International Journal of Multicultural and Multireligious Understanding

 
Results and Discussion 
Based on the new method proposed above, in determining the overall rating of companies, it was 
seen that it is important to give a quantitative assessment of the rating of the financial condition of 
companies compared to the generalized conditional reference balance sheet. Due to the large number of 
objects that are studied when determining the financial status rating of companies, we divide them into 
groups such as companies from America, Europe and Asia. 
The performance of American companies with a normalized financial size (3;4) from 2016 to 
2020 was analyzed based on the mathematical approach of financial analysis. The results of the analysis 
are presented in Table 1. 

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International Journal of Multicultural and Multireligious Understanding (IJMMU) 
Vol. 10, No. 7, July 2023 
Improving the Analysis of Financial Condition of Business Entities
149 
Table 1 
Among the companies in this range in 2016, “Microsoft” ranked first has the highest internal 
financial rating of 0,44. “Apple” and “Alphabet” have an internal financial rating of 0,36 and 0,31, 
respectively, ranking second and third in 2016. Incoming “Ford Motor Company”, “Chevron” and 
“Verizon” occupy the bottom three positions, with intra–rank financial scores of 0,15 and 0.09, 
respectively. The reason for taking over is that the balance sheet quality of “Ford Motor” and “Chevron” 
companies is satisfactory, and the balance sheet quality of “Verizon” company is “poor”. 
During the next 4 years (2017, 2018, 2019 and 2020), the financial rating of “Alphabet” and 
“Microsoft” companies within the ranking increased as a result of the increase in their logarithmically 
normalized financial size and the improvement of the quality of the accounting balance. In 2017, 2018, 
2019, the company “Apple” occupied 3 places. But over the years, we see that Apple’s logarithmically 
normalized financial size has shrunk instead of growing. At the same time, its financial rating has also 
deteriorated. As a result, in 2020, the Apple company took 8th place. This situation is definitely not 
positive. By 2020, the company “Walmart” occupies the 3rd place among the companies on this level. 
The reason for taking such a place is that its logarithmically normalized financial size has grown over the 
years and its balance sheet quality in 2020 is at a good level, and its financial rating within the ranking is 
equal to 0,35. 
“Ford Motor”, “Chevron” and “Verizon” companies occupy the last three places in 2017 and 
2018. If we pay attention to the result of the analysis of “Ford Motor” company based on the 
mathematical approach of the financial analysis method, we can see that its normalized financial size in 
2017–2019 has not changed compared to the previous period. This is definitely a negative situation for 
the company. Because as long as the company operates, its normalized financial size should increase 
compared to the previous year. But despite the fact that 2020 will be a virus pandemic for Ford Motor 
Company, we can see that its normalized financial size has slightly increased compared to 2019. We can 
see that the quality of its balance sheet in 2018 has improved slightly compared to last year. As a result, 
the financial rating of the company in 2018 was equal to 18,86. As a result of the virus pandemic 

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International Journal of Multicultural and Multireligious Understanding (IJMMU) 
Vol. 10, No. 7, July 2023 
Improving the Analysis of Financial Condition of Business Entities
150 
affecting this company’s financial rating, its 2020 financial rating slightly worsened from last year’s to 
22,31. As a result, his financial rating in the 2020 ranking has also deteriorated slightly, and he has taken 
the last place in the top power. 
As Verizon’s log–normalized financial size has grown over the years and its financials have 
improved, the company rose to the top spot in 2019. One of the last ranked companies in 2019 was Walt 
Disney Company, which was one place lower in previous periods. Over the years, as a result of the 
increase in the logarithmic scale of the normalized financial size of this company, by 2019 it was included 
in the ranks of the companies in the (3;4) rank. Also, its financial rating within the ranking rank was equal 
to 0,17. Exelon, which took one of the last places in 2020, also in previous periods, it was among the 
lowest companies. It also joined the ranks of companies in the (3;4) range by 2020 as a result of the 
increase in its logarithmic scale normalized financial size over the years according to, the top ranks last in 
strength. 
The results of the analysis of American companies in the range (2;3) are presented in Table 2. 
Table 2 

