The purpose of balance sheet analysis is to understand the extent to which corporate accounting reflects the financial status of the company and the quality of the accounting information provided, so that appropriate decisions can be made based on the changes in the company's assets and equity and the company's financial status. evaluation.
Function: Provide the stock and structure of all assets, liabilities and shareholders' equity (own capital) owned by the enterprise at a specific point in time.
Assets = Liabilities + Shareholders’ Equity
Function: It helps managers understand the scale, structure and quantitative relationship of various assets and liabilities at a certain point in time, and clarify personal and Enterprises have entrusted responsibilities and obligations to make judgments and decisions to optimize structure, reduce risks and improve operational efficiency.
Assets represent the occupation of funds, including:
Liabilities and shareholders’ equity represent the sources of funds, including:
The role of the balance sheet:
"Four Looks and Four Analyzes" of the balance sheet:
Horizontal analysis, vertical analysis, and project analysis.
Observe the allocation of corporate assets, paying special attention to the proportion of current assets and non-current assets. During analysis, you can compare the liquidity and asset structure of corporate assets with the average level of the industry or the asset structure of comparable companies. Make judgments on asset risks, and then evaluate the rationality of the enterprise's asset structure.
Analyze changes in corporate assets, evaluate the stability of the corporate asset structure, and then evaluate the adjustment of the corporate asset structure.
Case 1: Analysis of asset composition from a static perspective
Read the balance sheets of companies in different industries (China Merchants Bank, Sichuan Changhong, Guangdong Electric Power A, UFIDA Software) and analyze the differences in asset composition.
Case 2: Reasonability of asset changes
Dongfang Electric’s fixed assets decreased quarter by quarter in 2008, while construction in progress increased quarter by quarter.
Reason: The subsidiary factory collapsed due to the earthquake. Therefore, Dongfang Electric made a large provision for impairment.
Observe the composition of capital, measure the financial strength of the company, evaluate the financial risks of the company, and evaluate the rationality of its capital structure (looking at the proportion of shareholders' equity and liabilities) based on the company's profitability and operating risks. .
Analyze the changes in the company's capital structure, and evaluate the adjustments to the capital structure and the possible impact on shareholder returns (look at changes in the proportion of shareholders' equity and liabilities)
Monetary funds It refers to funds in the form of currency, including cash on hand, bank deposits and other monetary funds.
When an enterprise obtains cash investment, accepts cash donations, obtains bank loans, obtains payment income after selling products, etc., it will form monetary fund income; when the enterprise purchases materials, pays wages and other expenses, returns loans, and Paying taxes, etc. will result in monetary expenditures.
Among all asset classes, monetary funds have the highest liquidity, but at the same time, they also have the lowest profitability. Under normal circumstances, they can only obtain interest income from bank deposits.
The goal of corporate monetary capital management is to make a choice between cash liquidity and profitability in order to maximize profits or corporate value. That is, on the premise of ensuring the operating efficiency and effectiveness of the enterprise, the investment in cash should be reduced as much as possible.
Case: Gree Electric’s monetary funds increased significantly in 2009.
In order to maintain the normal operation of the company's business activities, the company must maintain a certain balance of monetary funds.
There are three main motivations for companies to hold cash:
The analysis of "monetary funds" is mainly structural analysis, that is, the ratio of the company's "monetary funds" to total assets and the average level of the same industry to compare. If this value is significantly higher than the average level of the same industry, it means there is too much cash, and the company needs to find a way out for the excess monetary funds in order to optimize the company's asset structure.
For companies in different industries, the reasonable scale of monetary funds will be different.
Case: Kweichow Moutai 2011 Monetary Fund Analysis.
Case: Jinhua Holdings held large amounts of monetary funds for a long time from 2002 to 2005, and at the same time, its total liabilities increased significantly.
Analysis: The company announced that its 285 million yuan in monetary funds was occupied by major shareholders and affiliated companies.
A typical phenomenon of corporate monetary capital problems: high cash and high liabilities coexist at the same time.
Case: Gemdale Group’s monetary and capital policy.
Analysis: Reserve monetary funds in advance to prepare for industry recovery.
Bills receivable refer to bills held by an enterprise that have not yet matured or been cashed. Notes receivable are the company's right to collect payment for goods in the future and are legally binding.
Notes receivable reflect the face amount of commercial bills held by the enterprise, minus the net amount of bad debt provisions that have been accrued.
It has strong liquidity and high quality.
Key points to note in the analysis:
Pay attention to the negative impact it may have on the financial status of the company.
Case: Analysis of Notes Receivable of Hangzhou Iron and Steel Co., Ltd. in 2005
Analysis:
Accounts receivable refers to the amount of money due to the sale of goods in the normal course of business. , products, provision of services and other businesses, the amount should be collected from the purchasing unit.
The "Accounts Receivable" item reflects the various amounts that an enterprise should collect from purchasing units for selling goods, products, and providing services, etc., minus the net amount of bad debt provisions that have been accrued.
Accounts receivable is a type of business credit. The increase in accounts receivable can expand the company's sales and increase the company's profits, but it will also increase the company's costs (such as capital occupation costs, collection costs, bad debt costs, etc.). Therefore, the goal of corporate accounts receivable management is to make a trade-off between the increased profits of accounts receivable credit policies and the costs of such policies, so as to maximize corporate profits or corporate value.
Accounts receivable is a very big risk point for corporate assets. Rapidly increasing accounts receivable often indicates performance risks.
Comparative analysis, structural analysis, and ratio analysis can be used to determine whether there are too many accounts receivable.
Compare the change in accounts receivable with the change in sales revenue. If the growth rate of accounts receivable is significantly greater than the growth rate of sales revenue, it means there are too many accounts receivable.
Compare the company's ratio of accounts receivable to total assets with other companies in the same industry. If this value significantly exceeds the general level of the same industry, it often indicates that there are too many accounts receivable.
Compare your company's accounts receivable turnover ratio to that of other companies in the same industry. If this value is significantly lower than the general level of the same industry, it often indicates that there are too many accounts receivable and the turnover is too slow.
In addition, attention should be paid to changes in the accrual ratio of bad debt provisions.
Case: Amoi Electronics significantly changed the provision ratio for bad debt provisions, which is obviously different from the industry average.
Analysis:
This practice is generally jokingly called "taking a big bath." If the operating performance of the year is poor and the losses are large, by increasing various accrual ratios, the losses can be made to appear larger, thus laying the foundation for turning losses into profits in advance in the second year.
Aging analysis can further determine the risk of accounts receivable.
The aging of accounts receivable refers to the time elapsed from the date when sales are realized and accounts receivable are generated to the balance sheet date. Simply put, it is the time that accounts receivable remain on a business’s books.
The purpose of aging analysis: to analyze the length of time the customer owes the account and the possibility of bad debts.
Case: Analysis of Aging Structure of Baida Group
Analysis:
Almost all of the company’s accounts receivable in the first 2-3 years at the end of the period became Accounts receivable that are more than 3 years old have a greater risk of bad debts. Moreover, it is unreasonable to use 5% as the bad debt provision accrual rate for different accounts of different ages. The higher the account age, the higher the accrual rate. In 2001, the company's management made changes to accounting estimates and wrote off all accounts receivable that were older than 3 years, resulting in a profit reduction of about 5 million yuan that year.
Case: Jilin Chemical Industry’s revenue increased in 2000, but profits suffered losses.
Analysis:
It can be seen from the interim report that the company's accounts receivable have increased significantly and short-term borrowings have increased significantly. It can be seen that the company's daily operating capital gap is realized through short-term borrowings, resulting in a large amount of Borrowing interest affects profits.
Case: Lantian Co., Ltd. had an extremely low proportion of accounts receivable in 2000. The company argued that its cash settlements were higher.
Analysis: Sales revenue may be inflated, or accounts receivable may be concealed.
Prepayment refers to the advance payment made by the enterprise to the supplier in accordance with the provisions of the purchase contract.
Prepayments generally include prepaid materials and commodity purchase payments, prepaid purchase deposits, and prepaid project payments during project construction, etc.
Case 1: Substantial increase in Dong’e Ejiao’s prepayments
Case 2: Authenticity of prepayments. The authenticity of Wanfu Biotech’s prepayment and construction-in-progress data in 2012 is questionable.
