Assessment of the Financial Position and Performance of a Choosen Company Operating in the Video Game Industry

Nuradil Zhaxylyk

Bachelor's thesis

Abstract:

The main goal of the following thesis is to analyze the financial performance, position, and situation of a selected company operating in the gaming industry. To be more specific, the author will analyze the financial performance of Ubisoft, a French-based game developer that has made a series of tremendous commercial successes over the course of the last 20 years. Consequently, the author will answer the question of whether the situation of the company is favorable and stable. The methodology of the work is based on the horizontal and vertical financial analysis of the company's financial statements on the selected time period – from 2019 to 2021. Apart from pertinent financial analysis, the author also focuses on calculating financial ratios related to liquidity, solvency, profitability, and market valuation. To conclude, the author is able to say that Ubisoft is a typical company operating in the gaming and game-developing industry, whose profit is significantly affected by the reception of their releases by gamers and critics. All in all, the author believes that Ubisoft is an example of a successful and solvent company that might have found themselves rather trapped by their prior success, so now they have to produce really good products in order to live up to people's expectations, which is inevitably reflected on the company's financial statements.

Keywords

financial statements, financial analysis, financial position, balance sheet

Language used: English

Date on which the thesis was submitted / produced: 17. 4. 2023

Thesis defence

• Date of defence: 17. 5. 2023
• Supervisor: Ing. Enikö Lörinczová, Ph.D.
• Reader: Petra Šánová, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Informatics