How to read financial statements quickly

How can I read financial statements quickly?

Rapidly read the financial statements, there are several main points of view:

1, see "non-standard"

If a listed company's financial statements there are too many explanatory notes, its management may be hiding a secret.

If a listed company is issued a "non-standard" audit opinion, then investors should be cautious.

2, look at the revenue

A healthy and stable growth of the enterprise, its income should mainly come from "main business income", and three consecutive years of main business income steady growth. If a large part of the revenue comes from temporary one-time income, for example, some companies are always through the sale of assets, or through the subordinate enterprises to increase revenue, then the company's sustainability is questionable.

In addition, there is another situation that is also more common, which is to rely on interest income to support the entire company's profitability situation. Of course, interest is also an important part of a company's operating income and profit, but it is not a good reflection of a company's growth.

3, look at the cash flow

Cash flow is in a sense more important than revenue and profit, but also more real. Book revenues and profits are easier to manipulate artificially, but real cash flow greatly increases the difficulty of distorting performance and determines the life and death of a company. From this point of view, "cash is king" is not an overstatement.

Investors should pay attention to the income statement as well as the cash flow statement. If a company's cash flow is negative at the end of the period, it is often in a cash-strapped state.

4, look at the profit

The indicator directly reflects the profitability of the company. For this indicator needs to be analyzed in depth, a dialectical view, you need to pay attention to the company's main source of profits from the "main business profits"; temporary one-time profit sources are too high, will only increase the instability of the enterprise, increase the risk of the enterprise.

Expanded:

Financial statement considerations for businesses

These are the main reasons why you should be aware of the importance of the cost of sales. p>Only by keeping the cost of goods sold low can the profit from sales rise to a high level. Although the cost of goods sold does not by itself tell us whether a company has a lasting competitive advantage, it does tell us the size of the company's gross profit. By analyzing a company's income statement, it is possible to see whether the company is able to generate profits and whether it is competitive on a lasting basis.

The ability of a company to make a profit is only one aspect; it is also important to analyze the way in which the company makes its profits, whether it requires a great deal of research and development in order to remain competitive, and whether it needs to leverage its wealth in order to make a profit. With this information mined from the income statement, you can determine the economic growth engine of the business, because the source of the profits is more meaningful than the profits themselves.

How to Read Financial Statements

The main ways to read financial statements: balance sheet: to understand the financial structure of the business, income statement: to analyze the operating ability of the business, cash flow statement: to assess the continued competitiveness of the business, and owner's equity: to understand the economic interests of the owners of the business. There are three other elements: the purpose of studying financial statements, to look at the financial statements as a whole, and to take into account the characteristics of the industry.

Financial statements are accounting statements prepared in accordance with accounting standards as a norm to reflect the financial position and operations of the accounting entity to the owners, creditors, the government and other interested parties and the public and other external.

Financial statements include the balance sheet, income statement, cash flow statement or statement of changes in financial position, schedules and notes. The financial statements are the main part of the financial report and do not include information included in the financial report or annual report, such as the directors' report, management analysis and statement of financial position.

How do I learn to read financial statements?

Question 1: How to learn to read the financial statements Hello:

To see the good financial statements, it is more complicated, you mainly learn to see the three statements can be, as follows:

One, how to look at the balance sheet

Balance Sheet is a balance sheet reflecting all the company's assets, liabilities and owners' equity on a particular date of the statement of accounts. Its basic structure is "Assets = Liabilities + Owners' Equity". No matter what state the company is in this accounting balance is always constant. The left hand side reflects the resources owned by the company; the right hand side reflects the claims of the different rights holders of the company on these resources. Creditors can claim all of the company's resources, and the company is liable to all of its creditors with all of its assets. After all of its liabilities are paid, what remains is the owner's equity, the company's net worth.

