How to compare and analyze the financial statements of the same company in the past two years

Revenue metrics compare the amount and proportion of increases and decreases.

Many bosses don't understand those ratios, you can simply compare income and expenses, and then pull up a graph to see it at a glance.

It is mainly analyzed through financial ratios, such as the asset-liability ratio.

Current Ratio, Quick Ratio, Gross Margin, Return on Equity.

return on total assets, and so on.

Financial statement analysis.

The functions are: 1. Communicate effectively with the financial department;

2. Make a correct assessment of the business performance of the enterprise;

3. Provide support to decision-makers from a financial perspective;

4. Understand the three major statements of the enterprise from the different perspectives of owners and operators;

5. Quickly identify the fraudulent elements that may exist in the financial data;

6. Learn to analyze the working capital of the enterprise.

Examine the shortcomings of the enterprise;

7. From the cash flow statement.

to analyze the profit level of the enterprise.

The purpose of financial statement analysis is to judge the financial status of the enterprise and to diagnose the operation and management of the enterprise.

Gains and losses. Through analysis, it can be judged whether the financial status of the enterprise is good, whether the operation and management of the enterprise is sound, and whether the business prospects of the enterprise are bright.

Financial statement analysis is the processing, analysis, comparison, evaluation and interpretation of the data provided by the financial statements of enterprises. If bookkeeping and tabulation belong to the reflection function of accounting, then the analysis of financial statements is subordinate to the function of interpretation and evaluation. The purpose of financial statement analysis is to judge the financial status of the enterprise and to examine the gains and losses of the company's operation and management.

There are two main methods of financial statement analysis: trend analysis and ratio analysis. Trend analysis refers to the comparison of the direction and inclination of the increase and decrease of each item before and after the financial statements of several consecutive periods, so as to reveal the changes and trends in finance and operation. The object of financial statement analysis is the basic activities of the enterprise.

Financial statement analysis is to obtain information from the statement that meets the purpose of analysis of the user of the report, understand the characteristics of the company's activities, evaluate its performance, and find its problems.

It can judge whether the financial situation of the enterprise is good, whether the operation and management of the enterprise is sound, and whether the business prospects of the enterprise are bright. There are two main methods of financial statement analysis: trend analysis and ratio analysis.

It is mainly analyzed through financial ratios, such as asset-liability ratio, current ratio, quick ratio, gross margin, return on equity, return on total assets, etc.

The main issues that should be paid attention to in the financial analysis of different enterprises are:

1. Differences in accounting policies.

The company's policy or approach to businesses whose amounts need to be determined by subjective professional judgment, and when there are multiple alternative accounting methods for the same business.

2. Confirmation of similar enterprises.

In actual analysis, "similar enterprises" are often conceptual, so that two similar enterprises identified by a certain financial analyst may not be considered by other financial analysts to be similar enterprises.

3. Use of non-monetary information.

Some non-monetary aspects of information are more important to the information users of the enterprise than monetary information. For example, two companies of the same type with the same financial position, one in the upward phase and the other in the downward phase, are only in the same financial position at a certain point in the process of rising and falling. This upward and downward trend is not necessarily reflected in the statements.

In particular, it cannot be reflected in the information of a fiscal year's statements.

Extraction code: Z801 Zhang Xinmin "Analysis of Enterprise Financial Statements". This course combines various activities such as the establishment, operation and expansion of enterprises with the external performance of financial statements, and provides a new interpretation of corporate financial statements from the perspective of management.

The core parts of the course include strategic interpretation of financial statement information, competitive analysis, analysis of corporate performance and quality, and analysis of corporate risks and prospects. The important innovation of this course is that it breaks through the traditional financial ratio analysis, closely combines the content of the financial statements with the reality of enterprise management, and integrates the latest cases of enterprise financial statement analysis.

In terms of content explanation, a combination of theoretical explanation and case analysis is adopted to make the whole content easy to understand.

Course Catalog: Analysis of Profit Quality and Statement of Changes in Owners' Equity.

Quality of capital structure analysis and umbrella analysis of balance sheets.

Composition and quality analysis of owner's equity items.

Liabilities and income tax payable.

Quality analysis of key non-current assets.

Liquid asset quality analysis.

Debt-to-asset ratio, current ratio, velocity ratio, inventory turnover ratio. Pay attention to accounts receivable and accounts payable, which can be the operating income and cash flow of the enterprise in the future period.

Hello, according to your problem description, the solution provided to you here is as follows: Analyze the financial statement method for two years.

First, it is necessary to clarify the purpose of the analysis of this report The users of the report are different, and their evaluation angles are also different. If you are a creditor, you are concerned about the solvency of the business; If you are an investor, you care about the future development ability of the company; If you are a business operator, you care about the state of the business in all aspects; Therefore, we must be very clear about the purpose of our analysis. 2. Determine the key items of report analysis After clarifying the purpose of report analysis, we can determine the key items of this analysis.

3. Focus on the Relationship between Key Analytical Items The conclusions drawn from one report may be one-sided, and the comprehensive conclusions drawn from looking at three reports are certainly more reliable than those reached by looking at one report. Therefore, after determining the key items for report analysis, we must not forget to link and analyze the data of each project. When conducting report analysis, it is necessary to clarify the purpose, determine the focus of analysis, and pay attention to the interconnection between indicators.

