First, the difference between management financial analysis system and DuPont financial analysis system

"Management-oriented Financial Analysis System" is a financial analysis system based on DuPont financial analysis system, which is formed by resetting relevant formulas, so it is also called improved DuPont financial analysis system. Dupont analysis system and management financial analysis system all take "net interest rate of equity" as the core index. This index not only has strong comparability and comprehensiveness, but also can better reflect the realization degree of financial management objectives. Compared with DuPont analysis system, management-oriented financial analysis system is different in two aspects: one is to distinguish business activities from financial activities; The second is the change of the core formula.

1. Distinguish between commercial activities and financial activities

For non-financial enterprises, business activities are the source of company value and the embodiment of core competitiveness, and financial activities serve business activities. From the perspective of financial management, the financial assets of an enterprise are assets that have not been put into actual business activities and should be distinguished from operating assets; From the perspective of national wealth, financial assets do not constitute the actual wealth of society. Therefore, the management uses financial analysis system to divide the activities of enterprises into business activities and financial activities, while DuPont analysis system does not distinguish them. Under the financial analysis system, business activities include business activities such as selling goods or providing services and related productive assets investment activities; Financial activities include fund-raising activities and enterprises using surplus funds to carry out financial activities in the capital market. Distinguishing business activities from financial activities is the core idea of management financial analysis system. Based on this core idea, the management adjusts the general financial statements with the financial analysis system, and distinguishes between operating assets (liabilities) and financial assets (liabilities), operating gains and losses and financial gains and losses.

2. Changes in the core formula

The core formula of financial analysis system for management is: net interest rate of equity = net interest rate of operating net assets+leverage contribution rate. The core formula of DuPont analysis system is: net interest rate of equity = net interest rate of total assets × equity multiplier. These two formulas have not only changed in form, but also given more profound connotations in indicators. On the one hand, the "addition" formula clearly shows the true meaning of "net interest rate of equity", which is formed by adding the "net interest rate of net operating assets" created by enterprises through business activities and the "leverage contribution rate" embodied by interest-bearing liabilities in financial activities; On the other hand, the "total assets" and "net profit" of the "net interest rate of total assets" under DuPont's financial analysis system do not match. The total assets are owned by all asset providers, and the net profits are exclusively owned by shareholders. The two do not match, and this indicator cannot reflect the actual rate of return of input and output. People who provide assets for the company include creditors with interest-free liabilities, creditors with interest-bearing liabilities and shareholders, among which creditors with interest-free liabilities do not require to share the proceeds. Therefore, the logical "net interest rate of total assets" is the division of the capital invested by creditors with interest-bearing liabilities and the income generated by these capitals, which is also the "net interest rate of net operating assets" used for management in the financial analysis system. Because interest-free liabilities have no interest, interest cannot be leveraged as a fixed cost. Therefore, counting interest-free liabilities into total liabilities will distort the actual function of financial leverage, and divide interest-bearing liabilities with shareholders' equity to get actual financial leverage, which is called "net liabilities-shareholders' equity" in the financial analysis system for management. At the same time, the interest rate when interest-free liabilities are included in the total liabilities is not the debt rate of the enterprise, but the real average interest rate is the division of interest and interest-bearing liabilities, which is the "after-tax interest ÷ net liabilities" used for management in the financial analysis system.

Two. Presentation of financial statement items

1. Adjustment of item presentation in financial statements

Reclassifying general financial statement items into financial statements for management is the basis and premise of applying financial analysis system for management. Consistent with the core idea of financial analysis system for management, the classification standard of financial statements for management is operational and financial. Before adjusting the general financial statements, two issues need to be clarified: first, the business content of the enterprise, which is the key to defining the operating assets; Second, the division standard of operating profit and loss and financial profit and loss should be consistent with the division standard of operating assets (liabilities) and financial assets (liabilities). Therefore, the items used for management in the balance sheet should be divided into operating assets (liabilities) and financial assets (liabilities), the items used for management in the income statement should be divided into operating profit and loss and financial profit and loss, and the items used for management in the cash flow statement should be divided into operating cash flow and financial cash flow. The financial statements for management obtained after reclassification and adjustment reflect the following three formulas: operating net assets = net liabilities+net profit from owners' equity = operating profit and loss+financial profit and loss = pre-tax operating profit ×( 1- income tax rate)-interest expenses ×( 1- income tax rate) after-tax operating profit+depreciation and amortization-increase in operating working capital-capital expenditure = debt cash.

