How to analyze financial statements?

Company statement analysis is to analyze the balance sheet, income statement, cash flow statement and its schedules respectively. \x0d\\x0d\ 1。 Balance Sheet Analysis \x0d\ 1) After opening the balance sheet, first browse the total assets, and combine the sales in the income statement and the number of employees in the statistical indicators to judge the business scale of the enterprise. From the perspective of total assets alone, more than 400 million yuan is large, less than 40 million yuan is small, and the middle is in between (total assets look at the source of assets, that is, total liabilities and total owners' equity, grasp the size of corporate liabilities and net assets, and then analyze the financial risks of enterprises by calculating the asset-liability ratio or property rights ratio. \x0d\\x0d\2) After understanding the overall situation, analyze the asset structure, calculate the proportion of current assets and long-term assets in total assets, and judge the enterprise type. Enterprises with large long-term assets ratio are generally traditional enterprises, while high-tech enterprises generally do not need a large number of fixed assets. \x0d\\x0d\3) Understand the liquidity and asset quality of enterprise assets by calculating the proportion of each item in current assets. In general, inventory accounts for 50%, accounts receivable accounts for 30%, and cash accounts for 20%, but advanced management industries do not implement this standard. \x0d\\x0d\4) Calculate the proportion of the project in the long-term assets, and understand the status and potential of enterprise assets. The amount and proportion of long-term investment reflect the scale and level of enterprise capital management. The net amount and proportion of fixed assets reflect the production capacity and technological progress of enterprises, and then reflect their profitability. If the net amount is close to the original value, it means that the enterprise is either new or the old assets of the old enterprise have become high-quality assets through technological transformation. If the net amount is small, it means that the enterprise is backward in technology and short of funds. The quantity and proportion of intangible assets reflect the technical content of enterprises. \x0d\\x0d\5) In terms of liabilities, calculate the ratio of current liabilities to long-term liabilities. If the ratio of current liabilities is significant, it reflects that the pressure of corporate debt repayment is greater; If the long-term debt ratio is significant, it shows that the financial burden of the enterprise is heavy. In addition, it is necessary to calculate the proportion of credit debt and settlement debt in total liabilities and the proportion of temporary debt and spontaneous debt in current liabilities to judge whether the debt structure is reasonable; Calculate the ratio of long-term liabilities to total capital, analyze the protection degree of total capital to long-term liabilities, calculate the ratio of long-term liabilities to owners' equity, and analyze the risks of creditors. \x0d\\x0d\6) In terms of owners' rights and interests, paid-in capital reflects the size of enterprise owners' claim for enterprise interests, capital reserve reflects the appreciation of invested capital itself, and retained earnings (i.e. surplus reserve and undistributed profits) are the capital appreciation in the process of enterprise operation. The large retained earnings indicate that the enterprise has great potential for self-development \ x0d \ x0d \ 7) Finally, the ending and opening amounts of assets are analyzed by variance. The ending number of total assets is greater than the beginning number, indicating that assets have increased in value. Combined with liabilities and owners' equity, this paper analyzes whether the reasons for the increase of assets are borrowed funds, investors' investment or self-accumulation. If the amount of borrowed funds and investors' investment is large and the self-accumulation transfer is small, it may be that the enterprise is expanding its scale. If the amount of self-accumulation and transfer is large, it shows that the enterprise has great potential for self-development \x0d\\x0d\8) After grasping the overall changes, analyze the specific reasons for the changes according to the differences between assets and equity items at the end of the period and at the beginning of the period, combined with account books and account summary tables. \x0d\\x0d\ II。 