Detailed analysis of the financial statements of Zhongcheng shares in the past three years

Mondo Workplace Updated on 2024-02-01

The fundamental data of Zhongcheng Co., Ltd. in recent years shows that net profit, total operating income and basic earnings per share continue to fluctuate. In the last three years, net profit has increased from -2 in 2019500 million yuan increased to 080,000 yuan, and also experienced some negative performances, such as a huge loss in December 2022. This volatile performance may be due to the intense competition in the industry and the impact of the macroeconomic environment.

Similarly, the net profit after deduction also experienced fluctuations, from -5 in 2019900 million yuan decreased to -0 in 2021800 million yuan. This indicates that the company has faced some non-recurring expenses or losses over the past three years.

From the perspective of net profit margin and gross profit margin of sales, the performance of Zhongcheng Co., Ltd. is relatively stable and remains at a low level. Net profit margin on sales increased slightly to around 3% in 2021, while gross margin on sales remained around 16% over the same period. This may indicate that the company has certain advantages in controlling costs and improving sales efficiency.

In terms of the company's financial health, the asset-liability ratio has increased year by year. From 55% in 2019 to 64% in 202168%, which indicates that the company's debt is relatively high. However, both the current ratio and quick ratio remained at a high level, reaching 1., respectively17 and 081, which indicates that the company has some ability to repay short-term debts.

In terms of operating efficiency, the company's business cycle, inventory turnover days and accounts receivable turnover days all showed some improvement. The business cycle increased from 305 in 201918 days shortened to 99 in 202126 days, inventory turnover days from 28860 days reduced to 6485 days, accounts receivable turnover days from 1658 days increased to 3440 days. This could mean that the company has improved its inventory management and receivables recovery.

Based on the above analysis, the fundamental performance of Zhongcheng Co., Ltd. in recent years has been sometimes good and sometimes poor. The company is facing fierce competition in the industry and the challenges of the macroeconomic environment, resulting in fluctuations in net profit and non-net profit. However, the company has shown certain advantages in controlling costs and improving sales efficiency, and its financial health is relatively stable. In addition, the company has also made some improvements in terms of operating efficiency. In the future, Zhongcheng Co., Ltd. needs to continue to strive to meet the challenges of the industry, strengthen profitability and financial position, and focus on improving operational efficiency and returns.

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