Economic analysis of DEKONTA a.s.

Klára Trochová

Master's thesis

Abstract:

The diploma thesis performs economic analysis of a selected company – DEKONTA a.s.. The objective is to analyse the complete economic situation of the company. To reach those objectives, the thesis uses methods of financial analysis but also analysis of micro- and macro environment. The thesis uses data primarily data from 2014 to the present year. The results of economic analysis found that the company is financially healthy. Especially, the ratios of rentability and liquidity express the positive condition of the company. In 2018, ROE reached 26.98%, whereas the average value of the selected industry was 4.13%. Liquidity exceeds recommended values from the literature, when the company’s average cash ratio of five years is 0.7. Economic Value-Added (EVA) displays that the company, except for 2016, is well-performing when comparing with the selected industry. Moreover, in 2018, EVA reached 445 thous. CZK. On the contrary, financial analysis discovered, that the company is very dependent on public procurements, and when big projects were phased out in 2016, DEKONTA did not achieve high profits and financial ratios of profitability and solvency significantly weakened. In addition to financial analysis, the thesis evaluated that DEKONTA a.s. is a successful international company that offers a broad portfolio of environmental services, owns highly qualified employees and has a successful partnership with many influential institutions and companies. It is very likely that environmental services will be more demanded in the future.

Keywords

Economic analysis, Financial analysis, Business performance, SWOT analysis, PESTLE analysis, Porter's five forces analysis

Language used: English

Date on which the thesis was submitted / produced: 31. 3. 2020

Thesis defence

• Supervisor: Ing. Jiří Mach, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

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