Financial analysis of a chosen company

The subject of this bachelor thesis is to implement and evaluate the financial analysis of the company Estee Lauder CZ, Ltd. The thesis is divided into two parts. The first part is focused on theoretical backgrounds. First, it delineates the essence of financial analysis, and describes its users and sources of information on which the financial analysis is based. Next there are explained selected methods of financial analysis. In the second part of the thesis is firstly a short introduction of the analysed company, its basic information and its subjects of business. Then information from the balance sheet and profit and loss statement are used to formulate selected financial analysis methods. Methods which are applied are absolute indicators, ratio indicators, and also bankruptcy and credibility models. The analysis of absolute indicators includes a horizontal analysis of financial statements, which revealed a substantial decline in the balance sheet total. Next there is a vertical analysis of financial statements, which discovered a large change in the sources of financing assets. Ratio indicators, which include indicators of profitability, liquidity, activity and indebtedness, showed that the company is profitable, manages its assets efficiently and is able to stand for its commitments. At the very end is a summary of the results and final recommendations which could help the company improve their current financial situation