1, total assets turnover rate
2. Average days of cash collection
3. Average number of days in the warehouse
Third, the proportion of indicators.
Total assets turnover rate: 50%?
Average inventory days (inventory turnover days): 25%
Average cash days (average collection period): 25%
Fourth, the financial report reading order of the money burning industry
Burning money is not terrible, and it is not necessarily bad. It just means that the industry needs to invest a lot of money every year to update equipment and remain competitive. So make sure the company has enough funds. (The three companies selected above are all industries that burn money. )
A. "total assets turnover rate" < 1, it can be judged that this is a company that burns money!
B, immediately confirm the "cash" indicator in hand: whether it meets > 25%, the more the better; If not, continue to verify the "Average Cash Days" indicator.
C. Look at "average cashing days": Is it less than 15 days? Is this a cash company?
The second item is the most important, because even a company that receives cash every day and leaves only a little money on hand will have no problem when the world is at peace. In the event of financial crisis and economic fluctuation, there will be a major crisis.
Overview of the industry characteristics of verb (abbreviation of verb) business ability
Business ability indicators need to pay attention to two points. First, we should look at the annual report to avoid the data deviation caused by the off-season of the industry; The other is to compare the indicators in the industry horizontally. The following is Mr. MJ's summary of the characteristics of different business capabilities in various industries:
According to this standard, we can compare whether each company meets the industry standard and whether it is an industry model student.
The representative companies of the Internet industry are: Baidu, Facebook, Google, Tencent, Ali and so on.
The representative companies of the mobile phone industry are: Apple, Xiaomi, HTC, Huawei, Samsung and so on.
Representative companies with special skills include Dali Guang (producing camera lenses) and Pien Tze Huang in Taiwan Province Province, both of which have high moats.
Manufacturing: Companies in steel, shipbuilding, glass, cement and other industries belong to manufacturing.
Traditional brands: Kweichow Moutai, Haitian Ye Wei and TCL.
Catering hotels: Quanjude, Jinjiang, etc.
Abstract of intransitive verbs
Seven, sentiment
The company's current predicament is the pressure of cash flow, and there are many gaps. It is a big test for the company at present, and the financial report data shows that the payment cycle is too long (indicating the lack of management in payment management and organization). Kweichow Moutai, which is also a heavy asset, has a strong cash support, which has been above 40% (presumably the employees of the company should enjoy very good benefits and don't have to worry about food shortage). How to solve the problem that the cash level of oriental gardens is lower than 10% in case of market fluctuation or accident? Behind it are thousands of families! Choosing an industry or company is really destined to choose a different heartbeat! This is just a number in the 60-point financial report, which needs to be supplemented later, and continue the linkage analysis!