Analysis Of Consolidated Financial Statements

(1) buying method. As the name suggests, it is to deal with the purchase of enterprises in accordance with the principle of dealing with common purchase assets. To put it simply, a buyer's company records its total purchase in terms of its total cost of expenditure. If we purchase money, bonds and preferred stock separately, the corresponding amount of money, the present value of the bond and the fair value of the stock are the cost of purchase. This constitutes the main feature of the law of purchase: the value of the net assets of the purchased enterprise has been reconfirmed, that is to say, a new valuation basis has been created; the goodwill formed in the purchase process should be confirmed; the value added amortization exists; the value-added amortization and goodwill will reduce the combined income.

(2) rights and interests set. The pooling of rights and interests refers to the handling of the shareholding of the shareholders of two or more enterprises by exchanging common shares with voting rights, that is, directly affecting the owners' rights and interests. Contrary to the law of purchase. Therefore, the main characteristics of the law of rights and interests collection are: because no new valuation basis is generated, the book value of the assets and liabilities of the purchased enterprise is still used when compiling the consolidated financial statements; the goodwill formed in the purchase process does not need to be recognized; goodwill and value-added amortization do not affect the combined income of the enterprise.

Analysis of consolidated financial statements

(1) solvency analysis of solvency, as the name implies, refers to the ability of enterprises to repay all kinds of debts. Liquidity ratio, quick ratio, asset liability ratio and interest protection multiple can reflect the solvency of enterprises. Enterprise group is not an independent legal entity. However, the creditor is relative to the independent legal entity. Therefore, the creditor's right to exercise the claim is the property owned by the legal person. From this perspective, it is scientific and reasonable to analyze consolidated financial statement data based on individual financial statement data, which is conducive to making the right credit decisions. The solvency analysis includes short term solvency analysis and long-term solvency analysis.

The core indicator of short-term debt servicing capacity is the liquidity ratio. Liquidity ratio = current assets and current liabilities. Generally speaking, the higher the current ratio reflects the stronger the short-term debt paying ability of the enterprise, the more secure the creditor's rights and interests are. According to the long-term experience of western enterprises, the proportion of 2:1 is generally considered appropriate.

The core index reflecting long-term solvency is asset liability ratio. Asset liability ratio = total liabilities and total assets. Generally speaking, the smaller the ratio, the stronger the long-term debt paying ability of enterprises. If this ratio is relatively large, from the owners of enterprises, less capital investment is used to form more production assets, which not only expands the scale of production and operation, but also can make use of financial leverage to obtain more investment profits under the condition of good operation.

(two) operational capability analysis, which is the ability of enterprise group managers to make effective use of assets, can reflect the management level of enterprise groups to a certain extent. Inventory turnover, fixed assets turnover and accounts receivable turnover rate can reflect the operation capacity of an enterprise. The analysis of enterprise operation capability is to calculate and analyze the index reflecting the efficiency and efficiency of enterprise assets, and to evaluate the operation capability of enterprises, and to point out the direction for enterprises to improve their economic benefits. The analysis of operational capability is helpful to evaluate the efficiency of enterprise asset operation. It is helpful to find out the problems existing in the assets operation of enterprises. It is also the basis and supplement for profitability analysis and solvency analysis. There are two specific situations in the analysis of the operation capability of an enterprise: one is that the enterprises with horizontal merger are the same as those of the parent subsidiary company; the two is the vertical merger or mixed merger enterprise, that is, in order to adopt the diversified operation mode.

(three) profitability analysis profitability refers to the ability of enterprise groups to gain profits, to a certain extent, reflects the performance of managers of enterprise groups. The main business profit rate, return on assets and capital yield rate can reflect the profitability of enterprises.

Net profit rate of main business = net profit. Net income of main business is 100%. Net profit = gross profit - income tax. The higher the index, the stronger the ability of the company to get profits from the main business income. There are many factors that affect the index, such as commodity quality, cost, price, sales volume, period cost and tax. (original author: Zhu Shengjiao) asset return ratio = net profit, total assets average 100%. Average assets = (initial assets total + end assets total) 2. The higher the ratio, the stronger the profitability of all assets. This index is directly proportional to the net profit rate, and is inversely proportional to the total assets.

　　 Rate of return on capital = net profit / paid up capital (or capital stock) * 100%. The higher the index, the better the economic benefit of the enterprise's own investment. The less the investor's risk is, the more worthy of investment and continuous investment. Therefore, it is an important basis for investors and potential investors to make investment decisions. For business operators, if the capital yield ratio is higher than the debt capital cost rate, moderate debt management is beneficial to investors; otherwise, if the capital yield ratio is lower than the debt capital cost rate, the excessive liability operation will damage. Investor Interests.

(four) Growth ability analysis The growth ability of enterprises refers to the future development trend and speed of development, including the expansion of the scale of enterprises, the increase of profits and owners' rights and interests. The growth capability of enterprises is the ability to grow continuously as the market environment changes, and the scale of assets, profitability and market share of enterprises will continue to grow. This reflects the future development of enterprises. The purpose of enterprise growth capability analysis is to illustrate the long-term expansion capability of enterprises and the strength of the future production and operation of enterprises. The main indicators to evaluate the growth ability of enterprises are: the growth rate of main business, the growth rate of main business profit and the growth rate of net profit.

Enterprises should constantly improve their financial analysis according to their actual situation, so that the financial analysis method can be more perfect and reasonable, so as to achieve the goal of financial management and improve the economic efficiency of enterprises.