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Outline of financial statement analysis paper

model essay on the outline of financial statement analysis paper

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financial statement analysis paper outline 1

Paper title: financial statement analysis of XX company

Abstract:

The concept of financial statement analysis. Based on the financial statements of XX Company in 21XX and before, this paper analyzes and calculates the basic information provided by the financial statements, explains the reasons and draws corresponding conclusions. The main business scope of XX Company. Analyze the reasons and predict the results of the company's solvency, profitability and operating ability, make some necessary adjustments according to the analysis results and propose solutions to the problems.

Keywords: XX

Text:

I. Vertical analysis of the company's financial and operating capabilities

(I) Analysis of the company's solvency

1. Analysis of the company's short-term solvency

The indicators of the company's short-term solvency, including working capital, current ratio, quick ratio and cash current debt ratio, are used to calculate and analyze the company's short-term solvency.

2. Analysis of the company's long-term solvency

The financial indicators of the company's long-term solvency, including asset-liability ratio, equity ratio, tangible net debt ratio and working capital ratio, are used to calculate, so as to analyze the company's long-term solvency.

(II) Analysis of the Company's Profitability

Profitability reflects the use of the economic resources controlled by the enterprise, and the company will use the indicators such as sales profit rate, net interest rate on assets, and return rate on assets to analyze.

(III) Analysis of the company's growth

The growth financial indicators of the company, including the growth rate of total assets, capital accumulation rate and net profit, are used to analyze the company's growth ability.

second, analyze the company's financial and operating conditions horizontally

understand the company's own development, and at the same time compare it with the same industry in the market to estimate the company's position in this industry. Compare this company with other companies horizontally, and evaluate the company's profitability, solvency and operational ability.

III. Summary

Analyze the company's annual financial statements (and those of other companies) to find out what information is included in the financial statements, use the information provided by the financial statements to analyze and summarize the company, dynamically understand the company's financial and operating conditions, and evaluate the company's operating risks and financial risks with the help of the conclusions analyzed in the financial statements, and make decisions to prevent and reduce risks.

references: XXX financial statement analysis paper outline 2

1 Introduction

1.1 Topic background

1.2 Research significance

1.3 Research content and research scope

1.4 Possible innovations and shortcomings

2 Overview of relevant domestic and foreign literatures

2.1 Relationship between financial characteristics and financial restatement of companies

The relationship between corporate governance and financial restatement

2.3 Motivation of financial restatement

2.4 Economic consequences of financial restatement

2.5 Literature review and enlightenment

3 Concept definition, Theoretical basis and research hypothesis

3.1 Definition of concept

3.1.1 Definition of financial restatement

3.1.2 Definition of debt financing

3.2 Theoretical basis

3.2.1 Principal-agent theory

3.2.2 Information asymmetry theory

3. The relationship between financing demand and financial statement restatement

3.3.2 The impact of financial statement restatement on debt financing

4 Empirical research design

4.1 Research on the correlation between financing demand and financial statement

4.1.1 Sample selection

4.1.2 Data collection

4.1.3 Variable definition

4.1.3. Statistical analysis and variance analysis

4.1.6 independent variable correlation test

4.1.7 Logistic regression analysis

4.2 research on the correlation between financial restatement and debt financing

4.2.1 sample selection

4.2.2 variable definition

4.2.3 model setting

4. Independent variable correlation test

4.2.6 linear regression analysis

5 research conclusions, policy suggestions and research prospects

5.1 research conclusions

5.2 policy suggestions

5.2.1 Improve the supervision system and increase the punishment. Implement the liability system

5.2.2, improve the internal governance structure of the company

5.3, research and prospect

Conclusion of this paper

Taking the financial restatement of listed companies in manufacturing industry in 2118-2113 as the research object, this paper first sets up matching samples for restated companies according to certain rules, and then uses independent sample T test and linear regression method to test the relationship between financing demand and financial statement restatement announcement. Through the analysis of this paper, we can draw the following conclusions:

First of all, the financial restatement of listed manufacturing companies in China is universal and frequent. During 2118-2113, 541 listed companies made financial restatements, and 91 listed companies issued more than three announcements of correction or error adjustment in six years. Among them, ShenZhonghua A, Langfang Development and yaxing chemical issued five financial restatements in six years, which fully shows that a considerable number of listed companies have frequent financial restatements, and it can be seen that their motivation for restatement is probably to manipulate earnings and whitewash financial statements.

