Financial analysis papers of listed companies 1
Analysis and Research on Financial Statements of Listed Companies in China
The financial statements of listed companies are an important window for all kinds of market participants to know about listed companies, and are also the summary data for the management of companies to find business problems. This paper expounds the significance and existing problems of financial statement analysis of listed companies, and puts forward some suggestions to optimize the financial statement analysis of listed companies.
Keywords: financial statements of listed companies, financial statement analysis
I. Introduction
Financial statements are the concentrated expression of the operating results, financial status and cash flow of listed companies in a certain period, and are an important platform for creditors and investors to understand listed companies. Scientifically analyze the financial statements of listed companies, so as to understand the operating characteristics of listed companies, evaluate their performance, find their problems, and then make a clear judgment on the past, present and future of listed companies as a whole [1]. The significance of financial statement analysis to listed companies is mainly reflected in the following aspects:
(1) Evaluate business performance
By adopting a scientific and reasonable financial index system and correctly using analytical methods, we can make an overall evaluation of the operating results of listed companies in a certain period, so that the board of directors of listed companies can make a performance evaluation of the management's work in a certain period. Therefore, financial statement analysis has also become an important way to evaluate the performance of listed companies.
(2) Revealing potential risks
The analysis of financial statements can help listed companies find the abnormal situation in their operations and the changes in their competitive position in the industry, help managers, investment decision makers and other stakeholders identify the potential risks of listed companies, and provide important information support for avoiding operational risks and creditor's rights risks.
(3) Optimize the allocation of resources
A comprehensive analysis of risks and possible benefits from a global perspective can enable listed companies to correctly use investment, reasonably borrow money and plan the ratio of long-term and short-term debts, realize the optimal allocation of resources and maximize the social benefits of listed companies [2].
Second, the problems existing in the analysis of financial statements of listed companies
(A) the problems existing in the financial statements themselves
1. The preparation methods of financial statements are inconsistent.
The current financial accounting standards allow different accounting treatment methods for the same economic business [3]. The same enterprise may choose different accounting treatment methods in different periods, and different companies have different accounting treatment methods, which leads to significant deviation in the results of comparability analysis of financial statements and low reliability.
2. There are time differences in financial statement information.
The financial information provided in the current financial statements mainly reflects the historical events that have happened, and they are all measured at historical cost. In the case of inflation and exchange rate fluctuation, the financial statements compiled at historical cost will seriously distort the current financial situation and profit level of listed companies, leading to the reduction of the credibility of the analysis results of financial statements.
3. whitewash financial statements.
In order to maintain the listing qualification and obtain private interests such as bank loans and commercial credit, listed companies use various means to whitewash financial statements and deceive investors and creditors [4]. For example, listed companies artificially adjust profits by inflating sales revenue, delaying the confirmation of current expenses; Overestimate the accounts receivable to adjust the current ratio and quick ratio, thus exaggerating the solvency of enterprises by using financial statements [5]; Omitting or misstateing important accounting information, misleading users of financial statements.
(B) There are problems in the analysis indicators of financial statements
1. Limitations of corporate profitability indicators.
Listed companies can only survive and develop if they make profits. Profitability analysis is the focus of financial statement analysis, but there are some limitations in profitability indicators. For example, the return on net assets, first of all, the return on net assets lacks timeliness, only pays attention to the situation of enterprises in a certain period of time, and cannot fully reflect the comprehensive impact of business activities. Secondly, there is a lack of reflection on risks, focusing only on benefits and ignoring operational risks. Third, the value is not enough. Return on net assets is the ratio of net profit to net assets, which reflects the historical value, not the current market value, which leads to the return on net assets can not accurately measure the value of existing stocks.
2. Limitations of solvency indicators of enterprises.
Solvency is the ability of an enterprise to repay various debts due, and solvency analysis is to analyze the asset guarantee and cash inflow guarantee of debt repayment. In the complex economic environment, there is uncertainty between accounts receivable and other receivables in current assets. Even the ideal current ratio and quick ratio do not represent the actual solvency of enterprises. Although the cash maturity debt ratio can dynamically reflect the short-term solvency of enterprises, the cash flow of different industries, different enterprises and the same enterprise in different life cycles is quite different. If the same measure is used to treat different situations statically, the analysis results lack credibility. The long-term solvency index is mainly the asset-liability ratio, and there is a great risk of recovery of accounts receivable and prepayments in the total asset structure. Therefore, the solvency indicators of enterprises can not truly reflect the actual solvency of enterprises.
