Archive of Journal - Financing

Financing – scientific magazine for economy

ISSUE 2020, No. 3, Article 1, Year of publication: 11, September, 2020
Implementation of Business Performance Projection Models Based on Data from Financial Statements


Kristina Mijić, PhD*

*PhD Associate Professor, University in Novi Sad, Faculty of Economics Subotica, Department of Finance and Accountancy



The paper presents the implementation of business performance projection models from the aspect of their application methodology and evaluation of the reliability of implementation in domicile business conditions. Models for the projection of the company’s business performance were created with the aim of providing information on how the company will operate in the future, especially from the aspect of whether the company will operate at the same, better or worse level of performance. In the first part of the paper, the methodology of application of four business performance projection models is presented in detail, namely Altman-Z score model, Bex model, Kralicek model DF and model IN99. In the second part of the paper, in order to answer the question of whether foreign models with the same degree of reliability can be applied in domicile business conditions, these models were applied to a total of 20 financial statements of companies in the Republic of Srpska. The results of the application of foreign models indicate a decrease in the degree of reliability of the application of these models in domicile conditions and the need to develop a model of projection of business performance that includes the specifics of an economy.

Keywords: business performance, projection, financial statements

DOI: 10.7251/FIN2003003M

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