I. Analysis of Operating Performance
Users of accounting reports are more concerned about the operation of enterprises, such as the completion of income, profits and other indicators, as well as the changes compared with the same period of last year. Specific analysis, we can start from the following aspects:
(A) Analysis of income composition of enterprises
The income of an enterprise mainly includes main business income and other business income. Among them, the main business income is the most important income index of an enterprise. For the analysis of this indicator, the current income can be compared with the same period of last year, and the data of the last three years are generally better. In the process of analyzing the main business income, we should also pay attention to the proportion of each income item in the total income, so as to understand the status and development prospect of the main business of the enterprise in the same industry. The main business income should account for the absolute share of the total income of the enterprise, otherwise, it is considered that the enterprise is in an abnormal economic state or the main business is not prominent.
(B) Analysis of enterprise profitability
Profit index is one of the most important economic benefit evaluation indexes for enterprises. Through the analysis of this index, we can understand the profit level and development prospect of the enterprise. By observing the proportion of operating profit, investment income, subsidy income and non-operating net income in the total profit of an enterprise, the stability of the profit source of an enterprise can also be evaluated.
(C) Analysis of the impact of costs on corporate profits
Cost is an important factor affecting the operating profit of enterprises. In the case of a certain income, the lower the cost, the greater the profit of the enterprise, and vice versa. This can be verified by sales profit rate or cost profit rate. At the same time, it is necessary to further decompose the cost and understand the proportion of each cost item, so that enterprise managers can reduce related expenses in a targeted manner and achieve maximum output with minimum input.
Second, the efficiency analysis of asset management
For an enterprise, the operational capability of each asset reflects the management level and efficiency of existing assets. The higher the efficiency of asset use, the faster the turnover rate, which reflects that the better the liquidity of assets, the stronger the ability to repay debts, and the assets of enterprises have been fully utilized. The analysis of asset management efficiency is mainly carried out through the following indicators, namely, accounts receivable turnover, inventory turnover, return on investment, fixed assets turnover, current assets turnover and total assets turnover.
For the turnover rate of accounts receivable, aging analysis can usually be used, focusing on the quality of accounts receivable, evaluating the rationality of accounting methods for bad debt losses, and specifically analyzing bad debts and the causes of bad debts.
The analysis of inventory turnover rate is mainly to compare this index with the same period of last year in the same industry and enterprise, and further analyze the individual factors that affect inventory turnover rate, such as the inventory turnover rate of raw materials, semi-finished products and finished products, in order to find out the root causes that affect inventory turnover rate.
The return on investment analysis mainly depends on the investment period and payback period, so that we can know whether the investment of the enterprise is effective and the degree of investment risk.
The analysis of the turnover rate of the three major assets (current assets, fixed assets and total assets) mainly depends on the efficiency of the use of assets by enterprises and whether there are bad assets.
Third, the solvency analysis
Solvency is the ability of an enterprise to repay its debts due, including short-term debts and medium-and long-term debts. Debt paying ability is the most concerned issue for creditors, and it is also paid more and more attention by shareholders and investors in view of the consideration of enterprise safety. The solvency of enterprises is mainly carried out through current ratio, quick ratio, asset-liability ratio, shareholder's equity ratio and interest guarantee multiple.
1. Generally speaking, it is ideal when the flow ratio is 2. However, there are different requirements for different industries, such as non-productive enterprises, whose current assets are mainly cash and accounts receivable, which have strong liquidity because of less inventory. Its low flow ratio is also reasonable.
2. Generally speaking, the quick-acting ratio of 1 is more appropriate. However, due to the possibility of long-term accounts receivable in current assets, the actual solvency of enterprises will be affected. In order to make up for the limitation of this ratio and objectively evaluate the solvency of enterprises, we can also use the ultra-fast ratio to evaluate. This indicator reflects and measures the liquidity and short-term debt paying ability of an enterprise based on its quick assets, namely monetary funds, short-term securities, notes receivable and accounts receivable from creditworthy customers. This indicator can objectively evaluate the liquidity and short-term solvency of enterprises because it excludes factors unrelated to cash flow, such as prepaid expenses and important factors affecting the credibility of quick ratio, such as accounts receivable of customers with low reputation.
Generally speaking, the asset-liability ratio is 60%. The ratio is too low, indicating that the debt management consciousness is not strong, the ratio is too high, and the financial risk of the enterprise is too great.
4. For the ratio of shareholders' equity, the index value is relatively large, indicating that the high-risk financial structure has a low degree of protection for creditors' interests; The index value is small, belonging to low-risk financial structure.
5. The interest guarantee multiple indicates how much profit the enterprise has after repaying the loan interest. The higher the index value, the smaller the business risk and the stronger the solvency.
Fourth, cash flow analysis.
The cash flow statement is used to reflect the ability of enterprises to create net cash flow. The analysis of cash flow statement is helpful for report users to understand the information of cash inflow and outflow of enterprises in a certain period and the reasons for their changes, to predict future cash flow, to evaluate the financial structure and solvency of enterprises, to judge the space for enterprises to adjust cash receipts and payments according to changes in external environment, and to reveal the relationship between corporate profitability and cash flow. Because the objectivity of cash flow is related to other indicators, the analysis of cash flow can play a very good complementary role to the analysis of other indicators.
1. Ratio of cash flow to sales revenue. This ratio shows the cash flow per dollar of sales revenue. The higher the ratio, the better the cash flow effect generated by enterprise operation and the stronger the ability to pay.
2. The ratio of cash flow to operating profit. This ratio shows the cash flow per dollar of operating profit. The higher the ratio, the more profits the enterprise realizes from the book cash inflow, and the higher the management quality of the enterprise.
3. The ratio of net cash flow to net profit. This ratio shows the net cash inflow from operating activities generated by net profit per yuan, and reflects the cash collection level of enterprise net profit and the dividend-paying ability of enterprise.
4. Return on net cash flow of assets. This ratio reflects the cash flow per dollar of assets. The higher the ratio, the higher the utilization efficiency of enterprise assets.
5. Debt cash flow ratio, that is, the ratio of net cash flow generated from operating activities to average current liabilities. Because there may not be enough cash to repay debts in the profit-making year, the cash flow index of liabilities based on cash basis can fully reflect the degree to which the net cash inflow from operating activities can ensure the repayment of current liabilities.
Verb (abbreviation of verb) Analysis of Notes in Financial Accounting Statements
Because the contents stipulated in the accounting statements are fixed and prescriptive, they can only provide quantitative financial information. Notes to accounting statements, as an important supplement to accounting statements, mainly explain and explain what cannot be included in accounting statements or what is not fully disclosed. It is very necessary to analyze these important things. It can help report users to further understand the enterprise dynamics, find out the existing problems and development potential of the enterprise from these notes, and make investment decisions. These notes are valuable to users of financial reports, mainly including contingencies, events after the balance sheet date and related transactions.
1. Contingency analysis. Enterprise contingencies refer to the uncertain state or situation that may lead to enterprise profits and losses. Because the consequences of contingent events can only be confirmed after the occurrence or non-occurrence of such events in the future, enterprises should generally not confirm contingent liabilities and contingent assets. However, it must be disclosed in the statements. These common contingencies include contingent liabilities formed by discounting commercial acceptance bills, pending lawsuits, contingent liabilities formed by arbitration, contingent liabilities formed by providing debt guarantees for other units, etc. These events may lead to financial losses of enterprises and are potential financial risks of enterprises.
2. Events after the balance sheet date. The events after the balance sheet date refer to the events that need to be adjusted or explained between the annual balance sheet date and the approval date of the financial report. These things have advantages and disadvantages for enterprises. Users of financial reports can quickly judge whether these important events will bring certain economic benefits to enterprises or make enterprises suffer great economic losses through the analysis of future events.
3. Related party transactions. The affiliated transaction of enterprises is a transaction between affiliated enterprises to achieve a certain purpose. For these transactions, it is important to understand the essence of the transaction, whether the assets exchanged by the enterprise belong to the non-important assets of the enterprise, and whether the assets exchanged can bring certain economic benefits to the enterprise in the future.
In a word, the analysis of enterprise financial report is a very important and meticulous work. The purpose is to find out the problems existing in the production and operation of enterprises through analysis, so as to judge the current financial situation of enterprises and predict the future development trend. Business operators, creditors, shareholders and potential investors can know the information of enterprises from different angles in time through analysis reports, so as to make a series of decisions for their own purposes.