Factor analysis of profit: tasks and calculation methods

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What is it about? Factor analysis of an enterprise determines the degree of influence of various factors on the business and helps to build a forecast model of income. It will be useful for comparing indicators for certain periods of time.

What to pay attention to? There are two methods of factor analysis: stochastic and deterministic. The latter is the most widespread, as it allows mathematical expression of dependence using measurable variables.



The article explains:

The concept of factor analysis
When is factor analysis necessary?
Types of factors in factor analysis
Indicators subject to factor analysis
Stages and types of factor analysis
Evaluation of the croatia email list influence of factors in the analysis
Preparatory stage of factor analysis
Methods of conducting factor analysis
Example of factor analysis of profit
Frequently Asked Questions About Profit Factor Analysis

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The concept of factor analysis
Factor analysis is a multivariate method that can be used to establish relationships between variable parameters. The analysis studies the structure of correlation and covariance matrices. Factor analysis is used in economics, psychometrics, psychology and other sciences. The founder of this method is psychologist F. Galton.

The concept of factor analysis

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In order for the obtained results to be reliable, it is necessary to compare the indicators on different scales, determine the correlation of the obtained values, establish their differences and similarities. The main tasks of factor analysis:

Identification of existing indicators.

Selecting parameters to perform a complete analysis.

Classification of indicators.

Establishing the relationship between the result values ​​and the factors.

Identification of the influence of specific phenomena.

Assessing the role of each value.

Using a factor model.

It is necessary to conduct a study of each factor on which the final result depends.