How can you quickly understand financial statements?

To quickly understand the financial report, there are several main points:

1. Look at the "non-standard"

If there is a history in the financial statements of a listed company If you explain more, its management may be hiding ulterior secrets.

If a listed company is issued a "non-standard" audit opinion, investors should pay careful attention.

2. Look at the income

For a company with healthy and stable growth, its income should mainly come from "main business income", and the main business income should have grown steadily for three consecutive years. If a large part of the revenue comes from temporary one-time income, such as some companies always increase revenue by selling assets or through subsidiaries, then the company's sustainable operating ability is questionable.

In addition, there is another situation that is more common, that is, relying on interest income to support the profitability of the entire company. Of course, interest is also an important part of a company's operating income and profits, but it cannot well reflect a company's growth.

3. Look at cash flow

Cash flow is in a sense more important and more real than income and profit. It is easier to artificially manipulate book income and profits, but actual cash flow greatly increases the difficulty of distorting performance and determines the life or death of a company. From this point of view, the statement "cash is king" is not an exaggeration at all.

Investors should also pay attention to the cash flow statement while paying attention to the income statement. If the company's cash flow at the end of the period is negative, then the company is often in a state of cash shortage.

4. Look at profits

This indicator directly reflects the company's profitability. This indicator requires in-depth analysis and a dialectical view, and it is necessary to pay attention to whether the main source of the company's profits comes from "main business profits"; if the proportion of temporary one-time profit sources is too high, it will only increase the instability of the company and increase the risks of the company.

Extended information:

Notes on corporate financial statements

Only by reducing sales costs to a low level can sales profits be increased to a high level. Although the cost of sales figure alone cannot tell us whether the company has a lasting competitive advantage, it can tell us the size of the company's gross profit. By analyzing a company's income statement, we can see whether the company can create profits and whether it has lasting competitiveness.

Whether a company can be profitable is only one aspect. We should also analyze the way the company obtains profits, whether it requires a lot of research and development to remain competitive, and whether it needs to leverage wealth to obtain profits. By mining this information from the income statement, we can determine the driving force behind the company's economic growth, because the source of profits is more meaningful than the profits themselves.

How to understand financial statements

The main methods to understand financial statements: Balance sheet: Understand the company's financial structure, Income statement: Analyze the company's operating capabilities, Cash flow statement: Assess the company's continued competitiveness, owner's equity: Understand the economic interests of business owners. There are also three elements: the purpose of studying financial statements, looking at financial statements as a whole, and combining the characteristics of the industry.

Financial statements are prepared in accordance with accounting standards and reflect the financial status and operations of an accounting entity externally to owners, creditors, governments, other relevant parties and the public.

Financial statements include a balance sheet, income statement, cash flow statement or statement of changes in financial position, schedules and notes. Financial statements are the main part of financial reports and do not include directors' reports, management analysis, financial statements and other information included in financial reports or annual reports.

How to learn to read financial statements?

Question 1: How to learn to understand financial statements Hello:

It is complicated to be optimistic about financial statements. The main thing is to learn to read the three major statements, as follows:

1. How to read the balance sheet

The balance sheet reflects all the assets, liabilities and owners' equity of the company on a specific date accounting statements. Its basic structure is "Assets = Liabilities + Owners' Equity". No matter what state the company is in, this accounting balance is always the same. The left side reflects the resources owned by the company; the right side reflects the requirements of the company's different rights holders for these resources.

Creditors have the right to claim all the resources of the company. The company uses all its assets to bear repayment obligations to different creditors. After all liabilities are paid, what remains is the owner's equity, that is, the company's net assets.

We can use the information on the balance sheet to see the distribution of the company's assets, the composition of liabilities and owner's equity, and evaluate whether the company's capital operations and financial structure are normal and reasonable; analyze the company's Liquidity or liquidity, as well as the amount of long-term and short-term debt and solvency, evaluate the company's ability to bear risks; using the information provided in this table can also help calculate the company's profitability and evaluate the company's operating performance.

