Financial analysis of credit profile of selected company/companies.

Bc. BcA. Yelyzaveta Uzyiuk, BA

Master's thesis

Abstract:

This master's work is dedicated to the field of finance. The main aim of this thesis is a creating of financial analysis of credit profile of selected company/companies - Alza.cz a.s. and HP Tronic Zlín spol. s.r.o. The research covers the last 5 years, data available for these years: from 2015 to 2019. Alza’s study indicated the following: main part if assets are current assets – 6.192 million CZK, company is using quite aggressive strategy aiming on constant growth of using debts, revenues are consisted mainly from sales of goods in average 16.961 million CZK annually, company is facing a decrease of activities ratio turnover, ROA is 14 % and finally according to Z-score and Kralicek quick test bankrupt is not likely and company worth for investing. HP TRONIC’s research indicated: current assets are also main part of the assets – 3.670 million CZK, for expansion purpose company is using non-bank debts, debt ratio is increasing., average annual sales are 14.515 million CZK, activity turnover is growing, ROA is 2 %, according to Z-score company is facing a bankrupt, but dynamic is a positive, however according to Klalicek quick test showed, that the company can be recommended as a firm that does not face bankruptcy. The firm Alza has the following negative elements in its rating: the probability AliExpress and Amazon strengthen their position in the local market and the Growth of the company's debt. The firm should stop the growing debt, as it became very visible. Any change in the enterprise's financial policies may be negatively perceived by the lenders. On the other hand, the study revealed the following positive aspects of the rating: Leading position in the Czech market, portfolio diversification, expansion started abroad and positive results of the Z-score test and Kralicek quick test. According to the study, HP TRONIC has the following negative elements: unstable rentability ratio, negative working capital in some years and Z-score calculation show firm's bankruptcy. On the other hand, this is compensated by the growing activity ratio, rapidly growing profits of the company, especially from the sale of its services and the Successful acquisition with Datart.

Keywords

Rentability, Breakeven point, Financial Analysis, Credit profile

Language used: English

Date on which the thesis was submitted / produced: 31. 3. 2021

Thesis defence

• Supervisor: Ing. Zdeněk Toušek, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Master programme / field:
Economics Policy and Administration / Business Administration