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Financial analysis

Preprint · August 2024

DOI: 10.13140/RG.2.2.18446.16961

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 University of Aleppo Faculty of Economics Business Administration

Financial analysis
Mahmoud Mohamad Osama Fares
[email protected]

2024 -1445

1: Introduction:

Financial analysis relies on a set of rules and methods used to interpret the
interrelationships between elements of financial data, such as assets, liabilities, expenses,
and revenues. This interpretation provides useful information by linking these elements,
which aids in making various decisions by all users. Achieving these results requires the
application of a set of laws and mathematical equations, which demand care, time, effort,
and prior knowledge of how to calculate. With the development of computers, there has
been significant progress in various sciences, especially in the applications of financial,
administrative, and accounting sciences.)1(

All economic units prepare financial reports at the beginning of each year to manage
the financial position and the result of activities. These reports are relied upon by users
to make various decisions. However, financial reports do not include information that
clarifies the relationship between the elements of financial statements. By linking these
elements, it is possible to obtain a variety of useful information. Therefore, financial
analysis ratios are used to demonstrate these relationships and benefit from the
information obtained in guiding users’ decisions.)2(

Financial analysis is a necessary step for financial planning, as it is essential to know

the financial position of the institution before thinking about setting future plans. It is a
tool that enables the institution to identify strengths and weaknesses in the financial
position. Identifying strengths allows management to exploit them, while identifying
weaknesses enables them to address them early so they do not hinder future plans.

1
): Hassanein Hamid Al-Abidi, Noor Abdul Razzaq, (n.d.), Financial Analysis of Financial Statements Using
Computers for a Sample of Economic Units, Journal of Al-Turath University College, Issue 19, p: 108.
2
): Hassanein Hamid Al-Abidi, Noor Abdul Razzaq, (n.d.), Financial Analysis of Financial Statements Using
Computers for a Sample of Economic Units, Journal of Al-Turath University College, Issue 19, p: 109.
1
 University of Aleppo Faculty of Economics Business Administration

Financial analysis also aims to provide concerned parties with information and data about
the institution’s financial situation, evaluate its performance over a certain period, verify
the institution’s success or failure in achieving set goals, and assist in decision-making
within the institution.)1(

2: Development of Financial Analysis:

Interest in financial analysis began at the start of this century, especially with the
increasing prevalence of joint-stock companies, which necessitate a separation between
management and ownership. Initially, the focus was on the balance sheet as the most
important statement, with particular attention given to long-term financing sources. As
the banking role expanded, especially in providing credit facilities, the balance sheet
became essential for approving the requested credit facilities from the enterprise. This
dates back to February 9, 1859, when the Executive Council of the New York State
Bankers Association recommended that its members require borrowers to provide written
statements of their assets and liabilities in a format recommended by the Unified Data
Committee for various groups. Since then, this topic has been extensively researched,
and leading bankers have recommended using data for granting credit facilities. For the
first time in 1906, it was recommended to analyze this data comprehensively by those
responsible for granting credit facilities through study and comparison, allowing for the
identification of strengths and weaknesses in the data. The idea of comparison was well-
received, and they began to consider which data should be compared. In 1908,
quantitative measurement by ratios was adopted. The goal of analysis and the desired
information determined the statement to be relied upon to achieve the required results.
The focus was no longer limited to the balance sheet or income statement but extended
to all accounting data. Financial analysis now uses all accounting data and external data
related to the unit. Financial analysis has become instrumental in performance evaluation
and future planning for all activities, even subjecting uncertain conditions to control and
oversight.)2(

3: Definition of Financial Analysis:

Financial analysis is a process through which a set of quantitative and qualitative

indicators about the economic activity of a project is explored or derived. These
indicators help determine the significance and characteristics of the project's

