This is the most basic and commonly used report analysis method. It can be used to compare the historical data of the company and find out the changing trend; It can also be used to compare with other listed companies in this industry to see the competitiveness of the company in this industry; It can also be used to compare with the overall indicators of the industry to see the position of the company in the industry. For example, by comparing the sales revenue of the company with the total sales of the industry, we can see how much market share the company occupies.
(2) Ratio method
Many meaningful ratios can be calculated from a large number of data in financial statements, and the analysis of these ratios can help us understand all aspects of enterprise management. Common financial ratios are as follows:
(1) The ratios reflecting the liquidity of enterprises are current ratio and quick ratio. Current ratio is the ratio of current assets to current liabilities. If the ratio is too low, it is easy to generate short-term risks of debt; Too high means that the enterprise's capital operation policy is too conservative, or the enterprise's inventory is overstocked, and the product market prospect is dim. However, the reasonable current ratio varies greatly in different industries, and it is best to compare it with the industry average. Quick ratio is the ratio of current liabilities to inventory after being excluded from current assets, which can better measure a company's short-term solvency.
(2) The ratios reflecting the operating efficiency of enterprise assets include total assets turnover rate, inventory turnover rate and accounts receivable turnover rate. The higher the asset turnover rate, the more benefits the company will get from using the same assets within one year.
(3) The ratio reflecting the financial leverage effect is mainly the asset-liability ratio. High asset-liability ratio is a high-risk financial structure. In the case of the same earnings per share, shareholders often demand higher returns, so the stock price is lower. However, this is not absolute. Larger companies have better credit, can borrow more funds at a lower cost, and are considered safer under the condition of higher asset-liability ratio, so they will not have much negative impact on the stock price.
(4) The indicators reflecting the profitability of enterprises mainly include gross sales margin, net sales rate, net assets rate and return on net assets. When analyzing the profitability of enterprises, we should exclude abnormal items such as securities trading, business items that have been or will be stopped, special items such as major accidents or legal changes, and cumulative impact items brought about by changes in accounting standards and financial systems, because these items are often unsustainable.
(3) Factor analysis method
Factor analysis, also known as sequential substitution method, is used to calculate the influence of several interrelated factors on comprehensive financial indicators. Through this calculation, we can measure the influence of various factors on the comprehensive index. The ratio method mentioned earlier, the most important ratio-return on net assets can be decomposed into the product of net sales interest rate, asset turnover rate and equity multiplier; By comparing the decomposition data of two years, we can find out the main factors that affect the increase or decrease of the return on net assets of enterprises. By further analyzing the persistence of this factor, we can also predict the profitability of enterprises in the next year.