Is the amount of trading financial assets of the company too large in total assets? Will it have an impact on enterprises?

Will have a certain impact. Trading financial assets are too large, indicating that the company has abundant funds and no good projects to invest in. It is also possible that the company maximizes its cash flow during the recession.

There are many trading assets in the balance sheet, which shows that the company mainly relies on investment to survive and is basically not short of money. In addition, if the company goes public, it may have some difficulties in financing. Moreover, the company's main business can not be highlighted, and it is not easy to get the favor of investors.

Analysis of transactional financial assets

1. If an enterprise holds a large number of trading financial assets, especially when the proportion of trading financial assets in total assets is high, it shows that the enterprise attaches great importance to the investment business and relies on this business to obtain income. Different proportions mean different business conditions.

(1) Trading financial assets account for a high proportion, while main business income accounts for a small proportion.

For example, Company A mainly sold textiles at the beginning, and now transactional financial assets account for 60% of total assets, while textile business income accounts for a relatively small proportion. Shell Investment Research (ID:beikotouyan) believes that this shows that enterprises mainly focus on investment business, with this business as the mainstay and traditional business as the supplement. At this time, it is necessary to find out why enterprises value investment, whether it is to transform or the traditional enterprises are difficult to operate.

(2) Enterprises focus on investment business and keep pace with their main business. In this case, the ratio of trading financial assets to main business assets should be similar.

(3) Enterprises have a lot of transactional financial assets, but the traditional business is still dominant, and investment is only an aid. The general investment ratio is less than 50%, which shows that the traditional business of the enterprise has core competitiveness, or it may be caused by the poor investment performance of the enterprise, specifically because what should be analyzed in combination with the previous data.

2. Changes in trading financial assets will affect tax revenue, which may ultimately affect the current profits of enterprises.

Profits brought about by changes in fair value are not taxed by the Inland Revenue Department; If there is a loss, the tax bureau is not allowed to deduct it from the profit. Only when enterprises sell these assets and generate profits will the tax bureau collect taxes. Just like you need to go to work from home, it doesn't matter how you got here and how long you spent on the road as long as you arrive before the specified time.

3. If the enterprise holds little or no trading financial assets, it means that the enterprise has not spent a lot of thoughts on investment business at present, but this does not mean that the enterprise has not invested in investment business, which needs to be comprehensively analyzed in combination with other aspects.

The biggest feature of trading financial assets is that they are sold in the near future. They are measured at fair value (current normal market price), and their price changes are included in the current profit and loss. Therefore, it will have an impact on corporate taxes, which in turn will affect corporate profits. Transactional financial assets can bring benefits to enterprises, and their proportion also represents the investment ability of enterprises. So trading financial assets is very helpful for us to analyze the company.