1
): Dahamna Islam, Daqdaq Abdul Basit, (2022), The Role of Financial Analysis in Diagnosing the Financial Situation
of the Economic Institution, Mohamed Boudiaf University, Algeria, p: 7.
2
): Munir Shaker Mohammed, Abdul Nasser Noor, Ismail Ismail, (2008), Financial Analysis and Decision-Making
Approach, Wael Publishing and Distribution House, Jordan, p p: 12-13.
2
 University of Aleppo Faculty of Economics Business Administration

operational and financial activities by extracting information from financial statements

and other sources. These indicators are then used to evaluate the performance of the
enterprise with the aim of making decisions. Financial analysis is a necessary tool for
achieving sound financial planning, as it reveals the financial condition of the
institution over a period of time using a set of techniques, including financial ratios and
working capital.)1(

Financial analysis is the system through which analytical tools are applied to
financial statements and other financial data to consistently interpret trends and
relationships. Essentially, financial analysis involves converting data into information,
thereby aiding in a diagnostic process aimed at scanning, examining, and forecasting
information. A financial analyst interested in assessing the creditworthiness of an
enterprise must estimate the enterprise's future cash flows, assess the risks associated
with those estimates, and determine the appropriate discount rate to apply to those
estimates. The purpose of financial statements and IFRS standards is to provide useful
information to users for making economic decisions. However, these financial
statements do not contain all the information an individual user might need. Additional
information, such as a five-year performance record of the company and unit sales
analysis by product line, can be useful to users.)2(

4: Objectives of Financial Analysis:

The objectives of financial analysis include the following:)5( )4( )3(

1. Evaluate the organization's past performance.

2. Identify and diagnose financial weaknesses and deficiencies in preparation for
restructuring.
3. Make various future decisions to improve the organization's financial
performance.
4. Compare the financial performance of other organizations.
5. Understand the financial position of the enterprise.

1
): Mohammed Matar, (2000), Financial and Credit Analysis Methods and Tools, Wael Publishing House, Amman, p:
3.
2
): Tarek Abdel Aal Hamad, (2006), Analysis of Financial Statements for Investment and Credit Granting Purposes,
University House, p: 474.
3
): Ahmed Al-Adasi, (2011), Financial Analysis of Financial Statements According to International Standards,
Scientific Hurricane Publishing and Distribution House, Jordan, p: 105.
4
): Moayad Radi Khanfar and Dr. Ghassan Faleh Al-Matarna, (2000), Analysis of Financial Statements, Al-Masirah
Publishing, Distribution, and Printing House, Jordan, p: 73.
5
): Munir Shaker Mohammed, Abdul Nasser Noor, Ismail Ismail, (2008), Financial Analysis and Decision-Making
Approach, Wael Publishing and Distribution House, Jordan, p: 22.
3
 University of Aleppo Faculty of Economics Business Administration

6. Assess the project's earning capacity.

7. Evaluate the efficiency of financial and operational performance in the
enterprise.
8. Assess the enterprise's ability to repay its debts and obligations in the short and
long term.
9. Develop future plans and ensure internal control.
10. Identify weaknesses in the enterprise and propose solutions and
recommendations to address them.
11. Determine the enterprise's borrowing capacity and ability to repay debts.
12. Determine the investment value of the enterprise and the feasibility of
investing in its shares.
13. Assess the adequacy of the enterprise's management.
14. Evaluate the suitability of financial, operational, and sales policies and plan for
them.
15. Clarify the general direction of the enterprise's activities.
16. Assist management in making planning and control decisions.
17. Evaluate the performance of management and departments and assess
administrative policies.
18. Study and evaluate the profitability and financial balance of the enterprise.

5: Steps of Financial Analysis:.)1(

The steps of financial analysis include:

1. Determine the objective and period for financial analysis.

2. Select the appropriate items from the statements that achieve the objective.
3. Choose the suitable analysis tool.
4. Conduct the analysis according to the chosen tool.
5. Select the standard to compare the analysis results.
6. Determine the company’s position relative to the comparison standard.
7. Identify the factors causing the results.
8. Summarize and conclude the final results.
9. Provide recommendations, suggestions, and appropriate solutions.