4. Reading the Balance Sheet What are the main messages that the balance sheet gives us? On the right side of the balance sheet: capital structure – financial risk; Left side of the balance sheet:

Asset structure – operational risk; To the right of the balance sheet is the company's funds**. Through the comparison of the amount of liabilities and owners' equity items, and the comparison between the end of the period and the beginning of the period, it is basically possible to judge the level of financial risk of the enterprise and its change trend; To the left of the balance sheet is the distribution of the company's assets. Through the comparison of the amount of current assets and long-term assets, and the comparison between the end of the period and the beginning of the period, we can basically judge the level of business risk and its change trend. Therefore, after getting the balance sheet, one looks at the funds, the second looks at the distribution of assets, and the third is a comparative analysis of the front and back.

It can be used to determine the level of financial risk and operational risk of the enterprise, and whether the asset capital structure is reasonable. 5. Reading the cash flow statement What are the main messages of the cash flow statement for us? net cash flow from Huaihong Huying activities; net cash flow from investment activities; net cash flows from fund-raising activities; net increase in cash and cash equivalents; Among them, the cash flow generated by operating activities is the most basic and fundamental; In addition, we need to understand the correlation between the cash flows of operating activities, investment activities, and financing activities.

If there is money flowing in from business activities, there will be money flowing out of investment; If there is enough money flowing in from business activities, dividends can be distributed, debts can be repaid, and money will flow out from financing activities; On the contrary, if business activities are sluggish, the cash flow of business activities will shrink or even be negative; What to do if the funds are not enough, fundraising, therefore, there will be money flowing in fundraising activities; If it doesn't work, then smash the pot and buy iron, dispose of idle assets, and at this time, investment activities will.

1. The main content of the report analysis and description.

1.Analytical description of the methodology. Report analysis generally adopts a comparative method, which includes:

1)compare the actual data for the current period of the indicator with the Program or Budget to identify discrepancies;

2) Compare the actual indicators of the current period with the previous year or the best level in history to analyze the development trend of the unit;

3) Compare the actual indicators of the current period with those of other units in the same industry to find gaps and propose corrective measures.

2.Analyze the content of the description.

1) Basic information. The basic situation is an overview of the analysis and description of the report, and in this part, it should be expressed in concise and clear words. Such as the production and operation status of the enterprise, the realization and distribution of target profits, the increase and decrease of funds and capital turnover, the completion of costs and income plans, the payment of taxes, the increase or decrease of the situation, the change of owners' equity, the matters that have a significant impact on the financial status of the current or next period, and other matters that need to be explained.

2) The main problems affecting the completion of the program and their causes. This is the core content of report analysis, and it is necessary to analyze major factors with a combination of numbers and words. For example, the profit margin of sales is used to analyze the profitability level of sales revenue; Use the return on total assets to analyze the profitability of all assets; Use the rate of return on capital to analyze the profitability of investors' invested capital; Analyze the integrity and preservation of invested capital with the capital preservation and appreciation rate; Analyze the asset-liability level and solvency of the enterprise with the asset-liability ratio, current ratio, quick ratio, accounts receivable turnover and inventory turnover ratio; Using the social contribution rate and social accumulation rate, the level of contribution of enterprises to the country is analyzed.

3) Measures and effects to improve management. This is the main content of text analysis. It is necessary to point out the problems existing in management in a targeted manner, analyze the causes and degree of influence from both subjective and objective aspects, as well as the measures taken and the results achieved for the existing problems.

4) The direction of future efforts. In this part, we should affirm the achievements and point out the good measures and methods that should be adhered to in the future work; Propose problems and links that need to be overcome in the future; Suggestions are made on areas that need to be strengthened.

2. Commonly used evaluation indicators for financial analysis:

1 Debt-to-asset ratio measures a firm's ability to use creditors to fund its operations, and.

Reflects the degree of security with which creditors make loans.

2 Current Ratio Measures the amount of cash that a company's current assets can be used to repay short-term debts before they mature.

Ability to repay current liabilities.

3 Quick Ratio. A measure of the ability of a company's current assets to be used immediately to repay current liabilities.

Liquid Assets, Current Assets, Inventories.

4 Accounts receivable turnover ratio reflects the degree of liquidity of accounts receivable of an enterprise.

5 Inventory Turnover Ratio measures whether a company's sales capacity and inventory are excessive.

6 Return on capital measures the profitability of the investor's capital invested in the enterprise.

7 Sales Profit Tax Rate A measure of the level of revenue from sales revenue.

8 Cost Profit Ratio reflects the relationship between costs and profits of an enterprise.

It should be considered in both vertical and horizontal directions.

1. Longitudinally, ignore the comparison with historical data. The analysis of financial statements is more based on the existing data analysis of the actual situation, for the comparison of historical data, one is that there are fewer comparison indicators, and the other is because environmental changes cannot meet the conditions for comparison;

2. Horizontally, ignore the comparison with other enterprises of the same kind. First of all, it is difficult to obtain the financial reports of other companies of the same kind except for listed companies, and secondly, even if they are listed companies, they are less likely to be compared with other companies in practice.

These are comparisons between data that are overlooked in the analysis of financial statements.