(C) Problems in the analysis methods of financial statements
Limitations of 1. ratio analysis. Ratio analysis is the main financial analysis method, which has strong applicability, but also has certain limitations. Ratio analysis is a static analysis, which is not absolutely reliable for predicting the future development trend of enterprises; Can not fully reflect other aspects of the enterprise, such as industry categories, business environment and other issues. In addition, the ratio index can be artificially whitewashed.
2. Limitations of comparative analysis. Comparative analysis is often used in practical applications, but it uses historical data information. In the current rapidly changing competitive environment, can the past income be used to measure the income level that can be achieved in the future? In addition, because different enterprises in the same industry are in different life cycles, the simple summary of comparative analysis can not truly reflect the competitive position of enterprises in the same industry.
3. Limitations of factor analysis. The starting point of factor analysis is that when several factors affect the comprehensive index, it is assumed that all other factors have not changed, and the influence of individual changes of each factor is determined in order. This assumption of factor analysis seriously restricts the credibility of the analysis results of financial statements obtained by factor analysis.
(d) Problems of users of financial statements
First of all, financial statement analysts have different risk concepts and different psychology in financial statement analysis, which inevitably leads to different judgment results of the same analysis index, and may even draw completely different conclusions. Secondly, the depth and breadth of financial analysis theory and related financial theory are different for analysts, and the choice of financial analysis indicators and the understanding of financial analysis results are often different.
(E) Limitations of financial statement analysis tools
The development and application of computer technology makes the analysis of financial statements relatively simple and easy. However, in recent years, some financial analysis software with high versatility in China generally stays at the level of accounting function, which basically belongs to post-event bookkeeping and accounting; For the prediction in advance, the ability of analysis, management and control in the event is weak.
Iii. Analysis of financial statements of listed companies and suggestions for optimization
(1) Improve accounting standards and accounting systems, and standardize the consistency of accounting treatment methods for financial statements. At present, there are many accounting standards for listed companies in China, and even some regulations are not specified, which has great loopholes, leaving room for managers of listed companies to whitewash financial statements and causing great confusion in the analysis of financial statements. Therefore, strengthening the self-construction of accounting system and accounting standards and integrating with international accounting standards is the basic premise of compiling consistent financial statements and preventing financial reports from being whitewashed, which is helpful to improve the authenticity and comparability of accounting information in financial statements.
(B) Build a scientific financial index system to increase the credibility of the analysis results of financial statements.
Listed companies should build a scientific index system according to their own operating characteristics to reflect the actual situation of enterprises as truly as possible. This needs to consider its shortcomings when selecting financial indicators for analysis. For example, the quick ratio reflecting the short-term solvency. Although quick assets deduct inventory from current assets, it cannot truly reflect the essence that quick assets can be realized in a certain period of time. Because prepayments, as collateral for economic activities, cannot be realized in a short time; In addition, it is uncertain whether and when accounts receivable and other receivables can be recovered. In the process of selecting indicators, it is necessary to exclude accounts receivable that are older than a certain period, so that the quick ratio can more truly reflect the solvency of enterprises.
(C) increase non-financial analysis indicators and improve the financial statement analysis system.
In order to improve the quality of financial statement analysis, we should increase non-financial analysis indicators closely related to enterprises and improve the financial index system. Such as market share, customer evaluation, new product development, human resources, etc. These non-financial indicators can measure the profitability of listed companies more comprehensively and help to comprehensively evaluate the potential for subsequent development of listed companies.
(D) Improve the analysis methods and quality of financial statements.
No matter how true, reliable and timely financial information is, the quality of financial statement analysis is unrealistic without rigorous and scientific financial statement analysis methods. There are some limitations in the current financial analysis methods, such as inconsistent index values, ignoring inflation and time value of money, and relatively static historical value. At the same time, the analysis method is single. Therefore, in order to improve the quality of financial statement analysis, it is necessary to improve the analysis methods of financial statements and compare multiple analysis results by using a variety of methods.
(E) comprehensively develop online financial reports and improve the timeliness of financial statement information.
With the development of computer network technology, listed companies can make full use of the network platform to send financial statements in time to ensure the timeliness of accounting information. Listed companies can implement relatively real-time reporting according to their own conditions and in line with the principle of cost-effectiveness, and try to shorten the accounting stage of financial statements, such as sending weekly reports and ten-day reports in time. This is of great significance for financial report users to know the financial information of listed companies as soon as possible and make correct decisions.
(six) to strengthen the professional quality and professional ethics of financial auditors, improve the authenticity and reliability of financial information.
The basic data of financial statements of listed companies all come from the collection, arrangement and compilation of corporate financial personnel, and the published annual financial statements are audited by auditors. The professional technical level, practical operation ability, professional judgment ability and professional ethics of financial personnel and auditors determine the authenticity and reliability of financial statement information of listed companies. Therefore, it is necessary to strengthen the professional quality and ethics construction of financial personnel and auditors, and improve the authenticity and reliability of financial information.
(7) Financial statement analysts should improve their financial literacy and develop or introduce advanced financial analysis tools.
To improve the ability of financial statement analysis, financial statement analysts need to systematically learn accounting knowledge and understand the financial system; At the same time, in order to make the analysis of financial statements simple and accurate, qualified enterprises can introduce advanced financial analysis software or use computers? Cloud technology? Conduct big data analysis to ensure the accuracy of financial statement analysis results in economic forecasting.
refer to
Zhang Xianzhi. Financial analysis [M]. Beijing: China Financial and Economic Press 2004( 1)37-38.
[2] Zhang Siju. Analysis of financial statements of listed companies ―― Taking Salonda Co., Ltd. as an example [Master's degree thesis], xihua university, 2009.
[3] Fang Jing. Problems and Countermeasures in the Analysis of Financial Statements of Listed Companies [J], Research on Finance and Accounting, 201(3)178.
[4] Liu Hongliang. Research on financial statement fraud and audit strategy of listed companies [J], Economic Research, 20 1 1(25)82-83.
[5] Yan. A new probe into the analysis of financial statements of listed companies [master's degree thesis] University of international business and economics, 20 1 1.
Financial analysis of listed companies II
Analysis and Evaluation of Financial Statements of Listed Companies
Financial statements are a comprehensive reflection of all economic activities of enterprises. A careful interpretation and analysis of financial statements can help us find the problems existing in the production and operation of enterprises, judge the current financial situation of enterprises and predict the future development trend. This paper focuses on the limitations of the current financial statement analysis, and puts forward measures to improve the financial statement analysis.
Keywords: listed companies; Financial indicators; Financial statements; flow
Firstly, the theory of financial statement analysis of listed companies is summarized.
1. The purpose and significance of financial statement analysis of listed companies
The purpose of financial statement analysis is to transform the data of financial statements into useful information to help users of financial statements improve their decision-making. The significance of financial statement analysis: the financial statement analysis methods introduced at present are only expounded from one or several aspects, and how to analyze and evaluate it as a whole is an important link in financial analysis activities.
2. Technical indicators of financial statement analysis
2. 1 profitability indicator
Profitability is the ability of enterprise capital appreciation. Profit amount and profit rate are the main signs to measure the business performance of enterprises.
(1) Operating profit margin. Operating profit margin is the ratio of operating profit to operating income of an enterprise in a certain period of time. The higher the operating profit rate, the stronger the market competitiveness of enterprises, the greater the development potential, and thus the stronger the profitability.
(2) Return on total assets. Return on total assets is the ratio of the total remuneration to the average total assets of an enterprise in a certain period. Return on total assets fully reflects the profitability of all assets of an enterprise. Generally speaking, the higher the index, the better the asset utilization efficiency of enterprises, the stronger the profitability of enterprises and the higher the management level.
(3) Price-earnings ratio. P/E ratio is the multiple of the price of common stock per share of listed companies equivalent to earnings per share. Generally speaking, a high P/E ratio means that investors are optimistic about the company's development prospects and are willing to pay higher prices for the company's shares, so some high-tech companies with good growth usually have higher P/E ratios.
2.2 solvency indicators
Solvency refers to the ability of an enterprise to repay debts due. For enterprises, moderate lending is an important business strategy to expand the scale of operation and improve the utilization rate of funds.
(1) Short-term solvency index. Short-term solvency refers to the extent to which the current assets of an enterprise ensure the timely and full repayment of current liabilities, and it is a measure of the current financial ability of an enterprise. ① Current ratio. Current ratio is the ratio of current assets to current liabilities. Generally speaking, the higher the current ratio, the stronger the short-term solvency of enterprises and the more secure the rights and interests of creditors. ② Quick action ratio. Quick ratio is the ratio of quick assets to current liabilities of an enterprise. Generally speaking, the higher the quick ratio, the stronger the ability of enterprises to repay current liabilities.
