Making Full Use Of Financial Statement Data For Financial Analysis To Prevent Financial Risks Effectively

Cost control analysis is a key point of enterprise financial analysis.

Only by controlling costs well can enterprises really guard against financial risks.

In the analysis of cost control, enterprises should always focus on the overall control objectives of enterprises. On this basis, the reasons for the rise and fall of enterprise costs are analyzed and revealed, and the influencing factors of costs are identified in time.

Secondly, we should make clear the key factors of cost control and the potential cost risk control points that can cause financial risks.

As far as methods are concerned, we can refer to the knowledge of management accounting and make use of the analysis model of "Ben, quantity and profit" to analyze and calculate the variable cost, profit and loss balance point, marginal contribution and so on.

utilize

Model analysis

The financial data of an enterprise usually reflects the information of the enterprise in the past.

The purpose of financial risk prevention is to continue operation in the future.

The "SWOT" model is able to guard against financial risks while keeping the enterprise's decision-making on the basis of the reality of the enterprise, and is conducive to the continuous operation of the enterprise in the future.

In the SWOT model, S is strength, which indicates the advantages of the enterprise; W, namely weight, indicates the weakness of the enterprise; O, namely optunity, represents the opportunity in the market; T, namely Threats, represents the threat from the market.

Through the use of SWOT model for financial analysis, we can know and clarify the advantages and disadvantages of enterprises.

For example, the adequacy of funds and the market share of products.

From the strengths and weaknesses of the two sides of the enterprise to carry out financial analysis, give full play to its advantages to create opportunities for the development and operation of enterprises, and to avoid the impact of its inferiority factors on enterprises.

The advantages and disadvantages become a judgment of future opportunities and threats, so as to effectively avoid corporate financial risks and promote the formulation of company strategy and decision-making.

In the process of using financial analysis to guard against financial risks, enterprises should also pay full attention to and analyze cash flow information.

In the past, when making financial analysis, enterprises often focus on "revenue".

At present, with the change of market environment, the financial analysis of enterprises should also be changed.

It focuses on whether enterprises can get enough cash flow through their own business activities, and whether the working capital management of enterprises has higher efficiency.

At the same time, enterprises should also analyze the cash flow generated by the operation activities after external financing, evaluate their financing strategies, and the dynamic stability of the cash flow of enterprises.