Warren Buffett once said, "No one wants to invest in a company he doesn't know." Obviously, if investors want to understand the enterprise, they first need the managers of the enterprise to understand it. In financial statements, in addition to the data reflecting the current situation of enterprises, managers need to be alert to the risks hidden behind the difference figures that enterprises fail to perceive, and the risks that may make the whole enterprise out of control. Nowadays, in the post-crisis era, the commercial battlefield is still filled with smoke. For enterprises, the operational risks and financial risks faced by the company are correspondingly enlarged. Therefore, enterprises need special financial analysis to reveal relevant risks and business opportunities, and then take necessary financial control to avoid and prevent risks. Key question: Did your decision create value?

How to answer this question with the help of basic financial principles

Application of basic financial principles

1 Starting point: financial market

Main business: financing and investment

Three activities: business activities, investment activities and fund-raising activities.

Financial interpretation of balance sheet

Financial explanation of income statement

Analysis of liquidity and operating efficiency

Effectively control operating efficiency and prevent risks.

Traditional liquidity analysis

A Practical Tool of Management —— Balance Sheet

Matching strategy and interest rate risk, debt control risk,

International advanced liquidity analysis

Better business cycle and liquidity improvement, see through the gold content of profits and prevent cash risks.

The relationship between cash, profit and cash flow

Analysis of Three Major Cash Activities of Enterprises

Two forms of cash flow statement

Accounting standard cash flow statement

On enterprise management and risk from various proportional relationships in cash flow statement

Analysis function of direct method and indirect method of business activity process

Free cash flow statement

On enterprise management and risk from the relationship of different cash activities

The relationship among balance sheet, income statement and cash flow statement effectively controls capital efficiency and risk.

International advanced working capital analysis method

Why does the company encounter a cash flow crisis? How to deal with it?

Detailed analysis of financial statements by using working capital

A Practical Tool —— EXCEL Automatic Analysis Table of Working Capital

Analysis of working capital of main business and non-main business

The working capital analysis of different products can effectively improve management efficiency and prevent operational and financial risks.

Analysis index of enterprise profitability

ROS，ROA，ROE

EVA: Is the Enterprise Creating Wealth or Destroying Wealth —— Enterprise Value Risk Control

Profitability and financial leverage-Efficiency and risk control of debt management

Analysis of Development Ability —— Self-sustained Growth and Risk Control

Comprehensive analysis of financial ratio

Dupont decomposition and driving factors analysis

Comprehensive interpretation of financial statements: comprehensive use of financial indicators, perspective of company operations

Six-ring decomposition of shareholder return system

Profit return: spend less, make more money!

Speed up turnover: take less money and collect more money!

Financing strategy: whose money is occupied?

Interest cost: the cost of occupying bank money!

Non-business events: the influence of abnormal factors!

Social cost: reasonable tax payment

Enterprise Financial Analysis and Risk Prevention Case Analysis