How To Read The Financial Statements Of Listed Companies?

First is Reading financial statements 。 Read the items in the accounting report carefully. In reading, we should pay attention to the following contents: first, a large amount of money and a large change in the project to understand its impact; two, we need to know the situation of the controlling shareholder and the company's subsidiaries, understand the controlling ratio of the controlling shareholders, the importance of the listed companies to the controlling shareholders, other assets owned by the controlling shareholders, and the financial situation of the controlling shareholders. Three, we should make a detailed understanding and analysis of the transactions between the affiliated parties.

　 Items that should be highlighted when reading financial statements

1. The relationship between accounts receivable and other receivables. If the same amount of the same unit is adjusted from accounts receivable to other receivables, it is possible to manipulate profits.

2, the relationship between accounts receivable and long-term investment. If a unit's accounts receivable is reduced, the long-term investment in the unit will be increased, and the amount of increase or decrease will be close, which indicates the possibility of profit manipulation.

3, the amount of loss to be paid and property to be dealt with. If the amount of the expenses to be paid and the amount of property to be dealt with is relatively large, there may be a problem of delaying the cost into the profit and loss account.

4. Comparison of loans, other receivables and financial expenses. If the company has large other payable on related units, and at the same time, the financial cost is relatively low, indicating that the profit related units may reduce the financial cost.

　　 Analysis of financial indicators

When we have a preliminary report on the financial statements of listed companies judge It is believed that there is no major fraud. The next step is to make simple analysis of the data in order to draw a reliable conclusion. As a listed company, the solvency and profitability of enterprises are the core indicators of analysis.

　　 (1) analysis of debt paying ability

Corporate solvency is an important symbol to reflect the financial position and operational capability of an enterprise. Debt paying ability is the ability of enterprises to repay their debts due to maturity, including the ability to repay short-term and long-term debt.

Generally speaking, the pressure of enterprise debt repayment is mainly in two aspects as follows: first, the repayment of general debt principal and interest, such as various long-term loans, bonds payable, long-term payment and various short-term settlement debts, etc. Two, there are various rigid taxes payable, and enterprises must pay for them. Not all debts are directly responsible for the business. The real pressure on corporate debt is the debt that is due at the moment, not including those that are not yet due. Whether an enterprise can repay its mature debts is based on sufficient assets or capital base, and enough cash inflow is guaranteed. Debt paying ability is the most important concern of creditors. In view of the safety considerations of enterprises, it has attracted more and more attention from shareholders and investors. {page_break}

The low debt paying ability of enterprises not only indicates that the capital turnover of enterprises is not good enough, but also is difficult to repay debts due to maturity, and even indicates that enterprises are facing bankruptcy risks.

1, current ratio = current assets, current liabilities * 100%

This ratio is an indicator of the ability of enterprises to use current assets to repay current liabilities, indicating how much liquid assets of each current liability of an enterprise can be used as a guarantee of payment.

Generally speaking, for most enterprises, the ratio of liquidity to 2:1 is a relatively appropriate ratio. This is because the stock with the worst liquidity in current assets accounts for about half of the total liquid assets. The remaining liquid assets with large liquidity are at least equal to current liabilities, so that the short-term solvency of enterprises will be guaranteed. The current ratio is too low, and enterprises may face difficulties in settling debts due to maturity. The high rate of liquidity indicates that enterprises have closed liquid assets which can not be profit-making, the utilization rate of assets of enterprises is low, the management is slack, and the funds are wasted. At the same time, enterprises are too conservative to make full use of the current borrowing ability.

2, quick ratio = (liquid assets inventory), current liabilities * 100%

As the liquidity in the current assets is the slowest, or for some reason, some of the stocks may have been scrapped, and no part of the inventory has been processed or some of the stocks have been mortgaged to a creditor. In addition, there is a disparity between the cost and the reasonable market price in inventory valuation. Therefore, the short-term ratio of debt to be reflected by the quick ratio deducted from the total amount of liquid assets is more believable.

It is generally believed that the quick ratio of 1:1 is considered reasonable. It shows that every 1 yuan of current liabilities of the company has 1 yuan of quick assets, that is, assets with cash or approximate cash. If the quick ratio is high, it means that the enterprise has enough ability to repay the short-term debt, and at the same time, it also indicates that the enterprise has more cash and accounts receivable which can not be profit-making, and the enterprise will lose the opportunity to gain. If the company is on the low side, the enterprise will rely on the sale of inventory or new debt to repay the debt due. This may result in the loss of the price cut or the interest burden on the new debt. But this is just the general view, because the speed ratio will vary greatly because of different industries.

3, asset liability ratio = Total Liabilities Total Assets * 100%

The ratio of assets to liabilities reflected in the proportion of total assets is raised through borrowing, and it can also measure the degree of protection of creditors' interests in liquidation. This index reflects the proportion of capital provided by the creditor to total capital. This index is also known as the ratio of debt to business. From the standpoint of shareholders, when the total capital profit rate is higher than the loan interest rate, the larger the liability ratio, the better.

4, property rights ratio = total liabilities, total shareholders' interests * 100%

The index reflects the relative relationship between the capital provided by the creditor and the capital provided by the shareholders, which reflects whether the basic financial structure of the enterprise is stable.

Generally speaking, shareholders' capital is better than borrowed capital, but it can not be generalized. From the perspective of shareholders, in the period of inflation intensification, enterprises can borrow more debt to transfer losses and risks to creditors. During the boom period, enterprises can borrow extra money to obtain additional profits. During the economic recession, less borrowing can reduce interest and financial risks. The high ratio of property rights is a highly risky and highly remuneration financial structure; the low property rights ratio is a low risk and low reward financial structure. The index also indicates that the capital invested by creditors is protected by shareholders' rights, or the degree of protection of creditors' interests in liquidation. {page_break}

　　 (two) profitability analysis of enterprises

Profit is an important guarantee for investors to obtain investment income. There are many indicators reflecting the profitability of enterprises, usually from the profitability of production and business operations, asset profitability analysis.

1, operating profit margin = operating profit, business income 100%

As an indicator of profitability, business profit margins tend to be more comprehensive than gross profit margins. The reasons are: first, it not only examines the profitability of the main business, but also examines the profitability of the business. Second, the operating profit rate not only reflects the relationship between total income and the costs and expenses directly related to it, but also reduces the period cost from the revenue. Most of the items in the period cost belong to the fixed costs that must be taken to maintain the company's production and operation capacity in a certain period, and must be offset from the current income. After the company's total business income is deducted from the operating cost and the full period cost, the remaining parts can constitute a stable and reliable profitability of the company.

2, capital profit ratio = gross profit, total capital * 100%

This ratio is a measure of the profitability of enterprise capital. The profit margin of capital increases, and the owner's investment income and national income tax increase. Making use of benchmark capital profit rate as a basic standard to measure capital yield. The benchmark profit rate should be determined according to the relevant conditions. Generally, it includes two parts: first, it is equivalent to the market loan interest rate of the same period, which is the lowest return on investment. The two is the risk cost rate. If the actual capital profit rate is lower than the benchmark profit margin, it is a dangerous signal, indicating that profitability is seriously insufficient.

3, business index = operating cash flow net profit x 100%

The operating index reflects the relationship between net cash flow of operating activities and net profit, which shows how much of the company's net profit actually receives cash.

Under normal circumstances, the larger the ratio, the higher the quality of corporate earnings. If the ratio is less than 1, it shows that there is still no cash income in the current net profit. In this case, even if the company is profitable, there may be a cash shortage, which will lead to bankruptcy.