Technology of Predictive Analysis of Entity’s Financial Stability Based on Linear Constrains

Abstract

This paper describes the technology for the predictive analysis of a business entity’s financial stability through the contemporary concept of equilibrium stability of a system. Analyzing the capability of business transactions to restore the financial equilibrium in the forecast period (where such financial equilibrium is disturbed as of the end of the reference period) is the most important part of the predictive analysis. In this paper, the author explains the structure, content of, and algorithms for this part of the predictive analysis of financial stability. The author has developed the general linear inequality to set the limits for the values of future business transactions that restore the financial equilibrium of a business entity