Processing Financial Analysis of International Paper Company

Han Xia

Bachelor's thesis

Abstract:

The financial condition of a company can be reflected through financial statements, which is very important for the company's managers and investors. Through the analysis of financial statements, we can know the company's operating results and profit and loss situation for a period of time, which is conducive to the operation and management personnel to understand the completion of various indicators, take timely measures against the relevant problems, ensure the stable development of the company and improve economic benefits. At the same time, investors can also analyze the profitability, debt paying ability and investment income of a company by mastering its financial situation, which will help investors make better investment decisions and adjust relevant strategies. With over 100 years of history since its establishment, International Paper company is the world's largest paper and forest products company mainly engaged in non-coated paper, industrial packaging and consumer packaging. International Paper is headquartered in the United States, but its customers are all over the world, with more than 60,000 employees worldwide. International Paper companies are among the world's top 500 companies. Nevertheless, the company adheres to the policy of not using wood from endangered forests, and attaches great importance to environmental protection in the production process and is committed to sustainable development. The main purpose of this thesis is to analyze the financial situation of International Paper company through its five-year annual financial statements. And it will be divided into five chapters. The first chapter is about the basic content of the thesis. The second chapter is the theoretical part, we will introduce the methods of financial analysis, because the calculation of relevant data is based on the theoretical knowledge. Then we will learn the basic information and related content of financial statements, including balance sheet, income statement and cash flow statement. Then we will introduce several methods of financial analysis, such as common-size analysis, financial ratio analysis, and pyramid decomposition analysis. In chapter 3, we will introduce some basic information about the selected company, including the company's historical development, the company's current leadership team, the company's global economy and goals. In chapter 4, we will analyze the financial situation of International Paper company, and use the financial analysis method mentioned in chapter 3 to make a specific analysis of the company's financial statements from 2012 to 2016. Finally, we will summarize the whole thesis in chapter 5.

Abstract:

The financial condition of a company can be reflected through financial statements, which is very important for the company's managers and investors. Through the analysis of financial statements, we can know the company's operating results and profit and loss situation for a period of time, which is conducive to the operation and management personnel to understand the completion of various indicators, take timely measures against the relevant problems, ensure the stable development of the company and improve economic benefits. At the same time, investors can also analyze the profitability, debt paying ability and investment income of a company by mastering its financial situation, which will help investors make better investment decisions and adjust relevant strategies. With over 100 years of history since its establishment, International Paper company is the world's largest paper and forest products company mainly engaged in non-coated paper, industrial packaging and consumer packaging. International Paper is headquartered in the United States, but its customers are all over the world, with more than 60,000 employees worldwide. International Paper companies are among the world's top 500 companies. Nevertheless, the company adheres to the policy of not using wood from endangered forests, and attaches great importance to environmental protection in the production process and is committed to sustainable development. The main purpose of this thesis is to analyze the financial situation of International Paper company through its five-year annual financial statements. And it will be divided into five chapters. The first chapter is about the basic content of the thesis. The second chapter is the theoretical part, we will introduce the methods of financial analysis, because the calculation of relevant data is based on the theoretical knowledge. Then we will learn the basic information and related content of financial statements, including balance sheet, income statement and cash flow statement. Then we will introduce several methods of financial analysis, such as common-size analysis, financial ratio analysis, and pyramid decomposition analysis. In chapter 3, we will introduce some basic information about the selected company, including the company's historical development, the company's current leadership team, the company's global economy and goals. In chapter 4, we will analyze the financial situation of International Paper company, and use the financial analysis method mentioned in chapter 3 to make a specific analysis of the company's financial statements from 2012 to 2016. Finally, we will summarize the whole thesis in chapter 5.

Keywords

Financial Analysis, Financial Statement, Common-size Analysis, Financial Ratios Analysis, Pyramidal Decompositions

Keywords

Financial Analysis, Financial Statement, Common-size Analysis, Financial Ratios Analysis, Pyramidal Decompositions

Language used: English

Date on which the thesis was submitted / produced: 10. 5. 2019

Thesis defence

• Date of defence: 7. 6. 2019
• Supervisor: Kateřina Stanovská
• Reader: Barbora Ptáčková

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance