Finanční analýza podniku v chemickém průmyslu

Abstract

This bachelor thesis deals with the financial analysis of an unnamed company operating in the chemical industry. The analysis was carried out for the period 2018 to 2022 based on data from the company's annual reports. The thesis used basic financial analysis methods including horizontal and vertical analysis, analysis of difference and ratio indicators. Furthermore, the results of more sophisticated financial techniques such as ROE decomposition and bankruptcy and credit models are discussed in the paper. The objective of the paper is to provide a detailed view of the financial health and trends of the firm, identify areas of strength and potential weaknesses, and formulate recommendations for improvement based on these findings. The research shows that the firm has growing assets and liabilities and has managed to increase sales throughout the period under review, which are the key factors for the sustainability of the firm. However, despite maintaining good profitability and the ability to generate profit, the business suffers from poor liquidity, negative net working capital and a decline in profit margin. These shortcomings should be improved by increasing cash reserves, minimizing capital tied up in inefficient inventories, and optimizing costs. Financial ratios started to deteriorate in 2020 with the effects of the COVID-19 pandemic. The following year 2021 was the worst from the point of view of financial management, in addition to the consequences of the pandemic, rising input prices, whether of input raw materials or energy, were also reflected in the decline in the monitored indicators. In 2022, we observe an increase in sales and an improvement in most monitored indicators, not only due to the effect of investments in expanding production and reducing costs, which signals another step towards improving the financial health of the company.