The financial statements reflect the past operating results. Generally speaking, the most important financial indicator is the profit level of an enterprise. The main indicators include the growth rate of main business (which can predict the future market share) and the return on net assets. Among the numerous financial statements of enterprises, the statements released to the public are mainly balance sheet, profit and profit distribution statement and financial status change statement. These three watches have different functions. Simply put, the balance sheet reflects the financial position of the enterprise in a certain period on the reporting date, the profit and profit distribution table reflects the profit and profit distribution of the enterprise in a certain reporting period, and the statement of changes in financial position reflects the increase or decrease of working capital during the reporting period.

(1) solvency indicators, including current ratio and quick ratio. The current ratio is usually 2 and the quick ratio is usually 1. However, we should pay attention to the actual situation of the enterprise when analyzing.

(2) Reflect the operating ability, such as accounts receivable turnover rate and inventory turnover rate. In the case of high enterprise rate. The faster the turnover rate, the stronger the management ability.

(3) Profitability, such as net interest rate on equity, sales profit rate and gross profit rate. Profitability should be high.

(4) Equity ratio, analyzing the proportion of equity and liabilities in enterprise assets. The result depends on the specific situation.

By calculating the gross profit margin of an enterprise, the profitability of its main business can be explained from one side. The calculation formula of gross profit margin is:

(main business income-operating cost) ÷ main business income = gross profit ÷ main business income

If the gross profit margin of the enterprise is higher than before, it may indicate that the production and operation management of the enterprise has achieved certain results. At the same time, in the case that the inventory turnover rate of enterprises has not slowed down, the profit of the main business of enterprises should increase. On the contrary, when the gross profit margin of an enterprise declines, more consideration should be given to the business expansion ability and production management efficiency of the enterprise.

Faced with a large amount of data in the balance sheet, you may feel disconsolate and don't know where to start. I think we can start from the following aspects:

First of all, visit the main contents of the balance sheet, from which you will have a preliminary understanding of the total assets, liabilities and shareholders' equity of the enterprise and the composition, increase and decrease of its internal projects. When the increase of shareholders' equity is higher than the increase of total assets, it shows that the financial strength of the enterprise has been relatively improved; On the contrary, it shows that the main reason for the expansion of enterprise scale comes from the large-scale increase of liabilities, which further shows that the financial strength of enterprises is relatively declining, and the security of debt repayment is also declining.