1
): Khaldoun Ibrahim Al-Shadifat, (2000), Financial Management and Analysis, Wael Publishing House, Jordan, p: 1.
4
 University of Aleppo Faculty of Economics Business Administration

6: Stages of Financial Analysis:

The stages of financial analysis can be summarized into three main stages:.)1(

 Preparation and Planning Stage: This is a fundamental stage where the

analyst begins the work anew, either by being assigned the task of conducting
the analysis or by receiving and writing the assignment from external or
internal parties. The importance of this stage lies in good preparation and
planning, which positively impacts the execution and outcomes of financial
analysis.
 Analysis Stage: This is the core stage where the analyst processes the available
information and data to serve the analysis objectives.
 Conclusion and Recommendations Stage (Report Writing):

7: Factors Contributing to the Increased Importance of Financial Analysis:

The factors contributing to the increased importance of financial analysis include:.)2(

 Credit: It is the lifeblood of economic life, consisting of a series of

interconnected links. The interruption or delay of any link affects the rest. The
delay of some debtors in repayment impacts other parties and creates financial
problems. Therefore, financial institutions and specialized entities like banks
pay attention to studying the financial position of borrowing entities before
granting loans.
 Financial Markets (Stocks and Bonds): In capitalist countries, joint-stock
companies represent the prevalent legal form for large-scale capital formation
and investment. Regulatory bodies in these countries, especially the United
States, have intervened to set regulations ensuring the clear publication of
companies’ financial statements. These standards can be imposed on
companies seeking to trade their shares on the stock exchange.

8: Uses of Financial Analysis:

Financial analysis is an effective tool for understanding the nature of relationships

and connections between different elements of a project, including its assets,
liabilities, revenues, and expenses. The goal of using financial analysis is to raise

1
): Khaldoun Ibrahim Al-Shadifat, (2000), Financial Management and Analysis, Wael Publishing House, Jordan, p:
96.
2
): Munir Shaker Mohammed, Abdul Nasser Noor, Ismail Ismail, (2008), Financial Analysis and Decision-Making
Approach, Wael Publishing and Distribution House, Jordan, p: 10.
5
 University of Aleppo Faculty of Economics Business Administration

questions and draw attention to sensitive points that require study to develop
solutions, often in the form of financial, production, sales, and general policies
implemented by the enterprise. While setting policies is not the responsibility of the
financial analyst, they can provide suggestions and recommendations based on their
expertise. Questions typically arise when something appears inconsistent with
expectations or industry norms. Raising these questions helps managers who review
the analysis results to assess past and present management performance and plan for
the future based on past achievements. The primary purpose of financial analysis is to
provide management, investors, and lenders with financial information used to:.)1(

1. Measure the profitability and liquidity of the enterprise, i.e., its ability to meet
obligations.
2. Prepare financial forecasts.
3. Conduct financial planning for the enterprise.
4. Implement financial control.
5. Evaluate the overall adequacy of management and the activity of its various
departments.
6. Demonstrate the success of the enterprise to its owners.

9: Types of Financial Analysis:

Financial analysis can be categorized based on different perspectives and criteria.

Some of the main criteria include:.)2(

9-1: Based on the Analyzing Entity:

9-1-1: External Analysis: Conducted by analysts from various external entities

outside the organization. External analysts primarily rely on published financial
statements and data to analyze the financial situation of the organization. It is often
challenging for these analysts to access detailed information from within the
organization. This type of analysis is performed by external parties to serve their
objectives, such as banks, financial institutions, and chambers of commerce and
industry.

1
): Alaa Mubarak Abdul Rahman Al-Bashir, Rafida Ali Awad Al-Karim Mohammed, Malaz Al-Sadiq Elias Ali, Nihal
Ahmed Mohammed Ali Murad, Hadeel Rahmatullah Babofath Salem, (2017), Financial Analysis and Its Role in
Evaluating the Financial Performance of Commercial Companies, Sudan University of Science and Technology,
Sudan, p: 23.
2
): Osaif Issa, (n.d.), Using Financial Ratios and Financial Analysis Indicators to Evaluate the Financial Performance
of the Institution, Mohamed Boudiaf University, Algeria, pp: 15-17.
6
 University of Aleppo Faculty of Economics Business Administration

9-1-2: Internal Analysis: Conducted by an employee, department, or division

within the organization. The aim of this analysis is to provide necessary information to
various management levels to perform their tasks and make informed decisions.
Internal analysts benefit from their position within the organizational structure, which
allows them access to necessary data and information, review accounting data, and
receive assistance from employees within the organization. This advantage places
internal analysts in a better position compared to external analysts.

