How to write an analysis of corporate financial monthly reports?
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Budget unit financial monthly report analysis system (template) How to write financial monthly report analysis
If you are a financer, just put Just write down the differences between the various financial data for this period and the budget, the previous period, and the same period. As for the reasons for the differences, that is a matter for other functional departments. For example, sales this month are 12 million, an increase of 1 million compared with the budget, an increase of 1 million, an increase of 9%, compared with the same period last year, an increase of 2 million, an increase of 10%, and the company's growth is good. As for the reasons for sales growth, they may involve market development, price increases, etc. These are all matters of the sales department. How to write the analysis and prevention of corporate financial risks?
(1) Financing risk control Under market economy conditions, financing activities are the starting point of an enterprise’s production and operation activities. Improper management measures will cause great uncertainty in the use efficiency of raised funds. Therefore, generate financing risks. There are two broad categories of channels for enterprises to raise funds: First, owner investment, such as capital increase and share expansion, and reinvestment of after-tax profit distribution. The second is borrowing funds. For borrowed funds, when an enterprise obtains financial leverage benefits, it implements debt operations and borrows funds, which brings the possibility of losing its ability to repay debts and uncertainty of earnings. There are several specific reasons for financing risks: the risk of an increase in corporate financing costs due to interest rate fluctuations, or the raising of funds higher than the average interest level. In addition, there are also capital organization and scheduling risks, operating risks, and foreign exchange risks. Therefore, the scale of debt operations must be strictly controlled. (2) Investment risk control After an enterprise obtains funds through financing activities, there are three types of investments: one is investment in production projects, the other is investment in securities markets, and the third is investment in commercial activities. However, investment projects do not always produce expected returns, thus causing uncertainty about the reduction of corporate profitability and debt solvency. If an investment project cannot be put into production on time and cannot obtain income, or even though it is put into production, it cannot make a profit but instead suffers a loss, which will lead to a decline in the overall profitability and solvency of the company. Although there is no loss, the profitability level is very low, and the profit margin is lower than that of banks in the same period. The deposit interest rate; or the profit rate, although higher than the bank deposit interest rate, is lower than the company's current capital profit rate. When making investment risk decisions, the important principle is to not only dare to make risky investments to obtain excess profits, but also to overcome blind optimism and adventurism and avoid or reduce investment risks as much as possible. What should be pursued in decision-making is an optimal combination of returns, risks, and conservatism, or let the principle of conservatism act as a balancer between returns and risks. 3) Capital recovery risk control An important part of financial activities is capital recovery. Accounts receivable are an important aspect that creates capital recovery risks, and accounts receivable accelerate cash outflows. Although it enables companies to generate profits, it does not increase their cash. Instead, it causes companies to use limited working capital to advance unrealized profit and tax expenses and accelerate cash outflows. Therefore, the management of accounts receivable should be strengthened in the following aspects: first, establish a stable credit policy; second, determine the customer's credit rating and evaluate the company's solvency; third, determine a reasonable proportion of accounts receivable; fourth, It is to establish a sales responsibility system. (4) Income distribution risk control Income distribution is the last link in the corporate financial cycle. Income distribution includes retained earnings and dividend distribution. Retained earnings are the source of expanding investment scale, while distribution of dividends is the requirement for shareholders to expand their property. The two are both interconnected and contradictory to each other. If a company expands its suite quickly and its sales and production scale develop rapidly, it will need to acquire a large amount of assets and retain most of its after-tax profits. However, if the profit rate is high and the dividend distribution is lower than a certain level, it may affect the value of the company's stock, thus creating a risk in the company's income distribution. Therefore, we must pay attention to the balance between the two and strengthen financial risk monitoring.
Enterprise financial risk response measures are as follows:
1. Strengthen the analysis of the environment and increase risk awareness
The environment is independent of As long as the enterprise exists, the enterprise cannot interfere with it, but when the external environment changes, the enterprise can take certain measures. Strengthen the analysis of the external environment, grasp its changes in a timely manner, and then formulate corresponding solution strategies to make timely financial adjustments. Enterprises need to establish certain financial institutions, then arrange high-quality staff, conscientiously implement financial management rules and regulations, and maintain risk awareness at all times.
2. Adjust capital structure
In the development process of an enterprise, it is necessary to continuously study the capital structure, so that a way for capital recycling can be found, and only in this way can the capital structure be ensured to be reasonable. . In the process of enterprise development, enterprises need to establish a capital structure that integrates financing structure, asset structure and investment structure to increase the rationality of capital. During management, if you find that you have idle funds, you need to make short-term investments in yourself to speed up your liquidity and reduce your debt ratio. There is also the recovery of funds and the reduction of 60% of the shares, so that the interests can be guaranteed, the equity can be better grasped, and financial risks can be avoided.
In general, in the development process of an enterprise, financial risks are common, and there are many reasons for the risks. Enterprises must analyze risks and take corresponding preventive measures. When companies manage their finances, they must pay attention to financial risks so that they can continue to develop. How to write a paper on corporate financial statement analysis
This question is so big, let’s just write a small point. From the financial principles such as substance over form, use the relationship between cash and income statement in corporate cash flow statement The difference is increasing step by step. Let’s write about the profit under the financial accrual basis and the net cash under the realization basis. Analyze the causes and solutions. From the perspective of the business owner, we constantly ask why the company does not realize so much profit. What about cash? It may be that inventory is occupied, accounts receivable are occupied... Analysis of a company's financial report! Urgent...
I tell you~~Add 286227594 Analysis of corporate financial indicators
Liquidity ratio
Liquidity is the ability of a company to generate cash. It depends on the amount of liquid assets that can be converted into cash in the near future.
(1) Current ratio
Formula: Current ratio = total current assets/total current liabilities
Meaning: reflects the company's ability to repay short-term debts. The more current assets and less short-term debt, the greater the current ratio and the stronger the company's short-term debt repayment ability.
Analysis Tip: Lower than normal, the company's short-term debt repayment risk is greater. Generally speaking, the operating cycle, the amount of accounts receivable in current assets and the turnover rate of inventory are the main factors that affect the current ratio.
(2) Quick ratio
Formula: Quick ratio = (Total current assets - inventory) / Total current liabilities
Conservative quick ratio = 0.8 (net of monetary funds, short-term investments, notes receivable, accounts receivable)/current liabilities
Meaning: It can better reflect the company's ability to repay short-term debts than the current ratio. Because current assets also include inventories that are slowly realized and may have depreciated in value, current assets are deducted from inventories and then compared with current liabilities to measure the company's short-term solvency.
Analysis Tip: A quick ratio lower than 1 is usually considered to be a low short-term solvency. An important factor affecting the credibility of the quick ratio is the liquidity of accounts receivable. Accounts receivable on the books may not always be liquidated, nor may they be very reliable.
General tips for liquidity analysis:
(1) Factors that increase liquidity: available bank loan indicators; long-term assets ready to be liquidated quickly; reputation for solvency.
(2) Factors that weaken liquidity: unrecorded contingent liabilities; contingent liabilities arising from guarantee obligations.
2. Asset management ratio
(1) Inventory turnover rate
Formula: Inventory turnover rate = product sales cost / [(beginning inventory closing inventory) / 2]
Meaning: The inventory turnover rate is the main indicator of inventory turnover speed. Increasing the inventory turnover rate and shortening the business cycle can improve the company's liquidity.
Analysis tips: Inventory turnover rate reflects the level of inventory management. The higher the inventory turnover rate, the lower the inventory occupation level, the stronger the liquidity, and the faster the inventory can be converted into cash or accounts receivable. It not only affects the short-term solvency of the enterprise, but is also an important part of the entire enterprise management.
