Reasons for the decline of total assets in tongjitang

Total assets decrease: (1) repay bank loans and personal loans; (2) Reduction of fixed assets (sale, scrapping, damage, etc.). ); (3) Too much inventory at the beginning of the year, no purchase in the next few months, or loss of inventory.

(1) Weak management of some links in the enterprise leads to high accounts receivable or inventory; (2) Out of conservative management consciousness, enterprises may not be willing to expand the scale of debt management; (3) The funds raised by joint-stock enterprises through issuing stocks, increasing capital and allotment or borrowing long-term loans and bonds have not been fully put into production; Wait a minute. But on the whole, the high liquidity ratio mainly reflects that the funds of enterprises have not been fully utilized, while the low liquidity ratio indicates that the security of debt repayment is weak. (2) Quick ratio = (current assets-inventory-prepaid expenses-prepaid expenses)/current liabilities