The impact of determinants of financial health on the success of companies "an analytical study in the insurance sector"
DOI:
https://doi.org/10.36325/ghjec.v18iSpecial%20issue.14437Keywords:
financial health, financial ratio, insurance sectorAbstract
This research aims to assess the impact of financial factors that have a direct impact on the success or failure of companies, as it is important for stakeholders to have sufficient awareness of the financial performance of these companies. By identifying the main areas of strategic issues for insurance companies using an analytical approach based on a set of primary and secondary data and through which the total financial ratio was used as tools to measure performance and predict the failure of companies. To determine the strengths and weaknesses by interpreting these ratios, for a sample of insurance companies and the industry average was used to compare the average company ratios. Ratio analysis is one of the most common and widely used tools in evaluating financial performance. Financial ratios generally compare the different dimensions of performance between comparable units and within a single unit across time periods. As comparative tools, ratios are used to measure a company's performance over time (trend analysis) and compare it to that of its competitors or industry averages (comparative analysis). The industry average is a cut-off point to establish whether firms are above or below the industry average. The typical range was based on the upper and lower quartiles, which represent the range of values in which half of the firms fall, with 25% of firms performing better than the range and 25% performing below the range. Analytical programs were relied upon to reach the results, such as Excel.V13 and SPSS V.26
Among the results that have been reached from the analyzes is that most insurance companies have performed poorly, and are characterized by a lack of cash flow control system, and project costs. Weakness in effective strategic management practices, and weakness in financial health standards.
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Copyright (c) 2023 Mahdi Atiyah Mohi Al- Jabouri, Fatima Hussein Kazim
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