What Are The Misunderstandings In Financial Analysis Of Enterprises?

With the continuous improvement of the quality of financial personnel and the gradual implementation of enterprise accounting standards, the basic financial problems of enterprises have been gradually solved, and the demand for authenticity of financial information has gradually been pformed into the value research of financial information.

Through the analysis and research of financial information, improving the practicability of financial information and providing better support for management decisions has become a topic of common concern among business operators, investors and regulators.

Enterprise financial analysis, based on financial information and from different angles, is a comprehensive generalization and reflection of enterprise performance, asset management, capital operation and future development prospects. It is not only an important tool for enterprise's own financial management, but also an important means for regulators to carry out financial supervision.

Some misunderstandings easy to walk into

Financial analysis is so important, but it is not easy to do well in financial analysis.

Most financial analysis reports or boring reading, or no analysis conclusion, or analysis of subjective assumptions, are generally lacking in depth and low in use value.

The causes of these problems are related to several misunderstandings in financial analysis.

Myth 1: Analysis for analysis is out of touch with demand for financial analysis.

Some financial analysts do not fully communicate with the needs of the analysis report, do not really understand the real purpose of the analysis, and get the financial data in a hurry to analyze.

This kind of financial analysis is only for analysis. The type of analysis, the scope of analysis and the choice of analysis focus are basically subjective, which is basically out of line with the needs of analysis. Users of the analysis report are also unable to obtain really useful information.

When financial analysis is carried out by some financial analysts, it is often difficult to jump out of the inherent thinking inertia of the financial system, carry out a comparison and analysis with a pile of financial data, and make a lack of understanding of the major business decisions and important business situations of the enterprises, thus making financial analysis only stay in the financial field, and can not really analyze the specific financial problems and financial data from the perspective of enterprise management.

Some financial analysts only stay at the level of financial statements, mainly analyzing 3 accounting statements, ignoring the analysis of important external matters such as business environment, land value, external guarantee and contingencies.

Such a financial analysis, because of the limited analysis basis, easily ignores the potential risks and problems of those gorgeous companies, and it is also difficult to dig out the potential value of those enterprises with unsatisfactory performance, and the conclusion of the analysis is often misleading.

Some financial analysis data describe a lot of space, data analysis is very small, or lack of data between the comparative analysis, causal analysis, or not the financial data and financial indicators.

If we do not analyze and summarize the views, we can not dig out the economic essence behind financial data and form appropriate conclusions.

Part

In particular, the comprehensive financial analysis only focuses on the comprehensive data and does not analyze according to different levels of business or enterprise level, so it is easy to hide the true situation of the enterprise.

This is especially true for the financial analysis of enterprise groups under the diversified development mode. If different businesses or enterprises, or good or bad, or increase or decrease, they will be too general if they only look at the whole and do not look at the structure.

In particular, it is easy to cover up some abnormal situations.

The purpose of financial analysis is not only to understand the past and present situation of enterprises through accumulating historical financial data, but also to understand the future trend of enterprises and predict the future development trend of enterprises through the analysis of the development trend of enterprises.

However, many financial analysis just ignores this point. There are more analysis of the past and present, and few forecasts and prospects for the future, which greatly reduces the role of navigator in financial analysis.