What is included in the financial analysis of a business

What are the main components of a financial analysis report.

Materialism is a straw lantern.

The content of financial analysis mainly includes the following four aspects:

1 Solvency analysis.

Solvency refers to the ability of an enterprise to repay its debts on time, which includes short-term solvency and long-term solvency. Since short-term debt is an important part of making up for the shortage of working capital in the daily business activities of an enterprise, it is helpful to judge the operating capacity of the short-term capital and the turnover of working capital through analysis. Through the analysis of long-term solvency, we can not only judge the operating conditions of enterprises, but also promote enterprises to improve their ability to finance funds, because long-term liabilities are an important part of enterprise capitalization funds and an important financing channel for enterprises.

From the perspective of creditors, solvency analysis can help to understand the safety of their loans, so as to ensure that the principal and interest of their debts can be repaid immediately and in full.

2 Operational capability analysis.

Operational capability analysis is mainly a comprehensive analysis of the assets used by the enterprise. Analyze the use effect of various assets of the enterprise, the speed of capital turnover and the potential of mining funds, and improve the use of funds.

3 Profitability analysis.

Profitability analysis mainly analyzes the various return rate indicators of an enterprise by combining assets, liabilities, owners' equity and operating results, so as to judge the profitability of an enterprise from different perspectives.

4 Cash flow analysis.

Cash flow analysis mainly analyzes and evaluates the ins and outs of corporate funds, financing investment ability and financial flexibility through five aspects: cash flow structure analysis, liquidity analysis, cash acquisition ability analysis, financial elasticity analysis, and income quality analysis.

Among the above four aspects of financial analysis indicators, solvency is a steady guarantee for the realization of financial goals, operating capacity and cash flow are the material basis for the realization of financial goals, profitability is the result of the joint action of the three, and also plays a role in promoting the enhancement of the three, and the four complement each other and together constitute the basic content of the financial analysis of the enterprise.

The financial analysis of an enterprise should include the analysis of the solvency of the enterprise, the evaluation of the operating ability of the enterprise's assets, the evaluation of the profitability of the enterprise, and the overall evaluation of the financial strength of the enterprise.

Financial side-of-the-line analysis is based on accounting and financial statements and other relevant information, and adopts a series of special analysis techniques and methods to analyze and evaluate the past and present profitability of enterprises and other economic organizations related to fund-raising activities, investment activities, business activities, distribution activities, business and transportation capacity, debt repayment capacity and growth capacity. It is an economic application discipline that provides accurate information or basis for investors, creditors, operators and other organizations or individuals who care about the enterprise to understand the past of the enterprise, evaluate the current situation of the enterprise, and make correct decisions in the future.

The main economic indicators of the enterprise are sales revenue, cost of sales, operating profit, total profit, and current ratio.

Quick Ratio, Total Assets, Total Liabilities, Owners' Equity.

Wait. Revenue from the sale of goods, products and other sales of the enterprise. The sales revenue of the former includes the sales revenue of finished products, substitute products, substitute repair products, self-made semi-finished products and industrial labor services.

The sales revenue of the latter includes sales and other business income other than the sales revenue of commodity products.

For example, the income from the sale of materials, the rental of packaging materials, and the income from non-industrial services such as transportation. The use of the company's commodity products by special projects and welfare institutions of the enterprise shall be regarded as external sales. The cost of sales refers to the cost of production of the products sold, the cost of labor services provided, and the business costs of other sales.

Including the cost of the main business.

and other business costs, of which the main business cost is the cost of the enterprise selling commodity products, semi-finished products and providing industrial labor services; Other business costs are the sale of materials, the leasing of packaging materials, and the leasing of fixed assets.

and other business costs.

Equity ratio. Reflects the relative ratio of capital provided by creditors to shareholders. It reflects whether the capital structure of the enterprise is reasonable and stable. It also indicates that creditors have invested capital.

The degree to which the rights and interests of shareholders are protected.

Legal analysis: The contents of the financial analysis report of the enterprise are generally as follows:

First, the basic situation.

That is, to summarize the company's comprehensive situation (mainly through the description of the company's main economic indicators and financial indicators, summarize the company's overall economic situation and the advantages and disadvantages and impact of the company's overall financial situation), so that the recipient of the financial report has a general understanding of the financial analysis explanation.

Second, the company's financial situation is explained.

It is mainly to introduce the company's operation and financial status quo in detail, and appropriately use absolute numbers, comparative numbers and composite indicators to explain economic indicators. In particular, it is necessary to pay attention to the focus of the company's current operation, and reflect the important matters separately.

3. Financial analysis.

It is mainly combined with the second part of the analysis and research of the company's operation. While explaining the problem, it is also necessary to analyze the problem and find the cause and crux of the problem, so as to achieve the purpose of solving the problem. It is necessary to be good at using ** and diagrams to highlight the content of the analysis.

In analyzing problems, we must grasp the current key points and reflect the company's business focus and problems that are easy to ignore.

Fourth, financial evaluation.

After making a financial explanation and analysis, a fair and objective evaluation of the operating situation, financial situation, and profit performance should be given from a financial point of view. Financial evaluation can not be specious, can advance and retreat, left and right and other irresponsible language, evaluation should be carried out from both positive and negative aspects, evaluation can be carried out separately, can also be interspersed with the content of the explanation and analysis.

5. Financial advice.

That is, the opinions and opinions formed by financial personnel after analyzing the operation and investment decisions, especially the improvement suggestions for the problems existing in the operation process. It is important to note that the recommendations made in the financial analysis report should not be too abstract, but concrete, and it is best to have a set of practical solutions.

And make pertinent suggestions. Due to the high intensity of this project, enterprises must require strong professional skills when recruiting financial staff of the enterprise.

