Comparing the development of two communication technology companies using financial statement analysis

Inhaltsverzeichnis (Table of Contents)

• 1. Introduction
• 1.1 Background and objectives of thesis
• 1.2 Tasks of thesis
• 1.3 Outline of thesis
• 2. Fundamentals of the concept of financial statement analysis
• 2.1 Definition
• 2.2 Objectives and functions
• 2.3 Procedure
• 2.4 Analysis areas and limitation
• 3. Comparison of companies
• 3.1 Huawei
• 3.1.1 Company profile
• 3.1.2 Accounting policies and changes
• 3.2 Ericsson
• 3.2.1 Company profile
• 3.2.2 Accounting policies and changes
• 4. Quantitative Evaluation
• 4.1 Reformulation of financial statement
• 4.1.1 Standard balance sheet
• 4.1.2 Reclassification of comprehensive income statement
• 4.2 Structure analysis
• 4.2.1 Asset side
• 4.2.2 Liability side
• 4.3 Liquidity analysis
• 4.3.1 Maturity matching analysis
• 4.3.2 Cash flow analysis
• 4.4 Performance analysis
• 4.4.1 Income structure analysis
• 4.4.2 Expenses structure analysis
• 4.4.3 Profitability analysis
• 5. Comparison of results
• 5.1 Asset situation
• 5.2 Financial situation
• 5.3 Profit situation

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis aims to compare the development of two communication technology companies, Huawei and Ericsson, using financial statement analysis. The study utilizes a comprehensive approach, analyzing both the quantitative and qualitative aspects of the companies' performance. The main objective is to identify similarities and differences in their financial strategies and growth trajectories. Key themes explored in the thesis include:

• Financial statement analysis as a tool for evaluating company performance.
• Comparison of accounting policies and practices in different jurisdictions.
• Assessment of liquidity and profitability ratios in the context of the telecommunications industry.
• Analysis of asset and financial structures of the two companies.
• Identification of key factors influencing the financial development of communication technology companies.

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter 1 provides an introduction to the thesis, outlining the background, objectives, and tasks involved. It also presents a brief overview of the chosen companies and the chosen approach for their comparative analysis. Chapter 2 delves into the fundamentals of financial statement analysis, covering its definition, objectives, functions, procedures, and key analysis areas. The chapter also discusses the limitations of financial statement analysis and the importance of considering both quantitative and qualitative data. Chapter 3 introduces the two companies chosen for the study, Huawei and Ericsson. The chapter provides a detailed company profile for each, including their business model, key products and services, and relevant industry context. It also discusses their respective accounting policies and any significant changes that have occurred over time. Chapter 4 presents a quantitative evaluation of the financial performance of both companies. This chapter focuses on reformulating financial statements to ensure comparability, performing structure and liquidity analyses, and assessing profitability ratios. Chapter 5 offers a comparative analysis of the results obtained from the quantitative evaluation in Chapter 4. The chapter focuses on comparing the asset situation, financial situation, and profitability of Huawei and Ericsson.

Schlüsselwörter (Keywords)

This thesis explores the financial development of communication technology companies, particularly Huawei and Ericsson. The study employs financial statement analysis, which is a comprehensive tool for evaluating company performance. Key focus areas include quantitative evaluation, reformulation of financial statements, structure analysis, liquidity analysis, performance analysis, and comparison of results. The thesis aims to provide insights into the financial strategies, growth trajectories, and key success factors for communication technology companies in a globalized and competitive market.