We can use the information in the balance sheet to see the distribution of the company's assets, liabilities and the composition of the owner's equity, in order to evaluate the company's capital operation, financial structure is normal and reasonable; analyze the company's liquidity or liquidity ability, as well as the number of long and short-term debts and the ability to repay them, to evaluate the company's ability to bear risks; the use of the information provided by this table also helps to calculate the company's profitability, to evaluate the company's ability to bear risk. The information provided by the table also helps to calculate the profitability of the company and evaluate the company's business performance.

When analyzing the elements of the balance sheet, we should first note the analysis of the asset elements, including:

1 analysis of current assets. Analyze the company's cash, various deposits, short-term investments, various receivables and payables, inventory, etc.. Current assets are higher than in previous years, indicating that the company's ability to pay and liquidity increased.

2 Long-term investment analysis. Analyze investments with a maturity of more than one year, such as the company's holdings, implementation of diversification, etc.. The increase in long-term investments indicates that the company's growth prospects are favorable.

3 Fixed Asset Analysis. This is an analysis of assets in physical form. The figures of each fixed asset listed in the balance sheet only indicate the amount of each fixed asset that has not yet been depreciated and depleted and is expected to be recovered in future periods under the condition of continuing operation, therefore, we should pay special attention to whether depreciation and depletion are reasonable will directly affect the accuracy of the balance sheet, the income statement and various other statements. Obviously, less depreciation will increase the profit for the period. And more depreciation will reduce the current profit, some companies often buried in the ambush.

4 intangible assets analysis. The main analysis of trademarks, copyrights, land use rights, non-patented technology, goodwill, patent rights and so on. Goodwill and other intangible assets with no precise reference are generally not accounted for, unless the goodwill is formed at the time of purchase or merger. After the acquisition of intangible assets, they should be recorded in the accounts and amortized over a specified period of time.

Secondly, the elements of liabilities should be analyzed, including two aspects:

1 Current liabilities analysis. Each current liability should be recorded as it actually occurs. The key to the analysis is to avoid omissions, and all liabilities should be reflected in the balance sheet.

2 long-term liabilities analysis. Including long-term loans, bonds payable, long-term payables and so on. Since long-term liabilities are in different forms, care should be taken to analyze and understand the situation of the company's creditors.

Finally, the analysis of shareholders' equity, including share capital, capital surplus, surplus and undistributed profits in 4 areas. Analysis of shareholders' equity, mainly to understand the different forms of capital invested in shareholders' equity and the structure of equity, and to understand the order of priority of liquidation of each element of shareholders' equity, etc.. Look at the balance sheet, to be combined with the income statement, mainly involved in the capitalization of profit and inventory turnover, the former is to reflect the profitability of the indicators, the latter is to reflect the operating capacity of the indicators.

Second, how to read the income statement

Income statement based on "income - expenses = profit" to prepare, mainly reflecting a certain period of the company's operating income minus operating expenses after the net income. Through the income statement, we can generally assess the operating performance of the listed company, the degree of success of the management, so as to evaluate the value of investment and compensation of investors. The income statement consists of two aspects: one reflects the company's income and expenses, explains the amount of profit or loss of the company in a certain period of time, according to which we can analyze the company's economic efficiency and profitability, and evaluate the company's management performance; the other part reflects the sources of the company's financial results, explains the proportion of the company's various sources of profit in the total amount of profit, as well as the interrelationships between these sources. Analysis of the income statement, mainly from two aspects:

1. Revenue project analysis. The company through the sale of products, the provision of labor services to obtain various operating income, but also to provide resources for others to use, to obtain rent and interest and other non-operating income. An increase in revenue means an increase in the company's assets or a decrease in its liabilities.

Packages credited to the revenue account ......

Question 2: How do I learn to read financial statements? In fact, it is very simple, the income statement plus and minus relationships are written, from revenue to net profit at a glance.

