PYRAMID ANALYSIS IN AN MS EXCEL ENVIRONMENT

Abstract

Return on equity is an important summary indicator for evaluating business efficiency. A detailed study of this indicator using pyramid analysis models provides different perspectives on the main aspects of the business and contributes to making strategic and tactical management decisions. This paper aims to present possibilities for embedding a pyramid analysis model in an MS Excel environment in order to automate some procedures when performing a factor analysis of the return on equity and when forecasting the dynamics of the indicator level under different methods of financing investments.