Compositional Classification of Financial Statement Profiles: The Weighted Case

This article classifies petrol retail companies in Spain based on their financial ratios using the compositional data analysis (CoDA) methodology. This methodology solves the most common distributional problems encountered in the statistical analysis of financial ratios. The main purpose of this art...

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Detalles Bibliográficos
Autores: Jofre Campuzano, Pol, Coenders, Germà
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2022
País:España
Institución:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repositorio:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:10256/22199
Acceso en línea:http://hdl.handle.net/10256/22199
Access Level:acceso abierto
Palabra clave:Aitchison, Geometria d'
Aitchison Geometry
Gasolineres
Service stations
Anàlisi de ràtios
Ratio analysis
Anàlisi composicional
Compositional analysis
Estats financers
Financial statements
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spelling Compositional Classification of Financial Statement Profiles: The Weighted CaseJofre Campuzano, PolCoenders, GermàAitchison, Geometria d'Aitchison GeometryGasolineresService stationsAnàlisi de ràtiosRatio analysisAnàlisi composicionalCompositional analysisEstats financersFinancial statementsThis article classifies petrol retail companies in Spain based on their financial ratios using the compositional data analysis (CoDA) methodology. This methodology solves the most common distributional problems encountered in the statistical analysis of financial ratios. The main purpose of this article is to show that with the CoDA methodology, accounting figures presenting low values can have a disproportional influence on classification. This problem can be attenuated by applying weighted CoDA, which is a novelty in the financial statement analysis field. The suggested weight of each accounting figure is proportional to its arithmetic mean. The results of Ward clustering show that after weighting, the contributions of the accounting figures to the total variance and to the clustering solution are more balanced, and the clusters are more interpretable. Four distinct financial profiles are identified and related to non-financial variables. Only one of the profiles represents companies in financial distress, with low turnover, low return on assets, high indebtedness, and low liquidity. Further developments include alternative weighting schemesThis research was funded by the Spanish Ministry of Science and Innovation/AEI/10.13039/501100011033 and by ERDF A way of making Europe, grant number PID2021-123833OB-I00; the Spanish Ministry of Health, grant number CIBERCB06/02/1002; and the Government of Catalonia, grant number 2017SGR656MDPI (Multidisciplinary Digital Publishing Institute)Agencia Estatal de Investigación2022info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionpeer-reviewedapplication/pdfhttp://hdl.handle.net/10256/22199http://hdl.handle.net/10256/22199Journal of Risk and Financial Management, 2022, vol. 15, núm. 12, p. 546Articles publicats (D-EC)reponame:Recercat. Dipósit de la Recerca de Catalunyainstname:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)Inglésinfo:eu-repo/semantics/altIdentifier/doi/10.3390/jrfm15120546info:eu-repo/semantics/altIdentifier/issn/1911-8066info:eu-repo/semantics/altIdentifier/eissn/1911-8074PID2021-123833OB-I00info:eu-repo/grantAgreement/AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2021-2023/PID2021-123833OB-I00Attribution 4.0 Internationalhttp://creativecommons.org/licenses/by/4.0/info:eu-repo/semantics/openAccessoai:recercat.cat:10256/221992026-05-29T05:05:01Z
dc.title.none.fl_str_mv Compositional Classification of Financial Statement Profiles: The Weighted Case
title Compositional Classification of Financial Statement Profiles: The Weighted Case
spellingShingle Compositional Classification of Financial Statement Profiles: The Weighted Case
Jofre Campuzano, Pol
Aitchison, Geometria d'
Aitchison Geometry
Gasolineres
Service stations
Anàlisi de ràtios
Ratio analysis
Anàlisi composicional
Compositional analysis
Estats financers
Financial statements
title_short Compositional Classification of Financial Statement Profiles: The Weighted Case
title_full Compositional Classification of Financial Statement Profiles: The Weighted Case
title_fullStr Compositional Classification of Financial Statement Profiles: The Weighted Case
title_full_unstemmed Compositional Classification of Financial Statement Profiles: The Weighted Case
title_sort Compositional Classification of Financial Statement Profiles: The Weighted Case
dc.creator.none.fl_str_mv Jofre Campuzano, Pol
Coenders, Germà
author Jofre Campuzano, Pol
author_facet Jofre Campuzano, Pol
Coenders, Germà
author_role author
author2 Coenders, Germà
author2_role author
dc.contributor.none.fl_str_mv Agencia Estatal de Investigación
dc.subject.none.fl_str_mv Aitchison, Geometria d'
Aitchison Geometry
Gasolineres
Service stations
Anàlisi de ràtios
Ratio analysis
Anàlisi composicional
Compositional analysis
Estats financers
Financial statements
topic Aitchison, Geometria d'
Aitchison Geometry
Gasolineres
Service stations
Anàlisi de ràtios
Ratio analysis
Anàlisi composicional
Compositional analysis
Estats financers
Financial statements
description This article classifies petrol retail companies in Spain based on their financial ratios using the compositional data analysis (CoDA) methodology. This methodology solves the most common distributional problems encountered in the statistical analysis of financial ratios. The main purpose of this article is to show that with the CoDA methodology, accounting figures presenting low values can have a disproportional influence on classification. This problem can be attenuated by applying weighted CoDA, which is a novelty in the financial statement analysis field. The suggested weight of each accounting figure is proportional to its arithmetic mean. The results of Ward clustering show that after weighting, the contributions of the accounting figures to the total variance and to the clustering solution are more balanced, and the clusters are more interpretable. Four distinct financial profiles are identified and related to non-financial variables. Only one of the profiles represents companies in financial distress, with low turnover, low return on assets, high indebtedness, and low liquidity. Further developments include alternative weighting schemes
publishDate 2022
dc.date.none.fl_str_mv 2022
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
peer-reviewed
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/10256/22199
http://hdl.handle.net/10256/22199
url http://hdl.handle.net/10256/22199
dc.language.none.fl_str_mv Inglés
language_invalid_str_mv Inglés
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/doi/10.3390/jrfm15120546
info:eu-repo/semantics/altIdentifier/issn/1911-8066
info:eu-repo/semantics/altIdentifier/eissn/1911-8074
PID2021-123833OB-I00
info:eu-repo/grantAgreement/AEI/Plan Estatal de Investigación Científica y Técnica y de Innovación 2021-2023/PID2021-123833OB-I00
dc.rights.none.fl_str_mv Attribution 4.0 International
http://creativecommons.org/licenses/by/4.0/
info:eu-repo/semantics/openAccess
rights_invalid_str_mv Attribution 4.0 International
http://creativecommons.org/licenses/by/4.0/
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv MDPI (Multidisciplinary Digital Publishing Institute)
publisher.none.fl_str_mv MDPI (Multidisciplinary Digital Publishing Institute)
dc.source.none.fl_str_mv Journal of Risk and Financial Management, 2022, vol. 15, núm. 12, p. 546
Articles publicats (D-EC)
reponame:Recercat. Dipósit de la Recerca de Catalunya
instname:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
instname_str Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
reponame_str Recercat. Dipósit de la Recerca de Catalunya
collection Recercat. Dipósit de la Recerca de Catalunya
repository.name.fl_str_mv
repository.mail.fl_str_mv
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score 15,812429

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