2. Interaction between financial statements and financial analysis

On the one hand, from the perspective of information users, the goal of financial statements is to provide useful information for decision-making. Because of the difference between the general standard format of financial statements and the information required by information users, information users must use financial analysis methods to transform the information in financial statements into information used in decision-making. On the other hand, the construction of financial analysis system is based on the needs of information users, requiring financial statements to provide more accurate and reasonable data, which is conducive to financial analysis. Therefore, there is a certain interaction between financial statements and financial analysis. With the development of the capital market and the arrival of the era of big data, information is becoming more and more important, and there are more and more channels to obtain information. General financial statements can't meet the needs of information users to some extent. If it is not adjusted in time, the disclosure of financial statements will become a procedure. Management's financial statements provide more reasonable data for financial analysis by adjusting the presentation method. In 2008, IASB and FASB*** issued the Discussion Draft-Preliminary Opinions on the Presentation of Financial Statements, one of its main contents is to divide financial statements into business activities, investment activities and financial activities, which is consistent with the core idea of financial statement management. Based on this background, Wen Qingshan (2009) took China Petroleum and China Petrochemical as examples to study the impact of adjusting the presentation of financial statements from the perspective of financial analysis. Considering that it is difficult to distinguish between investment activities and financial activities, he draws lessons from the classification standards of financial statements for management and divides enterprise activities into business activities and financial activities. The research results show that the management financial analysis system based on improved financial statements can evaluate the core business ability, solvency and financing ability for enterprise information users. Therefore, adjusting the item presentation of financial statements can enhance the usefulness of financial statements.

Third, financial leverage and asset turnover.

1. Limits of financial leverage

Financial leverage is accompanied by corporate debt financing, which is the result of corporate financial activities. Although financial leverage can bring benefits, it cannot be used without restraint. The management-oriented financial analysis system provides a new perspective for us to analyze the boundary of financial leverage. Its core formula is: ROE = ROE+leverage contribution rate = ROE+(ROE-after-tax interest rate) × net debt ÷ shareholders' equity. From the core formula of financial analysis system for management, it can be found that when the return on operating net assets is greater than the after-tax interest rate, the leverage contribution rate is positive, and with the increase of liabilities, the net interest rate of equity increases; When the return on net assets is less than the after-tax interest rate, the leverage contribution rate is negative, and with the increase of liabilities, the net interest rate of equity is less. Therefore, the return on net assets is greater than the after-tax interest rate, which is the boundary of using financial leverage. At the same time, ROE is also the upper limit of our debt financing cost.

2. Asset turnover strategy

The measurement of asset turnover rate is an important criterion to judge the efficiency of business activities. Dupont's financial analysis system lacks accuracy in asset turnover. The turnover under DuPont's financial analysis system not only measures financial assets, but also ignores operating liabilities. The influence of liabilities on asset turnover does exist. OPM strategy uses operating liabilities to strengthen working capital management. OPM strategy refers to the working capital management strategy of transferring the funds occupied in inventory and accounts receivable and their costs to suppliers, that is, using suppliers' funds to serve the company. Cash turnover period is an index to measure OPM strategy, which is the sum of the average payment period and inventory turnover days MINUS the days payable. Judging from the composition of cash turnover period, the use of operating liabilities has indeed improved the turnover efficiency of assets. Under the management analysis system, the factors of return on net assets are decomposed. Return on net assets = net operating profit after tax × operating income = operating income × net operating profit rate of net operating assets × net operating asset turnover rate, where net operating assets = operating assets-operating liabilities. The turnover rate of operating net assets is consistent with the cash turnover period, and both consider the turnover of operating liabilities. From the unique perspective of management financial analysis system, we can see the profound connotation of asset turnover rate. We should not only judge the efficiency of asset turnover from the perspective of assets, but also consider the deferred payment of operating liabilities reasonably. The real efficiency is after the balance between the two. This gives us an inspiration: under the premise of not affecting the credit of enterprises, reasonably occupying more operating liabilities and reducing the scale of operating net assets can make asset turnover more reasonable.

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