Financial Situation Assessment of the China Shenhua Company

Zhou Jiang

Bachelor's thesis

Abstract:

This thesis is about to analysis the financial situation of China Shenhua. financial analysis is based on the fundamental analysis method, and it’s very useful to analysis the financial condition and situation the company, the aim of this bachelor thesis is to figure out the financial condition and situation of China Shenhua in period of 2012 to 2016 period. We divide this thesis into 5 chapters to introduce, from which we could possibly get more information to know the financial situation of China Shenhua. The first chapter we will introduce the framework of the thesis, with this scientific framework, the readers could get the point directly. The second chapter, we will talk about the Methods of Financial Analysis Description, and introduce three methods of financial analysis, Common-size analysis (horizontal, vertical), Financial ratio analysis, Pyramidal decompositions and influence quantification. The third chapter, I will show overview of China Shenhua. we can know the history and the financial situation of this company before we analysis it. From the overview we could know the when the company establish, whether and when the company have some acquisitions, who is the controlling shareholder, which business the company operate, how much of the market capitalization and especially some material events of the China Shenhua. The forth chapter is financial analysis of the china shenhua company, firstly we will use the method of Common-size analysis for fiancial statement, which include balance sheet, income statement and cash flow statement. We will analysis the China Shenhua from it’s financial ratios, it contains profitability ratios, liquidity ratios, solvency (leverage) ratios and assets management ratios, which will introduce the ability of making profit, paying the money to its short term and long-term debt and the efficiency of using the assets among the last 5 years. And in this part, we will also use Dupont analysis and then use the pyramidal decompositions and influence quantification to estimate and find the biggest factor influence the changes of return on equity of the China shenhua. In the fifth and sixth chapter we will make a conclusion, based on the information and result we get from the former chapter, we can do some predicts and have some point to help the company develop well. And make the decision about whether this company earns to invest.

Abstract:

This thesis is about to analysis the financial situation of China Shenhua. financial analysis is based on the fundamental analysis method, and it’s very useful to analysis the financial condition and situation the company, the aim of this bachelor thesis is to figure out the financial condition and situation of China Shenhua in period of 2012 to 2016 period. We divide this thesis into 5 chapters to introduce, from which we could possibly get more information to know the financial situation of China Shenhua. The first chapter we will introduce the framework of the thesis, with this scientific framework, the readers could get the point directly. The second chapter, we will talk about the Methods of Financial Analysis Description, and introduce three methods of financial analysis, Common-size analysis (horizontal, vertical), Financial ratio analysis, Pyramidal decompositions and influence quantification. The third chapter, I will show overview of China Shenhua. we can know the history and the financial situation of this company before we analysis it. From the overview we could know the when the company establish, whether and when the company have some acquisitions, who is the controlling shareholder, which business the company operate, how much of the market capitalization and especially some material events of the China Shenhua. The forth chapter is financial analysis of the china shenhua company, firstly we will use the method of Common-size analysis for fiancial statement, which include balance sheet, income statement and cash flow statement. We will analysis the China Shenhua from it’s financial ratios, it contains profitability ratios, liquidity ratios, solvency (leverage) ratios and assets management ratios, which will introduce the ability of making profit, paying the money to its short term and long-term debt and the efficiency of using the assets among the last 5 years. And in this part, we will also use Dupont analysis and then use the pyramidal decompositions and influence quantification to estimate and find the biggest factor influence the changes of return on equity of the China shenhua. In the fifth and sixth chapter we will make a conclusion, based on the information and result we get from the former chapter, we can do some predicts and have some point to help the company develop well. And make the decision about whether this company earns to invest.

Keywords

Financial, analysis；ratios；, position, ；financial, statement

Keywords

Financial, analysis, ratios, position, statement

Language used: English

Date on which the thesis was submitted / produced: 11. 5. 2018

Thesis defence

• Date of defence: 4. 6. 2018
• Supervisor: Miroslav Čulík
• Reader: Andrea Kolková

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance