Project profitability analysis (1) Main corporate accounting elements According to the provisions of the "Accounting Standards for Business Enterprises", accounting objects can be divided into six accounting elements: assets, liabilities, owners' equity, revenue, expenses and profits. . 1. Assets Assets can be divided into current assets, long-term investments, fixed assets, intangible assets and other assets according to their liquidity. (l) Current assets. Current assets refer to assets that can be realized or consumed within an operating cycle of one year or more than one year. According to the definition of current assets, the items that constitute current assets mainly include: monetary funds (cash, bank deposits, etc.), short-term investments, receivables and prepayments (i.e., settlement of claims), deferred expenses and inventories, etc. 1) Monetary funds include cash on hand (cash for short), bank deposits and other monetary funds (including foreign deposits, bank draft deposits, cashier's check deposits, letter of credit deposits, etc.). 2) Short-term investments refer to investments that can be liquidated at any time and are not intended to be held for more than 1 year (including 1 year). Corporate short-term investments generally include stocks, bonds, funds, etc. 3) Receivables and prepayments, or settlement claims, refer to various claims that occur during the daily production and operation of an enterprise. An enterprise's receivables and prepayments mainly include: accounts receivable (including accounts receivable, notes receivable, and other receivables) and prepaid accounts, etc. 4) Prepaid expenses refer to various expenses that have been incurred by the enterprise but should be borne by the current period and subsequent periods respectively, and the amortization period is within 1 year (including 1 year). Mainly include: amortization of low-value consumables, prepaid insurance premiums, one-time purchase of tax stamps, one-time payment of small and medium repair costs for fixed assets that need to be amortized monthly within the year, etc. The reason why inter-temporal amortization such as deferred expenses occurs is entirely due to accounting assumptions of installment accounting and the principle of accrual basis. 5) Inventories refer to materials or materials that an enterprise holds for sale during its daily production and operations, is still in the production process, or will be consumed in the process of producing or providing services. An enterprise's inventory mainly includes: various materials, commodities, products in progress, semi-finished products, finished products, etc. www.edu24ol.com Explanation: Qiao Yuhui (2) Long-term investment. Long-term investments refer to investments other than short-term investments, including various equity investments that are held for more than one year (excluding one year), bonds that cannot be liquidated or are not ready to be liquidated at any time, long-term debt investments and other long-term investments . (3) Fixed assets. Fixed assets refer to houses, buildings, machinery, machinery, transportation vehicles and other equipment, appliances, tools, etc. related to production and operation that have a useful life of more than one year. Items that are not the main equipment for production and operation, but have a unit value of more than 2,000 yuan and a useful life of more than 2 years, should also be regarded as fixed assets. Labor materials that cannot meet these two conditions at the same time should be treated as low-value consumables. Fixed assets are the main component of a company's physical assets. It has the following characteristics: l) The service life is more than 1 year (or a business cycle of more than 1 year), and the original physical form remains unchanged during use; 2) The service life is limited; 3) The purpose of holding It is for use in production and business activities, not for resale. (4) Intangible assets. Intangible assets generally have the following characteristics: they have no physical form; they can bring economic benefits to the enterprise in a long period of time; they are held for the purpose of using and benefiting rather than for resale; and the future economic benefits they bring have great uncertainty. Certainty; it is obtained by the enterprise for a fee. Intangible assets are divided into identifiable intangible assets and unidentifiable intangible assets. Identifiable intangible assets include patent rights, non-patented technologies, trademark rights, copyrights, land use rights, etc.; unidentifiable intangible assets refer to goodwill. 2. Liabilities Liabilities refer to current obligations formed from past transactions and events. Fulfilling this obligation is expected to result in the outflow of economic benefits from the enterprise. An enterprise's liabilities are divided into current liabilities and long-term liabilities based on their liquidity (that is, the length of the debt's repayment period). (1) Current liabilities. Current liabilities refer to debts repaid within one year (including one year) or an operating cycle of more than one year, including short-term loans, notes payable, accounts payable, accounts received in advance, wages payable, welfare fees payable, dividends payable, Taxes payable, other temporary collections and payables, accrued expenses and long-term borrowings due within one year, etc. (2) Long-term liabilities. Long-term liabilities refer to liabilities with a repayment period of one year or more than one operating cycle, including long-term loans, bonds payable, long-term payables, etc.
3. Owner's equity Owner's equity refers to the economic interest enjoyed by the owner in the assets of the enterprise, and its amount is the balance after assets minus liabilities. Owners' equity includes paid-in capital (or share capital), capital reserves, surplus reserves and undistributed profits. Capital reserves include capital (or equity) premium, donation of assets received, transfer of appropriations, foreign currency capital conversion differences, etc. The company's surplus reserve includes: statutory surplus reserve, discretionary surplus reserve, and statutory public welfare fund. (2) Ratio reflecting profitability Profitability is the ability of an enterprise to earn profits. There are many indicators that reflect the profitability of an enterprise. The most commonly used indicators are net sales profit margin, gross sales profit margin, net asset profit margin, and return on net worth. 1. Sales net profit rate Net sales profit rate refers to the percentage of net profit and sales revenue. The calculation formula is: net sales profit rate = (net profit ÷ sales revenue) × 100%. Net profit refers to the after-tax profit after paying income tax. 2. Net interest rate on assets Net interest rate on assets is the percentage of a company's net profit to its average total assets. The calculation formula is as follows: net asset interest rate = (net profit ÷ average total assets) × 100% The net asset interest rate indicator can be analyzed as follows: (l) Compare the company's net profit for a certain period with the company's assets to indicate the utilization of the company's assets. Comprehensive effect. The higher the indicator, the more efficient the asset is utilized. (2) The net interest rate on assets is a comprehensive indicator. The assets of an enterprise are formed by investors' investment or borrowing. The factors that affect the net asset interest rate mainly include: product price, unit cost, product output and sales quantity. The size of the funds occupied, etc. 3. Return on net assets. Return on equity = (net profit ÷ average owners' equity) Return on equity reflects the return on investment of the company's owners' equity and is highly comprehensive.