9-2: Based on the Period Covered by the Analysis:

9-2-1: Short-term Financial Analysis: This analysis can be vertical or horizontal

but covers a short period. It is used to measure the project’s capabilities and
achievements in the short term. This type of analysis often focuses on the project’s
short-term ability to meet its current obligations and generate operational revenues,
commonly referred to as liquidity analysis. This type of analysis is primarily of interest
to creditors and banks.

9-2-2: Long-term Financial Analysis: This analysis focuses on analyzing the

overall financing structure, fixed assets, and long-term profitability, as well as covering
the project’s long-term obligations, including the ability to pay interest and debt
installments when due, the regularity of dividend distribution, and the impact of these
distributions on the project’s stock prices in financial markets. To achieve these goals,
the analyst examines the consistency in the financing structure and uses, combining
short-term analysis (when studying short-term financing sources and their uses) with
long-term analysis (when studying long-term financing sources, both internal and
external, and their uses).

9-3: Based on Stability or Movement:

9-3-1: Vertical or Static Analysis: This involves using financial ratios to study the
overall relationship between items in financial statements, such as the relationship
between each item in the balance sheet and total assets, or between each item in the
income statement and total sales. The goal of this analysis is to evaluate the economic
efficiency of the organization, its ability to achieve profitability, and meet both short-
term and long-term obligations. Financial ratios represent the relationship between two
items in the same financial statement (balance sheet, income statement, or cash flow
statement) or between two accounting items in different statements. The results of
financial ratios are meaningful only when compared to standard or benchmark ratios to
understand the financial position and economic performance of the organization. This
type of analysis is called static because it focuses on analyzing financial statements
7
 University of Aleppo Faculty of Economics Business Administration

prepared at a specific date, studying their components, and the relative importance of
their elements. Each part of the elements is related to the total of these elements or a
subset of them. This type of analysis relies on studying the quantitative relationship
between different elements of financial statements at a specific date, making it static
due to the lack of a time dimension.

9-3-2: Horizontal or Dynamic Analysis: Horizontal analysis involves comparing

figures in financial statements over several accounting periods (two or more). The
financial analyst typically identifies and determines the differences and changes from
one accounting period to the next, calculating and determining the percentage of this
change based on the previous period as a base period. The goal is to obtain additional
information from financial statements. Horizontal analysis compares figures in
financial statements over several consecutive accounting periods, comparing the value
of the same item over two or more consecutive financial years. The more years of
comparison, the more meaningful the figures become. This analysis is called trend
analysis and is referred to as dynamic or variable analysis. It focuses on studying each
element of the financial statement over a changing period, tracking increases or
decreases over a specific period.

10: Nature of Financial Data:

Financial data forms the basis for most analytical processes related to economic
activity. Therefore, it is essential to review the nature and limitations of this data to
understand its usefulness and role in financial analysis. Generally, accounting data is
prepared according to generally accepted accounting principles and reflects the effects
of past and current management decisions. Financial data is often ambiguous as it is
governed by financial accounting rules that aim to present information fairly and
accurately for each economic activity using conservative accounting principles,
including:.)1(

 Transactions are recorded at historical cost (the cost at the time of the
transaction), with adjustments made only if current values decrease.
 Revenues are recognized only upon sale.
 Provisions are made for current assets (potential losses), thereby reducing
profits.