When analyzing the elements of the balance sheet, we should first pay attention to the analysis of asset elements, including:

1 Current assets analysis. Analyze the company's cash, various deposits, short-term investments, various receivables and payables, inventory, etc. Current assets have increased compared with previous years, indicating that the company's payment and liquidity capabilities have increased.

2 Long-term investment analysis. Analyze investments with a period of more than one year, such as company holdings, implementation of diversified operations, etc. The increase in long-term investment indicates that the company's growth prospects are promising.

3 Fixed assets analysis. This is an analysis of assets in physical form. The figures for each fixed asset listed on the balance sheet only represent the amount of each fixed asset that has not yet been depreciated or depleted under the conditions of continuing operations and is expected to be recovered in each future period. Therefore, we should pay special attention to whether depreciation and depletion are Reasonableness will directly affect the accuracy of the balance sheet, income statement and other various statements. Obviously, less depreciation will increase current profits. Excessive mention of depreciation will reduce current profits, and some companies often lay the groundwork for this.

4 Analysis of intangible assets. Mainly analyze trademark rights, copyrights, land use rights, non-patented technology, goodwill, patent rights, etc. Goodwill and other unidentified intangible assets are generally not recorded unless the goodwill is formed during a purchase or merger. After acquiring intangible assets, they should be registered and amortized within the specified period.

Secondly, the liability elements must be analyzed, including two aspects:

1 Current liability analysis. Various current liabilities should be recorded according to the actual amount incurred. The key to analysis is to avoid omissions. All liabilities should be reflected in the balance sheet.

2 Long-term liability analysis. Including long-term loans, bonds payable, long-term payables, etc. Since long-term liabilities come in different forms, attention should be paid to analyzing and understanding the situation of the company's creditors.

The last is the analysis of shareholders' equity, including four aspects: share capital, capital reserve, surplus reserve and undistributed profits. Analyzing shareholders' equity mainly involves understanding the different forms and equity structures of capital invested in shareholders' equity, and understanding the priority order of repayment of various elements in shareholders' equity. When looking at the balance sheet, it should be combined with the income statement, which mainly involves capital profit and inventory turnover rate. The former is an indicator of profitability, and the latter is an indicator of operating capacity.

2. How to read the income statement

The income statement is prepared based on "revenue-expense = profit" and mainly reflects the company's net income after subtracting operating expenses from operating income within a certain period of time. . Through the income statement, we can generally evaluate the operating performance and management success of listed companies, thereby evaluating the investment value and remuneration of investors. The income statement includes two aspects: one reflects the company's income and expenses, explains the company's profit or loss amount in a certain period, and uses it to analyze the company's economic benefits and profitability and evaluate the company's management performance; the other part reflects the company's financial The source of the results explains the proportion of the company's various profit sources in the total profit and the interrelationship between these sources. To analyze the income statement, we mainly start from two aspects:

1. Analysis of income items. The company obtains various operating income by selling products and providing services. It can also provide resources to others to obtain non-operating income such as rent and interest. An increase in revenue means an increase in the company's assets or a decrease in liabilities.

The package recorded in the income account...

Question 2: How to learn to read financial statements? In fact, it is very simple. The addition and subtraction relationships are written on the income statement, and it is clear at a glance from revenue to net profit.

The balance sheet, on the right side, is where the company's funds come from, capital - paid-in capital; what the bank borrows - short-term loans, what is owed to others - accounts payable... .; On the left is where these funds are used, in the bank--bank deposits; the materials purchased--raw materials, the payments owed by others--accounts receivable; the products that have been made--finished products...etc. etc

Question 3: Can you learn accounting by self-study? Have you learned how to read financial statements? Give me an example!

1 You take out a loan to buy a house. The house price is 1 million, you have a down payment of 300,000, a loan of 700,000, and you have already obtained the real estate certificate. At this point, the balance sheet comes out: Assets = Liabilities + Owners’ Equity.

2 Now you start operating your property and rent it out with a monthly rent of 12,000 and a tax of 2,000. At this point, your income statement will come out: profit = income - costs, taxes, etc.

3 If you have received this 10,000 in cash, your balance sheet has changed: Assets = Liabilities + Owners’ Equity. The 10,000 in assets is the cash you receive, and the 10,000 in equity is the profit you earn.

If you do not receive the 10,000 in cash, your balance sheet has also changed: Assets = Liabilities + Owners’ Equity. The 10,000 in assets is the cash you receivable, and the 10,000 in equity is the profit you earned. Although the cash receivable here is not real money yet, it legally belongs to you, so it is put into your assets.

4 Next, you have to repay the loan. To make it simple, do not consider interest and pay 5,000 per month. Then the balance sheet changes again: assets = liabilities + owners' equity. Assets decrease by 0.5 because you use cash to pay off debts, and liabilities are also reduced.

...

You can find that everything related to money in your family can be expressed in accounting terms, and the same is true for companies. All economic operations can be reflected in the balance sheet and income statement. In order to clearly express the contents of different economic businesses, different columns are opened in the two tables, which are accounting subjects. All economic business is nothing more than going back and forth between various accounting subjects and two tables.

I just want to say that accounting is not difficult. If you understand the relationship between assets, liabilities, owners' equity, revenue, costs, and profits, you can understand the statements.

Of course, if you want to further analyze the statements, you need to know some calculation formulas of financial ratios and the meaning of ratios

Question 4: How can you teach yourself to understand the financial statements of listed companies? Because you are not For economic students, if you want to understand the arc of financial statements, I suggest you first study the textbook for the Accounting Qualification Examination by yourself. This is an entry-level textbook for accounting personnel, step by step, and the final textbook also mentions financial statements

The teaching materials for the Accounting Qualification Examination include "Accounting Fundamentals", "Basic Accounting Computerization", "Financial Laws and Regulations and Accounting Professional Ethics", you only need to understand the accounting basics

Question 5: How to read Financial Statement Video Learning Before learning financial statements, you should first understand an operator's business process, as shown in the figure below:

Input is the owner's equity, and the loan is the liability.

Liabilities and owners' equity will be converted into cash, and then the cash will be converted into inventory products and fixed assets after being invested.

After the product is sold, part of it becomes cash, and part of it becomes accounts receivable, which is also the part that is processed for customer accounting.

Under certain circumstances, accounts receivable will be converted into cash again and invested in production and operations. This is a complete business process.

Financial statements have three parts, the balance sheet, the profit and loss statement, and the cash flow statement. These three tables actually exist in the above equation. 1. Balance sheet: The basic formula of the balance sheet is "owners' equity + liabilities = assets". The left side of the equation in the above table is the owners' equity and liabilities, while everything on the right side is assets. Assets actually consist of cash, accounts receivable, inventory, and fixed assets. Cash, accounts receivable and products are what people usually call current assets, while factory equipment, etc. are fixed assets. If you look carefully at the picture above, you will find that almost all operations revolve around cash. Owners' equity and liabilities add to cash, while products and accounts receivable are eventually converted into cash. So cash is very important, it is the core, which is why there is a cash flow statement.

2. Profit and loss statement: The core of the profit and loss statement is "profit = revenue - expenses". When products are converted into accounts receivable and cash, revenue is generated, and when cash is converted into products and fixed assets, costs and expenses are generated. It is the constant flow between the two. , and finally generated profits. Therefore, profit exists and flows are transformed. The income statement often studies the profit growth over a period of time. A question arises. In the above conversion, the current profit is converted into cash conversion factors, including increased cash, increased accounts receivable, increased products, increased Fixed assets, the sum of these items minus related expenses is the net profit. 3. Cash flow statement: Whether more or less products are converted into cash, whether cash has increased or decreased, this is the content of the cash flow statement study. It is precisely because cash is at the core of this transformation process that almost all People who study financial statements attach great importance to the cash flow statement. Also, I actually missed two conversions above, that is, cash may be converted into liabilities and owners' equity. Why? When you have cash, you pay off your debts. If you have less cash, you will have less debt. When cash is converted into liabilities, the cash will be reduced. The remaining cash is converted into owner's equity. When all the cash in your hand is taxed and wages are paid, the remaining cash that you can freely use is free cash flow.

Question 6: How to quickly learn the reading skills of financial statements 1. Frequently asked questions about reading and reviewing financial statements of small and medium-sized enterprises

With the deepening of reform and opening up, my country's small and medium-sized enterprises have developed rapidly. However, in recent years, many small and medium-sized enterprises have shown a difficult development trend.

Whitewashing financial statement data, the authenticity and reliability of financial data is questionable

The development of small and medium-sized enterprises is accompanied by fierce competition. Some small and medium-sized enterprises with a weak concept of integrity and putting profits first will not hesitate to violate Relevant laws and regulations are manipulative and fraudulent in finance. In order to evade taxes, some deliberately reduce the profit amount and profit rate in the report. There is a serious asymmetry between income and cost, and the phenomenon of off-book accounting is serious. For financing needs, some companies deliberately falsify asset assessments, falsely increase assets and falsely reduce liabilities; deliberately falsely increase corporate profits and falsely reduce costs; they even do not hesitate to illegally merge the assets of affiliated companies in order to exaggerate their wealth. accounting statements. If such distorted reports are read and reviewed, the analyzed information will be extremely misleading and harmful. On the one hand, it increases the investment risk of investors and can easily mislead investors into investing blindly; secondly, if corporate decision-makers refer to false and distorted financial information to plan the company's future production and operation activities, it is easy to cause decision-making errors; in addition, , ***What the regulatory authorities obtained were false corporate financial data, which was not conducive to the control of investment risks and macro-control related policies.

The analysis method is simple and single, and it is difficult to fully reflect the company's financial situation

The company's financial statements include "balance sheet", "income statement", "cash flow statement" and "statement notes" Four parts of content. Corporate managers and related financial analysts often tend to read and analyze report data out of corporate interests, ignoring the interconnections between tables. In order to highlight the business results and performance, some companies tend to focus mainly on the income statement, but the accuracy of profits requires analyzing several other statements at the same time to draw a conclusion. It is difficult to comprehensively analyze the distribution of assets and liabilities structure of the company, the distribution of revenue and cost of the company, and the source and use direction of the company's cash by looking at the balance sheet or cash flow statement. . In addition, the method for reading and reviewing financial statements is relatively simple, and the "ratio analysis method" is often used, which is "to compare the ratios obtained by calculating the specific data of certain related projects

analyze". However, this method does not compare current data with historical data from a development perspective, nor does it compare with data in the same industry, which is relatively incomplete.

II. Countermeasures and Suggestions for Reading and Reviewing Financial Statements of Small and Medium-sized Enterprises

Managers and financial personnel should address the main problems that arise in reading and reviewing financial statements of small and medium-sized enterprises. to prevent and resolve.

Carry out regular accounting business skills training

The reading and review of financial statements is an important task in the financial management of small and medium-sized enterprises, and its important role in corporate operations and investments is self-evident. The process of reading and reviewing financial statements requires the application of knowledge from multiple disciplines such as accounting, management, and economics. In actual work, financial statement analysts' mastery and application of these multidisciplinary knowledge vary in depth and breadth, so the results of understanding and analyzing financial statement data are often different. It varies from person to person. Therefore, small and medium-sized enterprises should pay attention to regular professional skills and professional ethics training for financial statement analysts, and regularly hire experts in relevant fields to carry out training activities. Rich work experience is also indispensable for this job. Small and medium-sized enterprises should pay attention to business exchanges and learning between new and old financial analysts.

Comprehensive use of multiple comparison analysis methods

Finance of small and medium-sized enterprises

The "ratio analysis method" is commonly used in statement reading and review. But if you only focus on comparing relevant data with data, then the accuracy of this analysis result completely depends on the authenticity of the data. Therefore, the disadvantages of this analysis method

are also obvious. In addition, there is also the "comparative analysis method", which is to compare the financial data of a company with the financial data of companies of similar industries and sizes to find out the gaps between companies. The main flaw of this method is that the companies being compared must be the same or similar in terms of business methods, company size, and industry categories. In other words, whether the selected companies are truly comparable is the main limiting factor. . The other is the "trend analysis method", which is to compare current data with historical data to analyze the development and changes of the company's financial status and operating results. This analysis method is also based on the current and past financial statement data of the company. The authenticity of the data is still a limiting factor...

Question 7: I am a New financial newcomers who want to learn how to read financial statements as quickly as possible and be able to do simple analysis. Gaodun Financial Training offers the "Financial Statement Reading and Analysis" course, which is vertically in-depth, analyzing the essence of information hidden in the report data layer by layer, and horizontally expanding to demonstrate financial analysis. A complete framework and a new perspective. You can request the course schedule and syllabus from online customer service.

Gaodun Financial Training is a leader in China's financial training industry and a systematic financial training provider. For details, click on the official website of Gaodun Financial Training.

Question 8: How to learn financial statement analysis? Hello!

Have you analyzed the reasons why you failed this course? Is it because I don’t know how to calculate but not analyze, or is it because I am not proficient in basic calculation methods?

If it is the first situation, it is recommended that you buy a few exercise books, which usually come with real test questions and reference answers from the past three years. Do the real test questions a few times yourself, and then compare them with the reference answers. After a while, you will immediately understand where the difference is. Look more at the analysis part of the reference answers and learn how to express them, which will greatly improve you.

If it is the second situation, it is recommended that you excerpt the basic examples from the textbook, make a collection of exercises yourself, read more and practice more, until after you close your eyes, the formulas will automatically come to you. , in this way, if you form a habit, doing the questions will be much smoother.

Finally, I wish you success!

Question 9: How to read financial statements? I am a newbie in finance and have learned theoretical knowledge, but I still can’t understand the company’s previous statements. 1. Analysis of financial statements:

1. Analyze the company's solvency, analyze the structure of the company's equity, and estimate the degree of utilization of debt funds.

2. Evaluate the operational capabilities of corporate assets and analyze the distribution and turnover of corporate assets.

3. Evaluate the profitability of the company, analyze the completion of the company's profit targets and changes in profit levels in different years.

The above three aspects of analysis are interconnected and complementary, and can comprehensively describe the financial status, operating results and cash flow of the company's production and operation to meet the basic needs of different users for accounting information. .

2. Financial statements can fully reflect the company's financial status, operating results and cash flow.

However, the data in the financial statements alone cannot directly or comprehensively explain the financial status of the company, especially the quality of the company's operating conditions and operating results. Only by comparing the company's financial indicators with relevant data can we explain the company's financial status. The financial position is such that financial statement analysis is performed.

Question 10: If you want to understand a company’s financial statements, what should you learn? Financial statement analysis, capital operation management, and financial management are all things you need to learn. Hangzhou Shangyuan offers special training courses, you can check it out.

How to quickly understand financial statements

It is very simple to read financial statements. The key is understanding what these numbers mean.

On the left side of the balance sheet, the numbers filled in are the assets of the unit, in the form of currency, in the form of claims, the cost amount of inventory, and the assets in the form of fixed assets.

The liabilities listed on the right are in the form of debt. The bottom right is the value of the unit's own equity, including invested capital, and accumulated profits and losses.

The income statement is a profit and loss statement.

Income, costs, expenses, profits. Reflects profit and loss results.

It takes some effort to combine these data with the assets and operations of the unit.