There are two steps in analyzing the financial statements of listed companies.
First, read and understand:
The first is to look at the financial statements. Read the items in the accounting statements carefully. When reading, we should pay attention to the following contents: first, we should understand the influence of projects with large amount and great changes; Second, it is necessary to understand the controlling shareholders of the company and its subsidiaries, the shareholding ratio of the controlling shareholders, the importance of listed companies to the controlling shareholders, other assets owned by the controlling shareholders and the financial situation of the controlling shareholders. For subsidiaries, it is necessary to know the proportion of shares held by listed companies, the correlation between subsidiary sales and parent companies and subsidiaries, the contribution of subsidiary sales and profits to the parent company, and the income tax rate of each subsidiary and the stage of implementing preferential tax rates. Third, we should have a detailed understanding and in-depth analysis of all kinds of transactions between related parties. Pay special attention to the trading behavior of large trading volume and large income generated by the exchange, as well as the pricing basis and payment means of related party transactions. This kind of related party transactions mainly include asset transfer, joint venture company formation, sales, procurement, trademark use, capital occupation and so on.
When reading financial statements, we should pay attention to the following matters:
First, the relationship between accounts receivable and other receivables. If the same amount of the same company is adjusted from accounts receivable to other accounts receivable, it means that it is possible to manipulate profits.
Second, the relationship between accounts receivable and long-term investment. If the decrease of a company's accounts receivable leads to the increase of the company's long-term investment, and the increase and decrease are close, it indicates the possibility of profit manipulation.
Third, the amount of prepaid expenses and property losses to be dealt with. If the amount of prepaid expenses and property losses to be handled is large, there may be a problem of delaying the inclusion of expenses in the income statement.
Fourth, the comparison of loans, other receivables and financial expenses. If the company's other payables to the affiliated units are large and the financial expenses are low, it means that the profitable affiliated units may reduce the financial expenses.
Second, analyze and study financial indicators:
When we have a preliminary judgment on the financial statements of listed companies, we think there is no major fraud. The next step is to analyze the data in order to draw reliable conclusions. As a listed company, the solvency and profitability of enterprises are the core indicators of financial analysis.
(A) solvency analysis
The solvency of an enterprise is an important symbol reflecting its financial situation and operating ability. Solvency is an enterprise's ability to bear or guarantee due debts, including the ability to repay short-term and medium-and long-term debts. Generally speaking, the debt repayment pressure of enterprises mainly includes the following two aspects: first, the repayment of general debt principal and interest, such as various long-term loans, bonds payable, long-term payables and various short-term settlement debts; Second, all kinds of rigid taxes payable are mandatory for enterprises. Not all debts directly put pressure on enterprises. The real pressure on corporate debt repayment is those debts that are about to expire, not those that have not yet expired. Whether an enterprise can pay off due debts is based on sufficient assets or capital and must be guaranteed by sufficient cash inflow. Debt paying ability is the most concerned issue for creditors, and it is also paid more and more attention by shareholders and investors in view of the consideration of enterprise safety. The low solvency of enterprises not only shows that the capital turnover of enterprises is ineffective, it is difficult to repay the debts due and payable, and even faces the danger of bankruptcy.
1. current ratio
Current ratio is the ratio of current assets to current liabilities of an enterprise. The formula is current ratio = current assets/current liabilities * 100%. This ratio is an index to evaluate the ability of an enterprise to repay its current liabilities with current assets, indicating how much current assets can be used as payment guarantee for each yuan of current liabilities. Generally speaking, the current ratio of 2: 1 is a more suitable ratio for most enterprises. This is because the inventory with the worst liquidity accounts for about half of the total current assets, and the remaining current assets must be at least equal to current liabilities to ensure the short-term solvency of enterprises. If the current ratio is too low, the enterprise may face difficulties in paying off due debts, while if the current ratio is too high, it indicates that the enterprise holds unprofitable closed current assets, and the asset utilization rate of the enterprise is low, the management is lax and the funds are wasted. At the same time, it shows that enterprises are too conservative and have not made full use of their current borrowing capacity.