Inventories refer to finished products or commodities held for sale by an enterprise in its daily activities, products in process of production, and materials and supplies consumed in the production process or in the provision of labor services. wait.
In the balance sheet, the "inventory" item reflects the net realizable value of the company's inventory in storage, in transit and in processing at the end of the period, including various materials, commodities, products in progress, etc.
Refers to all basic materials purchased from other companies and used in the production and operation of the company.
Refers to inventory that is in the manufacturing process and is a finished product that needs to be further processed.
Refers to products that have been processed and are ready for sale.
Inventory analysis
Analyze the impact of the inventory inventory system on the confirmation of inventory quantity and value.
Changes in inventory quantity are the basic factors that affect the inventory items on the balance sheet. There are two main methods to choose from for determining the inventory quantity of an enterprise: the periodic (field) inventory method and the perpetual inventory method.
Two different inventory quantity recognition methods will cause differences in inventory items on the balance sheet. This difference is not caused by changes in the inventory quantity itself, but by different accounting recognition methods of inventory quantity.
The choice of inventory accounting method has a direct impact on reflecting the company's financial status and operating results. my country's current accounting standards stipulate three valuation methods: first-in-first-out method, individual valuation method, and weighted average method.
Comparison of different valuation methods under inflation conditions
Accounting standards stipulate that enterprises use the "lower of cost and net realizable value method" to determine the value of ending inventory.
When the net realizable value of an inventory falls below the cost, a provision for inventory depreciation should be made for the part where the net realizable value is lower than the cost.
The goal of inventory management is to try to make a trade-off between various inventory holding costs and shortage costs, so as to maximize the company's profits or corporate value.
Rapidly increasing inventories often indicate performance risks.
Three aspects to determine whether there is too much inventory: comparative analysis, structural analysis, and ratio analysis
If the growth rate of inventory is significantly greater than the growth rate of operating income, it means there is too much inventory. .
If the ratio of a company's inventory to total assets significantly exceeds the average level in the same industry, it often indicates that there is too much inventory.
If a company's inventory turnover rate is significantly lower than the average level in the same industry, it often indicates that there is too much inventory and the turnover is too slow.
Case: Ruifeng Optoelectronics
Analysis: Data shows that the company's product sales rate is greater than 100%, and the supply of products exceeds demand. Although production costs and sales prices are declining from 2008 to 2010, However, the company announced that its gross profit margin in 2009 increased by 4.37%. At the same time, the company's "inventory-finished goods" account at the end of 2010 increased significantly year-on-year. It shows that the number of finished products is increasing, which is contradictory to the company's production and sales rate of 109% in 2010 (supply exceeds demand, so the number of finished products should be reduced). It can be seen that the published information is not true.
Classification of financial assets:
For non-financial enterprises, most financial assets have nothing to do with their main business and are non-core assets. Therefore, gains and losses from financial assets, including gains and losses from changes in fair value, investment income and other comprehensive income, are mostly non-operating and non-recurring items, and should be excluded when analyzing their normal and sustained profitability.
If an enterprise holds a large number of financial assets, significant changes in their fair value will intensify the fluctuations in net assets.
Case: The impact of changes in the fair value of Shanshan's financial assets on its net assets.
For companies with a large number of available-for-sale financial assets, attention needs to be paid to whether the company deliberately uses available-for-sale financial assets to adjust profits.
Case: Fujian Cement used available-for-sale financial assets to adjust profits.
Long-term equity investment refers to the equity investment in which the investor exercises control and has significant influence on the invested unit, as well as the equity investment in its joint ventures.
Generally, if an investor holds more than 50% of the voting rights (equity) of the investee, it can be determined to be control.
Under normal circumstances, if the investor holds more than or equal to 20% but less than 50% of the voting rights of the investee and is not a joint venture, it can be determined to have significant influence.
An enterprise that exercises exclusive control over the invested unit together with other joint venture parties.
Applicable situations: Enterprises or subsidiaries that the investor can control (that is, accounting for more than 50% of the shares).
Applicable situations: investors’ long-term equity investments in joint ventures and associated enterprises.
Case: Joyoung's diversified expansion
Analysis: From 2011 to 2013, long-term equity investment increased, but income declined.
Investment real estate refers to real estate held to earn rentals or capital appreciation, or both, including leased land use rights, land use rights held and prepared to be transferred after appreciation , buildings that have been leased.
Accounts corresponding to real estate for different holding purposes
Generally, holding investment real estate is a normal operating activity for real estate companies, and the rental income or transfer value-added income generated is recognized It is the main business income of the enterprise.
For non-real estate enterprises, holding investment real estate is other operating activities related to operating activities, and the rental income or transfer value-added income generated is recognized as other business income of the enterprise.
When making subsequent measurements, enterprises have two models to choose from: Normally, the cost model should be used, and the fair value measurement model is only allowed if there is conclusive evidence that its fair value can be obtained continuously and reliably. .
The same enterprise can only use one model for subsequent measurement of all investment real estate, and is not allowed to use two measurement models at the same time. Once the measurement model is determined, it cannot be changed at will. If the cost model is converted to the fair value model, it should be treated as a change in accounting policy. If the fair value model has been used for measurement, it shall not be converted to the cost model.
Comparison of two measurement models for investment real estate
Different measurement models will have different impacts on corporate income statements and balance sheets.
Case: Due to different accounting standards, Beichen Industrial adopts different measurement models for A shares and H shares.
Case: Red Star Macalline adopts a fair value measurement model for its investment real estate. If the cost model is adopted, the book value will be reduced by more than half, and the net profit will also be reduced by more than half.
Analysis: The company adopts the fair value measurement model, which shows that the company has a larger scale, low asset-liability ratio and high net profit, which is conducive to obtaining a higher issue price.
Fixed assets refer to tangible assets held for the production of goods, provision of labor services, leasing or operation and management, and with a service life of more than one accounting year.
The standard method for investment project evaluation and selection is the discounted cash flow method. The value of an investment project is equal to its net present value. Net Present Value (NPV) is the net cash of the project in all periods. The sum of the present values ??of flows.
todo:NPV calculation formula
NPV is used as the decision criterion for rejection-acceptance decisions: if the net present value is greater than 0, accept the project; if the net present value is less than 0, then reject the project. The decision criterion when NPV is applied to ranking decisions is: the greater the net present value, the higher the priority.
After considering options, the project value formula is:
Project value = NPV + option value
The scale, configuration and distribution of fixed assets are closely related to the corporate strategy The degree of consistency will directly affect its profitability, turnover and realizability.
Fixed asset turnover analysis: Find fixed assets with low utilization rates and minimize such fixed assets.
The financial indicator to judge whether the structure is reasonable is mainly the proportion of fixed assets to total assets.
The proportion of fixed assets in total assets = fixed assets/total assets
The composition of fixed assets will show different structural characteristics depending on the industry.
Case: Fixed asset structure analysis of China Merchants Bank, Sichuan Changhong, UFIDA, and Guangdong Electric Power Company A.
Analyze the rationality of the depreciation method of fixed assets.
my country's current accounting standards stipulate that enterprises can use the straight-line method, workload method, double-declining balance method and sum-of-years' digits method to calculate depreciation.
Analyze the continuity of the company’s fixed asset depreciation policy.
Analyze the rationality of the estimated useful life and estimated net residual value of fixed assets.
Case: Guangdong-Jiangxi Expressway used the total workload method (traffic flow method) for depreciation in 2001. If the annual average method is used, the current profit will be reduced by half.
Case: Depreciation differences between China Railway Group and China Railway Construction Corporation. Different depreciation parameters are selected, resulting in large differences in depreciation.
The quality evaluation of fixed assets mainly depends on the business activities that the assets can promote.
High-quality fixed assets should be represented as:
Intangible assets refer to identifiable non-monetary assets that have no physical form and are owned or controlled by an enterprise.
Main components:
It has no physical form but is exclusive;
It is the book value that the enterprise obtains for a fee through transfer, purchase, etc., and is not easy to realize; < /p>
The future economic benefits it provides are uncertain;
There is no direct connection between its potential economic value and its book value.
Profitability analysis of intangible assets: Its profitability is highly uncertain. The attributes are different and the profitability is also different.
For example, patent rights, trademark rights, copyrights, land use rights, and franchise rights have clear legal protection periods, and profitability is easier to judge. However, proprietary technology is not protected by law, and its profitability is limited. It is not easy to determine, and it is also easy to generate asset bubbles.
Realizability analysis of intangible assets: There is great uncertainty in the realizable value.
Analyzing the liquidity of corporate intangible assets mainly considers three aspects:
Case: LeTV’s copyright fee amortization
Analysis: LeTV’s intangible assets Among the assets, copyright fees account for more than 90%, and are amortized using the straight-line method. LeTV usually purchases copyrights for 3-7 years, and distribution contracts are basically signed once a year. This practice is suspected of glorifying profits. Because the newer the TV series, the higher the playback volume and the greater the revenue. The income from film and television dramas usually gradually decreases over time. Using the straight-line method for amortization violates the principle of matching revenue and cost in accounting standards, and it is more reasonable to use the accelerated amortization method.
Case: The impact of impairment of MCC’s intangible assets on profits.
Development expenditures are expenditures on internal research and development projects within the enterprise. Expenditures in the research phase and expenditures in the development phase should be accounted for separately.
Research refers to original planned investigations conducted to obtain and understand new scientific or technical knowledge, such as activities conducted to obtain knowledge, application research of research results or other knowledge, materials, Research on substitutes for equipment, products, processes, systems or services, etc.
Development refers to applying research results or other knowledge to a plan or design to produce new or substantially improved materials, devices, products, etc. before commercial production or use. , such as the design, construction and testing of prototypes and models before production or use, the design of tools, molds, etc. containing new technologies, etc.
Expenditures in the research stage should be expensed and included in the current profit and loss (administrative expenses).
If the expenditures in the development stage meet the capitalization conditions, they can be capitalized and included in the development expenditures. After reaching the intended usable state, they will be transferred to intangible assets; if they do not meet the capitalization conditions, they will be transferred to intangible assets. Then it should still be expensed and included in the current profit and loss.
Difficulties:
Conditions for the capitalization of enterprise expenditures in the development stage:
The actual operability of capitalization is not strong and depends largely on finance. Personnel's subjective judgment. However, accurate demarcation is difficult.
Case: Changes in development expenditure of Zhongke Jincai in 2012.
Analysis: Development expenditures before 2012 were expensed, and development expenditures in 2012 were capitalized. This is reflected in financial data as an increase in profits, which is conducive to increasing the company's stock price. In fact, after the company's restricted shares were lifted, the company's directors reduced their holdings and cashed in cash income of about 100 million yuan.
Case: Hundsun Electronics vs. iFlytek
Analysis:
Refers to various expenses that the company has incurred but the amortization period exceeds 1 year, including rent Included are improvements to fixed assets, overhaul of fixed assets with an amortization period of more than one year, stock issuance expenses, etc.
Case: The long-term deferred expenses of Hunan and Hubei Qing increased the current profit results in disguised form.
If long-term deferred expenses remain high for a long time, companies need to be wary of the possibility of using this to manipulate profits.
Short-term borrowings are various borrowings borrowed by enterprises from banks or other units with a term of less than 1 year, including short-term working capital borrowings, settlement borrowings, bill discount borrowings, and borrowings borrowed by enterprises with a term of less than 1 year. Or new product trial production loans, technology introduction loans, and short-term foreign exchange loans for imported raw materials within a business cycle longer than one year. These loans are borrowed to meet the short-term needs of daily production and operations, and their interest expenses are included in the current profit and loss as the company's financial expenses.
Due to production and operation needs, corporate debt financing policies have changed.
Reasons for specific changes:
Advantages: Flexible use, lower interest rates, and simpler acquisition procedures.
Disadvantages: To repay in the short term, the liquidity of assets needs to be ensured to meet certain current ratio and quick ratio requirements.
The higher the current ratio and quick ratio, the stronger the company's short-term debt repayment ability, and vice versa. The analysis must be conducted in conjunction with the characteristics of the industry. Different industries have different requirements for ratios.
There is a need to prevent short-term borrowing from being used for long-term purposes, that is, "short-term lending and long-term investment."
Case: LeTV’s 2017 semi-annual report saw major changes in the composition of short-term borrowings. Pledge borrowings increased significantly.
Analysis:
Accounts payable refers to the amount of money an enterprise pays to supply units for purchasing raw materials and other materials on credit or accepting the supply of labor services. It is caused by the inconsistency between the time of purchase of goods or receipt of services and the time of payment.
Appropriate expansion of the scale of accounts payable is good for the enterprise. First, compared with short-term borrowings, accounts payable are liabilities that do not require payment of interest, and can be said to be liabilities with zero cost; second, compared with notes payable, the constraints on accounts payable are relatively soft.
Once the repayment period of accounts payable is extended, it often indicates financial risks. Need to be alert: while the scale of accounts payable increases abnormally, the average payment period of accounts payable also extends abnormally.
Case: Hualian Supermarket
Analysis: The biggest financial characteristic of supermarket chain companies is their high asset-liability ratio.
Case: Huahong Jitong is suspected of concealing accounts payable data and inflating net assets.
Advances received in advance refer to the amount received in advance by an enterprise from the purchasing unit or the unit that receives labor services in accordance with the provisions of the contract or the agreement between the parties to the transaction before the goods are shipped or the labor services are provided.
The higher the ratio of advance receipts to liabilities, the better the sales environment of a company. Because accounts received in advance are a short-term source of funds for the enterprise, they can be used free of charge before the enterprise sends goods or provides services; it is transferred to the enterprise's income immediately after the enterprise sends goods or provides services.
For project-based industries, such as the real estate development industry, future income trends can be judged by analyzing the progress of the project and the amount of advance payments.
A company's advance receipts are large, indicating that the company's products or services are selling well and the market is in short supply. Or because the company is relatively strong relative to downstream customers, the industry has formed a practice of collecting money first and consuming later. For example, due to industry monopoly, telecom operators have long implemented a policy of recharging first and consuming later, so they will have more accounts received in advance.
As a short-term source of funds for an enterprise, advances received can be used free of charge before the enterprise sends goods or provides services, so it can be said to be a zero-cost source of funds.
Case: Vanke’s advance receipts have increased year by year, and its stock price has also risen year by year
Case: Kweichow Moutai’s advance receipts have increased year by year, and its stock price has also risen year by year
Taxes payable refer to various taxes and fees that should be paid by an enterprise based on its operating income, realized profits, etc. within a certain period of time and in accordance with the current tax laws and using certain tax calculation methods.
Taxes payable include value-added tax, consumption tax, business tax, corporate income tax, resource tax, land value-added tax, urban maintenance and construction tax, real estate tax, land use tax, vehicle and vessel tax, and education fees paid by the enterprise in accordance with the law. Additional taxes and fees such as mineral resource compensation fees, stamp duty, farmland occupation tax, etc., as well as personal income tax collected and paid by the enterprise before being handed over to the state, etc.
Taxes payable reflect various taxes and surcharges payable by the enterprise, including turnover tax, income tax and various surcharges. Changes in taxes payable are related to changes in corporate operating income and profits.
During the analysis, attention should be paid to finding out whether the enterprise has defaulted on state taxes.
Typical characteristics shown in the statements of IPO companies: there is a balance in "taxes payable", and the "taxes paid" in the previous years of the IPO are less than the "income tax expenses" of the current year.
The "taxes paid" in the year before the IPO are significantly higher than the "income tax expenses" in that year.
Case: Yuyue Medical’s legacy tax issues.
Long-term borrowings refer to various loans borrowed by enterprises from banks or other financial institutions with a term of more than one year (excluding one year) or more than one operating cycle of more than one year. The long-term borrowings of joint-stock enterprises in my country mainly include various long-term borrowings from financial institutions, such as loans obtained from professional banks and commercial banks; in addition, they also include borrowings from financial companies, investment companies and other financial enterprises. .
The interest rate of long-term borrowing is usually higher than that of short-term borrowing. In addition, the borrowing enterprise will also be charged other fees by the bank, such as the commitment fee charged for implementing the revolving credit agreement, and the borrowing enterprise is required to maintain a compensation balance in the bank. The indirect costs formed, etc., will increase the cost of long-term borrowing. Huge amounts of long-term borrowing will bring heavy debt burdens to companies and greatly erode corporate profits.
