Financial analysis case
Application of DuPont analysis system
-Xiangyang Company
First, the teaching purpose
The important purpose of DuPont analysis system is to reflect the interrelation of various indicators. By studying this case, we can study the main reasons for the change of return on net assets and its influence.
Second, the case data
Xiangyang Company is a listed company in China. In the past seven consecutive years, its income level has been declining. In order to analyze the reasons for the decline in operating performance, the company hired financial consultants for consultation. First, the financial consultant calculates and prepares the composition table of ROE according to the company's financial statements over the years, as shown in the following table:
Third, think and discuss problems.
According to the information provided in the above table, as a financial consultant, analyze the main factors that cause the change of return on net assets and their influence degree.
Profitability analysis
—————————————————————————————————————————————————————————————————————————————————————————————— Oriental shares.
First, the teaching purpose
The analysis of the company's profitability is a problem that every investor is very concerned about, but how to analyze the company's profitability and what kind of profitability is real? What kind of profit is fake? Through the study of this case, students can understand the relationship between profitability and the management philosophy, value orientation and accounting policy of the board of directors.
Second, the case data
Dongfang Iron and Steel Co., Ltd. belongs to the metallurgical industry, and its business scope includes the production and sales of steel and rolled products, coke and its by-products, technical development, cooperation, consultation and training of metallurgy and coking. Since 2000, the total share capital has remained unchanged at 645,337,500 shares. The profit in 2003 was compared with that in 2002. There is a great improvement. The following table is the profit distribution table of the company in recent two years.
In the 2003 annual report, the changes in accounting policies and accounting estimates were explained as follows: the company belongs to the metallurgical industry, and its fixed assets are in a state of continuous operation and strong vibration all the year round. With the full play of production capacity, the daily loss of fixed assets is more serious. At the same time, scientific and technological progress has also accelerated the intangible loss of fixed assets. In order to provide more reliable and relevant accounting information such as financial status, operating results and cash flow, according to the resolutions of the 15th and 18th meetings of the second board of directors of the company, the depreciation period and depreciation method of the company's fixed assets were changed to:
Change the depreciation period of buildings from 20-30 years to 20 years; Change the depreciation period of means of transport from 8 years to 5 years; The depreciation life of general equipment and special equipment remains unchanged. The depreciation period before and after the change is listed as follows:
Depreciation life of fixed assets before category change (year) Depreciation life after category change (year)
Houses and buildings 20-30 20
General equipment 5 5
Special equipment 10 10
Means of transport 8 5
The depreciation method is changed from the original life average method to the double declining balance method. As the depreciation period and depreciation method are changed at the same time, according to the Accounting Standards for Enterprises-Accounting Policies, Changes in Accounting Estimates and Correction of Accounting Errors issued by the Ministry of Finance, changes in accounting policies and changes in accounting estimates are regarded as changes in accounting estimates, so the future applicable method is adopted for this change in depreciation period and depreciation method. According to the calculation, the depreciation expense of consolidated accounting statements increased by 274,965,438+0,465,438+0,57.87 yuan after this change.
Three. Issues for consideration and discussion
(1) Calculate the indicators reflecting the profitability of Dongfang in 2002 and 2003, and evaluate the profitability of these two years.
(2) Why did Oriental Company change the depreciation period and depreciation method of fixed assets in 2003? What impact does the change of depreciation method of fixed assets have on the profitability of the company?
(3) If you are an investor, please comment on the policy of Oriental Stock Company to change the depreciation period and depreciation method of fixed assets in 2003.