Comprehensive Analysis Of Accounting Statements

In order to have a comprehensive understanding of the state of business financing and make a systematic and reasonable evaluation of the economic benefits of enterprises, we must conduct a comprehensive analysis of each other and adopt comprehensive criteria to carry out comprehensive evaluation.

Such as standard liquidity ratio, standard asset liability ratio and standard total assets turnover.

In the analysis of accounting statements, if the calculated financial ratios are compared with the historical data of the enterprises, we can only see their own changes. We can not know the position of the enterprises in the fierce competition. Compared with the individual enterprises in the same industry or their industry, we can only see the difference from the other party, and the other party is not necessarily the best, but it is not necessarily bad.

Having a standard financial ratio can be used as a reference for evaluating the superiority of an enterprise's financial ratio.

Based on the standard financial ratio, it is easier to find out the abnormal situation of enterprises, so as to reveal the problems of enterprises.

There are usually two methods, one is the statistical method, that is, the statistical results of a large number of historical data as a standard.

This method assumes that most of them are normal, and the social average level reflects the standard state. It deviate from the average level and is out of the normal state.

The two is the adoption of industrial procedure law, namely, based on actual observation and scientific calculation, an ideal state is calculated as an evaluation standard.

This method assumes that each variable has its intrinsic proportions, and this relationship can be recognized.

In practice, the above two methods are often used to complement each other and verify each other.

At present, the establishment of standard financial ratios mainly adopts statistical methods, and the industrial procedure law is of secondary importance.

Some government agencies in some developed countries such as the United States, Japan and other countries regularly publish statistical indicators of the financial sectors of various industries, providing help for the analysis of users of the reports.

Some financial indicators can be found in various statistical yearbooks, but the industry division is relatively coarse, and it is the index size before the implementation of the new accounting system, which is not suitable for the current reporting caliber.

Therefore, the financial ratios of some listed companies, including the average data of some industries, can be used as reference data for the financial ratios of certain listed companies, which can be regularly provided by China Securities Journal and financial times.

For the average financial ratio of the industry, two problems should be paid attention to when using it. First, the industry average index is based on the sample survey of some enterprises, which does not necessarily reflect the actual situation of the whole industry. Two, the accounting methods and procedures adopted by each enterprise in calculating the average are not necessarily the same. Capital intensive and labor-intensive enterprises may be added together on average.

Therefore, it is often necessary to revise the average financial ratio of the industry in the analysis of statements, and establish an ideal comparable reference as far as possible.

The percentage structure of the ideal balance sheet is derived from the average level of the industry, and the necessary reasoning analysis and adjustment are carried out at the same time.

Table 1 is a simplified and ideal balance sheet expressed as a percentage.

With total assets of 100%, according to the asset liability ratio, we will determine 100 categories of liabilities and 100% of owners' equity.

It is generally believed that liabilities should be smaller than their own capital, and such enterprises can remain stable in the deteriorating economic environment.

However, too small a debt ratio will make enterprises lose the opportunity to gain extra profits when the economy is booming. That is to say, the management strategy of the business administration is conservative.

Generally speaking, 60% of self owned capital and 40% of liabilities are ideal, and of course, this ratio will vary from country to country, from different historical periods and from industries.

Debt management with high debt is a weak performance of enterprises in a highly developed period. It is not an ideal state. The economy is slightly depressed. Because of the heavy interest burden, corporate profits will decline rapidly, so it is very unstable.

At present, the debt ratio of Listed Companies in China is mostly around 40%, which is also a good phenomenon.

Under normal circumstances, the amount of fixed assets should be less than that of self owned capital, which accounts for 2/3 of its own capital. This proportional relationship can make 1/3 of the enterprise's own capital be used for current assets rather than auction fixed assets to repay debts.

In the case of 40% of fixed assets, of course, liquid assets account for 60%.

It is generally considered that the liquidity ratio is 200%. If current assets account for 60%, current liabilities will be half or 30%.

Since total liabilities are about 40%, current liabilities account for 30%, and long-term financial liabilities account for 10%.

The basic requirement is that the paid in capital should be less than the accumulation, so as to accumulate two times as much as the invested capital.

This ratio can reduce the pressure of dividends and make it possible for enterprises to attach importance to long-term development, with a net asset value of about 3 yuan per share and a good corporate image on the stock market.

Therefore, the paid capital is 1/3 of the owner's equity, that is, 20%, the provident fund and the future distribution profit are 2 /3 of the owner's equity, that is 40%.

The ratio between provident fund and undistributed profit is not very important, because the number of undistributed profits varies frequently.

The structure of provident fund and unallocated profit should be 3:1, that is, provident fund accounts for 30% of total assets and undistributed profit accounts for 10% of total assets.

Since the quick ratio is the best of 100%, the ratio of quick assets to total assets is the same as that of current liabilities, or 30%.

The balance of inventory assets (mainly inventory) accounts for 30% of total assets, which is in line with the general situation of inventory accounts for half of current assets.

Then, we compare and analyze the actual data of the enterprise reporting period to judge the financial situation of the enterprise.

The percentage of the ideal profit and loss account is based on sales revenue.

Generally speaking, gross margin varies from industry to industry.

Enterprises with fast turnover are pursuing the principle of small profits but quick turnover with low gross profit margin, and the gross profit margin of enterprises with slow turnover is relatively high.

In fact, every industry has a naturally formed gross profit margin.

Table 2 is an ideal profit and loss account expressed as a percentage.

About half of the cost of the gross profit can be spent on the period, or a little more than 13%, and the remaining 12% is the operating profit.

Net operating expenses are generally small, and usually outlay revenue, which is processed at 1%.

Although the income tax rate is 33%, the actual tax burden due to tax adjustment and other factors is about half, that is, more than half of the pre tax profit is 6%, so the remaining after tax profit is 5%.

It is to evaluate the financial situation of an enterprise.

The financial performance of an enterprise as a comprehensive performance of its financial strength is difficult to quantify in many cases, which has caused great difficulties to the comprehensive analysis.

Without quantitative analysis, the conclusions are often subjective and convincing enough. Quantitative analysis will make the analysis conclusions unrealistic and difficult to achieve the ideal value.

To solve this contradiction, on the one hand, we need to improve and supplement financial analysis techniques, and on the other hand, we rely on the breakthroughs in financial situation theory.

In addition, in the practical work of enterprise financial management, some important and single financial indicators are generally taken into account, such as turnover ratio, total assets profit rate and accounts receivable turnover rate.

Therefore, the comprehensive analysis of enterprise accounting statements is a very important part of the financial analysis system, and is also a difficult financial analysis.

The comprehensive analysis of accounting statements is comprehensive. It takes all kinds of quantitative or qualitative methods to regard the financial operation of enterprises as a complete and indivisible system, and makes a comprehensive survey and evaluation of them.

The basic method of comprehensive analysis of financial statements is financial ratio analysis and comprehensive qualitative analysis.

It is a method to analyze the financial status of enterprises by using financial ratios. It is not only the basic method of analyzing financial statements, but also an important prerequisite for comprehensive analysis of accounting statements.

In the use of financial ratios, two points should be noted: first, accounting statements based on financial ratios do not necessarily reflect the true situation of enterprises.

Although accounting statements are designed according to the accounting standards for enterprises and general principles of enterprise finance, they are standardized, but they do not necessarily reflect the objective reality of enterprises.

For example, the report data are not in accordance with inflation or price.