1
): Munir Shaker Mohammed, Abdul Nasser Noor, Ismail Ismail, (2008), Financial Analysis and Decision-Making
Approach, Wael Publishing and Distribution House, Jordan, pp: 12-13.
8
 University of Aleppo Faculty of Economics Business Administration

11: Financial Statements:

Financial statements prepared and published by joint-stock companies are among

the most reliable sources of financial information for all parties, whether internal or
external. This reliability is due to their regular auditing by an auditor and periodic
preparation by an official, responsible source. The continuous growth in information
needs and the modern business environment necessitate their preparation to be reliable
and trustworthy for economic decision-making. Financial statements are the outputs of
the accounting system and the essence of accounting work. The primary goal of
financial accounting is to measure the project’s profit or loss and determine its financial
position at the end of each financial period.)1(

Such rules leave the results (outputs) of financial accounting open to numerous
interpretations, especially when an analyst seeks to understand the economic
performance and value of an enterprise. The key financial statements used in financial
analysis include:

11-1: Balance Sheet: Also known as the statement of financial position, the
balance sheet must always be balanced because the total assets invested in economic
activity at any given time must equal the liabilities and equity. The balance sheet shows
the main account groups and amounts related to assets, liabilities, and shareholders’
equity, and the relationships between these groups at a specific point in time, usually at
the end of each year.)2(

11-2: Income Statement: Reflects the impact of the enterprise’s operational

decisions and the profits and losses realized over a specific period. The profits and
losses shown in the income statement appear in the balance sheet, increasing or
decreasing equity.

11-3: Cash Flow Statement: This statement has become an integral part of
financial statements for companies or enterprises in recent years. It provides
information about cash inflows to the enterprise, showing the liquidity available during
the financial cycle and its ability to meet current cash obligations. The cash flow
statement is essential for investors to evaluate the enterprise’s ability to generate cash
and its need to use these cash flows.

1
): Abdul Nasser Mohammed Said Darwish, (2010), Principles of Financial Accounting, Safaa Publishing and
Distribution House, Jordan, p: 321.
2
): Naeem Dahmash and others, (1999), Principles of Accounting, Published with the support of the Institute of
Commercial Studies (First Edition), Jordan, p: 34.
9
 University of Aleppo Faculty of Economics Business Administration

11-4: Statement of Changes in Equity: Shows the changes in the enterprise’s

equity, reflecting increases or decreases in its net assets or value during the period,
according to the valuation basis disclosed in the financial statements. Excluding
changes resulting from transactions with equity holders, such as capital increases or
distributions, changes in equity represent retained earnings and losses from the
enterprise’s activities during the period.)1(

12: Tools for Financial Statement Analysis:

Financial statement analysis covers various aspects of the enterprise’s activities,

depending on the analyzing entity and the purpose of the analysis. To perform their
tasks appropriately and provide relevant information to the entity they work for,
financial analysts must use suitable tools. Analysts use one or more of the available
analysis tools, depending on the nature of their analysis. Key tools include:

1. Vertical Analysis.
2. Horizontal Analysis.
3. Ratio Analysis.
4. Break-even Analysis.

13: Benefits of Financial Analysis:

Financial analysis plays a significant role in evaluating financial performance by

studying financial statements and identifying relationships between them. The benefits
of financial analysis include:.)2(

1. Determining the enterprise’s short-term liquidity by comparing current assets

with current liabilities.
2. Assessing the enterprise’s ability to meet long-term obligations and the
relationship between liabilities and assets.
3. Evaluating the enterprise’s earning power, indicating its ability to generate
profits.
4. Determining the relationship between profits and prices to understand if pricing
is below or above expectations.
5. Assisting management in evaluating the overall performance of the enterprise
and the performance of its administrative units.

1
): Kamal Al-Din Al-Zahrawi and others, (2003), Accounting in Joint-Stock Companies, University New Publishing
House, Egypt, p:333.
2
): Mohammed Taysir Al-Rajabi, (1998), Analysis of Financial Statements, Umm Al-Samaq Publishing House, Jordan,
p:1.
10
 University of Aleppo Faculty of Economics Business Administration

6. Helping government units perform their duties reasonably and assisting

auditors in conducting audits.