(2) long-term solvency indicators. Long-term solvency refers to the ability of enterprises to repay long-term liabilities. There are mainly asset-liability ratio and property right ratio. ① Asset-liability ratio. Asset-liability ratio, also known as debt ratio, is the ratio of total liabilities to total assets of an enterprise. Generally speaking, the smaller the asset-liability ratio, the stronger the long-term solvency of enterprises. ② Proportion of property rights. Equity ratio, also known as capital debt ratio, refers to the ratio of total liabilities to owners' equity, which is an important symbol of whether the financial structure of an enterprise is stable. Under normal circumstances, the lower the proportion of property rights, the stronger the long-term solvency of enterprises, the higher the degree of protection of creditors' rights and interests, and the smaller the risks they bear.
2.3 Operational capability indicators
Operational capacity is the size of the role of total assets and their components in achieving financial goals.
(1) Accounts receivable turnover rate. Accounts receivable turnover rate is the ratio of operating income to average accounts receivable balance in a certain period. This index reflects the realization speed and management efficiency of accounts receivable.
(2) Turnover rate of current assets. The turnover rate of current assets is the ratio of operating income to the average total current assets of an enterprise in a certain period.
2.4 Development ability indicators
Development ability is the potential ability of an enterprise to expand its scale and strength on the basis of survival.
(1) Growth rate of operating income. The growth rate of operating income is the ratio of the growth of operating income this year to the total operating income of the previous year.
(2) Capital preservation and appreciation rate. The capital preservation and appreciation rate is the ratio of the total owner's equity at the end of this year to the total owner's equity at the beginning of this year after deducting objective factors.
3. Analysis method of financial statement analysis
3. 1 comparative analysis method. Comparative analysis is an analytical method to compare the main items or indicators in accounting statements with the comparison standards selected by analysts, determine their differences, and judge and measure the operating conditions of enterprises accordingly.
3.2 Financial ratio analysis method. The financial ratio analysis of listed companies' accounting statements refers to an analysis method that reflects the relationship between related items in the same statement or different statements in the form of ratio by using the publicly disclosed data of listed companies' accounting statements and other relevant information in the financial reports of listed companies, so as to evaluate the company's financial situation and operating results.
Second, measures to improve the limitations of financial statement analysis of listed companies
1. Improvement of financial statements themselves
1. 1 Improvement of measurement attributes of financial statements. In view of the actual situation in China, in order to make up for the deficiency of the current financial report based on historical cost, we can learn from international practices and make use of them? Current accounting? That is, in the supplementary information of financial statements, relevant statements are adjusted on the basis of historical cost as supplementary information of formal statements.
1.2 improvement of financial statement disclosure. We should strive to improve the limitations of financial report disclosure. First, increase the disclosure content; The second is to use diversified reports and various forms of disclosure.
2. Improvement of financial statement analysis indicators
2. 1 Pay attention to cash flow analysis. From the point of view of development and material object, cash flow analysis index should be added to the current financial statement index system. In the analysis index system, a number of cash flow analysis indicators can be added to reflect the proportion of cash support in enterprise profits as a whole, thus helping users to judge the degree of profit protection.
2.2 Improve financial indicators. In view of using the turnover rate of accounts receivable to reflect the turnover ability of accounts receivable, we can consider using the average aging of accounts receivable instead.
3. Improvement of financial statement analysis method
Combination analysis of various financial analysis methods;
(1) Judging from both positive and negative aspects. When analyzing the company's financial statements, we should not only find out its investment value, but also find out the problems and financial risks existing in enterprise management. And judge whether it belongs to systematic risk or non-systematic risk and the overcoming ability of the enterprise, and explain the sustainable operation ability and investment value of the enterprise from the opposite direction
(2) Ratio and trend analysis can be combined. The use of these two methods is interrelated and complementary. You can't use a method to make investment judgments in isolation.
(3) The combination of dynamic analysis and static analysis. The production, management, business and financial activities of an enterprise are a dynamic development process. So pay attention to dynamic analysis.
In short, the submission and analysis of financial statements is a complex and systematic work, and the laws and regulations of the financial system should be strictly observed in the process of submission and analysis to provide solid and reliable basic information for the development strategy of enterprises.
References:
[1] Geng Hong. An empirical study on the influence of corporate governance structure on accounting transparency [D]. Jilin University, 2007.
[2] Zhang Huijuan. Application of cash flow statement in enterprise financial analysis [J]. Economics and Legal System, 2007(5).
[3] Kou Chaoyang. The deficiency and improvement of the current financial analysis index system [J]. Decision and Information (Financial Observation), 2008(8).
[4] Yu Kai. Analysis of financial indicators of listed companies [J]. Decision and Information (Financial Watch), 2008(7).
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