Analysis of income statement \ x0d \ x0d \ Analysis of income statement should first analyze the total profit of the current period and its composition; Secondly, compare the profit rate of the enterprise with the target value horizontally to find out the gap and the direction of efforts; Then, the related projects in recent issues of the report are compared vertically, and the development trend of the enterprise is analyzed. \x0d\\x0d\ 1) Analyze the total profit and its composition. Total profit consists of operating profit, investment income and net non-operating income and expenditure. Calculate the proportion of operating profit, investment income and net non-operating income and expenditure to the total profit respectively, and judge whether the profit structure is reasonable; By analyzing the proportion of main business profits and other business profits to operating profits, we can judge whether the structure of operating profits is reasonable. If the ratio of income from disposal of assets to investment income is too high, or the profit ratio of other businesses is too high, it shows that the business situation of the enterprise is abnormal and remedial measures must be taken. \x0d\\x0d\2) Analyze the gap between the profit rate index and the target value. Profit rate can be used as a relative index to compare enterprises of different sizes in the same industry. The commonly used profit rate indicators are sales gross profit rate and net profit rate. Sales gross profit is the direct source of enterprise profits, so the analysis of sales gross profit is the top priority of income statement analysis. If the gross profit margin is too low, we should consider whether the price is low or the cost is high. If it is caused by price factors, it is necessary to analyze the advantages and disadvantages of price adjustment before making a decision. If it is caused by cost factors, it is necessary to analyze whether the enterprise has tapped the potential in reducing costs. If there is no room for adjustment of sales price and cost, it is better to increase sales according to the principle of small profits but quick turnover. Sales profit rate should also be analyzed. For goods with low profit margin, it is necessary to analyze whether the gross profit is low or the cost is high. If the cost is too high, we must make great efforts in cost control. \x0d\\x0d\3) Make a vertical analysis of each item in the income statement. It is a common method to compare the items in the income statement vertically. By comparison, we can find out the changing trend of the business trajectory of enterprises and analyze the reasons for this change. \x0d\\x0d\ lists the profit amount of several periods, selects the indicators of normal years in historical data as the base period, calculates the increase or decrease amount and the increase or decrease rate of the realized amount of the operating results of each project (listed in the order of items in the income statement) relative to the base period, and analyzes whether the completion of the current period is normal and whether the performance is increasing or decreasing. \ x0d \ x0d \ By comparing the current operating income composition and operating cost structure with the reasonable base period indicators, calculate the increase or decrease of the project structure, analyze the reasons for the structural changes, and judge whether the structural changes are normal and beneficial to the development of the enterprise. \x0d\\x0d\ Analyze the increase and decrease of cash sales income and credit sales income, and analyze the rationality of the marketing strategy and collection strategy of the enterprise. \ x0d \ x0d \ Since the implementation of the enterprise accounting system, the schedule of the income statement-the sales profit schedule has not been submitted to the outside world, but it should be carefully analyzed. By analyzing the table, we can know the business situation of the enterprise in detail, grasp the sales volume and turnover of its best-selling products and slow-selling products, grasp the operating profit of each product and its flexible space, and make the best business structure decision on the basis of finding out the market. \x0d\\x0d\ III。 Analysis of cash flow statement \ x0d \ x0d \ Analysis of cash flow statement should first analyze the structure of cash inflow and cash outflow and the ratio of inflow and outflow to determine the rationality of cash revenue and expenditure structure. For a healthy growing enterprise, the net operating cash flow should be positive, the net investment cash flow should be negative, and the net cash flow financing should be positive and negative. \x0d\\x0d\ Secondly, using the data in the main table of the cash flow statement combined with the balance sheet and income statement, the ratio of net operating cash inflow to invested resources is used to calculate the enterprise's ability to obtain cash. These indicators include sales cash ratio, net cash flow per share (or cash recovery rate of net assets) and cash recovery rate of total assets. \ x0d \ x0d \ Sales cash ratio = net operating cash inflow ÷ main business income, reflecting the net cash obtained per yuan of sales income. \ x0d \ x0d \ net assets cash recovery rate = net operating cash inflow ÷ net assets × 100%, where the average net assets are used. Reflect the enterprise's