Using Financial Ratios for Automated Fundamental Analysis of Companies Included in the BG40 Index of the Bulgarian Stock Exchange
Abstract
This paper explores the use of financial ratios for automated fundamental analysis of companies included in the BG40 index of the Bulgarian Stock Exchange. The study presents a theoretical overview of key financial indicators used in investment decision-making, including profitability, liquidity, capital structure, and market ratios.
A methodology based on correlation analysis is developed to support the automated selection and weighting of financial indicators. Empirical analysis is conducted using financial data from listed companies, with results presented through graphical and statistical representations.
The findings suggest that certain financial ratios demonstrate strong relationships with stock prices, enabling their use in investment strategies. The proposed approach provides a structured framework for reducing subjectivity in decision-making and improving the effectiveness of fundamental analysis in emerging markets.
References
IAS 8 (1993). Net profit or loss for the period.
National Accounting Standard 13 (1998). Financial analysis indicators.
Bulgarian Stock Exchange. Available at: http://download.bse-sofia.bg/finance/
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