14: Weaknesses in Financial Analysis:

There are three main sources of weaknesses in financial analysis:.)1(

1. Nature of the data used in the analysis: Historical data in the balance sheet,
while the cash balance in the income statement does not match the net profit
due to the accrual principle.
2. The financial analyst is usually external to the company and cannot access
general and sensitive data within the company, as it is considered confidential.
3. Limitations related to ratio analysis: Financial ratios measure the company’s
position at a specific moment, and the ratio itself is meaningless unless
compared to another figure called the benchmark. The reason for changes in
the financial ratio cannot be determined.

15: Characteristics of Financial Analysis:

The characteristics of financial analysis include:.)2(

 Financial analysis relies on financial statements and other sources as the basis
for study and analysis, containing historical data.
 Financial statements must be reclassified in a manner that allows for analysis.
 Various methods can be used when analyzing financial statements.
 Analysis can be conducted at the level of a single enterprise over a time series
or between similar enterprises in the same industry.
 Analysis is not limited to calculating indicators and ratios but seeks to
understand the implications behind these indicators and ratios for decision-
making.

1
): Khaldoun Ibrahim Al-Shadifat, (2000), Financial Management and Analysis, Wael Publishing House, Jordan, p:
129.
2
): Ahmed Al-Adasi, (2011), Financial Analysis of Financial Statements According to International Standards,
Scientific Hurricane Publishing and Distribution House, Jordan, p: 104.
11
 University of Aleppo Faculty of Economics Business Administration

16: Beneficiaries of Financial Analysis:

The beneficiaries of financial analysis include:.)2()1(

 Enterprise Management: Benefits from financial analysis in assessing the

enterprise’s success in achieving liquidity, profitability, comparing its position
with competitors, evaluating marketing, sales, and production achievements,
predicting failure, and assisting in financial control.
 Creditors: Use financial analysis to understand the company’s credit status,
financing structure, liquidity, repayment ability, and profitability.
 Investors: Benefit from financial analysis to understand the company’s earning
power, shareholders’ share of profits, the stability of these profits over the
years, and the company’s growth and expansion rates.
 Financial Advisory Firms: Use financial analysis to gather information about
the company and its contribution to supporting the local economy, which is
published for all parties.
 Chambers of Commerce and Industry: Collect data on economic units in the
same sector to extract ratios and indicators for each branch of economic
activity.
 Planning Agencies: In countries with central planning, financial analysis helps
prepare new plans based on information obtained from financial analysis
results.
 Potential Investors: Interested in financial analysis results of various
enterprises to study the feasibility of investing their money in business
enterprises.
 Banks and Insurance Companies: Study the unit’s ability to repay loans and
insure its activities if it can continue operating, grow, and repay installments.
Banks and insurance companies rely heavily on financial analysis results to
assess the enterprise’s ability to meet its debts.

17: Conclusion:

The goal of every institution is to survive, grow, continue, and prosper. To achieve
its primary goal, it seeks to achieve other objectives, such as maximizing profits,
increasing the market value of the institution, achieving adequate liquidity, and more,

1
): Khaldoun Ibrahim Al-Shadifat, (2000), Financial Management and Analysis, Wael Publishing House, Jordan, p:
94.
2
): Munir Shaker Mohammed, Abdul Nasser Noor, Ismail Ismail, (2008), Financial Analysis and Decision-Making
Approach, Wael Publishing and Distribution House, Jordan, p: 20.
12
 University of Aleppo Faculty of Economics Business Administration

all related to the institution’s financial analysis. Financial analysis is a topic of interest
to managers, shareholders, and other stakeholders, as it reflects the expected outcome
of every activity and investment, representing a fundamental motivation for the
institution’s continuity and existence. To achieve a good financial position that aligns
with its plans and objectives, the institution continuously evaluates its financial
performance using various financial tools and methods. This ongoing evaluation aims
to discover strengths to support and weaknesses to address.)1(

1
): Abdul Sattar Hamidi, Omar Atiya, Al-Hussein Naroura, (2021), Using Modern Financial Analysis Methods to
Judge the Financial Situation of the Institution, Martyr Hama Lakhdar University, Algeria, p:2.