Secondly, through the independent sample T test of restated enterprises and matching enterprises, we can find that the financing demand of restated enterprises is significantly greater than that of matching enterprises. With financial restatement as the explained variable and financing demand as the explanatory variable, logistic regression shows that the financing demand is positively correlated with financial restatement. The empirical test results confirm the hypothesis of this paper, that is, when the liquidity of enterprises is insufficient, enterprises have the demand for financing at low cost. At this time, management tends to modify financial data to whitewash financial statements, and then make error correction or retrospective adjustment in the form of temporary announcement when it is discovered by certified public accountants or regulatory agencies, so the financing demand significantly increases the possibility of financial restatement.

Thirdly, it has been shown that financial restatement will damage the value of shareholders and cause negative market reaction. Therefore, after controlling the financial characteristics and corporate governance characteristics of the company, it is expected that creditors will have doubts about the quality of accounting information of enterprises with financial restatement, and in order to avoid risks, loans to restated enterprises will be reduced. The empirical results support the above hypothesis. Financial restatement of listed companies damages the quality of accounting information, increases the information asymmetry between creditors and restated companies, and increases the risk of creditors. In order to protect their own interests from damage, creditors will reduce loans to restated enterprises.

finally, from the linkage relationship between financing demand, financial restatement and debt financing scale, financing demand drives the financial restatement behavior of enterprises, but after financial restatement, creditors (such as banks) will identify their potential risks according to this behavior, thus reducing their investment in enterprises and making it more difficult to restate the subsequent financing of enterprises. It can be seen that investors can identify potential risks through financial restatement, and listed companies should carefully consider the gains and losses of financial restatement. Outline of financial statement analysis paper 3

1. The current situation of enterprise financial management and risk control in China

(1) The financial management system is not perfect

Although each enterprise will basically set up a relatively independent finance department, finance department or finance office, and it can also be handled separately when carrying out financing business or fund settlement work, At present, most large-scale enterprises are merged or have a certain historical background. Therefore, under the difference of corporate background and corporate culture, the problem of imperfect financial management system is more prominent. The most common thing is that there are obvious differences in the reception and transmission of information, which makes the economic benefits and capital utilization rate of enterprises more difficult to improve.

(II) Imperfect internal risk control system in financial management

Due to the imperfect internal risk control system in China's current enterprise financial management, it is difficult to achieve the expected goals and effects of the enterprise in risk control. At present, the internal risk control of financial management in many enterprises is rather chaotic. It is worth noting that the distribution of benefits, accountability and fund management are serious, the system is imperfect and the regulations are unclear, and the resulting risk control work is out of control from time to time, which has brought extremely huge financial and economic losses to enterprises.

(3) The efficiency of financial informatization is not high

Information is indispensable in the financial management of enterprises, but the huge amount of financial information has brought great pressure and challenges to the financial management of enterprises to some extent. With the rapid development of information industry, computer and network, it has become a common phenomenon to use computerized accounting to manage the financial affairs of enterprises. However, there are still many enterprises that fail to fully understand and apply financial information effectively in their decision-making and actual management. Moreover, in the actual process of financial management and information application of enterprises, there are often unsafe and unreliable information transmission, so the efficiency of the application of enterprise financial information has not reached the ideal.

(4) The problem of financial decision-making power of enterprise management is obvious

Most grass-roots enterprises of group enterprises basically have most of the decision-making power of financial management, while the subsidiaries of these group companies often only have a very small part of the decision-making power; Although the subsidiaries of some group companies have the decision-making power of financial management in the system or the appearance of enterprise management, their actual final decision-making power still belongs to the group company. This kind of over-centralized enterprise financial management and decision-making situation is extremely common. In these two cases, the financial decision-making is actually a financial management mode dominated by the group company. The biggest drawback is that it is not only difficult to mobilize the enthusiasm of the employees of the subsidiaries, but also brings great management pressure to the group company.

(5) Lack of awareness of financial risk prevention

In the risk control of enterprise financial management, there is a lack of certain financial prevention ability and awareness. There are two main situations: first, the failure to conduct scientific verification and market research in decision-making will inevitably lead to the lack of scientific and operational decision-making of enterprises, which will inevitably lead to extremely unfavorable assets. Second, in the actual business operation of most product-selling enterprises, in order to increase a certain amount of sales or increase a certain amount of sales, many enterprises will use credit sales to acquire or retain customers, so that product sales will remain at a high level, but the amount of accounts receivable will continue to increase. Due to the large external credit sales, it will inevitably lead to high accounts receivable ratio and large amount. In the long run, it will lead to difficulties in capital operation and financial risks.

second, the specific improvement measures of enterprise financial management and risk control in China

(a) the improvement measures of enterprise financial management

1. Improve the enterprise financial organization. First, the whole enterprise must fully realize the importance and position of the financial management system in the enterprise. Only by establishing a perfect enterprise financial organization can the financial information management of the enterprise be more authentic, effective and accurate, and effectively control and avoid the occurrence of untrue financial information. Second, in the specific economic business processing of enterprises, we must strictly implement the relevant management regulations of enterprises, especially the budget management and capital planning, and the accounting and financing management must be legal and compliant. Thirdly, it is necessary to clarify the important functions of financial organization in the organizational structure of enterprises. With the development of modern enterprises, in addition to its traditional functions such as financial planning and financial decision-making, the financial control and financing management functions of financial management are becoming more and more important. Only by grasping these two management tasks can we improve the financial management level more effectively.

2. Enhance the awareness of preventing financial risks. Business risks and financial risks of enterprises always exist. Therefore, business operators and financial managers must firmly establish the awareness of preventing financial risks. Only by fully establishing an enterprise financial risk prevention and control mechanism with standardized system and effective supervision, and effectively implementing it, can we prevent and control some important and core key links in time and effectively. For example, we should pay close attention to the relevant key indicators such as enterprise fund-raising and debt settlement, so as to effectively achieve the ultimate goal of reasonable prevention and control of financial risks, effectively reduce the business risks of enterprises and guarantee the profits of enterprises.

(II) Measures to improve the risk control of enterprise financial management

1. Strengthen the understanding of enterprise internal control management. At present, due to the lack of understanding of enterprise internal control by enterprise managers in China, they always think that enterprise internal control will not bring benefits to enterprises, but will affect the development of enterprises, and often ignore the management of enterprise internal control. Therefore, the enthusiasm and responsibility of enterprise management and management are gradually weakened by enterprise managers in the internal control and management of enterprises, which makes the business risk of enterprises gradually rise. In this regard, we must change our ideas and strengthen our understanding of internal control management of enterprises, and first of all, we must start with strengthening our understanding of internal control management of enterprises.

2. Improve the internal financial control management of enterprises. The internal financial control management system of enterprises is extremely important, which can not only promote enterprises to create better economic benefits, but also promote the stable development of enterprises. Therefore, it is extremely important for the internal financial control and management of enterprises to build an effective enterprise financial risk identification system, implement risk prevention and control work in a down-to-earth manner, and attach great importance to the preparation of cash flow plans. Only in this way can we effectively strengthen the enterprise's risk prevention ability and make the enterprise effectively do a good job in internal risk prevention and control. Among them, the most important thing is to effectively control the net interest rate and asset-liability ratio of enterprises.

3. Strengthen financial control from budget management, cost management and internal audit. Complete enterprise management by creating a perfect internal control system. First, financial control aims at achieving financial budget; Second, the cost