How to read the annual report of listed companies and what indicators are used to determine profits and losses?

Reading the company's annual report is a systematic project, and you must accumulate experience to get familiar with it. Because there are too many contents, I can only briefly introduce one or two here.

The core part of the company's annual report is the financial statement, which is divided into four parts: balance sheet, income statement, cash flow statement and statement of changes in owners' equity. The analysis method is as follows:

1. Comparative analysis: it explains the quantitative relationship and quantitative differences between financial information, and points out the direction for further analysis. This comparison can be compared with the actual plan, the current period and the previous period, and also with other enterprises in the same industry;

2. Trend analysis: it reveals the changes in financial status and operating results, their causes and nature, which is helpful to predict the future. The data used for trend analysis can be absolute value, ratio or percentage data;

3. Factor analysis: in order to analyze the influence of several related factors on a financial index, the method of difference analysis is generally adopted;

4. Ratio analysis: Through the analysis of financial ratio, we can know the financial status and operating results of enterprises, often with the help of comparative analysis and trend analysis.

You must have some financial knowledge when reading financial reports.