Financial Scenario Analysis for Strategic Decision-Making: A Case of Company X in the Slovak Market
Badidová, Martina (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024052917439
https://urn.fi/URN:NBN:fi:amk-2024052917439
Tiivistelmä
This Bachelor's thesis delves into financial scenario analysis, examining the historical performance of Company X, a micro-business in the truck logistics sector based in eastern Slovakia, and forecasting various scenarios for the next five years to inform strategic decision- making.
The primary objective is to assess Company X's current financial position and project its future trajectory using insights gleaned from financial statement analysis, scenario analysis, and SME operations in the region.
The thesis comprises a theoretical section covering financial statement analysis, risk assessment, and scenario analysis, as well as an empirical section focusing on the company's financial statements, financial modeling, forecasting, and risk evaluation.
The study employs a qualitative approach, first analyzing Company X's historical financial performance to gauge its current financial health and then forecasting future scenarios while evaluating potential risks and changes in industry and market dynamics.
The analysis reveals that while Company X generates high turnover, it struggles with maintaining a suitable net profit due to high expenses and a significant debt burden, hindering its growth potential. To address this, the thesis models various scenarios to help Company X identify strengths and weaknesses and make informed decisions for the future.
The primary objective is to assess Company X's current financial position and project its future trajectory using insights gleaned from financial statement analysis, scenario analysis, and SME operations in the region.
The thesis comprises a theoretical section covering financial statement analysis, risk assessment, and scenario analysis, as well as an empirical section focusing on the company's financial statements, financial modeling, forecasting, and risk evaluation.
The study employs a qualitative approach, first analyzing Company X's historical financial performance to gauge its current financial health and then forecasting future scenarios while evaluating potential risks and changes in industry and market dynamics.
The analysis reveals that while Company X generates high turnover, it struggles with maintaining a suitable net profit due to high expenses and a significant debt burden, hindering its growth potential. To address this, the thesis models various scenarios to help Company X identify strengths and weaknesses and make informed decisions for the future.