会计专业英语财务报表分析

FinancialStatementAnalysisofSICHUANCHANGHONGELECTRICCO.,LTD-i-FinancialStatementAnalysisofSICHUANCHANGHONGELECTRICCO.,LTD【Abstract】Afinancialtsunamiwhichhadneverbeensoviolentoverthepast100yearsisconfusingthewholeworldin2008.Viewingfromitsnature,thisfinancialstormwascausedbythesubprimecrisiscrisis.Andtheinnovationofthosefinancialderivativesjustaggravatesthissubprimecrisis,transformingtheregionalcrisisofAmericansub-loanintoasevereglobaleconomicstorm.Thesubprimecrisiscanalsoberegardedasabreak-downofthebubbleeconomy,whichisoverspreadingtothehigh-levelcreditmarket.Subprimemortgageloansandhigh-levelhousingloansarebasedonthesameasset-backedrealestate.【Keyword】financialstormwholeworldsub-loanbubbleeconomy-ii-ContentsIntroduction 11、MacroeconomicSituation 22、MicrocosmicEnvironment 42.1AggregativeCircumstance 42.2MarketEnvironment 43、CompanySituation 64.1ComputetheRatios 74.1.1LiquidityRatio 74.1.2AssetManagementRatio 74.1.3ProfitabilityRatio 84.1.4RatioComparison 84.2CompanyFinancialStrength 94.2.1GrowthAbility 104.2.2Profitability 104.2.3TheVitalityofEnterprises 114.2.4Enterprises'ManagementMechanisms 114.3SWOT&Strategy 124.3.1AnalysisofSWOT 124.3.2Strategy 135、Conclusion 156、Reference 167、Appendix 17Appendix1AssetsStatementofCHANGHONG 17Appendix2AssetsStatementofKONKAA 18Appendix3BalancesheetandIncomestatement 19-PAGE18-IntroductionIncorporatedin1958,CHANGHONGhasgrownintoarulemakerandacontent&serviceproviderathomeandabroad,notasimplehouseholdappliancemanufacturer.CHANGHONGengageinindustriesasdigitalTV,AC,refrigerator,IT,healthycommunication,digitalAudio-Visual,digitalnetwork,electricalpowersource,commercialelectronicsandpettyappliance,etc.CHANGHONG’ssalesin2005hadhitRMB17.6billionsales,aswellas29.4percentamplitude

comparedwiththesameperiodlastyear.AtthesametimeCHANGHONG’sbrandvaluedRMB39.861billionwhichishonorablyenrolledintotheWorld’s500MostInfluentialBrands.CHANGHONGbelongstoHouseholdelectricalappliancesmanufacturing.In1994,CHANGHONGstockslistedinShanghaistockexchange.In2005,thebrandvalueofCHANGHONGreachingto398.61billionyuantobethemostvaluablebrandsofChina.Sofar,CHANGHONG’sdigitalproductshavebeeningexportedtomorethan90countriesandregions.Becauseoftheworldfinancialcrisisintereststheholdindustryisseriouslydamaged.TohavecertainknowledgeofCHANGHONG’struefinancialposition,IwillgiveyoutheanalysisofCHANGHONG’sfinancialstatementbelow.AndIshalllimitmyselftothreeaspectsofthesubject:Liquidityratio,AssetmanagementratioandProfitabilityratio.Tofindout‘whytheorderreductionrecently?’and‘Whyprofitabilityseriouslyreduced?’Asweknow,aratioisanexpressionoftherelationshipofoneitemtoanother.Aratiocanbeexpressedasapercent,rate,orproportion.Ratiosareparticularlyimportantinunderstandingfinancialstatementsbecausetheypermitustocompareinformationfromonefinancialstatementwithinformationfromanotherefinancialstatement.Foraratiotobeuseful,however,thetwoamountsbeiingcomparedmustbelogicallyrelated.MacroeconomicSituationAffectedbyfinancialcrisis,theUnitedStates,Europe,Japanandotherdevelopedcountriescomeintorecession,theconsumerdemandreducingandindustryexportunderhighpressure.What’smorethedomesticmarketofrealestateissustaineddeclineandthenaturaldisasterstoresidentsbeingadverselyaffectthedemandofhomeappliance.Atthesametimedomesticeconomicgrowthisslowingandthedicliningofresidentexpectedincomeisthefactorsrestraintheconsumptionofelectricalappliancesproductsuch.Fromtheinternational,sinceenterredSeptember2008,theU.S.financialmarketscrisishasnevergone.AslehmanBrothersHoldingCompanywentbankrupt,BankofAmericapruchasedMerrillLynch,AIGGorporatecametoacrisis,alltheseconsuminglyshocktheU.S.financialmarketsanddrawn-outussubprimemortgagecrisisintoseriouscentury-oldfinancialcrisis.Becauseofthefinancialcrisisisstillinsustainabledevelopment,thefinancialmarketsinthetwinklingofaneye,crisiswillstopwhereandwhereto?Greatuncertaintysurroundsglobal.Also,thecrisisoftheinfluenceandeffectisstilluncertain.Basedonthefinancialcrisisofbyfearsoftransitiontotheeconomiccrisis,theglobalgovernmentsuccessionorjointadoptedaseriesofmeasurestostrengthenthefinancialinstitutionstosupportandfinancialmarket.Overthefinancialinstitutionsandthroughlargeinjectioncurrencymonetarypolicy,alsoinvolvessomeadjustmentsystemwillbethecontent;thefuturedevelopmentoftheglobalfinancialcausedsomelong-termeffects.Atpresent,thefinancialcrisishastoglobaleconomicentitythatproducedagreatimpactin2008,aswellastheworldeconomyhasslowedsharply,downsiderisksincreasestepbystep,andtheprospectismuchmoreuncertainty.Forecastedforglobaleconomicgrowth,in20092.2%,developedeconomiesfell0.3%economic2009,theU.S.economywhichwillbenegative,Eurozonetwomajoreconomies0.7percentinGermanyandFrancerespectivelywithnegative0.8%0.5%.Also,thecrisisoftheinfluenceandeffectisstilluncertain.Nowfromthepresentdomestic,itisthehomeapplianceindustrydevelopmentperiod.Inthesituationofthecurrentfinancialcrisis,knowingthesituation,controllingthedirection,givingdetailedanalysisoftheeffectsofhomeappliancesandthefuturedevelopmenttrendwhateverforthelong-termdevelopmentandthebreakthroughconcreteworkofChinesehomeapplianceshasthepositiveguidance.

2、MicrocosmicEnvironment2.1AggregativeCircumstanceIn2008,CHANGHONGwentthoughamuchmoresevereobjectiveenvironmentthanotherelectricalappliancesmanufactureenterprise:512wenchuanearthquake,naturaldisastersandtheglobalfinancialcrisis,whichcausedmanyadverseeffectstoCHANGHONG.In2008,thebusinessincomeofCHANGHONGdidnotreachtheanticipatedprofitsandcomparedwiththesameperiodin2007itwasasharpdecline.2009,thecountryhasissuedaseriesofeconomicstimuluspolicy,thecompanywillholdthemarketopportunities,like‘homeappliancesgoingtothecountryside’and‘homeappliancesettledherdsmenactionplan’,‘thereconstruction’andsoon,toensuretheproductssuchascolortelevision,refrigeratoryintheforefrontposition.2.2MarketEnvironmentIn2008,comparedthedemandofdomesticappliancemarketwithexportmarketthegrowthisslowandinsipid.Aswellastheunbalancedsupplyanddemandofaggravatedintensityplustheglobaleconomicrecession,almostalltheappliancesareoversupplied.Eachbigappliancesaleschainenterprisescarryintothelowpricecompetitiontodepresstheprofitspace,whichmadethepricescontinuetofallandprofitsofmanufacturerscanbeforeseencompletely.Fortunately,therelatedpoliciesonstimulatingdomesticdemandwhichcreatenewmarketstomostoftheelectricalappliancesmanufactureenterprise.In2008,pricecompetitionisstillthemainmeansofcompetition,butwiththecompetition,theprofitspaceofallstagesofhomeapplianceindustryiscompressed,aswellastheabilitytoruduceprice.Moreandmorecompanieshaverealizedbypricecompetitioncanneitherestablishcorecompetitiveness,noralong-termdevelopmentdirection.Therefore,manyappliancesenterpriseincreasedtheinvestmentintotechnology,todevelopingnewhightechnologycontentproduct,andreferredtothedifferenceoftheproductasthedevelopmentoftheenterpriseinthelong-termplan.Atthesametimecompaniesseeknewmarketdemand(suchascentralairconditioning),establishneweconomicgrowthpoint(intosuchasappliancesandothersimilarindustry),inordertorealizethesustainabledevelopmentoftheenterprise.

