Financial and Non-financial Factors Effecting the Financial Performance of the Company

Ing. Alina Balan

Master's thesis

Abstract:

The purpose of this diploma thesis is to analyse the financial results of business activities of the selected company for last five years. The company that was selected for analysis is The Walt Disney Company. This diploma thesis consists of an introduction, six chapters, conclusion and references. In the theoretical part of the research work will represented the main indicators and factors which effecting the financial performance and the methods of financial analysis. The empirical part of research aimed at investigation factors that affect the changes in financial indicators of the selected company, also it consists of collecting, comparison, evaluating, analysing and summarizing different information and primary data. To achieve this goals, it is necessary to solve the tasks as: to analyse the economic essence and classification of incomes and expenses of chosen company; to consider the theoretical aspects of the formation of the financial result of the activity; to analyse the financial performance for last five years of the Walt Disney company. In this paper the following hypotheses were put: net income of selected company increases every year by 5% yearly over the last past five years; chosen company has weighted average cost of capital indicator, which is higher than ROCE and ROIC; chosen company has EVA>0 indicator in the last fiscal year; there is significant relationship between GDP and the company’s revenue and there is very strong dependency: |R|<0.67;1>. The main methods of analysis are the calculations of such financial indicators as EVA, WACC, ROE, ROA, and others. For non-financial analysis were used such methods of as SWOT, Porter’s five forces analysis, PEST, also it consists of collecting, comparison, evaluating and summarizing different information and primary data.

Keywords

Corporate Finance, SWOT-analysis, PEST-analysis, Porter's five forces, Vertical Analysis, Horizontal Analysis, Financial Ratio Analysis, Free Cash-Flow, Du Pont Analysis, EVA, Statistical analysis.

Language used: English

Date on which the thesis was submitted / produced: 29. 4. 2019

Thesis defence

• Date of defence: 17. 6. 2019
• Supervisor: Ing. Eva Kostikov, Ph.D.
• Reader: Ing. David Mareš, Ph.D.

University of Finance and Administration

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