1. Accounting School|Introduction.
Financial statement analysis is a systematic evaluation of a company's financial position, operating results, and cash flows, with the aim of providing investors, management, and other stakeholders with information about the value and future growth potential of a business. Through the analysis of financial statements, we can help us understand the profitability, solvency, operating efficiency and growth potential of the enterprise, so as to provide strong support for decision-making.
2. Accounting School|The basic method of financial statement analysis.
1.Ratio analysis: Evaluate the financial status and operating results of an enterprise by calculating the ratio between various indicators in the financial statements. Commonly used ratios include current ratio, quick ratio, debt-to-asset ratio, gross margin, net profit margin, etc.
2.Trend analysis: Through the analysis of the historical data of the company's financial statements, understand the changing trend of the company's financial status and operating results, as well as the possible reasons.
3.Comparative analysis: Compare the financial indicators of the enterprise with other enterprises in the same industry or the average level of the industry to evaluate the competitiveness and market position of the enterprise.
4.Cash flow analysis: Through the analysis of the company's cash flow statement, understand the cash inflow and outflow of the enterprise, as well as the net increase or decrease of cash.
3. Accounting School|The main content of the analysis of the financial statements.
1.Balance Sheet Analysis: A balance sheet reflects the status of a company's assets, liabilities, and owners' equity at a particular point in time. Through balance sheet analysis, we can understand the company's asset structure, liability structure, and owner's equity structure, as well as the company's solvency and financial stability.
2.Income statement analysis: The income statement reflects the operating results of an enterprise in a certain period of time. Through the analysis of the income statement, we can understand the operating income, operating costs, operating profit and net profit of the enterprise, as well as the profitability and operating efficiency of the enterprise.
3.Cash flow statement analysis: The cash flow statement reflects the cash inflow and outflow of the enterprise in a certain period. Through the analysis of the cash flow statement, we can understand the cash flow of the company's operating activities, investment activities and financing activities, as well as the company's cash flow position and cash management capabilities.
4. Accounting School|Application of financial statement analysis.
1.Investment decision-making: Through the analysis of the company's financial statements, investors can understand the profitability, solvency and growth potential of the company, so as to provide strong support for investment decisions.
2.Credit decision-making: Banks and other financial institutions can understand the financial status and credit risk of enterprises through the analysis of corporate financial statements, so as to provide a basis for credit decisions.
3.Business decision-making: The management of the enterprise can understand the operating status and financial status of the enterprise through the analysis of financial statements, so as to provide a basis for formulating business strategies and improving management.
4.Stakeholder decision-making: Stakeholders of the enterprise (such as shareholders, employees, businessmen, etc.) can understand the financial status and operating results of the enterprise through the analysis of financial statements, so as to provide a basis for the maintenance and development of their own interests. Accounting School|