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RESEARCH PRODUCT

Due Diligence Matrix for Main User Groups of Financial Analysis

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Abstract Today the financial analysis indicators of an enterprise are topical for both internal and external users of an enterprise. Unfortunately, often to analyze the financial status of an enterprise and to identify the potential of an enterprise, it is not enough to have customary financial analysis indicators. In this paper, the data of the research that was conducted by the end of the year 2013 has been used. 1935 respondents took part in the survey – representatives of the leading business sectors in Latvia and representatives of the large and medium-sized enterprises. In the research, the authors have applied quantitative and qualitative methods of economics such as the mathematical and statistical methods. As a result of the research, the author of the paper suggests the enterprises in Latvia in six leading branches of business to use the due diligence matrix for both internal and external user groups. The due diligence matrix is a unified specification of the financial analysis of an enterprise, that will help to identify the potential of an enterprise for each group of financial analysis users in a cost-effective manner unlike full procedure of due diligence.