ability to obtain cash per yuan of net assets. \ x0d \ x0d \ total assets cash recovery rate = net operating cash inflow ÷ total assets × 100%, and the average value of total assets is also used here. Reflect the enterprise's ability to obtain cash per yuan of total assets. \x0d\\x0d\ Finally, according to the relevant data in the attached table of the cash flow statement, calculate the net income operation index and cash operation index, and judge the income quality accordingly. \ x0d \ x0d \ The function of the schedule of the cash flow statement is to adjust the net profit to the net operating cash flow. The adjustment items in this table include non-cash expenses, non-operating income, net decrease (increase) of operating assets and net decrease (increase) of interest-free liabilities. \x0d\x0d\ is expressed by the formula: \x0d\ net profit+non-cash expenses-non-operating income+net decrease of operating assets (-net increase of operating assets)+net increase of interest-free liabilities (-net decrease of interest-free liabilities) = net operating cash flow \ x0d \ in which non-cash expenses = asset impairment reserve+depreciation of fixed assets+amortization of intangible assets. \ x0d \ x0d \ non-operating income = net income from the disposal of fixed assets, intangible assets and other long-term assets (net loss is indicated by "-")-fixed assets scrapping loss-financial expenses+investment income (loss is indicated by "-")+deferred tax credit-deferred tax credit (enterprises that implement accounting standards for business enterprises should also increase fair value change income or reduce fair value change loss). \ x0d \ x0d \ Net decrease (increase) in operating assets = decrease (increase) in inventory+decrease (increase) in operating receivables; \ x0d \ x0d \ The net increase (decrease) of interest-free liabilities mainly refers to the increase (decrease) of operating payables. \ x0d \ x0d \ The operating indicator of net income is the proportion of net operating income to net income, and the net income here is the net profit in the income statement. However, the net non-operating income mentioned here is not the operating profit in the income statement, because the fixed assets inventory loss, confiscation expenditure, donation expenditure, extraordinary loss, debt restructuring loss, asset impairment reserve and fixed assets inventory gain, confiscation income, non-monetary transaction income and subsidy income in non-operating income are all included in the net non-operating income. The calculation formula of \x0d\ x0d \ net income operation index is: \ x0d \ net income operation index = net operating income ÷ net income = (net profit-non-operating net income) ÷ net profit \x0d\\x0d\ The lower the index, the greater the ratio of non-operating income to investment income, indicating that the income quality is not good. \x0d\x0d\ cash operating index is the ratio of net operating cash flow to operating cash maturity, and its calculation formula is: \ x0d \ x0d \ cash operating index = net operating cash flow ÷ operating cash maturity ÷ x0d \ operating cash maturity = operating net income+non. On the one hand, part of the income has not yet received cash, staying in the form of physical objects and creditor's rights funds. Whether the creditor's rights can be fully realized is still in doubt, and physical assets are more at risk of depreciation. On the other hand, the working capital of enterprises has increased, which reflects that enterprises occupy more working capital to obtain the same income, and the cost of obtaining income has increased, indicating that the same income represents poor performance. \x0d\\x0d\ IV。 Comprehensive analysis \ x0d \ x0d \ Comprehensive analysis refers to the calculation of relevant ratios in combination with all financial statements, and the analysis of an enterprise's solvency, profitability and operational capacity through vertical comparison and horizontal comparison. \x0d\\x0d\ 1), meaning and calculation formula analysis of common ratio indicators of solvency \x0d\x0d\ In addition to asset-liability ratio and equity ratio, there are also interest guarantee multiples, current ratio, quick ratio, current assets to total liabilities, net cash flow to due liabilities, net cash flow to current liabilities ratio \ x0d \ X0d \ Asset-liability ratio = total liabilities ÷ total assets× 65438+equal quick ratio = (current assets-inventory) ÷ current liabilities \x0d\ cash ratio = (monetary funds+short-term investments+notes receivable) ÷ current liabilities \x0d\x0d\ It should be noted that in these formulas, Current ratio and quick ratio can reflect the short-term solvency of enterprises, and the reasonable value of this index varies with different industries. It is suggested that enterprises choose the industry average level as the basis for comparison. As the liabilities will be repaid in cash, the ratio of net cash flow to due debts, net cash flow to current