Example of a financial analysis - Air Liquide

Extract

[...] driving the group's growth upwards. In fact, sales (in millions of Euros) The net result amounts to 2,113 million euros. B. Financial solidity The company is in solid financial health. The amount of equity is high enough to allow autonomy at 59% in 2018. Air Liquide, therefore, has sufficient self-financing capacity thanks to the high level of its shareholders' equity. The company is therefore not very dependent on external financing (in particular bank loans) to finance its activity and its growth. [...]

[...] These gases now have practical applications in many industries. This scientific discovery is the result of fierce scientific competition between France and Germany on this subject at the beginning of the last century. From this competition, the Linde company, Air Liquides' main competitor, was born across the Rhine. The company was established in 1902 and today operates on 5 continents (in over 80 countries) to serve its 3.5 million customers. With 66,000 employees worldwide and a turnover of 21 billion euros in 2018, the company is the current world leader in gas, technologies and services for the health industry. [...]

[...] At the same time, electronics is also a promising sector, stimulated by the frenetic evolution of technology and digital technology on the planet. In conclusion, the strength and durability of Air Liquide leave little room for doubt. At the end of 2018, Benoît Potier, Chairman and Chief Executive Officer of the group declared: "In a comparable environment, Air Liquide is confident in its ability to achieve growth in net income in 2019. [...]

[...] This overvaluation of the company reveals the confidence of investors in the sustainability and future of the company. Conclusion Air Liquide is a solid company, in good financial health with an active investment dynamic, underlining the group's desire to maintain or even develop its activity over the long term. Its expansion continues through various acquisitions allowing it to further consolidate its leadership by seeking new markets while generating economies of scale thanks to its critical size. The company is positioned in sectors whose growth in the coming years looks promising, and more particularly in healthcare. [...]

[...] NEOS Program 2016-2020 In 2016, the group implemented its new growth program, called NEOS, which established the following objectives for the company: - Average revenue growth of between and each year. - Achieving efficiency gains of around 600 million euros, half of which came from the American subsidiary Airgas acquired in 2016. - Achieving economic profitability of at least 10% by the end of the program in 2020. II. Financial analysis of the company The following analysis is based on the consolidated financial statements for the year 2018. The consolidated financial data for the year 2019 is not yet available at the time of publication. [...]