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The Application of Financial Ratios and Panel Data Analysis in Assessing Firm Performance and Socio-Economic Dynamics

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  • Ferreira, Bianca
  • Ndiaye, Fatima
  • Silva, Costa

Abstract

This paper examines the application of financial ratios and panel data analysis in evaluating firm performance and socio-economic dynamics. Through a systematic review of recent literature, we highlight how financial ratios—such as liquidity, profitability, and leverage metrics—serve as critical diagnostic tools for assessing corporate health, particularly in crisis contexts. Meanwhile, panel data analysis enhances longitudinal insights, enabling researchers to identify causal relationships and long-term trends across industries and economies. Our synthesis reveals methodological gaps, including the underutilization of hybrid approaches that integrate ratio analysis with advanced econometric techniques. By bridging these analytical approaches, researchers can generate more robust insights for financial decision-making and policy formulation.

Suggested Citation

  • Ferreira, Bianca & Ndiaye, Fatima & Silva, Costa, 2025. "The Application of Financial Ratios and Panel Data Analysis in Assessing Firm Performance and Socio-Economic Dynamics," MPRA Paper 124723, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:124723
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial Ratios; Panel Data Analysis; Firm Performance; Corporate Resilience;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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