Paakko_Roope.pdf - Roope Pkk FINANCIAL RATIO ANALYSIS FOR...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Roope Pääkkö FINANCIAL RATIO ANALYSIS FOR CASE COMPANY X International Business and Marketing Logistics 2017
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
FINANCIAL RATIO ANALYSIS FOR CASE COMPANY X Pääkkö, Roope Satakunnan ammattikorkeakoulu, Satakunta University of Applied Sciences Degree Programme in International Business and Marketing Logistics June 2017 Number of pages: 37 Appendices: 6 Keywords: Financial analysis, Financial state, Case study, Finance ____________________________________________________________________ This paper describes a financial ratio analysis for case company referred to as X. Two different analysis methods were used for the project; time-series analysis and temporal cross section analysis. The used material was academic publications and the financial statements of the case company. The project was conducted to get a better view of the company’s financial position by measuring its profitability, liquidity and solvency, to create necessary tools for the assignment-giving company and to develop profession- ally. The project has been divided in to two different parts: theoretical part and empir- ical part. Before these two parts, there is a brief introductory part. The introductory part includes the pre-plans for the whole project covering the pur- pose, boundaries as well as the conceptual framework. This part was conducted to set the frames for this project. The theoretical part includes basic information about financial ratios along with the most common financial ratio formulas used. These formulas have been presented in three categories: Profitability ratios, liquidity ratios and solvency ratios. All of the for- mulas were written down and explained briefly. All of this is followed by the case Company X’s introduction, where the industry and other basic information is told. The empirical part starts with the methodology where the means of analysis are being presented while assessing the reliability and validity of these means. The research methods chosen were somewhat both, quantitative and qualitative, as the results were both, numerically calculated and qualitatively analyzed by words. This was to get a better picture of the company’s situation. After the methodology, there is a graphical and verbal presentation of the two different means of analysis; time-series and tem- poral cross-section. For the time series analysis, only the company’s own financial statements were used from a period of five years. For this part, the most interesting ratios from the company’s and the authors point of view were picked. In the temporal cross-section, the industry benchmarks were taken from a CD-ROM and compared to the Company’s performance. The ratios used in this part were picked according what the CD-ROM had. In the end, a tool for the assignment-giving company was created. This is an Excel sheet where the company can transfer financial statements, while another tab in the sheet picks up the words such as “assets” and checks what values they have and cal- culate ratios based on this. Also, the ratios were calculated and analyzed for the case
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern