In the study of financial accounting, we usually need to analyze the financial situation of a listed company. The following is a graduation thesis on financial analysis of cash flow. Welcome to reading.

With the further development of market economy, financial management has become the core issue of enterprise management. Through financial analysis, it is becoming more and more important to effectively use financial data and information to achieve correct business decisions. Based on the company's cash flow statement and related data in recent years, this paper makes a detailed analysis of its financial statements by using certain methods. Through analysis, it is found that the financial difficulties faced by the company at present are mainly unreasonable debt structure and insufficient short-term solvency. In addition, due to various reasons, the net cash flow generated by the company's operating activities is insufficient. In xxxx, the company cooperated with banks to appropriately increase the proportion of long-term loans, which alleviated the above difficulties to some extent.

Keywords: enterprise, cash flow, financial analysis

1 company introduction

Hetco Hydraulic Co., Ltd. is a joint-stock company active in hydraulic industry and related product application at home and abroad, with convenient sales. Actively introduce advanced technology and management at home and abroad, and cooperate with SUNNY Company in the United States. At present, the main products produced by the company are: vane pump, internal gear pump, direction/pressure/flow control valve, proportional valve and so on. , and undertake the design and manufacture of various hydraulic systems/devices. In order to further strengthen the company's market competitiveness, this paper analyzes the company's finance.

2 cash flow statement analysis

2. 1 cash flow structure analysis

Cash flow structure analysis includes inflow structure, outflow structure and inflow-outflow ratio analysis. The following is an example of the xxxx annual report of Wenzhou Hongda Electric Co., Ltd. ... The primary task of cash flow statement analysis is to analyze who dominates all activities. If the operating inflow accounts for 40.76% of the total cash inflow of HTK Company, the investment inflow accounts for 65,438+09.9%, and the financing inflow accounts for 39.34%, it can be seen that the operating activity occupies an important position, and the financing activity is also an important aspect of the cash inflow source of this enterprise.

2. 1. 1 inflow structure analysis

Since management, investment and fund-raising activities can bring cash inflows, we should focus on analyzing the inflow structure. Among the inflow of the company's business activities, the inflow brought by the sales income of the main business accounts for 86.6%, and the value-added tax accounts for 12.39%, reflecting the normal business of the company.

In the inflow of investment activities, the dividend inflow is zero, and the cash inflow brought by investment recovery and disposal of fixed assets accounts for 100%, indicating that the cash inflow brought by the company's investment is all investment recovery rather than profit.

In fund-raising activities, loan inflow accounts for 52. 18% of the fund-raising inflow, which is the main source; The inflow of equity absorption funds accounted for 47.74%, which was the secondary source.

2. 1.2 outflow structure analysis

The total outflow of the company accounts for 24. 18% of operating activities, 28.64% of investment activities and 47. 18% of financing activities. Because the company did not distribute cash to shareholders in xxxx, debt repayment accounted for a large proportion of the company's cash outflow, which greatly reduced the debt. In the outflow of business activities, the purchase of goods and services accounted for 54.38%; Cash paid to and for employees accounts for 10.8 1%, taxes and fees account for 3.6%, the burden is light, and other cash paid related to business activities accounts for 29.80%, accounting for a relatively large proportion. In the outflow of investment activities, the cash paid by equity investment accounts for 60.74%, and the cash paid by purchasing fixed assets, intangible assets and other long-term assets accounts for 39.26%. Repayment of principal accounts for 47.5 1% of fund-raising outflow, and the rest is fund-raising expenses and interest expenses. From the above analysis, it can be seen that the cash outflow from investment activities of this enterprise is relatively large, and equity investment accounts for the largest proportion of the cash outflow from investment activities, indicating that the equity expansion of this enterprise is relatively fast.

2. 1.3 analysis of inflow-outflow ratio

As can be seen from the cash flow statement of HTK Company:

Business activities: cash inflow was 426.989 million yuan, and cash outflow was 323.490 million yuan. The cash inflow and outflow ratio of the company's operating activities is 65,438+0.32, which means that 65,438+0 yuan's cash outflow can be exchanged for 65,438+0.32 yuan's cash inflow. Of course, the larger the number, the better.

Investment activities: cash inflow is 208.5 million yuan, and cash outflow is 3833 1.9 million yuan.

The cash inflow-outflow ratio of the company's investment activities is 0.74, and the cash outflow caused by the company's investment activities is relatively large, indicating that the company is in an expansion period. Generally speaking, this value is relatively small for companies in the development period, but it is relatively large when they are in recession or lack investment opportunities.

In fund-raising activities, the cash inflow is 412.05 million yuan and the cash outflow is 631449,000 yuan.

The inflow-outflow ratio of financing activities is 0.65, indicating that repayment is obviously greater than borrowing. If the cash inflow in fund-raising activities is obtained by borrowing, it also shows that the company largely borrows new debts to repay old debts.

As an information user, while deeply understanding the cash flow of enterprises, we should also compare the inflow and outflow structure in history or in the same industry, so as to draw more meaningful conclusions.

Generally speaking, for a healthy growing company, the cash flow of operating activities should be positive, the cash flow of investment activities should be negative and the cash flow of financing activities should be positive and negative. The cash flow of the above companies basically reflects the situation of this growing company.

2.2 Comparative Analysis of Cash Flow Statements in 2005 and 20061-June

2.2. 1 Comparative Analysis of Cash Flow Statement

The company's annual cash flow from operating activities in xxxx is negative, the main reasons are as follows: First, the tax payable in previous years was paid back, which led to a substantial increase in the company's annual cash outflow in xxxx; Second, the company adjusted the product structure, increased the output of products with long production process, and correspondingly increased the funds occupied by products; Third, the prices of some production raw materials have risen to a certain extent since xxxx, which has put some pressure on the company's cash flow; Finally, in order to ensure the future production plan, the company increased a certain amount of inventory, which greatly increased the company's cash for purchasing goods.

From the cash analysis received from the company's sales of goods and services, the cash inflow from the company's sales of goods and services in xxxx was 496,527,784.39 yuan; In the same period, the income from the main business was 465,438+02,903,254.22 yuan, indicating that the cash inflow capacity generated by the company's main business was greatly improved compared with last year. In addition, the company's product structure adjustment will be gradually put in place this year, and it is expected that the company's cash flow will gradually improve in the future.

In xxxx, the net cash flow generated by the company's operating activities was-86,851,7 18.58 yuan, and the net cash flow generated by the company's operating activities was negative. In xxxx, the net cash flow generated by the company's financing activities was 98,540,565,438+0.25 yuan, and the net cash flow generated by investment activities was-7,064,608 yuan. As can be seen from the above data, the company's annual increase in cash and cash equivalents depends on the cash flow generated by financing activities. In addition, it is normal for developing manufacturing enterprises to have negative net cash flow from investment activities. From the analysis of the cash received from the company's sales of goods and services, the cash inflow from the company's sales of goods and services in xxxx was 496,527,784.39 yuan, while the income from the main business in the same period was 465,438+02,903,254.22 yuan, indicating that the cash inflow capacity of the company's main business was greatly improved compared with last year. To sum up, although the company's net cash flow from operating activities is negative, with the gradual completion of product structure adjustment, the company's future cash flow from operating activities will be improved. From June to June in xxxx, the company's cash flow situation has been greatly improved. The net cash flow from operating activities from June to June in xxxx was RMB 65,438+02,536,5438+0,934.57, and the net increase of cash and cash equivalents was RMB 65,438+07,570,65438+. I believe that the company's cash flow situation will be further improved.

At present, the financial difficulties faced by the company mainly lie in the unreasonable debt structure and insufficient short-term solvency. In addition, due to various reasons, the net cash flow generated by the company's operating activities is insufficient. In xxxx, the company cooperated with banks to appropriately increase the proportion of long-term loans, which alleviated the above difficulties to some extent.

2.2.2 Solvency Analysis

Although the current ratio and quick ratio can also reflect the liquidity or solvency of assets, this reflection has certain limitations, because what can really be used to repay debts is cash, and cash flow and debt can better reflect the ability to repay debts.

The ability to obtain cash refers to the ratio of net inflow of operating cash to invested resources, which can be sales revenue, total assets, net working capital, net assets or tradable shares.

Sales cash ratio = net cash inflow from operating activities/sales.

For example, the sales of HTK Company is 276.32 million yuan, and the net cash inflow from operating activities is12.53 million yuan, then:

Sales cash ratio = 1253÷27632=0.045, which means that you can get 0.045 yuan in cash for every dollar you sell. This ratio reflects the net cash flow generated by each dollar of sales revenue, and the larger the value, the better.

Operating cash flow per share = net cash inflow from operating activities/common stock capital.

If the common share capital of HTK Company is 75 million shares and the net operating cash inflow is 654.38+02.53 million yuan, the operating cash flow per share is = 654.38+0253 ÷ 7500 = 0.654.38+067 yuan/share.

The greater the ratio, the stronger the enterprise's ability to make capital expenditure and pay dividends. If the enterprise exceeds the limit of 0. 167 yuan/share, it may have to borrow money to pay dividends.

The cash recovery rate of all assets is the ratio of cash inflow from operating activities and investment activities to all assets, indicating the ability of enterprise assets to generate cash.

Cash recovery rate of all assets = net cash flow from operating activities ÷ total assets of the enterprise × 100%.

Assuming that the total assets of HTK company is 850 million yuan, then

Cash recovery rate of all assets = 1253÷85000= 1.5%

If the average cash recovery rate of all assets in the same industry is 7%, it shows that the company's assets have weak ability to generate cash.

2.3 Analysis of net cash flow

It is not necessarily correct to infer the effectiveness of operating activities and the quality of net profit from the net cash flow generated from operating activities.

In practice, many people are used to taking the net cash flow generated from business activities as the main criterion for analyzing and evaluating the performance of business activities and even the quality of net profit. The net cash flow generated by operating activities is indeed related to the performance of operating activities and the quality of net profit realized by enterprises, but this correlation is not direct, nor is it necessarily positive (sometimes it may be negative). The degree of correlation mainly depends on the specific capital flow of different enterprises, different periods and different business activities. Therefore, the size of net cash flow generated by operating activities is not suitable for analyzing and evaluating the effectiveness of operating activities and the reliability of net profit quality in many cases. To illustrate this problem, here are some examples:

Example: In xxxx, the net profit of Company A was 6.5438+0.35 million yuan, the income from main business was 6.5438+0.44 million yuan, and the cash received from selling goods and providing services was 6.5438+0.56 million yuan. The company has no other business income and expenditure, and there is no advance payment. The main business cost is 654.38+0.002 million yuan, the cash paid for goods and services is 654.38+0.463 million yuan, and the net cash flow generated by operating activities is-654.38+0.687 million yuan, compared with 654.38+365.438+in February of that year, which is 654.438+in xxxx.

As can be seen from the above example, Company A not only recovered all the cash in the operating income of xxxx, but also recovered the unrecovered cash of 654.38+0.2 million yuan in the previous year. The cash received by the company from selling goods and providing services should be said to be very good. Therefore, at least from the perspective of sales, the company's business activities are effective and the quality of profits achieved is relatively high. However, the net cash flow generated by the company's operating activities is-1 6.87 million yuan, which means that the company did not generate any cash through operating activities in1year, but took out16.87 million yuan to balance the cash flow required for operating activities. The relationship between the net cash flow generated by the company's operating activities and the net profit realized in the current year. It is negatively correlated. What kind of colleague is this? By analyzing the inventory balances of xxxx65438+February 3 1 and xxxx65438+February 3 1, we found the answer:

It turns out that the company is a flower and seedling enterprise in the process of scale expansion, which is characterized by a long inventory turnover cycle. The time from sowing to marketing of flower seedlings takes 6 months, 1-2 years. If there is not enough inventory investment, the company's production and operation will be unsustainable. Company A's cash expenditure on purchasing inventory in xxxx increased by 5,654.38+0.9 million yuan compared with that in xxxx, which is the main reason why the net cash flow generated by the company's operating activities is negative (30.37 million yuan less than the realized net profit). Obviously, through the analysis, we can draw the following conclusions: The net profit realized by Company A in xxxx has been well recovered in cash, and necessary preparations have been made for the production and operation activities in 2007 and beyond. Therefore, on the whole, the company's business activities in xxxx are effective, and the net profit achieved is of high quality. The reason why the net cash flow generated by the company's operating activities in xxxx is negative is the increase of cash outflow from operating activities (cash paid for purchasing inventory), rather than the decrease of cash flow from operating activities; Moreover, the increase of cash outflow from this business activity is necessary and meets the actual needs of the company's production and operation.

Through the analysis of the above examples, we can realize that the net cash flow generated by operating activities is a very important financial data, but the specific application of this data can not be separated from the specific investigation of all items of cash flow generated by operating activities, and also from the specific review of balance sheets and income statements and the specific analysis of notes to accounting statements. It is not appropriate to separate the net cash flow from other accounting information, but to proceed from reality and analyze specific problems; At the same time, only disclosing the net cash flow generated by operating activities without auxiliary explanation will also affect the utilization of this data, and in some cases it will even be misleading.

3 Conclusion and discussion

To sum up, we can see that the cash flow statement is indeed a rare tool to analyze the financial situation of enterprises. In practice, paying attention to the combination of cash flow statement analysis and balance sheet, income statement and other financial statements analysis can help us understand the financial situation and development trend of enterprises more clearly and comprehensively, understand the gap with peers, find problems in time, correctly evaluate the current and future solvency and payment ability of enterprises, and the profit quality of enterprises at present and in the early stage, scientifically predict the future financial situation of enterprises, and provide correct basis for the decision-making of report users.

References:

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Mix. How to Analyze Enterprise's Financial Situation with Cash Flow Statement

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