4 To know corporate finance 4 do not

to see what variety of company has the assets, not corporate profits, low profitability and
analysis of changes in shareholder wealth, the report users pay more attention to the income statement, and less concerned about the poise canvas. The size of the accounting profit company managers accessible manipulated, for the use of many accounting techniques can easily change the accounting profits, the value of the profit diagram itself was derogatory.
so, if the analysis of the financial condition or business performance assessment, reports, users need to pay more attention to the intention of balance sheet structure and change. If listed companies have higher profits above the one hand, aboard the other hand is having a stock, principally in finished products, semi-finished products increased trend of premonitory increase in accounts receivable balance that is based on a large number of expanded profits at the outlay of bad assets. Too many inventory, accounts receivable recovery is too slow,Gucci Shoes UK, causing the company had to borrowing, confidence management, the sale of assets means the asset needed to increase the daily operations, the company proceeded the development of capacity problems.
to see what the company has a profit, prefer than the absolute profits of listed companies should have clear
chief business, its revenue and profit should get busy the main business, rather than mainly from the non-recurrent consolidated financial statements of loss and further the coverage of investment income.
under the current accounting system, financial assets held by listed companies, whether or not sold, must be weighed at fair value. Thus, for admission of financial assets sold,Womens Gucci Casual Trainers, investment income, who do not sell financial assets at fair value at the current period profit or loss. Therefore, the existing concept of profit is the enterprise of comprehensive income, operating profit is fair chapter of it.
2008 年 due to the shock of the global financial crisis, a digit of listed companies to maintain their market picture, the use of short-term investments in the anniversary earnings, share transfer earnings, operating income and operating expenses, debt restructuring, funds restructuring and other non- Extraordinary fraught extravaganza from the 2008 Annual Report is not tough to ascertain traces of their treatment, and its turnaround the company only
to see what the company has cash flow,Womens Gucci Sandals, rather than the total cash flow to read annual reports, understand the importance of cash flow building, the same total cash flows from operating activities, investing activities, financing activities, the delivery between the assorted, the average assorted financial location. Under regular circumstances:
1,Cheap Gucci Shoes, when the net cash flow from operating activities is negative, net cash flows from investing activities is negative, net cash flow from financing activities was positive, that the listed company in the product start-up period. Listed companies at this stage a lot of money required to put a product capacity, market, and its only source of funding loans, financing and other financing.
2,Womens Gucci Pumps, when the net cash flow from operating activities is positive, net cash flows from investing activities is negative, net cash flow from financing activities is positive, you can referee whether an enterprise is in fast development period. Then products rapidly occupy the market,Cheap Gucci Trainers, showing a lot of money and business activities capital returns, and in order to inflate market share, enterprises still need a lot of added investment, and net cash flow from operating activities unattended may not meet the required investment, the need to raise the necessary external funds as a supplement.
3, when the net cash flow from operating activities is positive, net cash flow from investing activities is positive, financing activities, net cash flow is negative, indicating that the enterprises to enter the product maturity. At this stage sales market stability, has been in the investment revitalization duration, yet a lot of external funding must be repaid, in order to maintain good commerce honor level.
4, when the web cash stream from operating activities is negative, web cash stream from investing activities is affirmative, financing activities, net money stream is negate, that the corporation is in recession. Its functions are: the market share of production sales decreased fewer than the outflow of cash inflow from operating activities, meantime large-scale companies in array to meet the debt had to recover the investment to make up because absence of cash.
Therefore, the analysis of annual reports of listed companies must be concerned about cash flow, profits for listed companies is the income makeup, and in the investment process, financing process and the use of cash income, for a manner to determine the real business acquiring capacity, make investment decisions; to dodge due to earnings management and use of different accounting policies, earnings per share reasoned by higher than similarities listed investment hazard arising from misleading.
to see what the company has shareholders, rather than the total equity interests
is a very essential financial indicators. When the total assets less than liabilities, the company fell into insolvency situation, then, the company's equity will perish. If the bankruptcy liquidation, shareholders will obtain nobody. On the contrary, the greater the amount of equity, the more solid the strength of the company.
later the implementation of the new accounting criteria, deserving to the full presentation of the concept of just amount, financial expression file in equity tin no be nice in many cases reflect the investment in the basic areas of the shareholders, so namely the fiscal arrows deviate from the accustomed sense economic connotation.
According to relevant regulations, listed companies a statutory revaluation of assets can be handled in agreement with statutory procedures and amplify the equity capital amplify. However, due to the current standard of appraisal policies from different ministries are not unified, recognized the value of bounce of the revaluation, some listed companies will take avail of the statutory asset revaluation, unrealistically amplify the value of assets, then the value of the interests. Therefore, whether a great number of listed companies in capital extra due to statutory revaluation of assets formed, then the objective subsistence of the phenomenon of false equity.