Solvency Assessment of a Given Company

Abstract

The bachelor thesis is focused on the solvency analysis of a company in the auto industry. The main objective of the bachelor thesis is to analyze the solvency ability of SAIC Motor by various methods, including common-size analysis, financial ratio analysis and pyramidal decomposition. Financial analysis is performed on the basis of financial statements during the period 2011-2015. In the theoretical part, the financial analysis methods, employed within the thesis, are described. In the practical part, the financial analysis using methods, such as common-size analysis and financial ratio analysis are performed. Next, the pyramidal decomposition of solvency ratio is conducted and the influence of particular ratios on the main synthetic one are assessed. Finally, we can obtain the basic financial situation of the company, especially the solvency ability.

The bachelor thesis is focused on the solvency analysis of a company in the auto industry. The main objective of the bachelor thesis is to analyze the solvency ability of SAIC Motor by various methods, including common-size analysis, financial ratio analysis and pyramidal decomposition. Financial analysis is performed on the basis of financial statements during the period 2011-2015. In the theoretical part, the financial analysis methods, employed within the thesis, are described. In the practical part, the financial analysis using methods, such as common-size analysis and financial ratio analysis are performed. Next, the pyramidal decomposition of solvency ratio is conducted and the influence of particular ratios on the main synthetic one are assessed. Finally, we can obtain the basic financial situation of the company, especially the solvency ability.