Assessment of the Financial Position and Performance of the Chosen Companies Operating in the Enterprise Software Industry

Radhik Rajendra Soni

Master's thesis

Abstract:

The aim of this thesis is to assess and compare the financial position and performance of three chosen companies operating in the same industry - enterprise business software development and related services, by analyzing the companies´ financial statements with focus on the representation and changes of the reported assets, liabilities, expenses, revenues and cash-flow for a choosen period to identify the potential financial problems and the most significant factors influencing the profit. Financial analyzes of the key financial statements such as the balance sheet and income statement are very important instruments for the finance sector in order to understand the financial positions and performances of companies and thus enable investors to make decisions. In the thesis, the financial analysis of SAP SE, Oracle and Salesforce companies operating in the software industry and examining the differences between the US GAAP and IFRS accounting sets used by these companies is analysed based on horizontal, vertical and ratio analyzes based on the last 5 years annual reports of the companies, and then the comparisons of the companies were made based on the results found. As a result of the thesis, it was seen that although all three companies were adversely affected by the Covid 19 period in 2020, they reached their old profitability levels again in 2021 and the Covid 19 process had positive contributions to the future for software companies. However, in the analysis made, it has been seen that the increase in long-term borrowings of Oracle company in recent years has caused a contraction and a negative outlook, especially in the company's equity, although there is a regular trend in the financial situation of SAP SE and Salesforce companies.

Keywords

SAP SE, Salesforce, Oracle, Financial Position, Financial Performance, Financial Statements, Balance sheet, Assets, Liabilities, Equity, Income statement, Expenses, Revenues, Profit, Cash-flow, Financial analysis, Business software industry

Language used: English

Date on which the thesis was submitted / produced: 30. 11. 2022

Thesis defence

• Supervisor: Ing. Enikö Lörinczová, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics and Management / Economics and Management