liabilities and net cash flow to total debts most directly reflect the solvency and the ability to borrow new debts. \x0d\\x0d\ ratio of net cash flow to debt due = net operating cash flow ÷ debt due in the current period \x0d\\x0d\ debt due in the current period refers to long-term debt and notes payable due in the current period. \x0d\ x0d \ ratio of net cash flow to current liabilities = net operating cash flow ÷ current liabilities \ x0d \ x0d \ ratio of net cash flow to total liabilities = net operating cash flow ÷ total liabilities \ x0d \ x0d \ analysis of the meaning and calculation formula of common ratio indicators of profitability \ x0d \ from From the perspective of cash flow, the indicators of profitability include net cash flow per share, cash recovery rate of net assets and cash recovery rate of total assets. \ x0d \ x0d \ The calculation formula of related indicators is as follows: \ x0d \ x0d \ (1) return on total assets = EBIT ÷ average total assets ×100% \ x0d \ x0d \ where EBIT = total profit+interest expense \. (2) cost of sales = cost of main business ÷ income of main business × 100%\x0d\ (3) cost of sales = period expenses ÷ income of main business × 100% \ x0d \ The period expenses mentioned here include not only \ x0d. (5) Return on equity (also called x0d \ net interest rate on equity = net profit rate on sales × total assets turnover rate× equity multiplier \ x0d \ x0d \ equity multiplier = 1÷( 1- asset-liability ratio) \ x0d \ x0d \ (. \ x0d \ x0d \ average balance of capital = (balance of paid-in capital at the beginning+balance of paid-in capital at the end) ÷ 2 \ x0d \ x0d \ The profit rate of capital reflects the profitability of investors investing in enterprise capital. The higher the ratio, the higher the utilization effect of capital and the stronger the profitability of enterprise capital. On the contrary, the lower the ratio, the lower the efficiency of capital utilization and the weaker the profitability of enterprise capital. \ x0d \ x0d \ (7) Cash recovery rate of net assets = net operating cash inflow ÷ net assets × 100%, in which the average net assets are adopted. \ x0d \ x0d \ (8) Cash recovery rate of total assets = net inflow of operating cash ÷ total assets × 100%, and the average value is also used here. \x0d\\x0d\ Analyze the meaning and calculation formula of common ratio indicators of operational capacity \x0d\ Operational capacity indicators include accounts receivable turnover rate, inventory turnover rate, net working capital turnover rate, current assets turnover rate and total assets turnover rate. \ x0d \ x0d \ The calculation formula of related indicators is as follows: \ x0d \ x0d \ business cycle = inventory turnover days+average collection period \ x0d \ x0d \ average collection period =360 days ÷ accounts receivable turnover rate \ x0d \ accounts receivable turnover rate = main business income ÷. And average accounts receivable = (total accounts receivable at the beginning+total accounts receivable at the end) ÷ 2 \ x0d \ x0d \ inventory turnover days =360 days ÷ inventory turnover \ x0d \ inventory turnover = main business cost \ x0d \ x0d \ and average inventory. X0d \ x0d \ accounts receivable turnover rate = main business income ÷ average working capital \ x0d \ x0d \ average working capital = (total current assets at the end of the period-total current liabilities at the end of the period)+(total current assets at the beginning-total current liabilities at the beginning) ÷ 2 \x0d\\x0d\ \ net working capital turnover rate is sales income and net. It is the part of current assets provided by long-term sources of funds, and it is the capital that enterprises constantly use in their business activities. The more abundant the funds, the more assured the timely repayment of short-term debts, but the profitability will definitely decline. The faster the turnover, the more effective its operation. When the gross profit is greater than 0, the faster the accounts receivable turnover rate and inventory turnover rate, the more profits; When the gross profit is less than 0, the faster the turnover rate of accounts receivable and inventory, the more losses. The faster the turnover rate of current assets, the corresponding savings of working capital, which is equivalent to relatively expanding asset investment and enhancing the profitability of enterprises. The faster the turnover rate of total assets, the stronger the sales ability of enterprises. Enterprises can speed up the turnover of assets through small profits but quick turnover, thus bringing about an increase in the absolute amount of profits. \ x0d \ x0d \ V. According to the analysis topics of different financial reports \ x0d \ x0d \ The analysis subjects of financial reports are usually report users, including equity investors, creditors, management, government agencies and other people and institutions related to enterprises. Other people and institutions related to enterprises include financial