Abstract

Establishing the financial performance of one or more business organizations could be defined as the main application of financial modeling. The selection of the financial indicators to be included in a particular model and the choice of a methodology by which the weights of the included financial indicators are determined could be identified as two key factors related to the objectivity of the obtained results from the application of a financial model. In addition, when establishing the financial performance of more than one business organizations, it is necessary to choose a ranking method for the obtained results in order to assess the financial position of each of the business organizations considered. In this research paper, the construction of a specific financial model is presented, the practical application of which is aimed at establishing the financial performance of the three mobile operators, part of the telecommunications market in a particular country – the Republic of Bulgaria. After analyzing the obtained results from the financial modeling, two factors that negatively affect the financial performance of the studied business organizations during a specific time frame are defined.