Assessment of the impact of financial indicators based on the multiple linear regression model

Abstract

One of the criteria for effective working capital management is the financial cycle of a commercial organization, but indicators such as liquidity and return on assets also play a great role in financial planning. Despite the fact that these indicators play an important role in the financial management of the company, the nature of their relationships is ambiguous. Based on theoretical research, we can say that there is an inverse relationship between the financial cycle and return on assets. In the presented work, based on the model of multiple linear regression, an assessment of this statement about feedback was carried out, using the example of the leading telecommunications companies of the Russian Federation. The study mathematically proved that there is a weak relationship between the financial cycle and the return on assets of telecommunications companies.