departments, tax departments, state-owned assets supervision and administration departments, social intermediary institutions and so on. Users of these statements use financial reports for different purposes and need different information. \x0d\x0d\ enterprise management analysis \ x0d \ enterprise management, also known as managers, focuses on the remuneration obtained according to the business performance of enterprises, and the quality of business performance is reflected by financial reports. Generally speaking, their group interests and enterprise interests are consistent, so their analysis of financial reports is also comprehensive and thorough. They not only pay attention to the achievements in the business process, but also pay attention to the problems existing in the business process and the mistakes in the revision of financial analysis ideas, and formulate improvement measures by analyzing the causes of mistakes and problems, so as to achieve more brilliant results in the next stage. The financial report analysis ideas introduced earlier are basically from the perspective of enterprise management. The financial proportion indicators they pay attention to are generally designed according to the assessment requirements of shareholders. The financial indicators mentioned above are basically involved, and there are even indicators such as capital preservation and appreciation rate and capital accumulation rate. In order to achieve business performance, they may be more willing to take risks and use financial leverage to obtain greater benefits. \ x0d \ x0d \ VI。 Taxpayer evaluation and analysis \ x0d \ x0d \ The purpose of tax assessment of enterprises by tax authorities is mainly to meet the needs of tax inspection, and the purpose of assessment and analysis is to see whether there are tax evasion, tax evasion and tax evasion suspects in enterprises. The general evaluation begins with the analysis of tax burden, and then analyzes the situation that the tax burden is lower than the normal peak. \x0d\\x0d\ 1) Reflections on VAT tax assessment \x0d\ The analysis and assessment of VAT tax situation starts with the calculation of tax burden, and \ x0d \ x0d \ VAT tax rate (abbreviated as tax rate) = current tax payable \ x0d \ x0d. If the change rate of sales is higher than the normal peak, the tax rate is lower than the normal peak, the change rate of sales and tax rate is lower than the normal peak, and the change rate of sales and tax rate is higher than the normal peak, it can be included in the scope of doubt. According to the tax returns, balance sheets, income statements and other relevant tax information submitted by the enterprise, the gross profit is calculated. \ x0d \ x0d \ The evaluation of output tax should focus on checking whether there are problems such as off-balance sheet operations, concealing and delaying taxable sales, confusing the scope of value-added tax and business tax, and misusing tax rates. \ x0d \ x0d \ The evaluation of input tax is mainly based on the control amount of current input tax. Current input tax control amount = (ending inventory increase+ending sales cost+ending accounts payable decrease) ××× value-added tax rate of main purchased goods+current freight expenditure× 7% \ x0d \ x0d \ 2) Thinking of corporate income tax assessment \ Corporate income tax analysis and assessment should start with four first-level indicators, namely income tax rate (tax rate for short) and main business profit tax rate (tax rate for short) \ x0d \ x0d \ income tax rate (tax rate for short) = current income tax payable ÷ current total profit × 100% \ x0d \ x0d \ main business profit tax rate (profit negative rate for short) = current income tax payable ÷ current main business income ×/. Change rate of main business income = (main business income in the current period-main business income in the base period) ÷ main business income in the base period × 100% \ x0d \ x0d \ Combined with raw materials, fuel, power and other conditions, further analyze the abnormal situation and reasons. The two indicators mentioned here include the main business cost change rate, main business expenses, operating expenses (management and finance) expenses, main business profits, cost expense rate, cost expense profit rate, income tax burden change rate, income tax contribution change rate, income, cost, expense and profit ratio. \x0d\\x0d\ If there are anomalies in the second category of indicators, it is necessary to use the relevant indicators affected by the third category of indicators for recheck and analysis, and further analyze the anomalies and reasons in combination with raw materials, fuel and power. The three indexes mentioned here include inventory turnover rate, comprehensive depreciation rate of fixed assets, increase and decrease of non-operating income and expenditure, pre-tax compensation loss deduction limit and pre-tax expense deduction index. \ x0d \ x0d \ I hope I can help you ~