Financial Situation and its Assessment in Wanda Group Company

Rong Huang

Bachelor's thesis

Abstract:

The thesis is about analyzing the financial situation of Wanda Group, which is one of the largest real estate companies in China. The purpose of this thesis is to use the selected financial analysis methods to assess the financial status of Wanda Group in the 2013-2017 financial year. Wanda Group is the largest real estate group in mainland China. Wanda Group's industrial chain includes all aspects of the real estate industry, from real estate development to commercial management. In addition, based on the future of the real estate industry, Wanda Group continues to invest in the business management field and become a leader in business management. By analyzing its financial situation, it is helpful to understand how the company succeeds in the world. This thesis is divided into five chapters. The second chapter is a theoretical part that describes three basic financial statements and financial analysis methods, which will be applied in Chapter 4. There are three types of financial statements, namely a balance sheet, a profit and loss statement and a cash flow statement. Moreover, there are four main types of financial analysis methods, including common size analysis, financial ratio analysis, pyramidal decomposition and influence quantification, and sensitivity analysis. The third chapter describes the company characteristics of the Wanda Group. We should understand some of the comprehensive information of Wanda Group, such as overview, development history, corporate culture and expanding business areas. Therefore, Chapter 3 introduces the background and financial characteristics of the Wanda Group. The fourth chapter is the Applied Analysis section and is the most important part of this Bachelor's thesis. We will use the method from Chapter 2 (theoretical part) to analyze the financial statements of Wanda Group from 2013 to 2017. In this chapter, the financial ratio analysis is conducted to introduce the company's ability to create profit, the efficiency of repaying debts and so on. At the same time, this part uses the pyramidal decomposition method and influence quantification to find the variables that have the greatest impact on Wanda Group's return on equity. Finally, through sensitive analysis, we explore the variable sensitivity of change. Therefore, in Chapter 4, the financial situation of each fiscal year is compared and calculated, and the performance of each year is analyzed to find out the company's development trend. In the fifth chapter, we will make a conclusion based on the analysis results of the former four chapters. We can make some predictions and have some ideas to help the company develop better. Most importantly, we can deduce whether Wanda Group is worth investing.

Abstract:

The thesis is about analyzing the financial situation of Wanda Group, which is one of the largest real estate companies in China. The purpose of this thesis is to use the selected financial analysis methods to assess the financial status of Wanda Group in the 2013-2017 financial year. Wanda Group is the largest real estate group in mainland China. Wanda Group's industrial chain includes all aspects of the real estate industry, from real estate development to commercial management. In addition, based on the future of the real estate industry, Wanda Group continues to invest in the business management field and become a leader in business management. By analyzing its financial situation, it is helpful to understand how the company succeeds in the world. This thesis is divided into five chapters. The second chapter is a theoretical part that describes three basic financial statements and financial analysis methods, which will be applied in Chapter 4. There are three types of financial statements, namely a balance sheet, a profit and loss statement and a cash flow statement. Moreover, there are four main types of financial analysis methods, including common size analysis, financial ratio analysis, pyramidal decomposition and influence quantification, and sensitivity analysis. The third chapter describes the company characteristics of the Wanda Group. We should understand some of the comprehensive information of Wanda Group, such as overview, development history, corporate culture and expanding business areas. Therefore, Chapter 3 introduces the background and financial characteristics of the Wanda Group. The fourth chapter is the Applied Analysis section and is the most important part of this Bachelor's thesis. We will use the method from Chapter 2 (theoretical part) to analyze the financial statements of Wanda Group from 2013 to 2017. In this chapter, the financial ratio analysis is conducted to introduce the company's ability to create profit, the efficiency of repaying debts and so on. At the same time, this part uses the pyramidal decomposition method and influence quantification to find the variables that have the greatest impact on Wanda Group's return on equity. Finally, through sensitive analysis, we explore the variable sensitivity of change. Therefore, in Chapter 4, the financial situation of each fiscal year is compared and calculated, and the performance of each year is analyzed to find out the company's development trend. In the fifth chapter, we will make a conclusion based on the analysis results of the former four chapters. We can make some predictions and have some ideas to help the company develop better. Most importantly, we can deduce whether Wanda Group is worth investing.

Keywords

financial analysis, financial statement, financial ratios, pyramidal decomposition, sensitivity analysis

Keywords

financial analysis, financial statement, financial ratios, pyramidal decomposition, sensitivity analysis

Language used: English

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

Thesis defence

• Date of defence: 3. 6. 2019
• Supervisor: Miroslav Čulík
• Reader: Kateřina Stanovská

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance