The balance sheet is a statement reflecting all assets, liabilities and owners' equity of listed companies at the end of the accounting period. Through the balance sheet, we can know the financial status, long-term and short-term solvency, assets, liabilities, rights and interests and structure of the enterprise at the reporting date.
Second, the analysis of the income statement
In financial statements, the profits and losses of enterprises are reflected in the income statement. The income statement reflects the operating results of an enterprise in a certain period and the distribution relationship of operating results. It is a concentrated reflection of the production and operation achievements of enterprises, and it is the main measure to measure the survival and development ability of enterprises.
Three. cash flow statements
The cash flow statement is a statement that reflects the inflow, outflow and net amount of cash in a certain period. Mainly explain where the company's cash comes from, where it is used, and how the cash balance is formed. Investors should pay attention to the following aspects when analyzing the cash flow statement:
(A) cash flow analysis
Some companies will manipulate the cash flow statement through liquidity. Listed companies and their major shareholders improve ugly operating cash flow through liquidity. Originally, the liquidity of affiliated enterprises often has the nature of financing, but borrowers do not take short-term loans or long-term loans, but account for them in other payables, and lenders do not take them as creditor's rights, but account for them in other receivables. In this way, changes in other payables and receivables are regarded as cash flows generated by operating activities when preparing the cash flow statement, but in essence these changes reflect financing and investment activities. In this way, when the change of other payables and receivables is to increase cash flow, the net cash flow generated by operating activities may be exaggerated.
(2) Pay attention to the cash dividend distribution of listed companies.
Cash dividend distribution has a strong information content. Companies with good financial conditions can often pay better cash dividends continuously. Although some listed companies have good book profits, their profits are imaginary and their financial situation is not good, so they can't pay cash dividends often.
(C) "Cash flow per share" this indicator reflects the problem string 1
"Cash flow per share" and "profit after tax per share" should complement each other. Some listed companies have good after-tax profit indicators, but their cash flow is not sufficient, which is caused by typical related party transactions. In addition, it is not necessarily a good thing that some listed companies sell assets during the year and their cash flow increases substantially.