Balance sheet, the right side of the enterprise funds are from that, capital - paid-in capital; bank borrowed - short-term borrowing, owed to others - accounts payable .... The left side of the balance sheet is where all these funds are used, in the bank - bank deposits; materials bought - raw materials, other people owed payment - accounts receivable; has been done products - finished goods ... And so on

Question 3: Can self-study accounting be learned. Learn to understand the financial statements? An example!

1 you take out a loan to buy a house. The price of the house is 1 million, you put down 300,000, 700,000 loan, have got the real estate license. At this point, the balance sheet comes out: assets = liabilities + owner's equity.

2Now you start running your property, rent it out for $12,000 a month and pay $0.2 million in taxes. At this point, your income statement comes out: profit = revenue - costs taxes etc.

3 If this cash 10,000 you have received, your balance sheet changes: assets = liabilities + owner's equity. The 10k in assets is the cash you received, and the 10k in equity is the profit you earned.

If the 10k in cash you didn't receive, your balance sheet has likewise changed: Assets = Liabilities + Owners' Equity. The 10k in assets is the cash you should have received, and the 10k in equity is the profit you earned. The cash receivable here is not yet real money, but it is legally yours, so it is put into your assets.

4Next you have to pay back the loan, keep it simple, disregard the interest and pay back 0.5k per month. Then the balance sheet changes again: assets = liabilities + owner's equity. Assets decrease by 0.5 because you took cash to pay off the debt, and at the same time liabilities decrease.

...

You can find that everything in your household that has to do with money can be represented in accounting terms, and the same is true for companies. All economic operations can be reflected in the balance sheet and income statement. In order to represent the different economic operations very clearly, different columns have been created in both the statements, which are the accounting entries. All the economic operations are nothing but going around in between the various accounting heads and the two tables.

This is just to say that accounting is not difficult, understand the relationship between the six assets, liabilities, owner's equity, income, cost, profit can read the statement.

Of course, if you want to further analyze the statement then you need to know some of the financial ratios of the formula has been the meaning of the ratio

Question 4: How to learn to understand the financial statements of listed companies because you are a non-economic classmates, so you want to understand the financial statements of the Arc, it is recommended that you first of all to the Accounting Qualification Examination of the textbook of self-study once, which is the entry-level textbook of the accounting staff! Shown:

Inputs are owner's equity, and credits are liabilities.

Liabilities and owner's equity will be converted into cash, and then the cash will be converted into inventory of products and fixed assets after the inputs.

After the products are sold, part of it becomes cash and part of it becomes accounts receivable, the same part that is treated in terms of customer bookkeeping.

Under certain circumstances, accounts receivable are then converted back into cash and invested in production operations. This is a complete business process.

There are three main parts of the financial statements, the balance sheet, the income statement and the cash flow statement, which actually exist in the above equation. First, the balance sheet: the balance sheet of the basic formula for the "owners' equity + liabilities = assets", the above table equation on the left side of the owners' equity and liabilities, while the right side of all are assets. Assets actually consist of cash, accounts receivable, inventory, and fixed assets. Cash, accounts receivable, and products are what are commonly referred to as current assets, while plant and equipment are fixed assets. If you look closely at the chart above, you will see that almost all operations are centered around cash. Owners' equity and liabilities add to cash, while products and accounts receivable are eventually converted to cash. That's why cash is important, it's the centerpiece, and that's why there's a cash flow statement. Second, the income statement: the core of the income statement is "profit = income - expenses". When the product is converted into accounts receivable and cash, the form is generated is income, and when the cash is converted into products and fixed assets, generated by the cost and expense, it is the continuous flow between the two, which ultimately produced profits. Thus, profit exists with the flow transformation. Income statement is often studied over a period of time the growth of profits, there is a problem, the above conversion, the profits of the current period to the cash conversion elements, increase in cash, increase in accounts receivable, increase in products, increase in fixed assets, which add up to the deduction of the relevant costs is the net profit. Third, the cash flow statement: products into cash is more or less, cash is increased or decreased, this is the content of the cash flow statement study, just because in this transformation process in the core of the cash, therefore, almost all the research financial statements of the people are very important to the cash flow statement. Also, there are actually two transformations that I missed above, and that is that cash may also be transformed into liabilities and owner's equity, why? There is cash up to pay off debt, you have less cash less liabilities, cash converted to liabilities cash is reduced. The remaining cash is then converted to the owner's equity portion. When all the cash in your hand is taxed and paid, the rest of the cash that you are rich enough to dispose of as you please is free cash flow.

