) Given the solvency ratio shows good or unbreakable results in meeting its obligations and short term; (3) Meanwhile, based on profitability or profitability ratios indicate that KJKS Mass Group is not rentable in generating maximum net profit.

Establishing decision tree-based short-term default credit risk assessment models

2016 ◽  
Vol 45 (23) ◽  
pp. 6803-6815 ◽  
Author(s):  
Yung-Chia Chang ◽  
Kuei-Hu Chang ◽  
Heng-Hsuan Chu ◽  
Lee-Ing Tong
Keyword(s):  
Risk Assessment ◽  
Decision Tree ◽  
Credit Risk ◽  
Short Term ◽  
Credit Risk Assessment ◽  
Risk Assessment Models

scholarly journals Assessment of trade credit risk in business companies

2014 ◽  
pp. 133-148
Author(s):  
Jūratė Každailienė ◽  
Dalia Daujotaitė
Keyword(s):  
Credit Risk ◽  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Business Development ◽  
Debt Ratio ◽  
Financial Indicators ◽  
Economic Sectors ◽  
Net Profit ◽  
Medium Enterprises ◽  
Key Indicators

The article‘s topic is relevant, because the importance of trade credit constantly increases. Trade credit can be one of the most important preconditions for the competitiveness of the enterprise and business development. There is a lack of scientific sources in the field of estimation of trade credit risk – there is no any particular, simple to use methodology to assess company trade credit risk. The aim of the article – to compose a methodology of assessment company trade credit risk for Lithuanian small and medium enterprises. In the article, following scientific sources approach, the advantages, risks and key financial and non-financial trade credit risk factors were identified. Based on the scientific sources and expert evaluation, the methodology of company trade credit risk assessment was created. The methodology is based on 10 key indicators identified by the experts. 12 financial ratios and non-financial indicators are being used – current and quick ratio, gross and net profit margin, Altman Z model, debt ratio, stock and debtors turnover, enterprise age, reputation, number and dynamics of employees. The indicators have been scored. The highest possible score is 100. The research approves that the methodology suits to be used in practice. It is simple, reliable, cheap, non-time consuming; it is easy to collect data, the data is being formalized and quantified. The disadvantages of methodology – the data is not always reliable and some ratios are of different importance in the different economic sectors. The methodology should be modified to adapt for the different sectors of business.

scholarly journals Credit Risk Assessment of Supply Chain Financing with a Grey Correlation Model: An Empirical Study on China’s Home Appliance Industry

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Xiaohan Huang ◽  
Jihong Sun ◽  
Xiaoyun Zhao
Keyword(s):  
Risk Assessment ◽  
Supply Chain ◽  
Empirical Study ◽  
Credit Risk ◽  
Financial Risk ◽  
Assessment Process ◽  
Correlation Model ◽  
Grey Correlation ◽  
Home Appliance ◽  
The Government

Supply chain finance (SCF) plays an increasingly important role in global enterprise competition. The credit risk accompanying SCF has attracted the attention of the government, enterprises, and academia. However, with the absence of data and inaccurate information, traditional risk assessment methods are frequently failed to assess the credit risk in SCF, especially for small- and medium-sized enterprises (SMEs). In this study, a grey correlation model is introduced and applied to the SCF risk assessment process for 15 firms in the Chinese home appliance industry with 15 performance indicators that represent profitability, solvency, operational capability, and development capability. The empirical study displays the operability and effectiveness of the grey correlation model, which is superior to traditional methods in the supply chain financial risk assessment.

scholarly journals PENGARUH RISIKO KREDIT, RISIKO LIKUIDITAS DAN RISIKO SOLVABILITAS TERHADAP PROFITABILITAS BANK (STUDI PADA BANK PERSERO YANG BEROPERASI DI INDONESIA)

2018 ◽  
Author(s):  
Azwansyah Habibie
Keyword(s):  
Credit Risk ◽  
Liquidity Risk ◽  
Secondary Data ◽  
Quantitative Approach ◽  
Bank Profitability ◽  
Financial Reports ◽  
Financial Report

This study aims to determine the effect. Against the level of bank profitability. Thisresearch is conducted with quantitative approach by using secondary data that isquarterly financial report of publication of state bank in question to Bank Indonesia.The population and sample are 64 quarterly financial reports of bank publicationsconsisting of 4 banks and study period from 2011 to 2014. The results of this studyindicate the existence of credit risk, liquidity risk and risk are partially insignificant tothe profitability of state banks but simultaneous credit risk, liquidity risk and solvabilityrisk significantly to the profitability of state-owned banks

scholarly journals ENTERPRISE CREDIT RISK ASSESSMENT ANALYZING THE DATA OF SHORT TERM ACTIVITY PERIOD

2012 ◽  
Vol 8 (1) ◽  
pp. 158-164
Author(s):  
Ričardas Mileris
Keyword(s):  
Risk Assessment ◽  
Credit Risk ◽  
Regression Tree ◽  
Probit Model ◽  
Financial Data ◽  
Classification And Regression Tree ◽  
Activity Period ◽  
Short Term ◽  
Credit Risk Assessment ◽  
Complementary Analysis

This research investigates the possibility to classify the companies into default and non-default groups analyzing the financial data of 1 year. The developed statistical model enables banks to predict the default of new companies that have no sufficient financial information for the credit risk assessment using other models. The classification and regression tree predicts the default of companies with the 96 % probability. The complementary analysis the financial data of 2 years by probit model allows to increase the classification accuracy to 99 %. Key words: bank, classification, credit risk, statistical analysis.

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