Evaluation of Financial Position of a Selected Company

Jingyuan Liu

Bachelor's thesis

Abstract:

Financial analysis is the kind of method to analysis a company`s financial condition, and the financial analysis also can analysis the future and the past financial situation of a company. Also, the financial analysis is very important for the investor and the manager of the company. For the manager, the financial analysis can give some information to guide the manager make decision of the company, and the manager also can know the company`s operation situation, this is very important for the company. the common size analysis is a kind of analysis method, the meaning of this method is analysis the data and there change over the time, it`s kind of brief method we can know the data change trend, and from this method through the financial statement, user can know what`s the different between the period we analysis directly, and know what kind of item has changed. It`s kind of basic analysis method Vertical analysis is the kind of common-size analysis which is use for the analysis of the financial statement. The vertical analysis is analysis the change in proportion of the selected benchmark. DuPont analysis is using several financial ratios to analysis the company`s situation, the DuPont analysis can make the company`s financial ratio briefer and directly, and make management department can know the relationship between several ratios and also can see the operating situation of the company. The basic situation of Facebook company. Financial analysis is get the information from the Financial statement and use those information as a fundamental of the decision making for the corporation manager. Usually we analysis a company in four aspects which is profitability and the liabilities and liquidity also stability. For the financial analysis we usually use the common-size analysis method which is mean we usually use two ways in the common-size analysis method to measure a company each ability, those method is Vertical analysis and the horizontal analysis. The reason of why use common-size analysis method to analysis the company financial situation is that common size analysis method can give user a very direct date of each year and make the Financial statement looks briefer, and as we all know data is the most powerful thing for the analysis and also when the user wants know the financial situation of the company, the data from each year is the best choice to know the company well.

Abstract:

Financial analysis is the kind of method to analysis a company`s financial condition, and the financial analysis also can analysis the future and the past financial situation of a company. Also, the financial analysis is very important for the investor and the manager of the company. For the manager, the financial analysis can give some information to guide the manager make decision of the company, and the manager also can know the company`s operation situation, this is very important for the company. the common size analysis is a kind of analysis method, the meaning of this method is analysis the data and there change over the time, it`s kind of brief method we can know the data change trend, and from this method through the financial statement, user can know what`s the different between the period we analysis directly, and know what kind of item has changed. It`s kind of basic analysis method Vertical analysis is the kind of common-size analysis which is use for the analysis of the financial statement. The vertical analysis is analysis the change in proportion of the selected benchmark. DuPont analysis is using several financial ratios to analysis the company`s situation, the DuPont analysis can make the company`s financial ratio briefer and directly, and make management department can know the relationship between several ratios and also can see the operating situation of the company. The basic situation of Facebook company. Financial analysis is get the information from the Financial statement and use those information as a fundamental of the decision making for the corporation manager. Usually we analysis a company in four aspects which is profitability and the liabilities and liquidity also stability. For the financial analysis we usually use the common-size analysis method which is mean we usually use two ways in the common-size analysis method to measure a company each ability, those method is Vertical analysis and the horizontal analysis. The reason of why use common-size analysis method to analysis the company financial situation is that common size analysis method can give user a very direct date of each year and make the Financial statement looks briefer, and as we all know data is the most powerful thing for the analysis and also when the user wants know the financial situation of the company, the data from each year is the best choice to know the company well.

Keywords

Financial, analysis, Introduction, of, statement, Individual, ratio, Dupont, method

Keywords

Financial, analysis, Introduction, of, statement, Individual, ratio, Dupont, method

Language used: English

Date on which the thesis was submitted / produced: 5. 5. 2017

Thesis defence

• Date of defence: 30. 8. 2017
• Supervisor: Kateřina Zelinková
• Reader: Josef Novotný

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance