# Year-end key figure systems

Jahresabschluss-Kennzahlensysteme sind systematisch zusammengestellte Gesamtheiten von Jahresabschlusskennzahlen, die dazu dienen, die für die Annual financial statement analysis relevanten Sachverhalte aus verschiedener Sicht zu erfassen und in ihrer Komplexität und mit ihren Interdependenzen darzustellen.

Based on the basic structuring possibilities of key figure systems, year-end key figure systems can be designed as mathematically, heuristic or empirically-statistically structured key figure systems.
In a mathematically structured system of key figures, the numbers in the system are derived from the superordinate or subordinate numbers through arithmetic operations. An example of such a key figure system is the return on investment (ROI) system, which assumes profitability as the top key figure and breaks this down in a first step with the help of sales into the two components return on sales and capital turnover (profitability analysis).

In einem zweiten Schritt werden der Gewinn im Rahmen einer Aufwands- und Ertragsanalyse und das Gesamtkapital im Rahmen einer Vermögens- und Capital analysis vertiefend untersucht.

The lack of mathematically structured key figure systems is that they can only contain numbers that are mathematically linked to the top key figure or the figures shown. It is not uncommon for essential aspects to be missing for the assessment of the business situation. Such incompleteness can be avoided by structuring the system of indicators by including all the figures from
the analyst's point of view are of importance for the facts under consideration, compiled as a heuristic system of indicators. Flexibility and versatility in terms of content are the advantages of such a structuring of key figure systems based on experience.

The problem lies in the fact that the selection of key figures is very much determined by the subjective judgment and specialist knowledge of the analyst and the contextual context of the individual figures is often not clear, which leads to difficulties in making judgments, especially in the case of contradicting tendencies of the figures.

The system for analyzing the success situation can be used as an example of a heuristically structured system of indicators. The system contains key figures for the following areas in a detailed in-depth analysis:

⦁ Result analysis according to amount and composition (breakdown of success),
⦁ Cost and income analysis,
⦁ profitability analysis,
⦁ cash flow analysis,
⦁ Value creation analysis.

Empirical-statistical key figure systems are similar in structure to heuristic key figure systems, because they are also catalogs of key figures. Its special feature is that the selection of the key figures is no longer left solely to the subjective judgment of the analyst, but only those figures are included in the key figure system that have been determined to be relevant to the situation under consideration with the help of statistical cause research and test calculations.

Key figure systems on an empirical-statistical basis have been developed, for example, for insolvency, growth or success prognosis, whereby discriminant analyzes have been used as mathematical-statistical instruments for the selection of key figures (prospective financial situation analysis).

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