Comparative financial analysis

Bc. Kateryna Usova

Bachelor's thesis

Abstract:

The main goal of the this Bachelor thesis is to acquaint the reader with the principles of the comparative financial analysis, its main objectives, concepts, and procedural framework, as well as to demonstrate how the main techniques can be used in the overall performance assessment with a special focus on investment attractiveness of top 3 automotive manufacturers – Volkswagen AG, Groupe Renault and FCA. The theoretical part encompasses the introduction into the financial analysis theory by determination of the goal of the financial analysis, its role within the control and management policies, and its main users. The detailed explanation of the procedural framework for the drafting of the financial analysis is given, highlighting the importance of the preparatory stages that might go far beyond the simple evaluation of the financial statements. The main information sources, their purpose and explanation along with the different techniques and types of the financial analyses that are used in a contemporary practice are revealed. The main idea of the practical part is to evaluate the investment attractiveness through conduction of the comprehensive comparative financial analysis on the example of three selected automotive companies represented by Volkswagen AG, Groupe Renault and FCA based on financial data 2010-2014. The overall analysis of the industry, main tendencies and future trends along with the special attention on the companies’ strategies overview are designed to help the reader to understand the nature of the business and be able to interpret the obtained financial result in respect to the operating environment. The realization of the main goal of the Bachelor thesis was achieved through the examination of the relevant scientific literature and online resources in the theoretical part and through the financial analyses based on data of 2010-2014 supported by illustrations and charts designed on the Microsoft World software in practical.

Abstract:

The main goal of the this Bachelor thesis is to acquaint the reader with the principles of the comparative financial analysis, its main objectives, concepts, and procedural framework, as well as to demonstrate how the main techniques can be used in the overall performance assessment with a special focus on investment attractiveness of top 3 automotive manufacturers – Volkswagen AG, Groupe Renault and FCA. The theoretical part encompasses the introduction into the financial analysis theory by determination of the goal of the financial analysis, its role within the control and management policies, and its main users. The detailed explanation of the procedural framework for the drafting of the financial analysis is given, highlighting the importance of the preparatory stages that might go far beyond the simple evaluation of the financial statements. The main information sources, their purpose and explanation along with the different techniques and types of the financial analyses that are used in a contemporary practice are revealed. The main idea of the practical part is to evaluate the investment attractiveness through conduction of the comprehensive comparative financial analysis on the example of three selected automotive companies represented by Volkswagen AG, Groupe Renault and FCA based on financial data 2010-2014. The overall analysis of the industry, main tendencies and future trends along with the special attention on the companies’ strategies overview are designed to help the reader to understand the nature of the business and be able to interpret the obtained financial result in respect to the operating environment. The realization of the main goal of the Bachelor thesis was achieved through the examination of the relevant scientific literature and online resources in the theoretical part and through the financial analyses based on data of 2010-2014 supported by illustrations and charts designed on the Microsoft World software in practical.

Keywords

comparative financial analysis, automotive industry, investment attractiveness, ratio analysis

Language used: English

Date on which the thesis was submitted / produced: 12. 4. 2016

Thesis defence

• Date of defence: 2. 6. 2016
• Supervisor: Ing. Kateřina Kalinová
• Reader: Ing. Jana Kotěšovcová

University of Finance and Administration

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