Securities investment has become an indispensable part of people's economic life. However, most small and medium investors are not professionals and lack the necessary financial knowledge. Many investors missed the opportunity to buy and sell stocks because they couldn't read the statements. Below, I will share with you the methods of analyzing the financial statements and balance sheets of listed companies, hoping to help you!
Analysis of Liabilities in the Balance Sheet Investors should pay attention to their solvency when analyzing the liabilities in the balance sheet of listed companies. Mainly through the analysis of the following indicators:
1. Analysis of short-term solvency. (1) current ratio: the current ratio is the ratio between current assets and current liabilities, which is a common indicator to measure a company's short-term solvency. Generally speaking, current assets are much higher than current liabilities, at least not lower than 1: 1, and generally more than 2: 1 is more appropriate.
Its calculation formula is: current ratio = current assets/current liabilities. However, for companies and shareholders, the higher the current ratio, the better.
Because current assets also include accounts receivable and inventory, especially because the balance of accounts receivable and inventory is large and the liquidity ratio is too large, which will increase the short-term debt risk of enterprises.
Therefore, investors must judge the situation of accounts receivable and inventory when analyzing the short-term solvency of listed companies. (2) Quick ratio: Quick ratio is the ratio of quick assets to current liabilities, which is an indicator used to measure the company's solvency at maturity.
It is generally believed that the minimum quick ratio is 0.5∶ 1, and if it is kept at 1∶ 1, the security of current liabilities will be better guaranteed. Because, when this ratio reaches 1: 1, even if the company's capital turnover is difficult, it will not affect its immediate solvency.
Its calculation formula is: quick ratio = quick assets/current liabilities. This indicator does not include the impact of accounts receivable and inventory on short-term solvency. Generally speaking, it is more accurate for investors to use this indicator to analyze the solvency of listed companies.
2. Analysis of long-term solvency. (1) Asset-liability ratio, equity ratio and debt-to-owner's equity ratio. The calculation formulas of these three ratios are: asset-liability ratio = total liabilities/total assets; Owner's equity ratio = total owner's equity/total assets; Ratio of liabilities to owners' equity = total liabilities/total owners' equity.
The asset-liability ratio reflects how many liabilities there are in the assets of an enterprise, and how much protection creditors get once the enterprise goes bankrupt and liquidates; The owner's equity ratio reflects the owner's share in the enterprise's assets, and the sum of the owner's equity ratio and the asset-liability ratio is1; The ratio of debt to owner's equity reflects the degree of interest protection for creditors.
When investors look at financial statements, as long as they look at assets, liabilities, owners' equity and total intangible assets, they can roughly see the long-term solvency of enterprises. These three ratios are only valuable when compared in the same industry and different time periods. (2) the ratio of long-term assets to long-term funds.
The formula is: the ratio of long-term assets to long-term funds = (total assets-current assets)/(long-term liabilities+owners' equity). This indicator is mainly used to reflect the financial status and solvency of the enterprise, and the value should be lower than 100%. If it is higher than 100%, it means that the enterprise has purchased long-term assets with some short-term debts, which will affect the short-term solvency of the enterprise and increase the operational risk, which is indeed a dangerous move.
There are many assets in the balance sheet, but investors should focus on four items when analyzing the financial statements of listed companies: accounts receivable, prepaid expenses, net loss of pending property and deferred assets.
1. Accounts receivable.
(1) Accounts receivable: Generally speaking, it is extremely abnormal for a company to have accounts receivable for more than three years. Is this because there is? Bad debt reserve? Under normal circumstances, this course has accrued all accounts receivable with bad debts within three years, so it will not have a negative impact on shareholders' rights and interests.
But in our country, due to the existence of a large number? Triangular debt? , and the use of related party transactions to manipulate profits through this subject. Therefore, when investors find that the assets of a listed company are very high, they must analyze whether there are accounts receivable for more than three years in the company's accounts receivable items, and look at them together. Bad debt reserve? Question, analyze whether there are false assets and hidden losses? Phenomenon.
(2) Prepaid account: this account, like accounts receivable, is used to account for the purchase and sale business between enterprises. This is also a kind of credit behavior. Once the prepayment party's operation deteriorates and lacks funds to support normal operation, the payer's goods cannot be obtained, and the assets embodied by its main body cannot be realized, resulting in the phenomenon of inflated assets.
(3) Other receivables: mainly accounting for creditor's rights receivable arising from non-purchase and sale activities of enterprises, such as various indemnities, margin deposits, reserve funds and various prepayments that should be collected from employees. But in practical work, it is not so simple. For example, major shareholders or affiliated enterprises often hang the funds occupied by listed companies under other receivables, forming assets that are difficult to explain and recover, thus forming inflated assets.
Therefore, investors should pay attention to when the statements of listed companies will be listed. Other receivables? When the equivalent energy is abnormally enlarged, you should be vigilant.
2. Net loss of pending property. Many listed companies have huge amounts of money on their balance sheets. Net loss of outstanding property? Some even hung up for several years. This phenomenon obviously does not conform to the conservatism principle of revenue recognition, which is not conducive to investors' correct evaluation of the financial situation and profitability of enterprises.
3. Prepaid expenses and deferred assets. There is no substantial difference between deferred charges and deferred assets. They are all paid by the company in the current period, but the amortization period is different. ? Prepaid fee? The amortization period is less than one year, and? Deferred assets? The amortization period of is over one year.
Strictly speaking, prepaid expenses and deferred assets do not conform to the definition of assets, but they seem to be related to future economic benefits, and in accounting practice, many people are used to describing the incurred expenses as assets.
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