Financial Analysis of Selected Company

Abstract

Financial analysis is based on a company's financial statements and takes methods to analyze the company's past activities. Managers can use financial analysis to assess the current state of the business. Investors and creditors can assess the risk and development of the business through financial analysis. Financial analysis can help us understand a company. The main purpose of this paper is to evaluate the current situation of LEGO in the light of LEGO’s development background and financial analysis. This article describes the definitions and calculations of financial statements, common-size analysis, financial ratio analysis, and DuPont analysis, and then uses these methods to analyze LEGO's financial statements for 2016- 2019.

Financial analysis is based on a company's financial statements and takes methods to analyze the company's past activities. Managers can use financial analysis to assess the current state of the business. Investors and creditors can assess the risk and development of the business through financial analysis. Financial analysis can help us understand a company. The main purpose of this paper is to evaluate the current situation of LEGO in the light of LEGO’s development background and financial analysis. This article describes the definitions and calculations of financial statements, common-size analysis, financial ratio analysis, and DuPont analysis, and then uses these methods to analyze LEGO's financial statements for 2016- 2019.