To interpret the company's losses, it is necessary to comprehensively analyze financial statements, bills and off-balance-sheet factors in order to draw a relatively accurate conclusion.
First, analyze the income statement.
The loss of the company depends on the income statement first, and comprehensively analyzes the operating income, operating cost, period expenses, operating profit, non-operating profit and net profit of the income statement. Whether the loss is low gross profit or high period expenses, it is also necessary to analyze whether the high period expenses are high management expenses, high sales expenses or high financial expenses. What is the specific reason for the high cost? In addition, whether the loss is caused by non-recurring gains and losses such as non-operating income and expenditure.
Second, analyze the balance sheet. Look at the composition of assets, the difference between book value and actual value of assets, and the level of asset-liability ratio. For example, when analyzing the inventory, the inventory is obviously too large, and it should be analyzed by industry. First, the industry is sluggish, and products cannot be sold, resulting in losses; Second, the industry boom, deliberately depressed not to sell to form a loss. Books are all overstocked, but the information reflected is quite different. For example, long-term equity investment, some investments have potential income, accounting treatment methods are not reflected in the book, some are investment mistakes, no income or loss, and so on. For example, investment real estate can further analyze the accounting method (cost method or fair value accounting), the city and place.
Third, analyze the cash flow statement. Analyze the net inflow of cash flow from operating activities and investment activities to see whether the cash flow of enterprises, especially the cash flow from operating activities, is a net inflow.
Fourth, analyze the statement of changes in owners' equity. Look at the owner's equity structure of the enterprise and the dividend situation of profitable enterprises in recent years, and see whether the loss of the enterprise is short-term loss or long-term loss.
Verb (abbreviation of verb) analysis notes. Look at the explanation of important matters related to enterprises and their influence on potential profitability.
Sixth, pay attention to off-balance-sheet factors. Such as industry development prospects, enterprise development stage, whether it is in production date or normal operation period, etc. If it is a listed company, you can also refer to the interpretation of professionals in the industry.