Financial Situation Assessment of the Selected Corporation

Xushi Chen

Bachelor's thesis

Abstract:

This thesis is focused on financial analysis of design, manufacturing, and service global company, PEGATRON Corporation, whose headquarter based on Taipei. The company was founded on the 1st of January,2008. The main aim of this thesis is to analyze the financial situation and the development of Pegatron from 2014-2018. The first chapter generalizes the structure and main purpose of this thesis so that readers can have a general view of the thesis. And the second chapter uses the common methods of financial statement analysis include common seize analysis, pyramid decomposition, financial ratios, and sensitivity analysis. This methodology generates the prototype of PEGATRON’s financial situation. In the third chapter, there is a general overview of PEGATRON. For example, the summary of the history of the company, and more importantly, is the cultural environment in PEGATRON and core competence in PEGATRON. Then global development is the main characteristic of this company. As for the major part of this thesis, the fourth chapter evaluates the financial situation of PEGATRON by using the methods applied in chapter two. It highlights the financial strength and flaws of PEGATRON through the assessments. From Vertical and horizontal analysis, the comparison of each year’s financial data shows the market statue of corporate. With financial ratios, financial performance can be compared with the set expectation to evaluate the management of the enterprise. Furthermore, Dupont analysis decomposes different drivers of return on asset and how the components drive the target ratios. Then sensitivity analysis provides how to target ratios react according to changes in input variables. Specifically, the increase and decrease of input variables will lead to an increase or decrease of target ratios. Eventually, the fifth chapter concludes our financial assessment.

Abstract:

This thesis is focused on financial analysis of design, manufacturing, and service global company, PEGATRON Corporation, whose headquarter based on Taipei. The company was founded on the 1st of January,2008. The main aim of this thesis is to analyze the financial situation and the development of Pegatron from 2014-2018. The first chapter generalizes the structure and main purpose of this thesis so that readers can have a general view of the thesis. And the second chapter uses the common methods of financial statement analysis include common seize analysis, pyramid decomposition, financial ratios, and sensitivity analysis. This methodology generates the prototype of PEGATRON’s financial situation. In the third chapter, there is a general overview of PEGATRON. For example, the summary of the history of the company, and more importantly, is the cultural environment in PEGATRON and core competence in PEGATRON. Then global development is the main characteristic of this company. As for the major part of this thesis, the fourth chapter evaluates the financial situation of PEGATRON by using the methods applied in chapter two. It highlights the financial strength and flaws of PEGATRON through the assessments. From Vertical and horizontal analysis, the comparison of each year’s financial data shows the market statue of corporate. With financial ratios, financial performance can be compared with the set expectation to evaluate the management of the enterprise. Furthermore, Dupont analysis decomposes different drivers of return on asset and how the components drive the target ratios. Then sensitivity analysis provides how to target ratios react according to changes in input variables. Specifically, the increase and decrease of input variables will lead to an increase or decrease of target ratios. Eventually, the fifth chapter concludes our financial assessment.

Keywords

Financial Situation Assessment, Sensitivity Analysis, Pyramidal Decomposition, Financial Ratios

Keywords

Financial Situation Assessment, Sensitivity Analysis, Pyramidal Decomposition, Financial Ratios

Language used: English

Date on which the thesis was submitted / produced: 7. 5. 2020

Thesis defence

• Date of defence: 8. 7. 2020
• Supervisor: Miroslav Čulík
• Reader: Barbora Ptáčková

VSB – Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance