(20 1 1-09-29 16:44:04)
In the balance sheet, "monetary funds" are assets that can be paid at any time and have the strongest liquidity.
Monetary funds include cash, bank deposits and other monetary funds, which are listed in monetary amount.
Cash equivalents such as bank checks and sight drafts or highly liquid items also belong to monetary funds.
However, monetary funds do not include long-term cheque deposits, temporary IOUs, bank refunds, designated monetary funds and securities.
Generally speaking, the factors that determine the size of a company's monetary funds are as follows:
(1) Asset scale and business scale of listed companies.
The greater the total assets of listed companies, the larger the corresponding monetary fund scale; The more frequent the business, the more monetary assets.
(2) the company's fund-raising ability. The company has a good reputation, and it will be smooth to borrow money from banks or issue stocks and bonds. The company can appropriately reduce the amount of monetary funds held.
(3) the company's ability to use monetary funds. There are also problems of "efficiency" and "benefit" in the use of monetary funds. The stronger the ability of listed companies to use monetary funds, the faster the internal capital turnover of the company, and the company does not need to keep too much monetary funds.
(4) Industry characteristics of the company. For companies in different industries, the reasonable scale of monetary funds will be different. There are some historical experience data, which investors can query through the internet or statistical yearbook.
Accounts receivable analysis
2003-12-2910:1I want to correct typographical errors.
Accounts receivable refers to the money that an enterprise should collect from the unit that buys or accepts services for selling goods and providing services. It is the creditor's right formed by the business activities of an enterprise such as selling goods and providing services, mainly including the price that the enterprise should charge the relevant debtor for selling products, goods, materials and providing services, as well as the freight and miscellaneous fees paid by the buyer. Generally speaking, when selling goods, enterprises would rather offer cash discounts to recover their sales cash than sell them on credit. However, with the gradual establishment and improvement of the market economy and increasingly fierce market competition, most enterprises have to provide commercial credit to each other and sell goods on credit, resulting in accounts receivable. The increase of enterprise accounts receivable also has its disadvantages: first, it will slow down the capital turnover speed of enterprises; Second, there will inevitably be some irrecoverable bad debts. This requires enterprise managers to pay attention to the analysis of accounts receivable. Minimize the losses caused by uncollectible accounts receivable. Accounts receivable analysis mainly includes the following aspects:
I. Analysis of Total Accounts Receivable and Turnover
(a) Accounts receivable are outstanding accounts generated by enterprises selling on credit to customers in normal transactions.
The factors that affect the size of enterprise accounts receivable are: 1. Competing with the same industry. In order to win in the fierce competition, expand commodity sales and obtain better economic benefits, every enterprise has to attract customers with certain preferential conditions. And selling on credit is an important means to achieve this goal. As a seller, in order to attract customers and expand sales, we are willing to provide commercial credit to the buyer. Therefore, the fiercer the competition among enterprises, the wider the use of credit sales, the more credit provided by sales units, and the greater the assets occupied in accounts receivable. 2. Sales scale. The size of enterprise accounts receivable largely depends on the sales scale of enterprises. The more goods an enterprise sells in the market every day, the greater the assets it occupies in each stage of current assets turnover. Because accounts receivable is an important stage of current assets turnover, it will increase with the expansion of sales scale without exception. 3. Corporate credit policy. The enterprise's credit policy mainly refers to the enterprise's credit standard and credit term. When the enterprise provides credit for a long time and the discount rate is low, the amount of assets occupied by the enterprise accounts receivable will increase and the sales volume will also increase; On the contrary, enterprises with shorter credit period and higher discount rate will reduce the amount of assets occupied in accounts receivable, but the sales volume will be affected. In addition, there are market demand for enterprise products, product quality, seasonal changes and other factors, which will also affect the occupation of enterprise accounts receivable.
(2) The analysis of accounts receivable turnover rate can be carried out by calculating the accounts receivable turnover rate index.
The turnover rate of accounts receivable refers to the ratio of net income from credit sales to average accounts receivable. It can measure the ability and speed of enterprises to recover credit sales accounts in a specific period. Its calculation formula is as follows: accounts receivable turnover rate II. Net income on credit/average accounts receivable.
In the above formula, the numerator should be net income from credit sales, that is, the balance of commodity sales income after deducting current sales income, sales discount and discount. Because accounts receivable are caused by credit sales, the average accounts receivable in the denominator are the average balance of accounts receivable at the beginning of the year and the average balance at the end of the year. The higher the index value, the more times the accounts are collected within one year, which means that the shorter the average time of collecting accounts, the faster the speed of collecting accounts receivable. Otherwise, the working capital of an enterprise is too sluggish in accounts receivable, which will affect the normal capital turnover.
Because the external accounting statements of general enterprises rarely reflect the figures of credit sales and cash sales separately, it is often necessary to further collect relevant information to calculate the net credit sales when analyzing accounts receivable. In addition, in order to understand the changing trend of the enterprise's accounts receivable turnover rate, we can compile a comparative accounts receivable turnover rate trend analysis table over the years (see the table below).
As can be seen from the above table, the enterprise's accounts receivable turnover rate is rising steadily, from three times five years ago to 5.2 times that of 1999, indicating that its credit policy and collection policy have been significantly improved and the accounts receivable turnover rate has been accelerated.
The average collection period is also one of the indicators of accounts receivable turnover rate. It represents the time required for an enterprise to obtain the power of accounts receivable and recover the money and turn it into cash. The calculation formula is: average collection period =360 days/accounts receivable turnover rate. Generally speaking, there is no certain standard for the average collection period, so it is difficult to establish an ideal basis for comparison, but the fewer days it takes to make a turnover, the better. Because the fewer days are needed, the more accounts receivable turnover times in a year. How appropriate the average payment cycle of an enterprise is depends on the policies of the enterprise and the standards set by the same industry. In addition, the accounts receivable turnover rate or average turnover days of enterprises may also exist due to some special factors, such as the change of sales conditions, the influence of cash sales or installment sales policies on normal credit sales, horizontal competition, the change of price level, the change of credit or collection policies, the development of new products, etc., which will all affect the change of accounts receivable turnover rate or average turnover days. Strictly speaking, the turnover rate or average turnover days of accounts receivable only represent an average of all accounts receivable, and it is really impossible to fully understand the overdue situation of customers in accounts receivable.
Second, the management of accounts receivable and the analysis of bad debt provision.
In order to strengthen the management of accounts receivable and improve the turnover speed of accounts receivable, enterprises should clean up accounts receivable in time and make provision for bad debts. According to international accounting standards, accounts receivable with an age of more than 2 years should be regarded as bad debts. According to the financial system of domestic enterprises, accounts receivable that have not been recovered for more than three years are regarded as bad debts. At present, it is generally accepted in western countries, and the most commonly used credit period is 30 days. Once the credit period is determined, both buyers and sellers should strictly implement it. However, among the enterprises in China, although the two sides have agreed on the credit term, there are not many enterprises that can keep their promises due to serious mutual arrears and insufficient liquidity.
(A) can be analyzed by time-effect analysis.
Aging analysis is a method to estimate the bad debt loss in stages according to the length of arrears of accounts receivable. See the table below for the analysis method.
By analyzing the aging of accounts receivable, the proportion of bad debt provision is determined for different default periods. If the default time is short, the accrual ratio can be lower; If the default time is long, the accrual ratio is relatively high; If it is more than three years, it can be fully accrued. In addition, when clearing accounts receivable, the principle that the old account is superior to the new account can be adopted to determine the repayment object, that is, it occurs first and then repays. Through the above methods, enterprises can be urged to take effective measures.
(2) Provision for bad debts is made by using the percentage method of accounts receivable balance.
According to the current financial accounting system of different industries in China, the provision for bad debts can be drawn according to 3% o-5% o of the year-end balance of accounts receivable. Under this method, the balance of bad debt reserve at the end of each year matches the balance of accounts receivable, and a certain accrual ratio is maintained, and its net amount is included in the total assets in the balance sheet, which avoids the inflated assets and conforms to the principle of prudence. However, there are also shortcomings: First, the annual bad debt loss does not correspond to the actual bad debts of enterprises, nor does it correspond to the credit sales income that occurred in that year, and its amount is difficult to understand. Secondly, the volatility of bad debt losses caused by bad debts or contingencies in each year is inevitable, which directly affects the stability of operating performance in each year.
(3) The percentage method of credit sale pays attention to the correctness of the income statement, and its bad debt loss expenses in each year match the current income.
The starting point is that the generation of bad debt loss is directly related to credit sales, and the estimation of bad debt loss should be calculated by multiplying the net value of credit sales by a certain proportion. Therefore, the percentage method of credit sales is based on net credit sales, which reflects the figures of a period, and the estimated loss of bad debts calculated on this basis is also the number of periods, that is, the amount of bad debt reserves that should be accrued in the current period. Its advantage is that no matter how many bad debts actually occur every year, as long as the income from credit sales does not fluctuate greatly, the loss of bad debts will remain stable. This method is simple and easy to understand, but it also has some shortcomings: First, the amount of bad debt reserve in the "bad debt reserve" account, the actual bad debt loss and the previously confirmed bad debt recovery are accounted for together, but no adjustment is made at the end of the period, and the amount of bad debt reserve in each period cannot be reflected separately, thus making the account balance difficult to understand and even misleading the balance sheet users. Secondly, the starting point of the percentage method of credit sales is the amount of credit sales in this period, without asking about the subsequent situation of credit sales. If the amount of credit sales business occurred in this period has been recovered in this period, there is no risk in this business. However, the percentage method of credit sales does not consider these situations, and a certain amount of bad debt reserve is still accrued at the end of the period.
Third, how to reduce the loss of accounts receivable
Under the condition of market economy, there is a risk of bad debts when enterprises sell goods on credit in their business dealings. In order to minimize the risk of bad debts and not cause difficulties in production, operation and financial revenue and expenditure of enterprises when bad debts occur, it is necessary to withdraw bad debt reserves in advance according to the prescribed proportion, and then write off the withdrawn bad debt reserves when bad debts actually occur. The analysis of bad debt reserve is mainly to know whether the bad debt reserve is withdrawn according to the specified withdrawal ratio, and how many bad debts written off in the "bad debt reserve" account in the current year belong to bad debts that should be written off. Therefore, accounts receivable is an important item in current assets, and its amount directly affects the capital turnover of enterprises. The important duty of the accounting department is to recover accounts receivable as soon as possible through the analysis of accounts receivable, reduce the occurrence of bad debts and minimize the losses of accounts receivable. First, formulate reasonable credit conditions according to market conditions, competitors' ability and enterprise product quality; The second is to strictly manage accounts receivable and adopt a better collection policy. The most ideal collection strategy is not only to recover the payment smoothly, but also to maintain a good relationship between enterprises and customers and reduce the collection cost. This is difficult to do in practical work, but enterprise managers can gradually move towards this goal by analyzing accounts receivable correctly and scientifically, so as to speed up the turnover rate of accounts receivable, reduce the loss of bad debts and create better economic benefits for enterprises.