Evaluation of Financial Situation of Baidu Company

Abstract

Financial analysis of the ultimate goal is to provide financial statement users to make relevant decisions. General purpose of financial analysis can be summarized as: to evaluate the past performance, measure current financial situation, to predict the future trend of development. The objective of the thesis is to assess the financial performance of Baidu Company, based on data from 2009 to 2013. This thesis consists five parts, Chapter 1 and 5 are introduction and conclusion. The three main parts are Chapter 2, 3 and 4. Second Chapter is about financial analysis methodology that will be used in the thesis when the company will be analyzed. In this part, we focus on two methods, common-size analysis and financial ratio analysis. Third Chapter describes the profile of Baidu Company. In this part we can know some basic information about Baidu Company such as history, products or technology information. Baidu Company is the biggest internet company in China. In the Forth Chapter the important financial ratios will be calculated.