Inter-company comparison according to financial reports

Ing. Evgeniya Starostina

Master's thesis

Abstract:

This master thesis aims to analyze the financial efficiency of the chosen companies and suggest proposals for improvement regarding to financial health of the given companies. Companies from steel and iron industry of the United States were chosen for the analysis. The core of the comparison is based on analyzing data taken from the financial statements. The financial analysis uses absolute, differential and ratio indicators. The main objectives of this thesis are: to define the structure of financial statement, its main types and indicators; to determine the methods of analysis based on financial reporting; to appraise the reliability of the information sources; to make an overview of the selected companies; to make a comparative analysis of five companies and give its evaluation. Hypotheses that are going to be confirmed or disproved are: 1.Nucor Corporation’s amount of EBIT exceeds 10000 millions of dollars through the whole examined period 2.The amount of US Steel’s current assets is five times higher than its current liabilities

Keywords

Financial analysis, intercompany comparisons, absolute indicators, differential indicators, ratio indicators, DuPont analysis, steel industry.

Language used: English

Date on which the thesis was submitted / produced: 2. 5. 2017

Thesis defence

• Date of defence: 1. 6. 2017
• Supervisor: Ing. Eva Cipovová, Ph.D.
• Reader: doc. RNDr. Petr Budinský, CSc.

University of Finance and Administration

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