(2) Inventory turnover days
Formula: Inventory turnover days =360/inventory turnover rate
=[360*(beginning inventory and ending inventory)/2 ]/ Product sales cost
Meaning: The number of days it takes for an enterprise to purchase inventory, put it into production, and sell it out. Increasing the inventory turnover rate and shortening the business cycle can improve the company's liquidity.
Analysis tips: Inventory turnover speed reflects the level of inventory management. The faster the inventory turnover speed, the lower the inventory occupation level, the stronger the liquidity, and the faster the inventory can be converted into cash or accounts receivable. It not only affects the short-term solvency of the enterprise, but is also an important part of the entire enterprise management.
(3) Accounts receivable turnover rate
Definition: The average number of times accounts receivable are converted into cash during the specified analysis period.
Formula: Accounts receivable turnover rate = Sales revenue/[(Accounts receivable at the beginning of the period Accounts receivable at the end of the period)/2]
Meaning: Accounts receivable turnover rate The higher it is, the faster it is retracted. On the contrary, it means that too much working capital is stagnant in accounts receivable, affecting normal capital turnover and solvency.
Analysis Tips: Accounts receivable turnover rate should be considered in conjunction with the company's operating methods. The use of this indicator cannot reflect the actual situation in the following situations: first, enterprises operating seasonal operations; second, large-scale use of installment collection and settlement methods; third, large-scale use of cash-settled sales; fourth, large-scale sales at the end of the year or at the end of the year Sales dropped significantly.
(4) Accounts receivable turnover days
Definition: Indicates the time it takes for an enterprise to obtain the rights to accounts receivable to collect the money and convert it into cash.
Formula: Accounts receivable turnover days = 360 / Accounts receivable turnover rate
= (Accounts receivable at the beginning of the period, Accounts receivable at the end of the period) / 2] / Product sales Revenue
Meaning: The higher the accounts receivable turnover rate, the faster it is collected. On the contrary, it means that too much working capital is stagnant in accounts receivable, affecting normal capital turnover and solvency.
Analysis Tips: Accounts receivable turnover rate should be considered in conjunction with the company's operating methods. The use of this indicator cannot reflect the actual situation in the following situations: first, enterprises operating seasonal operations; second, large-scale use of installment collection and settlement methods; third, large-scale use of cash-settled sales; fourth, large-scale sales at the end of the year or at the end of the year Sales dropped significantly.
(5) Business cycle
Formula: Business cycle = inventory turnover days, accounts receivable turnover days
={[(beginning inventory and ending inventory)/ 2]* 360}/Cost of product sales {[(Accounts receivable at the beginning of the period and accounts receivable at the end of the period)/2]* 360}/Product sales revenue
Meaning: The operating cycle is from the acquisition of inventory to The time until inventory is sold and cash is collected. Generally speaking, a short operating cycle indicates a fast capital turnover; a long operating cycle indicates a slow capital turnover.
Analysis tips: The operating cycle should generally be analyzed in conjunction with inventory turnover and accounts receivable turnover.
The length of the operating cycle not only reflects the company's asset management level, but also affects the company's solvency and profitability.
(6) Current asset turnover rate
Formula: Current asset turnover rate = sales revenue/[(beginning current assets and ending current assets)/2]
Significance: The current asset turnover rate reflects the turnover speed of current assets. The faster the turnover speed, the relatively less current assets will be, which is equivalent to expanding the investment of assets and enhancing the profitability of the enterprise; while slowing down the turnover speed requires supplementing current assets to participate in the turnover, forming The waste of assets reduces the profitability of the company.
Analysis tips: The current asset turnover rate should be analyzed together with inventory and accounts receivable, and used in conjunction with indicators reflecting profitability to comprehensively evaluate the profitability of the company.