Legal basis: Company Law of the People's Republic of China

Article 6 To establish a company, an application for establishment registration shall be made to the company registration authority in accordance with the law. If the establishment conditions stipulated in this Law are met, they shall be registered as a limited liability company or a stock company by the company registration authority; If it does not meet the requirements for establishment as stipulated in this Law, it shall not be registered as a limited liability company or a share****.

Where laws and administrative regulations stipulate that the establishment of a company must be submitted for approval, the approval formalities shall be completed in accordance with the law before the company is registered.

The public may apply to the company registration authority for inquiries into the company's registration matters, and the company registration authority shall provide inquiry services.

Article 7 A business license shall be issued by the company registration authority for a company established in accordance with the law. The date of issuance of the company's business license is the date of incorporation of the company.

The company's business license shall indicate the company's name, domicile, registered capital, business scope, name of legal representative, and other matters.

If there is a change in the items recorded in the company's business license, the company shall go through the change registration in accordance with the law, and the company registration authority shall renew the business license.

Financial analysis is an attempt to understand the true face of a company's operating performance and financial status, to dig out the economic meaning behind accounting data from obscure accounting procedures, and to provide a basis for investors and creditors to make decisions. Since the accounting system only selectively reflects economic activities, and its recognition of an economic activity will lag for a period of time, coupled with the imperfection of the accounting standards themselves and the freedom of managers to choose accounting methods, it is inevitable that there will be many inaccuracies in financial reporting.

Although an audit can improve the situation to a certain extent, auditors cannot absolutely guarantee the authenticity and appropriateness of the financial statements, and their job is only to provide a reasonable basis for users of the statements to make the right decisions. This makes the change in the thinking of financial analysis particularly urgent.

Generally speaking, there are four main methods of financial analysis:

1.Comparative analysis: It is to illustrate the quantitative relationship and quantitative differences between financial information, and to point out the direction for further analysis. This comparison can be between the actual and the plan, the current period with the previous period, or with other companies in the same industry;

2.Trend analysis: It is to reveal the changes in financial condition and operating results, as well as their causes and nature, and to help the future. The data used for trend analysis can be either absolute values, ratios, or percentage data;

4.Ratio analysis: State stockings are used to understand the financial status and operating results of enterprises through the analysis of financial ratios, often with the help of comparative analysis and trend analysis methods.

There is a certain degree of overlap between the above methods. In practice, the ratio analysis method is the most widely used.

1. How to calculate the credit rating of M&A loans.

The method of credit rating refers to the skill of analyzing the credit status of the rated object and judging the merits and disadvantages, which runs through the whole process of analysis, synthesis and evaluation.

In order to successfully obtain the loan, the acquirer needs to meet certain conditions, among which the credit rating is an important factor for the bank to refer to, which directly determines the loan amount. There are many methods for calculating the credit rating of M&A loans, involving many indicators, according to different signs, there are different classifications of credit rating methods, such as qualitative analysis and quantitative analysis, subjective rating method and objective rating method, fuzzy mathematical rating method and financial ratio analysis method, factor analysis method and comprehensive analysis method, static rating method and dynamic rating method, ** analysis method and default rate model method, etc., the above classification is just a simple list, and there are also rating methods for various industries. Among them, the more important indicators are the asset-liability ratio and profit margin of enterprises.

The content of the analysis of the financial bank includes the following five aspects:

1. Analysis of capital operation: according to the company's business strategy and financial system, provide information and decision-making support for the company's capital operation, scheduling and overall planning;

2. Financial policy analysis: according to the financial report, analyze the financial benefits and risks of the company, and provide suggestions for the company's business development;

3. Business management analysis: participate in the financial analysis of sales and production, budget execution analysis, performance analysis, and put forward professional analysis suggestions;

4. Investment and financing management analysis: participate in the financial calculation and other activities of investment and financing projects, formulate investment and financing plans and prevent risks;

5. Financial analysis report: write financial analysis report, investment financial research report, feasibility study report, etc.

Financial analysis is the financial goal of an enterprise to improve its financial management activities through financial analysis with the aim of maximizing corporate profits.

The content of financial analysis includes solvency, operating ability, profitability, etc.

Among them, solvency analysis is to analyze the structure of enterprise assets, estimate the degree of utilization of debt funds by owners' equity, and formulate corporate financing strategies; Operational capability analysis is to analyze the distribution and turnover of enterprise assets, and calculate the future capital needs of the enterprise; Profitability analysis is to analyze the completion of corporate profit targets and changes in profitability levels in different years, ** corporate profit prospects.

The financial analysis of enterprises is an economic management activity that analyzes and evaluates the profitability, operating capacity, solvency and growth ability of enterprises and other economic organizations in the past and present on the basis of accounting and financial statements and other relevant information, and adopts a series of special analysis techniques and methods to analyze and evaluate the profitability, operating capacity, debt repayment ability and growth ability of enterprises and other economic organizations related to financing activities, investment activities, business activities, and distribution activities.

Financial analysis is an economic management activity, which is based on accounting and financial statements and other relevant information, and adopts a series of special analysis techniques and methods to analyze and evaluate the profitability, operating capacity, debt repayment ability and growth ability of enterprises and other economic organizations in the past and present related to fund-raising activities, investment activities, business activities and distribution activities. The content of financial analysis includes solvency, operating ability, profitability, etc.

Among them, solvency is to analyze the structure of enterprise assets, estimate the degree of utilization of debt funds by owners' equity, and formulate corporate financing strategies; Operational capability is to analyze the distribution and turnover of enterprise assets, and calculate the future capital needs of the enterprise; Profitability is the analysis of the completion of the company's profit target and the change of the profitability level in different years, ** the company's profit prospects.