Financial analysis: how to read the annual report of listed companies

The annual report of listed companies is an important report that comprehensively reflects the operating performance and financial situation during the year, and it is the main basis for investors to judge the changing trend of securities prices. The main body of the annual report includes: company introduction, summary of accounting data and operating data, changes in share capital and shareholder information, introduction of shareholders' meeting, report of the board of directors, report of the board of supervisors, summary of operating report, major events, financial report and other relevant information of the company. The basis of analyzing the annual report is the truthfulness, accuracy and completeness of the data. If there are false, seriously misleading statements or major omissions in the information publicly disclosed by a listed company, the intermediary agency responsible for document verification shall bear corresponding legal responsibilities, and all promoters or directors of the company shall also bear joint liability. When analyzing the annual report, it is very important to use the comparative method, which generally includes:

1, the actual indicators of the current period are compared with those of the previous period. There are two ways to compare: one is to determine the number of changes; The second is to determine the rate of change. The calculation formula is as follows:

Increase/decrease change amount = actual indicators of the current period-actual indicators of the previous period

Increase or decrease change rate (%) = (increase or decrease change quantity/actual index of the previous period) * 100%

2. Compare the actual indicators of this period with the expected targets. In this way, the completion of the entrusted responsibility of the company's operators can be assessed, and the expected goal can be achieved well, which shows that the company's operators have successfully grasped the market; It is also necessary to compare with long-term planning and analyze the possibility of achieving long-term goals. However, in this comparison, we must check the rationality and advancement of the planned goal itself, otherwise the comparison will lose its objective basis.

3. The actual indicators of this period are compared with similar companies. In order to clearly understand the position of listed companies in this industry, and combine the performance analysis.

Generally speaking, when analyzing the annual report, we will pay attention to the size of the net worth. The greater the net worth, the better the company's operating conditions. At the same time, we should also pay attention to the ratio of net value to fixed assets. The net value is greater than fixed assets, which shows that the company has high financial security. Since current assets subtract current liabilities, the rest is working capital. The greater this figure, the more working capital the company can control. Also pay attention to the relationship between debt and net worth. When the ratio of debt to net worth is less than 50%, the company's operating conditions are still good.

Of course, when analyzing the annual report, we should also learn to discard the false and retain the true, and recognize the "traps" existing in some company annual reports.

First, pay attention to the sales profit rate. If there is no big change in the company's operation, its sales profit rate should be relatively stable. If the sales profit rate changes greatly during the reporting period, it indicates that the company may underestimate or overcharge expenses, resulting in an increase or decrease in book profit. The second is accounts receivable. For example, some companies include the rebate expenses of sales network in accounts receivable, which makes profits inflated. Third, pay attention to the provision for bad debts, some accounts receivable cannot be recovered for a long time due to various reasons; The older the account, the greater the risk. Due to the low provision for bad debts in China, once there are too many bad debts, it will have a great impact on the company's profits. The fourth is depreciation. This is a place where listed companies can make great achievements. Some projects under construction will not be converted into fixed assets after completion, so the company will let go of depreciation, some will not be depreciated according to the replaced fixed assets, and some will even reduce the depreciation rate and inflated the company's profits. The fifth is tax refund income. Some tax refund income is not included in the capital reserve as required, but included in the profit; Some will delay the tax refund period, resulting in inaccurate current profits.