Evaluation of Financial Performance in a Given Company

Congrong Xu

Master's thesis

Abstract:

The diploma thesis is focused on the financial performance evaluation of a company in the dairy industry. The main objective of the diploma thesis is to evaluate the past financial performance and predict the financial performance of the Yili Company. And the measuring of financial performance is based on economic value added. The evaluation of past financial performance is performed on the basis of economic value added from the period 2013-2017. The prediction of economic value added for 2018 is based on the financial plan for 2018 by using Monte Carlo simulation. In the theoretical part, the financial evaluation methods, especially economic value added based method, cost of equity, financial plan, Monte Carlo simulation and so on, which employed within the thesis, are described. In the practical part, the past financial evaluation is performed based on calculation of economic value added and pyramidal decomposition of economic value added from 2013 to 2017. Next, the prediction of economic value added for 2018 is based on constructed financial plan by using Monte Carlo simulation. Finally, the financial performance of the company is evaluated from point of view of economic value added from 2013 to 2017, and the analysis of the predicted economic value added is performed for 2018.

Abstract:

The diploma thesis is focused on the financial performance evaluation of a company in the dairy industry. The main objective of the diploma thesis is to evaluate the past financial performance and predict the financial performance of the Yili Company. And the measuring of financial performance is based on economic value added. The evaluation of past financial performance is performed on the basis of economic value added from the period 2013-2017. The prediction of economic value added for 2018 is based on the financial plan for 2018 by using Monte Carlo simulation. In the theoretical part, the financial evaluation methods, especially economic value added based method, cost of equity, financial plan, Monte Carlo simulation and so on, which employed within the thesis, are described. In the practical part, the past financial evaluation is performed based on calculation of economic value added and pyramidal decomposition of economic value added from 2013 to 2017. Next, the prediction of economic value added for 2018 is based on constructed financial plan by using Monte Carlo simulation. Finally, the financial performance of the company is evaluated from point of view of economic value added from 2013 to 2017, and the analysis of the predicted economic value added is performed for 2018.

Keywords

financial performance evaluation, economic value added, cost of equity, Monte Carlo simulation

Keywords

financial performance evaluation, economic value added, cost of equity, Monte Carlo simulation

Language used: English

Date on which the thesis was submitted / produced: 26. 4. 2019

Thesis defence

• Date of defence: 29. 5. 2019
• Supervisor: Jiří Valecký
• Reader: Karolina Lisztwanová

VŠB - Technical University of Ostrava

Ekonomická fakulta

Master programme / field:
Hospodářská politika a správa / Finance