Profitability Assessment of Total Oil Company

Yu Long

Bachelor's thesis

Abstract:

In the processing of development of a comapny, it is important to know the profitability.The company need to know how much they can get in one period, and which business bring the most to him. In this thesis, we introduce the method to do the financial analysis, we focus on the profitability analysis. We choose TOTAL oil company to do the analysis. We introduce the breif information about this company, then we use the ratio analysis, such as profit margin, ROE, ROA. And we do the common-size analysis, this method helps us to analyze the financial results,it including two methods, one is horizontal common-size analysis, the other one is vertical common-size analysis. last, we do the Dupont analysis, we divided ROE into some parts, in other words, we use select a basic ratio and some components ratio. By doing this analysis, we find the profitability of TOTAL is good, but there still have problems, the profit mainly comes from non-operating business, so the company need to change the business strategy , the management also need to update. The financial structure should be adjusted to the proper type.

Abstract:

In the processing of development of a comapny, it is important to know the profitability.The company need to know how much they can get in one period, and which business bring the most to him. In this thesis, we introduce the method to do the financial analysis, we focus on the profitability analysis. We choose TOTAL oil company to do the analysis. We introduce the breif information about this company, then we use the ratio analysis, such as profit margin, ROE, ROA. And we do the common-size analysis, this method helps us to analyze the financial results,it including two methods, one is horizontal common-size analysis, the other one is vertical common-size analysis. last, we do the Dupont analysis, we divided ROE into some parts, in other words, we use select a basic ratio and some components ratio. By doing this analysis, we find the profitability of TOTAL is good, but there still have problems, the profit mainly comes from non-operating business, so the company need to change the business strategy , the management also need to update. The financial structure should be adjusted to the proper type.

Keywords

net profit margin； operating profit margin； business target； fnancial structure； ROE； ROA；turnover； upstream, downstream ...-350

Keywords

net profit margin； operating profit margin； business target； fnancial structure； ROE； ROA；turnover； upstream, downstream

Language used: English

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

Thesis defence

• Date of defence: 7. 6. 2018
• Supervisor: Jiří Valecký
• Reader: Petr Gurný

VŠB - Technical University of Ostrava

Ekonomická fakulta

Bachelor programme / field:
Hospodářská politika a správa / Finance