2. Quick ratio
Quick ratio is the ratio of deducting inventory from current assets and then dividing it by current liabilities. Because the liquidity of inventory in current assets is the slowest, or for some reason, some inventory may have been scrapped and not yet disposed of, or some inventory has been mortgaged to a creditor. In addition, there is a big gap between the cost and the reasonable market price in inventory valuation, so the short-term solvency reflected by the quick ratio calculated by subtracting the total current assets from the inventory is more credible. Generally speaking, the quick ratio of 65,438+0: 65,438+0 is considered reasonable, that is, an enterprise has 65,438+0 yuan's quick assets for every 65,438+0 yuan's current liabilities. If the quick ratio is high, it means that the enterprise has enough ability to repay short-term debts, and it also means that the enterprise has more unprofitable cash and accounts receivable, and the enterprise loses the opportunity of income. If it is on the low side, the enterprise will have to sell the inventory or raise new debt to repay the debts due, which may cause the loss of price reduction caused by the urgent need to sell the inventory or the interest burden caused by raising new debt. But this is only a general view, because the quick ratio of different industries will vary greatly.
3. Cash maturity debt ratio
Current ratio and quick ratio are both static analysis of enterprise's solvency. Although they can reveal a company's solvency to a certain extent, they have great limitations, mainly because most current assets cannot be quickly converted into repayable cash, and what can really be used to repay debts is cash flow. The comparison between cash flow and debt can better reflect the ability of enterprises to repay debts.
The ratio of cash current liabilities = net operating cash flow/current liabilities, which reflects the actual short-term solvency of the enterprise. Because the debt is ultimately repaid in cash, the higher the ratio, the stronger the ability of enterprises to repay short-term debts, and vice versa. Pay attention to the comparison with the same industry when analyzing.
Ratio of total cash liabilities = net operating cash flow/total debt * 100% This indicator reflects the ability of an enterprise to repay all debts with annual operating cash flow. The higher the index, the greater the solvency, which can reflect the maximum interest-paying ability of enterprises. As long as enterprises can pay interest on time, they can borrow new debts to repay old debts and maintain the debt scale. If it is lower than the bank's loan interest rate for the same period, it shows that the company's operating cash flow is insufficient and its borrowing ability is poor.
4. Asset-liability ratio
Asset-liability ratio is the percentage of total liabilities divided by total assets, that is, the proportional relationship between total liabilities and total assets. The asset-liability ratio reflects the proportion of assets raised by borrowing to total assets, and can also measure the degree to which enterprises protect the interests of creditors during liquidation. This indicator reflects the ratio of capital provided by creditors to total capital. This indicator is also called leverage ratio. From the standpoint of shareholders, when the total capital profit rate is higher than the loan interest rate, the greater the debt ratio, the better, and vice versa.
5. Property right ratio
The ratio of property rights is also one of the indicators to measure the long-term solvency. This indicator is the ratio of total liabilities to total shareholders' equity, also known as debt-equity ratio. This index reflects the relative relationship between the capital provided by creditors and the capital provided by shareholders, and reflects whether the basic financial structure of the enterprise is stable. Generally speaking, shareholders' capital is better than borrowed capital, but it cannot be generalized. From the shareholders' point of view, in the period of increasing inflation, enterprises can pass on losses and risks to creditors through more loans. During the economic boom, enterprises can get extra profits by borrowing more. In the period of economic contraction, borrowing less can reduce interest and financial risks. High proportion of property rights is a high-risk and high-return financial structure. Low equity ratio is a financial structure with low risk and low return. This indicator also shows the extent to which the capital invested by creditors is protected by shareholders' rights and interests, or the extent to which the interests of creditors are protected when the enterprise is liquidated.