Biplots for displaying multidimensional financial performance data graphically

Original Articles

Biplots for displaying multidimensional financial performance data graphically

DOI: 10.1080/10291954.2003.11435105
Author(s): N J le Roux Department of Statistics and Actuarial Science, Republic of South Africa , S Gardner Department of Statistics and Actuarial Science, Republic of South Africa , P Olivier Department of Accountancy, Republic of South Africa

Abstract

Invariably financial performance of an enterprise is not judged on a single criterion but is described in terms of various related financial performance indicators. Financial decision makers are thus typically confronted with multidimensional data. This paper demonstrates to financial managers several uses of the biplot for displaying multidimensional data graphically. It is shown that biplots not only serve in understanding multidimensional data better but also might reveal features of such data not perceptible by graphing each variable on its own.

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