Financial Analysis of China Vanke Company

Yaxin Guo

Bachelor's thesis

Abstract:

The aim of this bachelor thesis is the financial analysis of VANKE by applying selected methods like the common size analysis, financial ratio analysis and pyramidal decomposition. The reason that I choose VANKE as my subject on financial analysis is that VANKE is a very famous real estate company within China and real estate industrial has close connection with people’s standard of living. Through financial analysis on VANKE, we can get a general ideal about why VANKE can perform better than others. This thesis is divided into 5 chapters. In chapter 2, the methods of analysis used in this thesis will be described in detail. There are three main parts of this chapter, description on balance sheet, income statement and cash flow; description on common size analysis and financial ratio analysis; description on pyramidal decomposition and influence qualification. In chapter 3, the general idea about VANKE’s history, conception, management model will be presented. A comprehensive view of a company can lubricate the process of getting to know this company’s financial situation. Through this chapter, the image of what VANKE looks like will appear on your mind. Chapter 4 is the most important part of this thesis, data from the balance sheet, income statement and cash flow from period 2007 to 2011 will be used. Common size analysis, financial ratios, pyramidal decomposition and influence qualification will be combined with the data to provide us with the more concrete idea about VANKE’s financial trend, financial structure and its competitive power among real estate industrial companies. In chapter 5, the general conclusion will be draw about what VANKE’s advantages are, which aspects still need to be improved, what may be VANKE’s obstacles in the future and how VANKE can do to conquer those difficulties.

Abstract:

The aim of this bachelor thesis is the financial analysis of VANKE by applying selected methods like the common size analysis, financial ratio analysis and pyramidal decomposition. The reason that I choose VANKE as my subject on financial analysis is that VANKE is a very famous real estate company within China and real estate industrial has close connection with people’s standard of living. Through financial analysis on VANKE, we can get a general ideal about why VANKE can perform better than others. This thesis is divided into 5 chapters. In chapter 2, the methods of analysis used in this thesis will be described in detail. There are three main parts of this chapter, description on balance sheet, income statement and cash flow; description on common size analysis and financial ratio analysis; description on pyramidal decomposition and influence qualification. In chapter 3, the general idea about VANKE’s history, conception, management model will be presented. A comprehensive view of a company can lubricate the process of getting to know this company’s financial situation. Through this chapter, the image of what VANKE looks like will appear on your mind. Chapter 4 is the most important part of this thesis, data from the balance sheet, income statement and cash flow from period 2007 to 2011 will be used. Common size analysis, financial ratios, pyramidal decomposition and influence qualification will be combined with the data to provide us with the more concrete idea about VANKE’s financial trend, financial structure and its competitive power among real estate industrial companies. In chapter 5, the general conclusion will be draw about what VANKE’s advantages are, which aspects still need to be improved, what may be VANKE’s obstacles in the future and how VANKE can do to conquer those difficulties.

Keywords

financial analysis, financial statements, financial ratios, pyramidal decomposition, analysis of influences

Keywords

financial analysis, financial statements, financial ratios, pyramidal decomposition, analysis of influences

Language used: English

Date on which the thesis was submitted / produced: 10. 5. 2013

Thesis defence

• Date of defence: 12. 6. 2013
• Supervisor: Miroslav Čulík
• Reader: Ingrid Petrová

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance