Financial Situation Assessment of Walton Advanced Engineering Inc. Company

Zihan Zhang

Bachelor's thesis

Abstract:

The objective of the work is about to analysis the financial situation of Walton Advanced Engineering，a company in Taiwan province，China. Thesis is divided into five parts. Chapter 2 is a five-part analysis of financial data from Walton Advanced Engineering over the last five years, from 2013 to 2017. The First Section describes three basic financial statements, including balance sheet, income statement (profit / loss statement), and cash flow. All subsequent analysis of the data is based on data from these three financial statements, so this section is important. Then we can compare and calculate these data using common-size analysis. We will describe financial analysis which contains four kinds of activities, they are: Profitability Ratios, Liquidity Ratios, liquidity (leverage) ratios, and activity ratios. In the fourth part we will do pyramidal decomposition. The final section will cover topics related to sensitivity analysis. In Chapter 3, we'll cover some basic information about Walton Advanced Engineering. In fact, it's not a very well-known company. And because of the special nature of Taiwan to China, the laws Taiwanese companies follow are slightly different from those of the mainland. In doing data analysis, the impact of the external environment for the company is also a point that cannot be ignored. In Chapter 4, the methods of Chapter 2 will be used to calculate and analyze Walton Advanced Engineering’s financial situation. And this part is the most important among whole thesis. Because in this chapter, we directly analyze the competitiveness of a company in the market by calculating the value of financial ratios. And we will also use pyramidal decomposition to conduct further analysis of Walton Advanced Engineering’s return on equity by decomposing this ratio. Finally, we use sensitivity analysis to predict the effect of basic ratios on ROE In Chapter 5, we will make a conclusion based on the previous results and data.

Abstract:

The objective of the work is about to analysis the financial situation of Walton Advanced Engineering，a company in Taiwan province，China. Thesis is divided into five parts. Chapter 2 is a five-part analysis of financial data from Walton Advanced Engineering over the last five years, from 2013 to 2017. The First Section describes three basic financial statements, including balance sheet, income statement (profit / loss statement), and cash flow. All subsequent analysis of the data is based on data from these three financial statements, so this section is important. Then we can compare and calculate these data using common-size analysis. We will describe financial analysis which contains four kinds of activities, they are: Profitability Ratios, Liquidity Ratios, liquidity (leverage) ratios, and activity ratios. In the fourth part we will do pyramidal decomposition. The final section will cover topics related to sensitivity analysis. In Chapter 3, we'll cover some basic information about Walton Advanced Engineering. In fact, it's not a very well-known company. And because of the special nature of Taiwan to China, the laws Taiwanese companies follow are slightly different from those of the mainland. In doing data analysis, the impact of the external environment for the company is also a point that cannot be ignored. In Chapter 4, the methods of Chapter 2 will be used to calculate and analyze Walton Advanced Engineering’s financial situation. And this part is the most important among whole thesis. Because in this chapter, we directly analyze the competitiveness of a company in the market by calculating the value of financial ratios. And we will also use pyramidal decomposition to conduct further analysis of Walton Advanced Engineering’s return on equity by decomposing this ratio. Finally, we use sensitivity analysis to predict the effect of basic ratios on ROE In Chapter 5, we will make a conclusion based on the previous results and data.

Keywords

financial, ratios；, analysis；, corporate, management；, finance；investing

Keywords

financial, ratios；, analysis；, corporate, management；, finance；investing

Language used: English

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

Thesis defence

• Date of defence: 10. 6. 2019
• Supervisor: Miroslav Čulík
• Reader: Josef Novotný

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance