The object of financial statement analysis is the basic activities of enterprises. The purpose of financial statement analysis is to obtain information that meets the analysis purpose of report users, understand the characteristics of enterprise activities, evaluate its performance and find its problems.
Meaning:
Financial statements can fully reflect the financial position, operating results and cash flow of enterprises. However, the data in financial statements alone can not directly or comprehensively explain the financial situation of enterprises, especially the quality of business conditions and the level of operating results. Only by comparing the enterprise's financial indicators with relevant data can we explain the enterprise's financial situation, so it is necessary to analyze the financial statements.
A good analysis of financial statements can correctly evaluate the financial situation, operating results and cash flow of enterprises and reveal the future rewards and risks of enterprises; It can check the completion of enterprise budget, evaluate the performance of managers, and help to establish and improve a reasonable incentive mechanism.
Extended data:
The analysis of financial statements is carried out by different users, who have different analysis focuses, but the requirements are the same. From the enterprise as a whole, the basic contents of financial statement analysis mainly include the following three aspects:
1. Analyze the solvency of enterprises, analyze the equity structure of enterprises, and estimate the utilization degree of debt funds.
2. Evaluate the asset operation ability of the enterprise, and analyze the asset distribution and turnover of the enterprise.
3. Evaluate the profitability of enterprises, and analyze the completion of enterprise profit targets and the changes of profit levels in different years.
The analysis contents of the above three aspects are interrelated and complementary, which can comprehensively describe the financial situation, operating results and cash flow of enterprise production and operation, and meet the basic needs of different users for accounting information.
Baidu Encyclopedia-Financial Statement Analysis
Baidu Encyclopedia-Financial Statement Analysis Case