Profitability Analysis of Nokia Company

Abstract

The objective of the thesis is using financial analysis methodology to find out the true condition of Nokia Company during 2006 to 2010 and the reason resulted in the condition. The thesis is focus on the profitability analysis of the Nokia Company. In the theoretical part, the five main methods of financial analysis are introduced. They are common-size analysis, financial ratio analysis, pyramidal decompositions, quantitative methods and trend analysis. In the practical part, the common size analysis and financial ratio analysis are used to analyze the financial statement of the company ,the pyramidal decomposition is used to decompose the return on equity and net profit margin. And the method of gradual changes is used to analysis the factors which has the most impact on the profitability of the company. The conclusion of the thesis is included the general performance of the company during the analyzed period, the results from the profitability analysis and recommendation for better performance of the company.

The objective of the thesis is using financial analysis methodology to find out the true condition of Nokia Company during 2006 to 2010 and the reason resulted in the condition. The thesis is focus on the profitability analysis of the Nokia Company. In the theoretical part, the five main methods of financial analysis are introduced. They are common-size analysis, financial ratio analysis, pyramidal decompositions, quantitative methods and trend analysis. In the practical part, the common size analysis and financial ratio analysis are used to analyze the financial statement of the company ,the pyramidal decomposition is used to decompose the return on equity and net profit margin. And the method of gradual changes is used to analysis the factors which has the most impact on the profitability of the company. The conclusion of the thesis is included the general performance of the company during the analyzed period, the results from the profitability analysis and recommendation for better performance of the company.