Whether an enterprise has investment value depends on its profitability and solvency from a financial point of view. If an enterprise shows good profitability and solvency, it obviously has high investment value. However, if the profitability and solvency of enterprises show great differences, such as strong profitability and weak solvency, or vice versa, in this case, it is necessary to conduct more in-depth discussions to objectively evaluate the investment value of enterprises.
1. Why is there a difference between profitability and solvency?
Profitability and solvency are two aspects of an enterprise's operating results, which are closely related and different. An enterprise with correct decision and effective management often shows high profitability and strong solvency at the same time. This is because a profitable enterprise can often get more sales profits and realize more net cash flow, thus helping to improve its solvency. When an enterprise has strong solvency and enough cash to pay all expenses, it can avoid problems such as stopping work and waiting for materials, thus helping to improve profitability. Therefore, in many cases, these two aspects are consistent, but in some enterprises, these two aspects sometimes appear differences or even obvious contrast. One of the reasons for this contrast is that the realization of sales revenue and the recovery of sales payment are inconsistent in time. There are two ways for enterprises to sell products: cash sales and credit sales. If all products are sold in cash, profitability and solvency will change in the same direction. However, if enterprises use more credit sales, the time of sales realization and payment return is inconsistent, which will lead to inconsistent changes in profitability and solvency indicators. Another situation is that the occurrence of enterprise expenses is inconsistent with the actual payment time. For example, the current cash outflow of an enterprise is not fully included in the current period, but gradually transferred to the current profit and loss and future preparation period through amortization, so that the current profit index is higher and the solvency index is higher.
Lowercase. If the amount of these projects is large, there will be obvious contrast.
Second, how to evaluate the investment value of listed companies
At present, investors often evaluate the investment value of listed companies on the basis of earnings per share, and judge whether the stock price of the secondary market is in the investment area with earnings per share and 30 times price-earnings ratio. Regardless of the P/E ratio, it is obviously not comprehensive to evaluate the investment value of Shang Towel Company only according to the profitability index, and a reasonable judgment can be made only by combining the solvency index. Some listed companies may have a high profit index, but if their solvency is low, the investment value of such listed companies will inevitably be greatly reduced, because this will often cause hidden dangers to the future development of enterprises. Investors buy shares of a company with an eye on its future. Therefore, investors must objectively evaluate the investment value of listed companies in combination with solvency indicators.
It is not difficult for investors to judge the investment value of listed companies with high and low profitability and solvency indicators, but it is necessary to analyze the "lame" companies with obvious differences in profitability and solvency.
1. For listed companies with average or low profitability but high solvency (characterized by large net cash flow or high current ratio and quick ratio), if the reason is that new investment projects have not yet produced benefits or more idle funds have not been put into use, the investment value of such listed companies is not high in the short term, but high in the medium and long term. Many newly listed new shares often have average earnings in the current year, and even earnings per share are reduced because of diluted performance. However, due to the strong solvency of the company, there is no shortage of operating funds, and with the gradual completion of the investment day, the profitability will gradually improve. Therefore, the trend of many new shares is often to shock and position first, then go down that year, and then gradually get out of the trough or even hit a new high. This situation often happens in some established listed companies after an investment cycle is completed.
2. For listed companies with strong profitability but low solvency, if the reason is that there are more uncollected accounts receivable in the current sales revenue (that is, the balance of accounts receivable is large), the investment value should be evaluated mainly in combination with the possibility of recovering accounts receivable. If the proportion of one-year accounts receivable is high, the company is less likely to suffer bad debt losses if the provision for bad debts is made according to the system, and the company still belongs to the ranks of excellent companies. On the other hand, if the proportion of accounts receivable in two or three years is large, or even there are bad debts that have not been written off for more than three years (some enterprises show more property losses to be dealt with), then although the company has certain investment value in the short term, it is more likely to have bad debts and the amount is large, which not only directly reduces the company's solvency, but also reduces the company's future profitability due to a large number of bad debt losses. So in the medium and long term, if it is the future,
3. For listed companies with high profitability and low solvency, if the main reason is that the payment and amortization time are inconsistent, it is necessary to analyze and judge their investment value in combination with the size of expenses and the rationality of amortization standards. Generally speaking, every enterprise will have the phenomenon that the time when expenses and amortization are included in profits and losses is inconsistent, which is manifested in deferred assets, long-term prepaid expenses and prepaid expenses in accounting. If the amount of expenses is not large, it will not have much impact on the operating conditions of the enterprise and the judgment of investors, but if the amount of expenses is relatively large, it needs to be analyzed in depth. For example, the net profit of a company 1998 in the first half of the year was 78.7 million yuan, with a profit of 0.72 yuan per segment, but its unaamortized advertising expenses at the beginning of the year were nearly 38.29 million yuan, and the factory expenses incurred in this period were 60.8 million yuan, totaling 99.09 million yuan. In the first half of the year, the company only amortized11020,000 yuan. Although the company claims that the expenses will be amortized in three years, the amount of 65,438+0,998 in the first half of the year is actually not fully amortized, and at least 65,438+0/6 of the total amount should be amortized, amounting to 65,438+0.5 million. Even so, this amortization standard is obviously on the low side, and it is not difficult to find this as long as the company is compared with other similar companies such as Changhong and Konka. Therefore, this practice of the company is neither reasonable nor comparable. If the company dilutes the advertising expenses of the current year according to the common practice of listed companies, the net profit of the company 1998 in the first half of the year is only 44.7 million yuan, and the earnings per share is only 0.4 1 yuan. This income value makes it comparable to other companies. Based on this, it is possible for investors to make a reasonable judgment on the value of their investment and the positioning of the stock price in the secondary market.