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The Analysis On Investment Value For YATAI Group

Posted on:2005-07-03Degree:MasterType:Thesis
Country:ChinaCandidate:H YinFull Text:PDF
GTID:2156360122499358Subject:Business Administration
Abstract/Summary:PDF Full Text Request
The rational investment of security market is attracting more and more interesting of investor, which advance the novel development of financial affairs analysis of marketable company. Reasonable science analysis to financial statements of marketable company is the key element for successful investment, thus an efficiency analysis model is still expecting. In this paper a novel method is applied. Combining the finance ratio and cash ratio, investment value analysis for marketable company YATAI is used to help financial statements user to recognize the financial situation and management performance. Meanwhile it also provides a referenced valuable analysis model for the investment analysis of other marketable company. While whole performance is dropping down, YATAI is still keeping the up-going development tendency. Its investment analysis makes a great theory and practice sense for policy decision of long period management and finance. Moreover it is also valuable for investor for reference. Firstly, make an accountancy analysis to three financial statements of YATAI using comparison analysis method and tendency analysis method. With analysis of asset, it can be known that YATAI is still in an expanding stage whose ratio of fixed assets has a big jump in present years; the inventory ratio is also great, and it will affect the quality of assets; the long-period equity investment is increasing obviously, however the earning is not good. With analysis of liability, it can be observed that proportion of long-period liability is still increasing, and ratio of liability is high. Similarly with analysis of statement of profit distribution, we can know that the increasing of main business income is obviously less than that of cost and charge. That directly results in the decreasing of increasing ratio of net income. Furthermore the first negative increasing is occurred in 2001 since marketing. With analysis of cash flow, the net cash flow is not ideal, and true cash flow depends completely on fund raising. Second, with ration analysis of financial statements, combining the cash ratio and traditional financial ratio, one conclusion can be obtained: The short-term ability to repay is not strong; liability ratio seems a little high; the ratio of ability to cash repay appears instability for a long term. This company acquired a non-interest policy though company merger. If this policy can not be kept, financial load will become heavy. If the stable cash flow does not exit, it will hold a risk of financial crisis. That will be harmful for development of company; the profit ability of this company seems strong. It is probably located on a middle-high level in the same trade. With the effect of cash flow, the quality of profit is going down. It can be though as that this company has a big potential, however it is periodic. It has a good increasing ratio usually when the new project is finished. Otherwise when a project is going on the increasing ratio is lower. In which stage the cash is not enough, and some funds circulation has to be done to keep the normal operation.Thirdly. General finance analysis to statement using DUBANG analysis method. The conclusion is: The main reason that leads to dropping of net profit is that the increasing of main business income is less than that of cost, charge and fixed assets. The other reason is inventory circulation is not good. The key element of improving the current situation is increasing the sale ratio of real estate. Fourthly, analyze the funds costs of YATAI using statistic model, and compare the costs and net profit, one conclusion is obtained that the high costs limit the development. Fifthly, evaluate the investment decision of YATAI. The investment decision is true, the perspective is optimistic, however there exits some drawback during operation. From the data of annual report, the gross profit of the subsidiary companies of YATAI, which engage in the cement manufacture and subsidiary company which engage in real estate development, are 50.07%, 35.04% i...
Keywords/Search Tags:Investment
PDF Full Text Request
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