Application of Factor Analysis in Financial Statements? Rush 5

Analysis of general financial statements in financial management.

The main methods include trend analysis, ratio analysis, and factor analysis.

1. The trend analysis method is an analysis method that finds problems and provides clues for recourse and inspection of accounts through the analysis of the change trend of the base period in each period of the relevant indicators.

Trend analysis can be done in relative or absolute terms.

However, if it is compared with different companies, it is generally compared with relative numbers.

2. The ratio analysis method is an analysis method that analyzes the financial status and operating results of the enterprise and understands the development prospects of the enterprise through the ratio calculation of the relevant indicators of the financial statements.

The exam is more commonly tested, such as the profitability ratio, solvency ratio, turnover ratio, etc.

3. Factor analysis method, which is also a common test item in the financial management examination, in the following analysis methods, comparative analysis method.

and the Ratio Analysis method can identify differences in changes in various economic indicators in the financial statements. However, if we want to understand the reasons for the differences and the extent to which each of them influences the formation of differences, it is necessary to further apply factor analysis to carry out specific analyses.

Factor analysis, also known as the chain substitution method, is used to determine the impact of several interrelated factors on a financial indicator.

The degree of impact, which is an analytical method to explain the main reasons for changes or differences in financial indicators. The starting point for this method is to determine the effect of individual changes in each factor sequentially assuming that none of the other factors have changed when there are several factors that affect the object of analysis.

The specific steps are as follows.

1) Decompose the analysis object - a comprehensive index into various constituent factors.

2) Determine the order of the factors in the opening of the cave.

3) Calculate the base number of each factor in the order in which it is determined.

4) Replace the base number with the actual number of each factor in order, calculate the result after substitution, and compare the result with the calculation result after the previous substitution, and calculate the degree of influence until the replacement is completed.

5) Calculate the sum of the influence degree of each factor, and compare it with the total difference of the comprehensive index to check whether it is consistent.

Complementary relationships.

There is a complementary relationship between financial and non-financial analysis. Financial analysis is an analytical method that focuses on financial data, which focuses on studying the company's financial indicators such as income, expenses, profits, assets, liabilities, etc., to understand the company's financial status and changes in financial status, so as to better manage the company's financial activities. Non-financial analysis is an analysis method that comprehensively considers the company's financial situation, which not only focuses on financial data, but also pays attention to the company's market position, competitive advantage, management level, technical level, brand image and other factors, and studies the company's development status from a more objective perspective.

Therefore, there is a complementary relationship between financial analysis and non-financial analysis.

Relationship refers to the state in which things interact with each other and influence each other. The direct psychological relationship or psychological distance between people in the process of activity. Relationships can be divided into formal and informal relationships, with informal relationships being older and more common than formal relationships.

Factor analysis.

Trend analysis.

Summary. Factor analysis refers to a multivariate statistical analysis method that reduces some variables with overlapping information and intricate relationships to a few unrelated comprehensive factors based on the dependence within the correlation matrix of the study indicators. The basic idea is:

The variables are grouped according to the size of the correlation, so that the correlation between the variables in the same group is high, but the variables in different groups are unrelated or have low correlation, and each group of variables represents a basic structure, that is, a common factor. Financial index analysis refers to the analysis indicators that summarize and evaluate the financial status and operating results of an enterprise, including solvency index, operational ability index, profitability index and development ability index.

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Factor analysis method refers to a multivariate statistical analysis method that starts from the dependence of the local space and part within the correlation matrix of the study index, and reduces some variables with overlapping information and intricate relationships to a few unrelated comprehensive factors. The basic idea is that the variables are grouped according to the size of the correlation, so that the correlation between the variables in the same group is high, but the variables in different groups are unrelated or have low correlation, and each group of variables represents a basic structure, that is, a common factor.

Financial index analysis refers to the analysis indicators that summarize and evaluate the financial status and operating results of an enterprise, including solvency index, operational ability index, profitability index and development ability index.

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Return on original total assets = total asset turnover ratio * EBIT margin on sales = (operating income Average total assets) * (EBIT Operating income) = 4000 11200 * 160 4000 * 100% =.

Return on total assets after adding new product lines = (operating income average total assets) * (EBIT operating income) = (5000 15000) * (250 5000) * 100% = , difference, the impact of changes in total asset turnover on total assets on total assets: (5000 15000) * (160 4000) * 100% - 4000 11200 * 160 4000 * 100% = The impact of changes in sales EBIT margin on total assets: (5000 15000)*(250 5000)*100%-(5000 15000)*(160 4000)*100%=, changes in total asset turnover and changes in sales EBIT margin jointly affect total assets EBIT margin:.

It is best to have example questions! Factor analysis.

Trend analysis.

Factor analysis is widely used in financial management, as follows:

1) The use in financing: according to the actual amount of capital occupied by the enterprise in the base period and the increase or decrease of the relevant factors in the first period, the capital requirements of the enterprise in the first period are calculated. It is calculated as follows:

** Amount of funds required for the period = (the actual amount of funds occupied in the base period - the unreasonable amount of occupation) (the percentage of change in the business volume of the 1 ** period) (the percentage of change in the assets of the 1 ** period) (the percentage of change in the capital turnover rate of the 1 ** period).

2) The application in profit**: main business target profit = product sales profit in the previous period Profit affected by changes in sales ** in the planning period Profit affected by changes in sales quantity in the planning period Profit affected by changes in variety structure in the planning period Profit affected by changes in cost changes in the planning period Profit affected by changes in tax rates in the planning period Profit or loss from sales of incomparable products in the planning period.

3) Application in budgeting: According to the relationship between revenue, cost and other factors affected by changes in business volume and profits, the table reflects the corresponding budget profit level when these factors change respectively.

4) The application of financial analysis: the use of financial statements and other relevant information, the use of factor analysis method to reflect the financial status and operating results of the relevant data analysis and calculation, so as to reveal the relationship between the data, used to determine the impact of each factor on the index degree and direction. Factor analysis method can not only comprehensively analyze the impact of various factors on an economic index, but also can analyze the impact of a factor on an economic indicator alone, and is widely used in financial analysis.

Methods of Financial Statement Analysis:

1. Comparative analysis method (also divided into the analysis of important financial indicators: fixed base ratio and ring dynamic ratio, comparison of accounting statements and comparison of accounting statement composition).

2. Ratio analysis method: It is divided into three factor analysis methods: component ratio, efficiency ratio and related ratio: it is also divided into chain substitution analysis method and difference analysis method, and various analysis methods complement each other and are inseparable. Generally, the above analysis methods are used in combination in the hope that they will be useful to you.

1. Comparative analysis.

Specifically, it is divided into: comparison of financial indicators, comparison of accounting statement items, comparison of report item composition 2, and ratio analysis method.

Specifically, it is divided into: serial substitution analysis and difference analysis.