Diagnostika finančního zdraví podniku - porovnání dceřiných společností Kofola, a.s.

Abstract

For my diploma work I chose the topic Diagnostics of the Financial Health of the Company - Comparison of Subsidiaries of the Company Kofola, stock commpany. Diagnostics of a company is generally a discipline dealing with regnozing and assessment of company phenomena that characterize the level of a company´s health. Every company, even the most successful one can get into trouble for various reasons. Some companies might receive help to get over the critical situation, some companies will close down. Today the topic of diagnostics, financial health and healthy companies seems to be an immensely significant issue, as the Czech economy has been recovering from the global economic recession.

I was given an opportunity to elaborate the topic of my diploma work in the Kofola holding company. A complex analysis of the subsidiaries Kofola stock company CZ a Kofola stock company SR was carried out from the accounting documents (balance, profit and loss statement,annual report) for the years 2005 – 2008. On the basis of working out the particular analysis, e.g. the vertical or horizontal analysis, the analysis of proportionate indicators and multiple criteria analysis through the method of pyramid decomposition ROE and on the basis of subsequent synthesis by means of a calculated added value EVA the diagnosis of the financial health of both companies could be determined. In the intercompany comparison the methods of a quick test were used, namely The Kralick Quick test and the method of Altman Z-score. The tested companies were assigned points for the assessed criteria. These points then indicated the financial health and the stability of the company.

Through this assessment it has been found out that the Kofola stock company SR shows higher level of financial health and therefore has a better prerequisite for more stable economic development than Kofola CZ and that on the basis of more conservative managerial decision making and a different approach and attitude towards the entrepreneurial risk. Both companies are recommended to optimise encashment of claims and obligations, optimise the duration of the inventory turnover ratio, the operating costs, and boost the sale of their products. The Kofola stock company CZ is also recommended that it should reduce operationally to the minimum the ratio of its own and foreign funds in such a way that there is no gradual indebtedness or even heavy indebtedness and the problem of not meeting the financial obligations towards the creditors.