What are the key points of financial analysis made by the chief financial officer

In recent years, with the more extensive and in-depth penetration of financial management into the business management activities of enterprises, timely revealing the risk matters in business management through financial analysis and putting forward management suggestions have increasingly become the key content in financial work, and have been paid attention to by the decision-makers of enterprises. The following is what I share with you about the key points of financial analysis by the CFO. Welcome to read and browse.

First, pay attention to cash flow

Look at the cash flow statement, mainly to find out whether the profit of the enterprise is true, whether it hides the profit, and whether it has development prospects. There are generally three items in the cash flow statement: cash flow from operating activities, cash flow from investment activities and cash flow from financing activities (in short, if the cash flow balance of the enterprise is positive, it means that the funds after the production and operation of the enterprise flow into the enterprise, indicating that the enterprise is in good operating condition, and the key point is to see that the cash flow from operating activities is positive, which is the foundation of the enterprise. In many enterprises, the overall cash flow balance is positive, but the cash flow from operating activities is negative, which is compensated by the positive cash flow from investment activities and financing activities, indicating that the enterprise's management ability is poor or its market viability is poor. Of course, if even the cash flow balance is negative in the end, it goes without saying) The annual report of an enterprise should also provide an additional item, that is, list the difference between the net profit of the enterprise and the cash flow from operating activities. In this table, you can learn in detail the influence of assets impairment, provision for bad debts, depreciation of assets, changes in inventory and changes in accounts receivable on the cash inflow. Through this table, we can basically judge the real performance of the enterprise.

2. Pay attention to the integration of financial and business information

Financial analysis needs the support of financial indicators based on financial data, and the basic data of financial indicators usually come from basic financial statements such as balance sheets and income statements. The adjustment of accounting policies and accounting estimates according to the actual situation will affect the continuity and comparability of financial data to a certain extent.

At the same time, as the main reference information for stakeholders to understand the enterprise's situation, accounting statement items pay more attention to the reflection and presentation of the overall situation of the enterprise. The analysis work, especially the analysis of production and operation activities that provide information support for business decision-making, often pays more attention to the actual results of production and operation, that is, excluding the influence of non-business matters such as changes in accounting policies, reflecting how the financial achievements of actual business activities really flow into and out of the enterprise? Real money? What's the situation?

therefore, it will be more helpful for analysts to put forward forward forward forward forward-looking and valuable reference information by establishing the relationship between financial information and production business information as far as possible, exploring the deep integration of production statistical information and financial information, and making quantitative comparison, and then tracing back to the source of changes in financial information and finding potential risks and weak links.

Third, pay attention to the trend and stage of indicators

Usually, ratio analysis and comparative analysis are the most important methods of financial analysis. The commonly used ratio analysis of two-year comparison may be misleading, especially when the results include some non-recurring gains and losses caused by good or bad projects that only appear in 1 years. Therefore, relatively speaking, it is necessary to examine the development of the company in five years or even longer.

investigating the company's development in five or even 11 years is helpful to explain whether the key ratio indicators such as financial leverage, return on assets and accounts receivable turnover rate have changed significantly. If these key indicators have changed significantly, it is necessary to determine the possible reasons and consider the possible future development trend. At the same time, trend analysis should consider the influence of changes in accounting policies and accounting estimates on financial data, try to adjust the basic data to a policy standard with the same * * *, and adopt a consistent calculation method and caliber range.

while paying attention to the trend of financial indicators, we should also pay attention to their stages. Enterprises are at different stages of development and adopt different financial strategies, and the corresponding financial indicators will also be affected. When an enterprise is in different periods such as growth and expansion, maturity, etc., there will be different strategic orientations in terms of capital investment, financing channels and profit distribution, which will be reflected in the changes of some major financial indicators such as asset-liability ratio and interest guarantee multiple.

It's not easy to do a good job in financial analysis. People engaged in financial analysis should not only calm down, break the relevant information and data, but also look for patterns and questions in depth and detail. How many more questions should they ask? Why? ; We should also look up, see clearly the changes in the environment and situation of the enterprise, and organically link external information, internal situation, quantitative and qualitative information and other factors. How much do you think? Is it possible? , so as to make a comprehensive and objective analysis conclusion. ;