essentialpokermath| How to analyze corporate financial statements more deeply

Enterprise financial statement is an important tool to understand the operating status of an enterprise. it can directly show the financial situation, profitability and cash flow of the enterprise. However, only reading the superficial data of the statement can not deeply understand the financial situation of the enterprise. In order to make a more in-depth analysis of corporate financial statements, we need to master some professional skills and methods.

oneEssentialpokermath. Understand the basic composition of financial statements

Before analyzing the enterprise financial statements, we first need to understand the basic composition of the financial statements. A complete financial statement usually includes a balance sheet, a profit statement and a cash flow statement. The balance sheet shows the composition of the assets, liabilities and owners' equity of the enterprise; the income statement reflects the profit of the enterprise in a certain period of time; the cash flow statement records the cash inflow and outflow of the enterprise. These three statements are interrelated and can fully reflect the financial situation of the enterprise.

two。 Analysis of financial ratio

Financial ratio analysis is an important means of in-depth analysis of enterprise financial statements. By calculating and comparing different financial ratios, the profitability, solvency and operating ability of enterprises can be evaluated. Commonly used financial ratios include current ratio, quick ratio, asset-liability ratio, gross profit margin, return on net assets and so on. These ratios can help us understand the financial situation of the enterprise from different angles.

3. Longitudinal analysis

Vertical analysis refers to the comparison of the financial statements of the same enterprise in different periods, so as to understand the development trend of the enterprise. By comparing the financial data of different years, we can find the growth points and problems of enterprises. For example, by comparing the profit statements of different years, we can find out whether the profitability of enterprises has improved.

4. Horizontal analysis

Horizontal analysis refers to the comparison of the financial statements of different enterprises in order to understand the competitive position of enterprises in the industry. By comparing the financial data of different enterprises, we can evaluate the competitiveness and market position of enterprises. For example, by comparing the gross profit margin of different enterprises, we can understand the profit level of the enterprise.

5. Cash flow analysis

Cash flow analysis is an important means to understand the cash situation of enterprises. Through the analysis of the cash flow statement, we can understand the sources of cash income and the direction of expenditure. The cash flow statement is divided into three parts: cash flow of business activities, cash flow of investment activities and cash flow of fund-raising activities. Through the analysis of these data, we can understand the cash flow situation of the enterprise, and evaluate the solvency and operational risk of the enterprise.

Through the above methods, we can analyze the enterprise financial statements more deeply, understand the financial situation of the enterprise, and provide strong data support for the decision-making of the enterprise.

Sample formEssentialpokermathFinancial ratio analysis

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