Question six: how to quickly learn the skills of reading financial statements a small and medium-sized financial statements reading and review of common problems

With the deepening of reform and opening up, China's small and medium-sized enterprises are developing rapidly. But in recent years, the development of many small and medium-sized enterprises show a difficult development situation.

Whitewash financial statement data, the real reliability of financial data in doubt

The development of small and medium-sized enterprises is accompanied by fierce competition, some of the integrity of the concept of weak, the only interests of the supreme small and medium-sized enterprises, not hesitate to violate the relevant laws and regulations in the financial tampering, falsification. Some in order to evade taxes, deliberately reduce the amount of profit and profit margin in the report

table, revenue and cost of serious asymmetry, the phenomenon of serious off-balance-sheet accounts. Some enterprises in order to finance the need to deliberately fake in the assessment of assets, false increase in assets, false reduction of liabilities; intentionally inflate corporate profits, false

down costs; and even in order to exaggerate the bottom of the family, even at the expense of illegal consolidation of the accounting statements of affiliated enterprises. If such distorted statements are read and reviewed, the information analyzed will be extremely misleading and harmful. On the one hand, it increases

the investment risk of investors, and it is easy to mislead investors to invest blindly; on the other hand, if the decision makers refer to the false and distorted financial information to plan the future production and operation activities of the enterprise, it is easy to cause decision-making errors; on the other hand, the *** supervision and control department gets the false financial data of the enterprise, and it is not conducive to the control of the investment risk and the macroeconomic control of the relevant policies.

Analyzing method is simple and single, it is difficult to fully reflect the financial situation of the enterprise

Enterprise financial statements contain "balance sheet", "income statement", "cash flow statement Business managers and related financial analysts often have a tendency to read and analyze statement data for the sake of corporate interests, ignoring the interconnections between tables. Some companies in order to highlight the results of business operations and performance, it is easy to focus mainly on the income statement, but the accuracy of the profit needs to be analyzed at the same time

analysis of several other statements in order to make a conclusion. And look at the balance sheet alone or look at the cash flow statement is also difficult to fully analyze the distribution of assets and liabilities in the structure of the enterprise, the distribution of revenue, cost and expense distribution, as well as the sources of cash

and the direction of the use of all the information. In addition, the financial statement reading and review method is relatively single, often used is "ratio analysis method", that is, "the specific data of certain related projects to calculate the ratio

for comparative analysis. However, this method does not compare the current data with the historical data from the perspective of development, nor does it compare with the data of the same industry, which is not comprehensive.

Two, small and medium-sized financial statements reading and review of countermeasures

Small and medium-sized financial statements reading and review of the main problems, business managers and financial personnel should be targeted to prevent and solve.

Regular training in accounting business skills

Financial statement reading and auditing is an important part of the financial management of small and medium-sized enterprises, the important role of business investment is self-evident. Financial statement reading and review process should be used to such as accounting, management,

Economics and other disciplines of knowledge. The actual work of the financial statement analysts for these multidisciplinary knowledge and the degree of mastery and use of the depth and breadth of the degree is uneven, so the financial statement data to understand, analyze

results are often different from person to person. Therefore, small and medium-sized enterprises should pay attention to the regular training of financial statement analysts in professional skills and ethics, and regularly hire experts in related fields to carry out training activities. Rich working experience is

this work is indispensable, SMEs should pay attention to carry out new and old financial analysts business exchanges and learning.

