Financial Analysis of the Selected Company

Gaoge Jin

Bachelor's thesis

Abstract:

Financial analysis is the process of evaluating businesses, projects, budgets and other finance-related entities to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid or profitable enough to warrant a monetary investment. When looking at a specific company, a financial analyst conducts analysis by focusing on the income statement, balance sheet and cash flow statement. The aim of this bachelor thesis is to analyze Sinopec Group. It would be analyzed through three methods:common size analysis, financial ratio analysis and DuPont analysis. Sinopec Group is a large petroleum and petrochemical enterprise group established by the state in July 1998 and is a wholly state-owned company. Companies registered capital is 231.6 billion yuan, the head office established in Beijing. The company's main business areas include: industrial investment and investment management; oil and natural gas exploration, mining, storage and transportation (including pipeline transportation), sales and utilization; coal production, sales, storage and transportation; oil refining; refined oil storage, Transportation, wholesale and retail etc. The thesis is divided into 5 chapters. The first chapter is introduction of the thesis. In chapter 2, financial analysis methodologies，such as financial statements, common-size analysis, financial ratio analysis and DuPont analysis are introduced. Chapter 3 is description of Sinopec Group It includes: The development of Sinopec Group, Corporate Culture of Sinopec Group, Industries, Company Size In chapter 4, We use these analytical methods to analyze its actual situation. In chapter5, Sinopec Group’s company status was concluded.

Abstract:

Financial analysis is the process of evaluating businesses, projects, budgets and other finance-related entities to determine their performance and suitability. Typically, financial analysis is used to analyze whether an entity is stable, solvent, liquid or profitable enough to warrant a monetary investment. When looking at a specific company, a financial analyst conducts analysis by focusing on the income statement, balance sheet and cash flow statement. The aim of this bachelor thesis is to analyze Sinopec Group. It would be analyzed through three methods:common size analysis, financial ratio analysis and DuPont analysis. Sinopec Group is a large petroleum and petrochemical enterprise group established by the state in July 1998 and is a wholly state-owned company. Companies registered capital is 231.6 billion yuan, the head office established in Beijing. The company's main business areas include: industrial investment and investment management; oil and natural gas exploration, mining, storage and transportation (including pipeline transportation), sales and utilization; coal production, sales, storage and transportation; oil refining; refined oil storage, Transportation, wholesale and retail etc. The thesis is divided into 5 chapters. The first chapter is introduction of the thesis. In chapter 2, financial analysis methodologies，such as financial statements, common-size analysis, financial ratio analysis and DuPont analysis are introduced. Chapter 3 is description of Sinopec Group It includes: The development of Sinopec Group, Corporate Culture of Sinopec Group, Industries, Company Size In chapter 4, We use these analytical methods to analyze its actual situation. In chapter5, Sinopec Group’s company status was concluded.

Keywords

Balance sheet, Income statement, Cash flow statement, Common size analysis, Financial ratio analysis, DuPont analysis.

Keywords

Balance sheet, Income statement, Cash flow statement, Common size analysis, Financial ratio analysis, DuPont analysis.

Language used: English

Date on which the thesis was submitted / produced: 11. 5. 2018

Thesis defence

• Date of defence: 7. 6. 2018
• Supervisor: Aleš Kresta
• Reader: Kateřina Zelinková

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance