Evaluation of business’s performance

Abstract

The paper deals with application of selected methods of comprehensive evaluation of the company. It aims to confirm usability of selected method during evaluation of a business’s performance. It derives the economic situation of a particular company, using only a few versions of two bankruptcy models (Altman’s analysis and Taffler’s test) and two credibility models (Credibility Index and Kralicek’s Quick test). It omits the traditional indicators of financial analysis and avoids the interpretation of sub-indicators. The paper values the company as a complex, as a system. In conclusion, it shows the possibility of prediction of the future development of the examined company financial situation. The main result is that used methods can really describe financial situation of a company. However they should be applied together.