Financial Analysis of a selected organisation

Bc. Myat Shwe Yee Thit, B.Tech.

Master's thesis

Abstract:

The current thesis holds significance because it highlights the importance of financial analysis in an organization. Conducting financial analysis enables financial analysts and investors to review important statements, which can help them make better investment decisions. Financial analysis is not only important for financial statements, but also for strategic decision-making within a business. This is because it provides detailed information on profits, losses, revenues, and sales, which can be used to predict future performance and make decisions for improving business performance. The thesis focuses on the financial analysis of a selected company using a systematic literature review analysis based on sales revenues figures, to identify the strengths and weaknesses and provide relevant research outcomes. To ensure authenticity and reliability, secondary sources were used. Given the pandemic's impact on business stability, it is essential to conduct financial analysis in recent years to make comparisons and find solutions to major fluctuations. This can help businesses maintain stability in the marketplace. Positivism is the selected research philosophy and deductive is an applied research approach. Moreover, quantitative mono method is followed as research choice and systematic literature review is decided to be as research strategy. Furthermore, secondary research data collection is chosen for the current study and financial ratios, vertical analysis, horizontal analysis, common size statement, cash flow statement and trend analysis are being used for data analysis. Skoda auto has faced various different challenges during the last recent years which includes in the decrement of the revenue and profitability. But the company has still maintained its strong liquidity position and also has continued to invest in the department of research and development. Moreover, apart from all the challenges, the company was still able to maintain its number of market share in many of the different regions. The recent previous years has resulted in suffering of the major challenges by the Skoda auto and also the entire automotive industry as a whole. Although the company has put their efforts in implementing several Strategies for better mitigation their pitfalls, for example, diversifying their supply chain and also diversifying their products portfolio as well. They have also adopted different types of digital tools to overcome the challenges like remote collaboration and also focusing on electric and hybrid vehicles for better meeting up the change in demands of the customers.

Keywords

financial, analysis, business, organization, pitfalls, recommendations, ŠKODA AUTO, Automobile, manufacturer

Language used: English

Date on which the thesis was submitted / produced: 7. 4. 2023

Thesis defence

• Date of defence: 31. 5. 2023
• Supervisor: doc. Ing. Karel Tomšík, Ph.D.
• Reader: Erika Pupišová, externi

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme:
Business Administration