Use the financial health of an organization in financial planning

The paper presents the use of extensive ratio analysis to determine the financial health of the business entity to be able to effectively carry out planning processes. We used Zietlow index called PHI or FHI to analyze the three institutions: non-profit organization, financial institution and manufacturing company. Health Index is a comprehensive enterprise tool that accurately shows the situation of the company, because it connects and takes into account the range of indicators. This work presents an extensive, multi-stage process for calculating the index sought in a transparent and comprehensible way for management of the company.