There are many indicators used for analysis, and there are more than 20 commonly used indicators. The following are some commonly used important indicators:
1, net cash flow;
Net cash flow is the difference between cash inflow and cash outflow in the current year. Reflect the net increase or decrease of cash and cash equivalents in the current period. Net cash flow can be divided into net cash flow from operating activities, net cash flow from investment activities and net cash flow from financing activities. This indicator is like blood to an enterprise. If it is always positive, it means that the enterprise is very good. On the contrary, if it is negative for a long time, the problem will be serious.
2. Net profit rate;
Net profit rate = (net profit ÷ main business income) × 100%
The more net profit, the better the operating efficiency of the enterprise; If the net profit is small, the operating efficiency of the enterprise will be poor, which is the ultimate embodiment of the operating efficiency of the enterprise. Generally speaking, the net profit rate of state-owned enterprises is generally not high, while the profit rate of small and medium-sized enterprises in the stage of development and expansion is still relatively high.
3. Accounts receivable turnover rate;
Accounts receivable turnover rate is the ratio of operating income to accounts receivable. Operating income is directly extracted from the income statement, and accounts receivable are obtained from the balance sheet. Generally speaking, this indicator is relatively high, that is, when the company is conducting normal business, the other customer can transfer the money to the account in time, rather than default, especially for a long time.
4. Quick action ratio;
Equivalent to quick assets/current liabilities
A company's monetary funds, trading financial assets and various receivables can be realized in a short time, which is called quick assets. If the quick ratio is high, it can prove that the company has a strong ability to deal with short-term liabilities and is unlikely to have the risk of poor turnover.
5. Asset-liability ratio
It is equivalent to (total liabilities/total assets) * 100%, which is well understood and reflects the company's overall liabilities. This indicator will be different between different industries and between different companies in the same industry. Generally speaking, it is ok to maintain the industry average, and it is problematic to be too high or too low.
Generally speaking, let's talk about these five commonly used indicators and parameters. If you need to deeply understand and analyze the operation of a company, you should also make a comprehensive analysis with other parameters.
Well, that's the end of the question.
Look at the asset-liability ratio first, which is the most direct indicator to measure the debt risk of enterprises. The higher the asset-liability ratio, the higher the debt risk; Secondly, look at profitability, return on main net assets, and operating profit rate; Furthermore, look at the cash flow to see whether the enterprise capital chain is safe.
There are three kinds of financial statements: balance sheet, income statement and cash flow statement.
1, balance sheet: the main content depends on how much inventory reflects your inventory products; See how much accounts receivable reflect your creditor's rights; Look at monetary funds and reflect the balance of existing funds; See how much debt accounts payable reflect.
2. The main content of the income statement is that the main business income reflects the sales quality in a certain period; Look at the main business cost to reflect the cost level in a certain period; Problems existing in management viewed from management expenses.
3. Cash flow statement: mainly records the cash flow of enterprises in activities such as selling goods, providing labor services, purchasing goods, accepting labor services, paying taxes, etc. It also reflects the cash receipts and payments of its main business.
The profit on the income statement can be changed by increasing or decreasing depreciation or temporarily not recording bad debts, but it is not so easy to modify the profit and working capital items at the same time. Before the company declared bankruptcy, it was not uncommon for the net profit to be positive for many years. However, the company's operating cash flow always began to deteriorate a few years before bankruptcy. If we pay close attention to the company's operating cash flow, we can predict the company's risks.
Therefore, if you want to analyze a company's financial situation and feel that time is tight, you can look at its operating cash flow first, because it can explain the problem better than any other financial data.
There are also financial statement indicators: earnings per share and return on net assets (depending on the company's profitability), debt ratio (depending on whether the company's operation is safe), and cash flow mentioned above (depending on the company's ability to continue to operate).