Integrated use of multiple comparative analysis

SME financial

Ratio analysis is commonly used in reading and reviewing statements. However, if the focus is only on the related data and data comparison, then the accuracy of the results of this analysis depends entirely on the authenticity of the data.

The disadvantages of this method of analysis are obvious. In addition, there is the "comparative analysis method" is to compare the financial data of the enterprise with the financial data of similar industries and enterprises of similar size, to find out the gap between the enterprises.

The main drawback of this method is that the enterprises to be compared must be the same or similar in terms of business mode, enterprise scale, and industry category, in other words, there is no real comparability of the selected enterprises is the main limiting factor. Another is the "trend analysis

method", that is, the current data compared with historical data, and then analyze the development of the enterprise's financial position, operating results. This method of analysis also relies on the current and past financial statement data of the enterprise, the real

reliability of the data is still a constraint ......

Question 7: I am a financial newcomer, I want to learn as soon as possible to learn to read financial statements and can do a simple analysis of the Gordon financial training course "reading and analysis of financial statements" course, vertical depth, layer by layer analysis of the statement of the essence of the information hidden in the data, horizontal expansion, showing the complete framework of financial analysis and a new perspective. You can get the course schedule and syllabus from the online customer service.

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Question 8: How do I learn to analyze financial statements? Hello!

Have you analyzed the reasons for not passing this class? Is it because you can calculate but not analyze, or is it caused by a lack of proficiency in basic calculations?

If it is the first case, we suggest that you buy a few practice books, usually accompanied by the last three years of the examination questions and reference answers, their own questions and then do a few times, and then compared with the reference answer, immediately understand where the gap is. The answer to the questionnaire will be the same as the answer to the questionnaire, but the answer to the questionnaire will be the same as the answer to the questionnaire.

If it is the second case, it is recommended that you take the textbook of the basic examples of excerpts down, make a book of their own exercises, read more and more practice, so that after closing their eyes, the formula will automatically run to the eyes, so that the formation of habits, do the problem will be much smoother.

Finally, I wish you a smooth transition!

Question nine: how to read the financial statements, I am a financial newcomer, theoretical knowledge learned, but the company's previous statements I still can not understand a financial statement analysis:

1, analyze the solvency of the enterprise, analyze the structure of corporate equity, the degree of estimation of the use of debt funds.

2, evaluation of the operating capacity of the enterprise assets, analyze the distribution of assets and turnover of the enterprise use.

3. Evaluate the profitability of the enterprise, analyze the achievement of the profit target and the change of profit level in different years.

The above three aspects of the analysis of the content of the interlinked, complement each other, can be a comprehensive description of the production and operation of the enterprise's financial position, results of operations and cash flow to meet the basic needs of different users of accounting information.

Two, the financial statements can fully reflect the financial position of the enterprise, operating results and cash flow situation. But simply from the data on the financial statements can not be a direct or comprehensive description of the financial position of the enterprise, in particular, can not explain the business situation of the enterprise and the results of the operation of the high and low, only the financial indicators of the enterprise and the relevant data can be compared to illustrate the position of the enterprise's financial position, so financial statements should be analyzed.

Question 10: What do I need to learn if I want to understand a company's financial statements? Financial statement analysis, capital operations management, financial management, these are to learn, Hangzhou on the yuan is to open a special training course, you can go to see.

How to read the financial statements quickly

It's easy to read the statements. The key is to understand the meaning of these numbers.

On the left side of the balance sheet, the numbers arranged to fill in are the assets of the unit, in monetary form, in the form of debt, the amount of the cost of inventory, and the assets in the form of fixed assets ，，，，.

The right side is arranged to fill in the liabilities, which are in the form of debt. Below right is the value of the unit's own equity, including invested capital, and accumulated profit and loss.

The income statement, is is the profit and loss amount statement.

Revenues, costs, expenses, profit. Reflects the results of profit and loss.

These data, to be combined with the unit's assets, the unit's operations, need to use a little effort.