When using the balance sheet for financial analysis, we can adopt the following methods:
1. Financial ratio analysis: By calculating various financial ratios of the enterprise, such as current ratio, quick ratio and debt ratio, we can understand the financial status and solvency of the enterprise.
2. Asset structure analysis: By analyzing the asset structure and the proportion of assets in the balance sheet, we can understand the main business activities and asset investment of the enterprise. This can help investors understand the profitability and cash flow of enterprises.
3. Financial risk assessment: Assess the financial risk of an enterprise by analyzing its debt structure and financial status. For example, by calculating the debt level and asset-liability ratio of enterprises, the solvency and financial stability of enterprises are evaluated.
The role of balance sheet
(1) Find out the "family background". Asset-liability accounting is based on the stock of assets and liabilities, which can clarify the scale and structure of assets and liabilities of the whole economy and various institutions and departments, and provide information support for grasping the economic strength of the whole country and different regions from a macro perspective.
(2) Providing basic information for optimizing resource allocation and promoting supply-side structural reform. The balance sheet can reveal the asset allocation of the economy as a whole and various institutions and departments, as well as the creditor-debtor relationship between institutions and departments, thus providing important basic information for optimizing resource allocation.
(3) It is conducive to preventing and resolving major economic risks. The balance sheet can provide important information such as the debt and asset-liability ratio of the government, enterprises, residents and the economy as a whole, which is conducive to early detection and prevention of major economic risks.