Analysis and Comparison of Financial Statements of Companies in the Field IT

Ing. Mikhail Teterin

Master's thesis

Abstract:

The topic of Diploma thesis is focused on the analysis of the financial condition of companies in such innovative economic niche as IT industry and identifyication the strengths and weaknesses of two enterprises ? Microsoft Corporation and Apple Incorporated. The main aim of the thesis is to evaluate the financial efficiency of selected big companies from IT industry, between 2015-2017, using traditional parameters of financial analysis and additionally statistical mathematical methods of comparison and finally to develop some recommendations for both companies (Apple and Microsoft). For this aim we analyse the reports of the companies in order to know differences in the indexes which can tell us crucial link about financial stability, immunity of the companies to shocks in the economy and the potentials of the companies. The aim of the work is also to investigate different types of analyses of financial indexes which are performed in companies` reports, define the best one for every case, highlight the information about the benefits of using the various types of analysis in different situations and to make a financial comparison of two global competitors on the Information technology market: Microsoft Corporation and Apple Incorporated. The theoretical part describes the concept of the main financial statements and the ways of analysing them. In the practical part thesis talks about the analysis of accounts and economic indicators of two companies in the IT sector.

Abstract:

The topic of Diploma thesis is focused on the analysis of the financial condition of companies in such innovative economic niche as IT industry and identifyication the strengths and weaknesses of two enterprises ? Microsoft Corporation and Apple Incorporated. The main aim of the thesis is to evaluate the financial efficiency of selected big companies from IT industry, between 2015-2017, using traditional parameters of financial analysis and additionally statistical mathematical methods of comparison and finally to develop some recommendations for both companies (Apple and Microsoft). For this aim we analyse the reports of the companies in order to know differences in the indexes which can tell us crucial link about financial stability, immunity of the companies to shocks in the economy and the potentials of the companies. The aim of the work is also to investigate different types of analyses of financial indexes which are performed in companies` reports, define the best one for every case, highlight the information about the benefits of using the various types of analysis in different situations and to make a financial comparison of two global competitors on the Information technology market: Microsoft Corporation and Apple Incorporated. The theoretical part describes the concept of the main financial statements and the ways of analysing them. In the practical part thesis talks about the analysis of accounts and economic indicators of two companies in the IT sector.

Keywords

Financial analysis, statement of income, balance sheet, cash flow statement, vertical analysis, horizontal analysis, liquidity ratios, profitability ratios, debt ratios, activity ratios, market ratios, ratio analysis.

Language used: English

Date on which the thesis was submitted / produced: 23. 4. 2019

Thesis defence

• Date of defence: 12. 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