Profitability Assessment of Kofola CeskoSlovensko a.s.

Abstract

Profitability ratio is one of the most important ratios of a company which includes return on assets, return on equity, net profit margin and operating profit margin. The stronger profitability ability of a company, the better strength of a company is. Therefore this thesis will focus on the analyzing the Kofola company’s profitability ability and also other financial ratios. The Kofola company is a very famous non-alcohol beverage company in Czech Republic. And in this thesis, we will use three ways of analysis to assess its financial condition. They are common-size analysis, financial ratio analysis and decomposition analysis. The main goal of my thesis is to analyze the profitability ability of Kofola company. Through the analysis of profitability ratios, we can know the companies’ bottom line and its return to investors and we can know the Kofola’s ability to transform sales into profits and the ability of generating return for its shareholders.