How to understand the content of financial analysis of a business

Financial analysis generally analyzes the increase and decrease trend or abnormality of the monthly, quarterly, annual revenue, cost and expense and its detailed item structure through year-on-year analysis and comparison, month-on-month analysis and comparison, and budget execution analysis and comparison, finds out the problem, and proposes solutions to provide financial guidance for subsequent operations.

Assets, Liabilities, Owners' Equity.

1. Financial analysis is an important basis for evaluating financial status and operating performance;

Through financial analysis, we can understand the solvency, operating ability, profitability and cash flow of the enterprise, reasonably evaluate the operating performance of the operator, reward the good and punish the bad, and promote the improvement of the management level.

2 Financial analysis is an important means to achieve financial goals;

The fundamental goal of corporate finance is to maximize the value of corporate weighting. Through financial analysis, we will continue to tap the potential, expose the contradictions from all aspects, find out the gaps, fully understand the human and material resources that Weiling Xingbi is using, find the reasons for the use of non-renting, and promote the operation of business activities in accordance with the goal of maximizing enterprise value.

3 Financial analysis is an important step in implementing sound investment decisions;

Through financial analysis, investors can understand the profitability and solvency of the enterprise, so as to further improve the level of income and risk after investment, so as to make correct investment decisions.

1. Capital operation analysis: according to the company's business strategy and financial system, supervise the company's cash flow and the use of various funds, and provide information and decision-making support for the company's capital operation, scheduling and overall planning;

2. Financial policy analysis: according to various financial statements, analyze and improve the company's financial benefits and risks, and provide suggestions for the company's business development, the establishment and adjustment of financial management policies and systems;

3. Business management analysis: participate in the financial, budget execution analysis and performance analysis of sales and production, and put forward professional analysis suggestions to provide professional financial support for business decisions;

4. Investment and financing management analysis: participate in financial calculation, cost analysis, sensitivity analysis and other activities of investment and financing projects, cooperate with superiors to formulate investment and financing plans, prevent risks, and maximize the company's interests;

5. Eyeing financial analysis report: according to the financial management policy and business development needs, write financial analysis report, investment financial research report, feasibility study report, etc., to provide analytical support for the company's financial decision-making.

Hello, glad you asked. There are many functions of financial analysis, for example, cost analysis, you can find out what kind of expenditure is relatively large, whether it belongs to fixed costs or variable costs, and if it is variable costs, then how much room can be saved, that is, to tap profit margins. It can also be analyzed by department, and you can see whether the expenses of each department are reasonable, whether they exceed the budget, the reasons for overspending, the reasons for erosion and savings, and so on.

Revenue analysis, through the analysis to find changes in revenue structure, marketing effects, and so on. Financial analysis can help enterprises better improve management efficiency, improve corporate profitability and so on. Thank you.

The purpose of financial analysis: whether the assets of the enterprise can be realized in a timely manner and how well it can pay its debts.

Investors: Analyze the profitability and capital structure of the company, understand the asset management and usage, the profitability of the company, and the long-term development trend of the company.

Enterprise management personnel: make accurate judgments on the financial status and operating results of the enterprise, and improve the management level of the enterprise.

National Macro-Control and Regulatory Departments:

As the owner of a state-owned enterprise, it is necessary to understand the production and operation of the enterprise;

As a national macroeconomic management organization, it is necessary to understand the direction of the development of the national economy, inspect whether the enterprise operates legally, and whether the enterprise pays taxes according to law.

Financial analysis is a kind of work that uses the data of financial statements and other relevant supplementary information to comprehensively compare and evaluate the financial status, operating results and cash flow of an enterprise.

1 Solvency analysis.

Solvency refers to the ability of an enterprise to repay its debts on schedule, including 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.

Looking at the ruler from the perspective of the creditor's spine, through the solvency analysis, it is helpful to understand the safety of the loan to protect its debt.

The principal and interest 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.