How Do Financial Personnel Do In Financial Analysis?

Financial personnel need regular financial analysis to understand the operation of the company.

Then, what problems should we pay attention to when doing financial analysis?

The ultimate goal of financial analysis is to provide decision support for management decisions. Therefore, we must provide solutions and suggestions after analyzing the causes of the problems, and make adequate preparations and provide material support at the management meeting, so that the management can fully trust and accept the solution.

Usually, financial personnel have a mental set for themselves.

There is no way to separate the levels and priorities, and feel that everything is important, and all the results are stacked up.

In this case, even if there is a final conclusion, it may be too heavy to arouse the attention of readers.

Worse still, there is no conclusion when the list is finished. Readers may be confused and confused.

The position of Finance in enterprises can be divided into several levels.

The entry level is the gatekeeper, which means that the main function of the finance is to ensure the compliance and legality of the enterprise's financial operation.

From the level of analysts, the main functions of Finance begin to focus on the management of participating enterprises, and the components of decision-making are gradually increasing.

Therefore, focusing on the industry news, understanding the development strategy of enterprises and the stage of development of enterprises, it will be more meaningful for financial personnel to better use their own advantages and contribute to the development of enterprises.

The basic data of financial analysis can not be confined to financial statements, but the information and data of all operations that can be obtained.

Because most of the financial information is second-hand information, from the front-line business departments.

Information is essential.

Our accounting system is to pform the production and operation activities of enterprises into financial information and record them back. When we try to analyze and speculate on the production and business activities of enterprises through reading financial information, we need to restore the production and operation status with the original production and operation information.

Therefore, the mode of thinking should start from business rather than simply looking at finance.

Talk about

What must be grasped include:

Analysis of financial statements - project analysis and correlation analysis of three major tables;

Analysis of key indicators DuPont analysis and important business indicators (such as operating rate, scrap rate, etc.);

Enterprise value analysis - discounted cash flow (DCF) and internal rate of return (IRR);

Combining static and dynamic analysis - look at the trend, look at the structure, see the ratio, look at it together.

It should be emphasized that financial analysis is not the index of many indicators.

One of the skills that financial personnel should develop is to express the results of financial analysis in business language.