One is the inter-table analysis method. That is, comprehensively measure the related items between the company's financial statements and pay attention to whether there are unreasonable doubts, so as to understand the real profit quality and asset quality of the enterprise and prevent misleading of a single statement.
The second is the financial ratio analysis method. Compare the relevant items in the financial statements of the company in the same accounting period, calculate the ratio, and judge its solvency, capital structure, operating efficiency and profitability.
The third is the periodic analysis method. Compare and analyze the report items of the company in different periods, and judge the changing trend of its asset-liability structure and profitability.
Extended data:
Functions of cash flow statement:
First, it is convenient to evaluate enterprises from the perspective of cash flow.
For an operator, if there is no cash, the lack of purchasing and paying ability is fatal. Due to the need of management, managers of enterprises urgently need to know the cash flow information.
In addition, in the current situation of many problems in business reputation, departments and individual investors, banks, finance and taxation, industry and commerce, etc. , closely related to the enterprise, we need to know not only the structure and operating results of the assets, liabilities and owners' equity of the enterprise, but also the repayment ability of the enterprise and the information of cash inflow, outflow and net flow of the enterprise.
The profit in the income statement is calculated according to the accrual principle, and the principles of deferral, accrual, amortization and distribution are implemented. The calculated profit is out of sync with the cash flow.
There is a profit in the income statement and no money in the bank account. In recent years, with people's attention to cash flow, it is deeply felt that it is a big defect that the income statement compiled by accrual basis can not reflect cash flow. However, enterprises cannot change from accrual basis to cash basis.
Because the cash basis also has many unreasonable places, history has proved that enterprises can not adopt it. In this case, while adhering to accrual accounting, it is a good method to prepare cash flow statement based on cash.
The cash flow statement divides business activities, investment activities and fund-raising activities, and explains how much cash the enterprise flows in, how much cash it flows out and the net cash flow in a period. In this way, we can know where the cash comes from, why the profit on the income statement has not changed the cash flow, and make a more comprehensive and reasonable evaluation of the enterprise.
Second, understand the ability of enterprises to raise cash and generate cash.
If cash is compared to the blood of an enterprise, there are two ways for an enterprise to obtain fresh blood:
1, blood transfusion for enterprises, that is, absorbing investors' investment or borrowing cash through fund-raising activities. Absorbing investors' investment will increase the fiduciary responsibility of enterprises; Borrowed cash liabilities increase, and principal and interest will be repaid in the future. Under the condition of market economy, there is no "free use" cash, and the next step after blood transfusion is to pay a certain price.
2. Enterprises make their own blood and make their own profits in the course of operation. If an enterprise wants to survive and develop, it must make a profit, and profit is the main source of cash. Through the cash flow statement, we can know how much cash has been raised and generated inside and outside the enterprise after a period of operation.
Baidu Encyclopedia-Cash Flow Statement