3、CompanySituationIn2008,thecompanyfacedwiththeseveremacroeconomicsituationandtheincreasinglyfiercecompetitioninthemarketenvironment.Surrondingthegoalsandtaskswhichconstitutedbythedirectorate,CHANGHONGtrytoovercome’5.12earthquakeofwenchuan’,naturaldisastersandtheglobalfinancialcrisiscausedbyeconomicenvironmentdeteriorationtoaseriesofadverseeffects.Andundertheannualdirectionof‘benefit,efficiency&cooperation’,thestaffsinr&d,production,sales,theoperationofefficiencyandmanagementinnovationadoptedvariousmeasuresandhasachievedgoodeffect.Thecompanycontinuedhavingahealthyandthebenigndevelopmenttrend.[1]Duringthereportingperiod,thecompanyoperatingrevenuewas279.30billionyuan,whichincreased20.14%year-on-year;theprofitswas2.90billionyuan,whichreduced34.95%year-on-year;thecompany’snetincomewas263millionyuan,whicereduced42.17%year-on-yearandattributable0.31billionyuantoshareholdersthatreduced91.59%year-on-year.Althoughthecompanybusinessincomehadabigincreaseduringthereportingperiod,butdueto‘512’2008wenchuanearthquakeandtheglobalfinancialcrisissincethelastquarterof2008,companyfailstoreachtheboardofdirectorswhichthecompanybusinessincomereachto300millionyuan[2].Comparedwiththesameperiodlastyear,thecompanysalesrevenuetargetprofitappeareddrasticallydescend.

4、Ratios4.1ComputetheRatios4.1.1LiquidityRatioCHANGHONGLiquidityratioCurrentratio=Currentassets/Currentliabilities14541374787=1.21Quickratio=（Currentassets-Inventory）/Currentliabilities=6647777877）0.75KONKALiquidityratioCurrentratio=Currentassets/Currentliabilities=7737909442/5312817151=1.46Quickratio=（Currentassets-Inventory）/Currentliabilities=（7737909442-2539786348）/5312817151=0.994.1.2AssetManagementRatioCHANGHONGInventoryturnover=Costofsales/Inventory6647777877=2.67Totalassetutilization=Sales/Totalassets=21466453825/12537236671=1.71KONKAInventoryturnover=Costofsales/Inventory=7334806973/2539786348=2.89Totalassetutilization=Sales/Totalassets=9026727739/9279511705=0.974.1.3ProfitabilityRatioCHANGHONGProfitmarginonsales=Profitbeforetax/sales=321175476/21466453825=0.01Returnontotalassests=Profitbeforetax/totalassets=321175476/12537236671=0.03KONKAProfitmarginonsales=Profitbeforetax/sales=35165040/9026727739=0.03Returnontotalassests=Profitbeforetax/totalassets=235165040/9279511705=0.034.1.4RatioComparisonTable（4.1-1）ComparetheratiobetweenCHANGHONG&KONKAChanghongKonkaIndustrystandardsCurrentratio1.211.461.22Quickratio0.750.990.99Inventoryturnover2.672.892.03Totalassetutilization1.710.971.19Profitmarginonsales0.010.030.15Returnontotalassests0.030.020.03TheraitocomparisoninthetableabovesuggeststhatCHANGHONGisinreasonablygoodshapefinancially[3].Thecurrentratioisclosetoindustrystandards,ItsuggeststhatCHANGHONG’sshort-termobligationscanbecoveredwithitsshort-termassets.Althoughthequickratioisslightlybelowtheindustryfiguresandislessthanthecommomguidelineforanacceptablequickratioof1:1,butitappearsadequate.Higherturnoverratesresultinshortercollectionperiods.BothCHANGHONG&itscompetitorKONKAaremuchhigherthantheindustryfiguresthatmeansitshouldnotbeaproblem.TotalassetutilizationismuchhigherthantheindustryaveragesandKonka,andthatisagoodsign,soCHANGHONGneedtokeepit.TheProfitmarginonsalesis1%andtheReturnontotalassestsis3%boththefiguresareverylow.ThatmeansthattheindustryofCH&Kearnedlittleforevery￥100investedinassets[4].Itneedthethejointeffortofalltheindustry.4.2CompanyFinancialStrengthDuringthereportingperiod,thecompanyoperatingrevenuewas279.30billionyuan,whichincreased20.14%year-on-year;theprofitswas2.90billionyuan,whichreduced34.95%year-on-year[5];thecompany’snetincomewas263millionyuan,whicereduced42.17%year-on-yearandattributable0.31billionyuantoshareholdersthatreduced91.59%year-on-year.Althoughthecompanybusinessincomehadabigincreaseduringthereportingperiod,butdueto‘512’2008wenchuanearthquakeandtheglobalfinancialcrisissincethelastquarterof2008,companyfailstoreachtheboardofdirectorswhichthecompanybusinessincomereachto300millionyuan.Comparedwiththesameperiodlastyear,thecompanysalesrevenuetargetprofitappeareddrasticallydescend[6].

