NON-FINANCIAL INDICATORS IN THE VALUATION PROCESS – CURRENT TRENDS

This article is motivated by the needs to make non-financial indicators more accessible to and clearer for both general public and experts, especially because of the rapid expansion of non-financial indicators and a complete absence of publications that would cover this topic. The main aim of this article is to emphasize the growing influence and contribution of the non-financial indicators related to social and environmental changes in society, which has a significant impact on individual companies. Furthermore, the purpose of this study is to define the key terms and show how they relate to the non-financial indicators. The article also aims to describe the importance and the use of the non-financial indicators and define the future development in the non-financial indicators. Measuring the non-financial indicators of a company is a new practice. The need to include the non-financial aspects in the business’s evaluation has forced economic development, during which the environment has become highly unstable and characterized by global competition and rapid technological progress. The economy has turned into a very tough competitive environment. Even for the purpose of valuing an enterprise, it is not enough to compare its activities only from one point of view. The financial indicators themselves seem insufficient, mainly because they are largely historical and may not be enough for the analysis of the future development. The contribution of this paper is primarily the determination of the non-financial indicators and their influence on society and companies. Non-financial indicators are compared to the financial indicators, as it is so far insufficiently addressed topic. Systems of evaluating the performance of companies based on a combination of indicators (financial and non-financial) could become a tool for managing and enforcing a corporate strategy in the short term and especially long term.