Case: LeTV’s long-term borrowings increased significantly.
Analysis:
LeTV’s long-term borrowings are obtained by pledging equity.
The risk of pledged borrowing lies in the pledge rate, warning line and liquidation line.
The pledge rate refers to the ratio of the equity pledge financing funds to the equity market value of the pledged objects, that is, the discount rate of the pledged assets. Generally, the pledge rate of the main board is 55%, that of the small and medium-sized board is 50%, and that of the GEM is 45%.
Performance guarantee ratio = market value of pledged stocks/loan amount
The warning line is generally set at 140%~150% of the performance guarantee ratio.
The closing line is generally set to 120%~130% of the performance guarantee ratio.
When the result is below the warning line, the borrower must add additional collateral. When it is lower than the liquidation line, the borrower must take performance guarantee measures such as repurchasing or adding additional collateral in advance on the next trading day to restore the performance guarantee ratio to above the warning line. Otherwise, the investor must submit a default resolution application to the exchange, and the position can be forced to liquidate after approval.
Estimated liabilities refer to various estimated liabilities recognized according to relevant standards such as contingencies, including external guarantees, pending
litigation, product quality assurance, restructuring obligations and fixed assets and estimated liabilities arising from the obligation to abandon mining rights and interests.
Estimated liabilities are obligations related to contingencies, and their recognition requires meeting the following three conditions at the same time:
Possibility judgment standard
Recognition of estimated liabilities There is a certain degree of subjectivity.
The recognition of estimated liabilities will have an impact on the company's net profit, assets and liabilities.
Case: China COSCO
Analysis: The company not only suffered huge floating losses from FFA, but also recognized high estimated liabilities at the end of the year.
Contingent liabilities refer to potential obligations arising from past transactions or events, the existence of which must be confirmed by the occurrence or non-occurrence of future uncertain events; or current obligations arising from past transactions or events, the performance of which must be confirmed The obligation is not likely to result in an outflow of economic benefits from the enterprise or the amount of the obligation cannot be measured reliably.
Features:
Disclosure principle: When disclosing contingent liabilities, the principle of prudence is generally followed. Contingent liabilities that are extremely unlikely to cause an outflow of economic benefits from the enterprise are generally not disclosed.
Shareholders' equity (owner's equity) refers to the remaining equity enjoyed by the owner after deducting liabilities from assets, that is, the net amount of resources with future economic benefits owned or controllable by an accounting entity in a certain period. . It is the difference between all assets of an enterprise minus all liabilities and reflects the property rights relationship of the enterprise.
Assets - Liabilities = Shareholders' Equity (Net Assets)
This equation expresses the basic meaning and measurement method of shareholders' equity, and also expresses the order of payment of shareholders' equity.
Shareholders' equity mainly consists of four parts: share capital (paid-in capital), capital reserve, surplus reserve and undistributed profits.
The company has 10 shares of stock, with a face value of 1 yuan per share.
Balance sheet
The company earned a net profit of 20 yuan through operating activities at the end of the year, and the profits carried forward at the end of the period will increase shareholders' equity.
Balance Sheet
Shareholders' equity will be reduced by the payment of cash dividends and the repurchase of shares.
Mainly refers to two aspects:
In the composition of shareholders’ equity, changes in share capital and capital reserves mainly come from the investment of external equity funds of the enterprise, and changes in retained earnings mainly come from From internal retention and profit distribution. If a company's shareholders' equity grows rapidly, it is necessary to structurally analyze whether the increase is caused by the investment of external equity capital or the retained accumulation of internal profits.
Case: Kweichow Moutai’s shareholders’ equity increased significantly from 2012 to 2017.
Analysis: The rapid growth of Kweichow Moutai's shareholders' equity is caused by the retained accumulation of internal profits (surplus reserves and undistributed profits), reflecting the company's good profitability.
"Notice of the Ministry of Finance on Revising and Issuing the Format of General Enterprise Financial Statements" (Financial Accounting [2017] No. 30) adds the following content:
Notes. Financial Statement Analysis. No. 1- Chapter 2
Notes. Financial statement analysis. Chapter 4