(7) Total asset turnover rate
Formula: Total asset turnover rate = sales revenue/[(total assets at the beginning of the period total assets at the end of the period)/2]
Meaning: This indicator reflects the turnover speed of total assets. The faster the turnover, the stronger the sales ability. Enterprises can adopt the method of small profits but quick turnover to accelerate asset turnover and increase the absolute amount of profits.
Analysis Tip: The total asset turnover indicator is used to measure the company's ability to use assets to earn profits. It is often used together with indicators reflecting profitability to comprehensively evaluate a company's profitability.
3. Debt ratio
Debt ratio is a ratio that reflects the relationship between debt, assets and net assets. It reflects the company's ability to repay maturing long-term debt.
(1) Asset-liability ratio
Formula: Asset-liability ratio = (Total liabilities/Total assets) * 100
Meaning: Reflects the proportion of capital provided by creditors proportion of total capital. This metric is also known as the debt-to-operating ratio.
Analysis Tip: The greater the debt ratio, the greater the financial risk faced by the company and the stronger its ability to obtain profits. If a company has insufficient funds and relies on debt to maintain its operations, resulting in a particularly high asset-liability ratio, special attention should be paid to debt repayment risks. The asset-liability ratio is between 60% and 70%, which is relatively reasonable and stable; when it reaches 85% and above, it should be regarded as an early warning signal, and enterprises should pay sufficient attention.
(2) Equity Ratio
Formula: Equity Ratio = (Total Liabilities/Shareholders’ Equity) * 100
Meaning: Reflects the capital provided by creditors and shareholders relative proportions. It reflects whether the capital structure of the enterprise is reasonable and stable. It also shows the extent to which the capital invested by creditors is protected by shareholders' rights.
Analysis tips: Generally speaking, a high equity ratio indicates a high-risk, high-reward financial structure, while a low equity ratio indicates a low-risk, low-return financial structure. From the perspective of shareholders, in times of inflation, companies borrowing money can transfer losses and risks to creditors; in times of economic prosperity, borrowing money can earn extra profits; in times of economic contraction, borrowing less debt can reduce interest burdens and financial risks.
(3) Tangible net worth debt ratio
Formula: Tangible net worth debt ratio = [total liabilities/(shareholders’ equity - net intangible assets)]*100
Significance: An extension of the property rights ratio indicator, a more prudent and conservative reflection of the degree to which the capital invested by creditors is protected by shareholders' rights when the company is liquidated. Regardless of the value of intangible assets including goodwill, trademarks, patents and non-patented technologies, they may not necessarily be used to repay debts. For the sake of prudence, they are all deemed to be unable to repay debts.
Analysis Tip: From the perspective of long-term solvency, a lower ratio indicates that the company has good solvency and the scale of debt is normal.
(4) Multiple of interest earned
Formula: Multiple of interest earned = profit before interest and tax/interest expense
= (total profit financial expenses)/ (Interest expense capitalized interest in financial expenses)
Usually an approximate formula can also be used:
Multiple of interest earned = (total profit financial expenses) / financial expenses
Meaning: The ratio of an enterprise's business income to interest expenses is used to measure the enterprise's ability to repay borrowing interest, also called the interest coverage ratio. As long as the multiple of interest earned is large enough, the company has sufficient ability to repay the interest.
Analysis Tip: A company must have a large enough profit before interest and tax to ensure that it can afford capitalized interest. The higher the indicator, the smaller the debt interest pressure of the company.
4. Profitability ratio
Profitability is the ability of a company to earn profits. Both investors and debtors are very concerned about this project. When analyzing profitability, factors such as abnormal projects such as securities trading, business projects that have been or will be discontinued, special projects such as major accidents or legal changes, and the cumulative impact of changes in accounting policies and financial systems should be excluded.
(1) Net sales profit rate
Formula: Net sales profit rate = net profit/sales revenue * 100
Meaning: This indicator reflects the cost of each dollar of sales revenue What is the net profit coming? Indicates the revenue level of sales revenue.
Analysis Tip: While increasing sales revenue, companies must obtain more net profits accordingly in order to keep the net sales profit rate unchanged or increase. Net sales profit margin can be decomposed into gross sales profit margin, sales tax rate, sales cost rate, sales period expense rate and other indicators for analysis.
(2) Sales gross profit margin
Formula: Sales gross profit margin = [(sales revenue - sales cost)/sales revenue]*100
Meaning: Representation After deducting the sales cost from each dollar of sales revenue, how much money can be used for various period expenses and profit formation.
Analysis Tips: The gross sales profit margin is the initial basis for the company's net sales profit margin. Without a large enough sales gross profit margin, profits cannot be formed. Enterprises can analyze gross sales profit margin on a regular basis to make judgments on the occurrence and proportion of enterprise sales revenue and sales costs.
(3) Net interest rate on assets (return rate on total assets)
Formula: Net interest rate on assets = net profit/[(Total assets at the beginning of the period Total assets at the end of the period)/2]*100
Meaning: Comparing the company's net profit for a certain period with the company's assets shows the comprehensive utilization effect of the company's assets. The higher the indicator, the higher the asset utilization efficiency, indicating that the company has achieved good results in increasing revenue and saving funds, otherwise the opposite is true.
Analysis tips: Net asset interest rate is a comprehensive indicator. The amount of net profit is closely related to the amount of assets of the company, the structure of the assets, and the level of operation and management. The factors that affect the net asset interest rate include: product price, unit product cost, product output and sales volume, and the amount of capital occupied. The DuPont financial analysis system can be used to analyze existing problems in operations.
(4) Return on equity (return on equity)
Formula: Return on equity = net profit/[(Total owner’s equity at the beginning of the period Total owner’s equity at the end of the period)/ 2]*100
Meaning: Return on net assets reflects the return on investment of the company’s owners’ equity, also called return on net worth or return on equity, and is highly comprehensive. is the most important financial ratio.
Analysis Tips: The DuPont analysis system can decompose this indicator into a variety of related factors to further analyze various aspects that affect the return of owner's equity. Such as asset turnover rate, sales profit margin, equity multiplier. In addition, when using this indicator, you should also analyze "accounts receivable", "other receivables" and "prepaid expenses".
5. Cash flow analysis
The main functions of the cash flow statement are: first, to provide the actual cash flow of the company; second, to help evaluate the quality of the current period’s earnings , thirdly, it helps to evaluate the financial flexibility of the enterprise; fourthly, it helps to evaluate the liquidity of the enterprise; fifthly, it is used to predict the future cash flow of the enterprise.
Liquidity Analysis
Liquidity analysis is the ability to quickly convert assets into cash.
(1) Cash to maturity ratio
Formula: Cash to maturity ratio = Net cash flow from operating activities / Debt due in the current period
This Debt due in the current period = long-term liabilities due within one year + notes payable
Meaning: Comparing the net cash flow from operating activities with the debt due in the current period can reflect the company's ability to repay due debt. .
Analysis Tip: In addition to borrowing new debt to repay old debt, what a company can use to repay debt should generally be cash inflow from operating activities.
(2) Cash flow to liabilities ratio
Formula: Cash flow to liabilities ratio = Annual net cash flow from operating activities/Ending current liabilities
Meaning: Reflects operating activities The extent to which current liabilities are covered by the cash generated.
Analysis Tip: In addition to borrowing new debt to repay old debt, what a company can use to repay debt should generally be cash inflow from operating activities.
(3) Total cash-to-debt ratio
Formula: Cash flow-to-liability ratio = Net cash flow from operating activities/Total liabilities at the end of the period
Meaning: Enterprises can use To repay debts, in addition to borrowing new debts to repay old debts, debts should generally be repaid with cash inflow from operating activities.
Analysis Tips: Calculation results must be compared with the past and with peers to determine high or low. The higher the ratio, the greater the company's ability to shoulder debt. This ratio also reflects the company's maximum interest-paying ability.
Ability to obtain cash
(1) Sales cash ratio
Formula: Sales cash ratio = net cash flow from operating activities/sales
Meaning: Reflects the net cash inflow obtained per dollar of sales. The larger the value, the better.
Analysis tips: Calculation results must be compared with the past and compared with peers to determine whether it is high or low. The higher the ratio, the better the company's income quality and the better its capital utilization.
(2) Operating cash flow per share
Formula: Operating cash flow per share = Net cash flow from operating activities / Number of common shares
Common shares The number is filled in by the enterprise based on the actual number of shares.
Standard value set by the enterprise: Depends on the actual situation
Meaning: Reflects the net cash received from operations per share. The larger the value, the better.
Analysis Tip: This indicator reflects the company's ability to distribute maximum cash dividends. If you exceed this limit, you will need to borrow money and distribute dividends.
(3) Cash recovery rate of all assets
Formula: Cash recovery rate of all assets = Net cash flow from operating activities/Total assets at the end of the period
Meaning: Explain the enterprise The ability of an asset to generate cash, the greater its value, the better.
Analysis tips: By taking the reciprocal of the above indicators, you can analyze the length of time required to recover all assets with cash from operating activities. Therefore, this indicator reflects the meaning of corporate asset recovery. The shorter the payback period, the stronger the asset’s ability to obtain cash.
Financial elasticity analysis
(1) Cash meets investment ratio
Formula: Cash meets investment ratio = cumulative net cash flow from operating activities in the past five years/during the same period The sum of capital expenditures, inventory increases, and cash dividends.
Numbering method: The cumulative net cash flow from operating activities in the past five years should refer to the sum of the net cash flow from operating activities in the previous five years; the sum of capital expenditures, inventory increases, and cash dividends during the same period is also calculated from cash The relevant columns of the flow statement are taken from the average of the past five years;
Capital expenditures are taken from the cash paid for the purchase and construction of fixed assets, intangible assets and other long-term assets;
Inventory increases, take the figures from the cash flow statement schedule. Take the opposite number of the inventory decrease column, which is the increase in inventory; for cash dividends, take the number from the cash items paid for profit distribution or dividends in the main table of the cash flow statement. If the new corporate accounting system is implemented and the project is cash paid for the distribution of dividends, profits or repayment of interest, the calculation method is: the main table of the cash paid for the distribution of dividends, profits or repayment of interest minus the financial expenses in the appendix .
Significance: It illustrates the ability of the cash generated by the company's operations to meet capital expenditures, inventory increases and cash dividends. The larger the value, the better. The larger the ratio, the higher the self-sufficiency rate.
Analysis Tip: If it reaches 1, it means that the company can use the cash obtained from operations to meet the funds required for corporate expansion; if it is less than 1, it means that part of the company's funds must be supplemented by external financing.
(2) Cash dividend protection ratio
Formula: Cash dividend protection ratio = operating cash flow per share / cash dividend per share
= net cash from operating activities Flow/Cash Dividends
Meaning: The larger the ratio, the stronger the ability to pay cash dividends, and the larger the value, the better.
Analysis Tips: The analysis results can be compared with peers and the company’s past.
(3) Operating index
Formula: Operating index = net cash flow from operating activities / cash due from operations
Among them: cash from operating = net operating activities Income non-cash expenses
= Net profit - Investment income - Non-operating income Non-operating expenses Depreciation of intangible assets amortized in the current period Amortization of prepaid expenses Amortization of deferred assets
Significance: Analyze the proportional relationship between accounting income and net cash flow, and evaluate the quality of income.
Analysis tips: If it is close to 1, it means that the cash that the company can obtain from operations is equivalent to the cash it should receive, and the quality of earnings is high; if it is less than 1, it means that the quality of the company's earnings is not good enough. Corporate financial report analysis paper