Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/109847
Authors: 
Dyczkowska, Joanna
Year of Publication: 
2010
Citation: 
[Journal:] European Financial and Accounting Journal [ISSN:] 1805-4846 [Volume:] 5 [Year:] 2010 [Issue:] 2 [Pages:] 53-70
Abstract: 
Market situation and business environment of construction companies influence significantly decisions met by this group of entities. These decisions are reflected in financial statements, later on. The evaluation of financial condition, which aims at diagnosing corporate crisis, must not disregard a market situation. Taking this assumption into account a classification of publicly quoted construction companies using k-means method was conducted. This procedure enabled to divide the examined sample into five clusters of companies characterized by ‘the best’, ‘good’, ‘acceptable’, ‘weak’ and ‘the poorest’ financial condition. The application of the aforementioned algorithm helped also to determine levels of financial ratios typical for each cluster. This kind of analytical approach is particularly useful for investors, since it informs how particular companies perform in comparison to their competitors.
Subjects: 
Numerical taxonomy
Cluster analysis
K-means method
Financial situation
Current ratio
Average collection period
Return on sales ratio
Liabilities payment time
Assets turnover
Return on assets
JEL: 
G32
G33
M41
Persistent Identifier of the first edition: 
Document Type: 
Article

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