The hybrid model of multivariate index analysis of current assets

Economic & mathematical methods and models

This article discusses the principles and methods of constructing a hybrid model for multivariate index analysis of the circulation of tangible assets on the example of retail trade enterprises. Analysis of the time and circulation velocity of the current assets was carried out with respect to the on-hand inventory for homogeneous positions of the group assortment of a shoe department of an economic entity. The time model and the turnover rate were built separately. At the final stage, applying the so-called index crossing procedure, the author constructed a v|t-model, which contains five independent characteristic factors. Each of the considered characteristic factors corresponds to its standard statistical indicator, according to which the economic analysis is traditionally carried out depending on the formulated goals and tasks, both at enterprises and in special applied studies. The same factors serve as indicators of the financial performance of any economic entity, as comparative characteristics in assessing the subject’s competitiveness in the commodity markets and can be used in assessing the market value of a business. The resulting model is verified, reliable calculations have been made for it. The model opens up new horizons for financial and economic analysis of the circulation of the company’s tangible assets, allows to comprehensively study the parameters of velocity and time of commodity circulation. The latter is complicated, and sometimes even impossible at all, in econometric multifactor models due to multicollinearity of characteristic factors. This circumstance makes the future hybrid model constructed in the solution of problems of short-term forecasting and operational planning promising.