13
 University of Aleppo Faculty of Economics Business Administration

18: References:

18-1: References in Arabic:

1. Hassanein Hamid Al-Abidi, Noor Abdul Razzaq, (n.d.), Financial Analysis of Financial Statements
Using Computers for a Sample of Economic Units, Journal of Al-Turath University College, Issue 19.
2. Dahamna Islam, Daqdaq Abdul Basit, (2022), The Role of Financial Analysis in Diagnosing the
Financial Situation of the Economic Institution, Mohamed Boudiaf University, Algeria.
3. Munir Shaker Mohammed, Abdul Nasser Noor, Ismail Ismail, (2008), Financial Analysis and
Decision-Making Approach, Wael Publishing and Distribution House, Jordan.
4. Mohammed Matar, (2000), Financial and Credit Analysis Methods and Tools, Wael Publishing House,
Amman.
5. Tarek Abdel Aal Hamad, (2006), Analysis of Financial Statements for Investment and Credit Granting
Purposes, University House.
6. Ahmed Al-Adasi, (2011), Financial Analysis of Financial Statements According to International
Standards, Scientific Hurricane Publishing and Distribution House, Jordan.
7. Moayad Radi Khanfar and Dr. Ghassan Faleh Al-Matarna, (2000), Analysis of Financial Statements,
Al-Masirah Publishing, Distribution, and Printing House, Jordan.
8. Khaldoun Ibrahim Al-Shadifat, (2000), Financial Management and Analysis, Wael Publishing House,
Jordan.
9. Alaa Mubarak Abdul Rahman Al-Bashir, Rafida Ali Awad Al-Karim Mohammed, Malaz Al-Sadiq
Elias Ali, Nihal Ahmed Mohammed Ali Murad, Hadeel Rahmatullah Babofath Salem, (2017),
Financial Analysis and Its Role in Evaluating the Financial Performance of Commercial Companies,
Sudan University of Science and Technology, Sudan.
10. Osaif Issa, (n.d.), Using Financial Ratios and Financial Analysis Indicators to Evaluate the Financial
Performance of the Institution, Mohamed Boudiaf University, Algeria.
11. Abdul Nasser Mohammed Said Darwish, (2010), Principles of Financial Accounting, Safaa Publishing
and Distribution House, Jordan.
12. Naeem Dahmash and others, (1999), Principles of Accounting, Published with the support of the
Institute of Commercial Studies (First Edition), Jordan.
13. Kamal Al-Din Al-Zahrawi and others, (2003), Accounting in Joint-Stock Companies, University New
Publishing House, Egypt.
14. Mohammed Taysir Al-Rajabi, (1998), Analysis of Financial Statements, Umm Al-Samaq Publishing
House, Jordan.
15. Ben Nouna Abdul Hamid, Hamoudi Mariam, (2020), Mechanisms for Predicting Financial Failure in
Economic Institutions, Ahmed Draia University, Faculty of Economic, Commercial, and Management
Sciences, Algeria.
16. Kadouri Zahraa, Haj Hamo Rashida, (2021), The Importance of Financial Ratios in Financial Failure
Prediction Models for Economic Institutions, Ahmed Draia University, Faculty of Economic,
Commercial, and Management Sciences, Algeria.
17. Abdul Rahim Bin Khalifa, (2021), The Role of Financial Failure Prediction Models in Managing
Financial Risks of the Institution, Faculty of Economic, Commercial, and Management Sciences,
Algeria.
18. Nasreen Shatayi, Raqia Finshi, (2020), The Role of Quantitative Models in Predicting Financial Failure
of the Economic Institution, Faculty of Economic, Commercial, and Management Sciences, Algeria.
19. Abdul Sattar Hamidi, Omar Atiya, Al-Hussein Naroura, (2021), Using Modern Financial Analysis
Methods to Judge the Financial Situation of the Institution, Martyr Hama Lakhdar University, Algeria.

14

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