financial indicator analysis refers to the analysis indicators that summarize and evaluate the financial status and operating results of an enterprise, including solvency indicators, operational indicators, profitability indicators and development indicators. What are the contents of financial indicator analysis?

analysis of financial indicators: analysis of solvency

solvency refers to the ability of an enterprise to repay debts (including principal and interest) due. The solvency analysis includes short-term solvency analysis and long-term solvency analysis.

(I) Analysis of short-term solvency

Short-term solvency refers to the degree of guarantee that current assets of an enterprise can repay current liabilities in full and on time, and it is an important symbol to measure the current financial ability of an enterprise, especially the liquidity of current assets.

the short-term solvency analysis of enterprises mainly adopts the ratio analysis method, and the measurement indicators mainly include current ratio, quick ratio and cash flow debt ratio.

1. Current ratio

The current ratio is the ratio of current assets to current liabilities, which indicates how much current assets an enterprise has per yuan of current liabilities as a guarantee for repayment, and reflects the ability of current assets of an enterprise to repay current liabilities. The calculation formula is:

current ratio = current assets? Current liabilities

In general, the higher the current ratio, the stronger the short-term solvency of the enterprise, because the higher the ratio, not only reflects that the enterprise has more working capital to pay off short-term debts, but also shows that the amount of assets that the enterprise can realize is larger, and the risk of creditors is smaller. However, it is a good phenomenon that the current ratio is too high and uneven.

theoretically, it is reasonable to keep the current ratio at 2: 1. However, due to the different nature of the industry, the actual standard of the current ratio is also different. Therefore, when analyzing the current ratio, we should compare it with the average current ratio of the same industry and the historical current ratio of this enterprise in order to draw a reasonable conclusion.

2. Quick ratio

Quick ratio, also called acid test ratio, is the ratio of quick assets to current liabilities of an enterprise. The calculation formula is:

quick ratio = quick assets? Current liabilities

in which: quick assets = current assets-inventory

or: quick assets = current assets-inventory-prepayments-prepaid expenses

When calculating the quick ratio, inventory is deducted from current assets because it is realized slowly in current assets, and some inventories may be unsalable and cannot be realized. As for prepayments and prepaid expenses, they have no liquidity at all, but only reduce the future cash outflow of enterprises, so they should also be eliminated in theory, but in practice, because they account for a small proportion of current assets, they can not be deducted when calculating quick assets.

Traditional experience holds that it is normal to maintain the quick ratio of 1: 1, which indicates that every current liability of an enterprise in 1 yuan is compensated by the current assets that can be easily realized in 1 yuan, and the short-term solvency is reliably guaranteed.

If the quick ratio is too low, the short-term risk of debt of the enterprise is large, and the quick ratio is too high, the enterprise will occupy too much capital on quick assets, which will increase the opportunity cost of enterprise investment. But the above criteria are not absolute.

3. Ratio of cash current liabilities

The ratio of cash current liabilities is the ratio of net operating cash flow to current liabilities of an enterprise in a certain period, which can reflect the ability of an enterprise to pay short-term liabilities in the current period from the perspective of cash flow. Its calculation formula is:

cash current debt ratio = annual net operating cash flow? Year-end current liabilities

The mid-year net operating cash flow refers to the difference between the inflow and outflow of cash and cash equivalents generated by business activities of enterprises in a certain period.

this indicator is to investigate the actual solvency of enterprises from the dynamic perspective of cash inflow and outflow. It is more cautious to use this index to evaluate the solvency of enterprises. This indicator is relatively large, indicating that the net cash flow generated by the business activities of the enterprise is relatively large, which can guarantee the enterprise to repay the due debts on time. But the bigger the better, too big means that the enterprise's liquidity is not fully utilized and its profitability is not strong.

(II) Analysis of long-term solvency

Long-term solvency refers to the ability of an enterprise to repay long-term liabilities. Its size is an important symbol reflecting the financial stability and safety of enterprises. There are four main analysis indicators.

1. Asset-liability ratio

Asset-liability ratio, also known as debt ratio, is the ratio of total liabilities to total assets of an enterprise. It indicates the proportion of funds provided by creditors in the total assets of an enterprise, and the degree to which the assets of the enterprise protect the rights and interests of creditors. Its calculation formula is:

asset-liability ratio = (total liabilities? Total assets)? 111%

The level of asset-liability ratio has different meanings for creditors and owners of enterprises.

Creditors hope that the lower the debt ratio, the better. At this time, the higher the degree of protection of their creditor's rights.

for owners, the most important thing is the rate of return on invested capital. As long as the return on total assets of the enterprise is higher than the interest rate of borrowing, the more borrowing, that is, the greater the debt ratio, the greater the investment income of the owner.

under normal circumstances, the scale of debt management of enterprises should be controlled at a reasonable level, and the proportion of debt should be controlled within a certain standard.

2. Equity ratio

Equity ratio refers to the ratio of total liabilities to total owners' equity, which is an important symbol of the soundness of an enterprise's financial structure, also known as the capital debt ratio. The calculation formula is:

ratio of liabilities to owners' equity = (total liabilities? Total owner's equity)? 111%

This ratio reflects the degree of protection of owners' rights and interests to creditors' rights and interests, that is, the degree of protection of creditors' rights and interests during enterprise liquidation. The lower this indicator is, the stronger the enterprise's long-term solvency, the higher the degree of protection of creditors' rights and interests, and the smaller the risks it takes, but the enterprise can't give full play to the financial leverage effect of liabilities

3. Debt-to-tangible net assets ratio < P > Debt-to-tangible net assets ratio is the proportional relationship between total liabilities and tangible net assets, indicating the degree of protection of tangible net assets to creditors' rights and interests, and its calculation formula is: < P > Debt-to-tangible net assets ratio = (total liabilities? Tangible net assets)? 111%

tangible net assets = owner's equity-intangible assets-deferred assets

Intangible assets and deferred assets of an enterprise are generally difficult to be used as the guarantee of debt repayment. If they are excluded from the net assets, the degree of protection of creditors' rights and interests during enterprise liquidation can be more reasonably measured. The lower the ratio, the stronger the long-term solvency of the enterprise.

4. Interest guarantee multiple

Interest guarantee multiple, also known as earned interest multiple, is the ratio of enterprise's earnings before interest and tax to interest expense, and it is an index to measure the enterprise's ability to pay interest on liabilities. The calculation formula is:

interest guarantee multiple = profit before tax and interest? Interest expense

In the above formula, interest expense refers to all interest payable in the current period, including interest expense of current liabilities, interest expense of long-term liabilities entering profit and loss and capitalized interest entering the original price of fixed assets.

the higher the multiple of interest guarantee, the stronger the ability of the enterprise to pay interest expenses, and the lower the ratio, indicating that it is difficult for the enterprise to ensure that the operating income will be used to pay the interest on liabilities in full and on time. Therefore, it is the main index to measure whether an enterprise operates with debt and its solvency.

To reasonably determine the interest guarantee multiple of an enterprise, it is necessary to compare this index with the average level of other enterprises, especially the same industry. According to the principle of conservatism, the data of the lowest year of the index should be taken as the reference. However, in general, the interest guarantee multiple cannot be less than 1.

analysis of financial indicators: analysis of operational capability

Operational capability analysis refers to the analysis of the efficiency of asset utilization by calculating the relevant indicators of enterprise capital turnover, and it is an analysis of the management level and asset utilization capability of enterprise management.

(I) Accounts receivable turnover rate

Accounts receivable turnover rate, also known as accounts receivable turnover times, is the ratio of the net income from the main business of goods or products to the average accounts receivable balance in a certain period of time, and is an indicator reflecting the turnover speed of accounts receivable. The calculation formula is:

receivable turnover rate (times) = net income from main business? Average balance of accounts receivable

in which:

net income from main business = income from main business-sales discounts

average balance of accounts receivable = (number of accounts receivable at the beginning of the year+number of accounts receivable at the end of the year)? 2

receivable turnover days =361? Accounts receivable turnover rate

= (average accounts receivable? 361)? Net income from main business

Accounts receivable include? Net accounts receivable? And? Notes receivable? Wait for all the credit sales. Net accounts receivable refers to the balance after deducting bad debt provision. If the bills receivable have been discounted to the bank, they should not be included in the balance of accounts receivable.

The turnover rate of accounts receivable reflects the speed of realizing accounts receivable and the management efficiency of enterprises. The higher the turnover rate, the faster the accounts are collected and the shorter the account age. (2) Strong liquidity and short-term solvency; (3) It can reduce the collection cost and bad debt loss, thus relatively increasing the investment income of current assets of enterprises. At the same time, by comparing the turnover period of accounts receivable with the credit period of enterprises, we can also evaluate the credit degree of purchasing units and whether the original credit conditions of enterprises are appropriate.

however, when evaluating whether the turnover rate of accounts receivable of an enterprise is reasonable, it should be compared with the average level of the same industry.

(II) Inventory turnover rate

Inventory turnover rate, also known as inventory turnover times, is the ratio between the main business cost and the average inventory balance of an enterprise in a certain period of time. It is an indicator reflecting the inventory turnover speed and sales ability of an enterprise, and also a comprehensive indicator to measure the inventory operation efficiency of an enterprise in production and operation. The calculation formula is:

inventory turnover rate (times) = main business cost? Average inventory balance

average inventory balance = (inventory year-beginning number+inventory year-end number)? 2

inventory turnover days =361? Inventory turnover rate

= (average inventory? 361)? Main business cost

The speed of inventory turnover not only reflects the management status of enterprises in all aspects of procurement, error, production and sales, but also has a decisive impact on the solvency and profitability of enterprises. Generally speaking, the higher the inventory turnover rate, the better, and the higher the inventory turnover rate, indicating that the faster it is realized, the greater the turnover, and the lower the level of capital occupation. The lower the level of inventory occupation, the smaller the risk of inventory backlog, and the better the liquidity of enterprises and the efficiency of capital use. However, in the analysis of inventory turnover rate, attention should be paid to eliminating the influence of different inventory valuation methods.

(III) Turnover rate of total assets

Turnover rate of total assets is the ratio of net income from main business to total assets of an enterprise. It can be used to reflect the utilization efficiency of all assets of an enterprise. The calculation formula is:

total assets turnover rate = net income from main business? Average total assets

average total assets = (total assets at the beginning+total assets at the end)? 2

The average occupancy of assets should be determined according to the different analysis periods, and it should be consistent with the net income of the main business of the molecule in time.

the turnover rate of total assets reflects the use efficiency of all assets of an enterprise. The high turnover rate shows that all assets have high operating efficiency and more income; The low turnover rate shows that the operating efficiency of all assets is low and the income obtained is small, which will eventually affect the profitability of enterprises. Enterprises should take various measures to improve their asset utilization, such as increasing sales revenue or disposing of surplus assets.

(IV) Turnover rate of fixed assets

Turnover rate of fixed assets refers to the ratio of the annual net sales income of an enterprise to the average net value of fixed assets. It is an index that reflects the turnover of fixed assets of enterprises and thus measures the utilization efficiency of fixed assets. The calculation formula is:

fixed assets turnover rate = net income from main business? Average net fixed assets

average net fixed assets = (net fixed assets at the beginning+net fixed assets at the end)? 2

The high turnover rate of fixed assets not only shows that enterprises make full use of fixed assets, but also shows that enterprises invest in fixed assets properly and have a reasonable structure of fixed assets, which can give full play to their efficiency. On the contrary, the low turnover rate of fixed assets indicates that the use efficiency of fixed assets is not high, the production results provided are not many, and the operating ability of enterprises is not good.

In the actual analysis of this index, the influence of some factors should be excluded. On the one hand, the net value of fixed assets decreases gradually with depreciation, and the net value will suddenly increase due to the update of fixed assets. On the other hand, due to different depreciation methods, the net value of fixed assets is not comparable.

Analysis of financial indicators: Analysis of profitability

Profitability is the ability of enterprise to increase capital, which is usually reflected in the size and level of enterprise income. The analysis of enterprise profitability can be studied from two aspects: general analysis and social contribution ability analysis.

(I) General analysis of enterprise profitability

Indicators such as sales profit rate, cost profit rate, asset profit rate, self-owned capital profit rate and capital preservation and appreciation rate can be set according to the basic accounting elements, so as to evaluate the profitability and capital preservation and appreciation of each element of an enterprise.

1. Gross profit margin of main business

Gross profit margin of main business is the ratio of gross sales profit to net income of main business, and its calculation formula is:

Gross profit margin of main business = gross sales profit? Net income from main business? 111%

in which:

gross sales margin = net income from main business-main business cost

gross profit margin index of main business reflects the initial profitability of product or commodity sales. The higher the index, the lower the sales cost and the higher the sales profit.

2. Profit rate of main business

Profit rate of main business is the ratio of enterprise's profit to net income of main business, and its calculation formula is:

Profit rate of main business = profit? Net income from main business? 111%

According to the composition of the income statement, the profit of an enterprise can be divided into four forms: main business profit, operating profit, total profit and net profit. Among them, the total profit and net profit contain non-sales profit factors, so the indicators that can more directly reflect the sales profitability are the profit rate of the main business and the operating profit rate. By investigating the rise and fall of the proportion of the main business profit to the total profit, we can find the stability of the enterprise's financial management, the dangers it faces or the possible signs of turning around. Main business profit rate indicators generally need to calculate the main business profit rate and the main business net profit rate.

the profit rate index of main business reflects the profit brought to the enterprise by the net income of main business per yuan. The greater the indicator, it means that