Financial analysis of economic health - Polish entities case

The main purpose of this paper is the financial analysis of economic health of three Polish institutions. The first one belongs to nonprofit sector, the second is a financial institution and the last – a manufacturing company. Data is derived from the financial statements for the last three commonly available years (2009-2011). The analysis is performed on the basis of the Financial Health Index worked out by John Zietlow. It offers a path-breaking solution which combines three key components of financial sustainability – solvency, liquidity and financial flexibility. Furthermore, it includes 15 financial indicators categorized into four classes: general, immediate-term, short-term and medium-term. Thereby, the index enables institutions, especially nonprofits, to carry out an extremely comprehensive analysis.