Analysis of creditworthiness of the company using creditworthy / bankruptcy models

Bc. Aniyat Anuarov

Bachelor's thesis

Abstract:

The thesis investigates the topic of bankruptcy and creditworthiness analysis in corporate business practice. The aim of the thesis was to analyze he creditworthiness of the chosen company using the most widespread bankruptcy models, and to make appropriate conclusions with regard to their usefulness in corporate practice. The author provides an overview of the main approaches to financial analysis and bankruptcy analysis, and investigates the key drawbacks and advantages of different analytical tools. Based on the theoretical background drawn from reliable bibliographic sources, the author runs the financial analysis of Unilever and investigates the company’s risks of bankruptcy, explicating the where the corporation should seek major improvements and comparing its financial condition to the one of its main competitor – Nestlé. The recommendations developed for Unilever based on the findings of the research are of a significant practical value, as they explain what measures Unilever should undertake for raising its financial stability in the long-term perspective, and thus for achieving the company’s best financial performance.

Abstract:

The thesis investigates the topic of bankruptcy and creditworthiness analysis in corporate business practice. The aim of the thesis was to analyze he creditworthiness of the chosen company using the most widespread bankruptcy models, and to make appropriate conclusions with regard to their usefulness in corporate practice. The author provides an overview of the main approaches to financial analysis and bankruptcy analysis, and investigates the key drawbacks and advantages of different analytical tools. Based on the theoretical background drawn from reliable bibliographic sources, the author runs the financial analysis of Unilever and investigates the company’s risks of bankruptcy, explicating the where the corporation should seek major improvements and comparing its financial condition to the one of its main competitor – Nestlé. The recommendations developed for Unilever based on the findings of the research are of a significant practical value, as they explain what measures Unilever should undertake for raising its financial stability in the long-term perspective, and thus for achieving the company’s best financial performance.

Keywords

Bankruptcy, creditworthiness, financial analysis, financial ratios, insolvency, Nestlé, Unilever.

Language used: English

Date on which the thesis was submitted / produced: 14. 4. 2016

Thesis defence

• Date of defence: 6. 6. 2016
• Supervisor: Ing. Eva Cipovová, Ph.D.
• Reader: MBA Jaromír Stemberg

University of Finance and Administration

Bachelor programme / field:
Economics and Management / Business Management and Corporate Finance