Algorithmic Financial Analysis Study Of Predictive Accuracy

Oskar Kapela

Authors

Oskar Kapela University of Gdansk

Keywords:

Financial Analysis, Algorithm, Python

Abstract

The paper describes the grading system and operation of an algorithm designed using Python programming to conduct a comprehensive financial analysis of a publicly traded company. The algorithm relies on the most important economic indicators: profitability, liquidity, and shareholders’ ratios. Financial analyses of two randomly chosen companies were conducted using the financial statements for 2020, 2021, and 2022 to assess the algorithm’s accuracy. The results were then compared with the outcomes from 2023 and the first quarter 2024. Case studies of Occidental Petroleum Corporation and Newmont Corporation demonstrate the accuracy of the studied algorithm, which correctly provides the user with accurate recommendations.

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