4.2.1GrowthAbilityTable（4.2-1）GrowthAbilityofCHANGHONGItemIndicatorsFormulaNumericalBadMediumGoodAnalysisandEvaluationSalesgrowthRateofincreasedrevenue

EQEQEQIncreasedsales/Salesoflastyear11.0Althoughsales,additionalvalue,totalcapital,etc,buttheprofitrateishigherinrelatedlowefficiency.ProfitgrowthRateofincreasedprofitIncreasedprofit/Profitoflastyear20.3TotalassetsgrowthRateoftotalassetsIncreasedtotalgrowth/TotalassetsoflastyearProfitabilityTable（4.2-2）ProfitabilityofCHANGHONGItemIndicatorsFormulaNumericalBadMediumGoodAnalysisandEvaluationratioofprofittomainworksalesratioofprofittonetmainworksalesOperatingProfit/Sales7.8%Allthemarginsarereducedtendency,cannotensureprofitretainedresult,internalfinancialsystemratioofprofittototalassetsratioofprofittototalassetsOperatingProfit/Totalassets8.0ratioofprofittototalassetsratioofprofittototalassetsProfit/Sales0.9%4.2.3TheVitalityofEnterprisesTable(4.2-3)TheVitalityofEnterprisesofCHANGHONGItemIndicatorsFormulaNumericalBadMediumGoodAnalysisandEvaluationTotalcapitalistoeffectivelyTotalcapitalturnoverSales/Totalassets1.10Duetotheincreaseincapitalinvestedfundsbydeterioratingtendenciesin,especiallyintheinventoryandcapitaloverstockfundsrecyclingFixedassetsareavailableFixedassetturnoverSales/Fixedassets2.01ThenumberoftheinventoryassetsInventoryturnoverperiodInventory/AverageofmonthlyturnoverEnterprises'ManagementMechanismsTable(4.2-4)Enterprises’ManagementMechanismsofCHANGHONGItemIndicatorFormulaNumericalBadMediumGoodAnalysisandEvaluationSelf-ownedcapitalratiosSelf-ownedcapitalratiosSelf-ownedcapital/Totalassets30.1%Borrowingmorethenincreasedtheburden,andinterestrevenuedeterioration.Especiallytheoperationresultinmorefundsburdenbyloosingbalancesourceofcapitalforfixedassetslong-termsuitablerateoffixedassetsFixedassets/(Self-ownedcapital+Fixedload)59.9TurnoverfundsabilitytopayquickratioCurrentassets/Currentliabilities69.14.3SWOT&Strategy4.3.1AnalysisofSWOTTable(4.3-1)theAnalysisofSWOTofCHANGHONGSstrengths1，technologyinnovation:CRTTV,changingtodigitalTV,mobiletechonlogy,theresearchanddevelopmentof3G2sizelymanufacture:3.thevalueofbrandisrangethesecondinthatindusty4.lotsofdistributorsthroughnationWweaknesses1,APEXAmericancompanies’sdebtdefaults2,thefinancialfundswererecovered3,alargestocksofunsoldOopportunities1,thegovernmentgivepreferentialtaxpolicies2,thenationalfundingresearchfunding：subsidybonds,interest,accessorialTthreats1,applianceproductupdatesfaster,facinglowerprices2,theanti-dumpingtradebarriers,intensifyingcompetition4.3.2StrategyTable(4.3-2)theStrategiesofCHANGHONG)OopportunitiesTthreatsSstrengths（1）Activelyintohighvalue-addedindustries,optimizeindustrialstructure（2）Aroundtheindustrialdevelopmentdirectionof3Gintegration,expandproductfield（3）Increaser&dinvestment,improvethecompetitiveness（1）Displaytechnologyinnovation,large-scalemanufacture,expandingnewproductsandreducethecos（2）Exercise,richexperienceinmultinationalsalesteamWweaknesses（1）Tosolvetheproblemofdefaultonlegalmeans（2）Intensifyeffortstostrengthensupervisionandmanagementofinvestment（3）Tostrengtheninternalmanagement,especiallytheneedtoestablishthesmoothproductionmanagementmechanism,toavoidfurtherdeteriorationofthenewstocksofunsold（1）Forforeignsupport,firmlyopposedunfairtrade（2）FormulatepracticalmultinationalmanagementstrategyFromtheanalysisofSWOT,allaspectsofCHANGHONGisfacinggreatpressure,especiallystockisnotoptimistic,andthefinancialaspectsofinternationalcompetitionandcooperationaretoosmall.Atpresent,onlyincreaseinnewareasandnewproductdevelopmentcanimprovethecompetitiveness[7].Whilestrengtheninginternalmanagementandinvestment,CHANGHONGneedtopaymoreattentiontothedomesticsalesandmonitoringoverseasmarketcompetition,andstrivetonewtechnologyandhighqualitytowintheirlong-termdevel