Case Study of Auto Part Assembly in the Czech Republic

Jan Váně

Diplomová práce

Abstract:

The main objective of the thesis was to carry out a financial evaluation of a vehiclepart assembling performed by a selected company (XYZ) and to make a final decisionwhether the proposed project could be adopted by the company. Additionally, the paperpresented trends and developments in the automotive industry. The research was primarilyfocused on the automotive industry in the Czech Republic and its leading vehiclemanufacturer (Škoda Auto). The methodological tools applied in the research were capitalbudgeting techniques and profitability calculations. Capital budgeting approaches includedcommonly used techniques such as: payback period, net present value and internal rate ofreturn. The capital budgeting techniques identified the projects required length of time torecoup the initial investment and the present value of the projects cash flow. The profitabilitycalculations were used to reflect the projects cost related to the assembly and measured thefinancial benefit. The selected indicators of the projects financial performance were EBITDAand EBITDA margin ratio that measured the operating efficiency of the project. Based on thecomparison between the generated results and the criterions of the applied techniques, theauthor proposes the project to be accepted.

Keywords

Capital budgeting, Profitability, Automotitve industry, Assembly, Car part, Payback period, Net present value, Internal rate of return, EBITDA, Ratio

Jazyk práce: angličtina

Datum vytvoření / odevzdání či podání práce: 23. 3. 2016

Obhajoba závěrečné práce

• Vedoucí: Ing. Petr Procházka, MSc Ph.D.

Česká zemědělská univerzita v Praze

Provozně ekonomická fakulta

Magisterský studijní program / obor:
Economics and Management / Economics and Management