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International Journal of Multicultural and Multireligious Understanding (IJMMU) 
Vol. 10, No. 7, July 2023 
Improving the Analysis of Financial Condition of Business Entities
151 
American companies with a normalized financial size in the range of (2;3) were analyzed based 
on a mathematical approach and their place in the top power was determined. In 2016, the Nike company 
took one of the first places with its financial rating within the ranking equal to 0,86. Its balance sheet 
because of its excellent quality, it ranks first in 2016. Its normalized financial size has continued to grow 
in the following years. Despite being affected by the virus pandemic, Nike’s normalized financial size in 
2020 has grown significantly compared to the previous year. The company’s 2020 indicator is equal to 
2,33. But we can see that the balance sheet quality of this company has deteriorated over the years. If its 
balance sheet quality in 2016 was excellent (financial rating equal to 2,48), then by 2020 its balance sheet 
quality is good (financial rating is equal to 9,98). During such years, the deterioration of the quality of the 
company’s accounting balance will affect its financial rating within the ranking. As a result of this, we 
can see from the analysis results in Appendix 2 that its position in the top power has decreased over the 
years. We see that the company “Nike” took the 6th place in the top strength among the companies in 
2020 (2;3). This is definitely not a positive situation for the company. 
We can see that the normalized financial size of the Nucor company has grown year by year from 
the results of the analysis presented in Table 2. If its normalized financial size in 2016 was equal to 2,02, 
despite the fact that 2020 will be a virus pandemic, its normalized financial size this year has increased 
compared to last year, and this indicator is equal to 2,14. At the same time, we can see that the quality of 
its balance sheet has improved slightly during 2016–2018. Initially, in 2016 and 2017, its balance sheet 
quality was good, but in 2018–2020, we see that its balance sheet quality is excellent. As a result, its 
financial rating has also improved, from 5,55 in 2016 to 3,99 in 2018. But its financial ratings for 2019 
and 2020 have slightly worsened compared to 2018, with 4,65 and 4,34 respectively. As a result of all of 
the above affecting the financial rating within the ranking, its indicator in 2016 was equal to 0,36, and in 
2020 this indicator was equal to 0,49. When the top strength is determined by the financial ranking within 
the ranking, we see that the Nucor company took the second place in 2016 and 2017, the first place in 
2018 and 2019 and the third place in 2020. 
When determining the top strength among American companies with a normalized financial size 
in the range (2;3), Tesla was initially ranked 12th and 16th in 2016 and 2017, respectively. Its 2016 
normalized financial size was 2,24, and in 2017 it was the ratio increased slightly to 2,3. In the following 
periods, its normalized financial size continued to increase. Even in the period of the virus pandemic, 
Tesla’s normalized financial size increased in 2020 compared to the previous year, and this indicator is 
equal to 2,56 in 2020. We can see the same situation with the quality of its balance sheet. Because the 
quality of its balance sheet in 2016 was at a good level, we can see that the quality of the balance sheet is 
at a satisfactory level in 2017. In the next 3 years of the study period, the quality of the balance sheet 
improved, and in 2020 we see that the quality is excellent has a 2020 financial rating of 4,87. As a result 
of this, its financial rating within the ranking has been improving since 2018. If its financial rating in the 
ranking in 2018 was equal to 0,14 in 2019 and 2020 we can see that this indicator is equal to 0,17 and 
0,52 respectively. Such positive changes certainly serve to improve the position in the top power. That is 
why in 2016 and 2017 it took 12 and 16 places in the top power, respectively and in 2020 it took 2 places 
in the top power. 
One of the American companies whose adjusted financial size has increased during the studied 
periods is Facebook company. Its adjusted financial size in 2016 was 2,61. In the following years, its 
adjusted financial size continued to increase compared to the previous year, and in 2019 we see that this 
indicator is equal to 2,94. Even though the virus pandemic will negatively affect many companies in 
2020, Facebook’s normalized financial size has grown and is one of the top companies. Because the 
quality of the company’s accounting balance in 2016 was at a satisfactory level. Then, changing over the 
years, we see that by 2019, the quality of the company’s balance sheet is at a good level. As a result of 
this, the company’s financial rating within the ranks and its position in the top strength have been 
improving over the years. Because, in 2016, its financial rating within the ranking was equal to 0,12, and 

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International Journal of Multicultural and Multireligious Understanding (IJMMU) 
Vol. 10, No. 7, July 2023 
Improving the Analysis of Financial Condition of Business Entities
152 
it took 17th place in the top power. Over the years, his position in the top power has risen, and in 2019 he 
was in the top 2 position. 
In the early years of the studied period, among the American companies, which were in the range 
of (2;3) and then increased by one point, there are also the companies “Walt Disney”, “CVS Health” and 
“Amazon”. 
Analyzing American companies in the range (2;3) based on the mathematical approach of 
financial analysis, and determining their top strength, the company “Dell technologies INC” is one of the 
last. The decrease in the normalized financial size of the rest of the years compared to the previous year is 
a negative situation for the company. At the same time, initially in 2016, the quality of its balance sheet 
was satisfactory, but in 2018, we see that the quality of the balance sheet is poor. Although the quality of 
the balance sheet improved slightly in the following years 2019 and 2020, but it still remains of poor 
quality. Of course, all of this affects the financial rating within the ranking, which is the main indicator 
for determining the top strength of companies. Therefore, the company’s financial rating within the 
ranking in 2016 and 2017 was equal to 0.15. As a result, the company’s top position was 13. In the 
following years, this indicator decreased slightly, and as a result, we see that its place in the top power has 
decreased. This is definitely a negative situation for the company. 
JetBlue and Regeneron Pharmaceuticals were among America’s (1;2) companies in the 2016–
2018 study period. Although these two companies were affected by the virus pandemic, we see their 
normalized financial size increase in 2020. JetBlue and Regeneron Pharmaceuticals’ 2020 normalized 
financial ratios were 2,01 and 2,05 respectively. JetBlue’s financial rating for the period was 13,86, 
maintaining its balance sheet quality at a good level. Its financial rating due to its slightly lower position, 
the financial rating within the ranking is also lower. As a result, it ranks 10th among the companies in this 
range. However, Regeneron Pharmaceuticals has a slightly better financial rating in 2020, which is equal 
to 2,04. As a result, the quality of its accounting balance is also excellent let’s see if it’s true. We can see 
that the financial rating within the ranking scale, which incorporates the result of each elemental change 
in the normalized financial size and financial rating, is equal to 1. “Regeneron Pharmaceuticals” company 
can definitely take the first place with such a high result.