Research In Financial Analysis And Project Decision Of Oil Enterprise

The emphasis of this paper lies in financial analysis and project decision of oil enterprise. The technical and economic features of oil enterprise are presented .An overall financial analysis on oil enterprise, which consists of three analysis systems: cost control system, break-even system and feasibility system is described. Then the concrete steps of how to put these three analysis systems into oil enterprise are formulated and diagramed. On the basis of the fundamental break-even theory, four break-even indexes of oil enterprise are deduced.Next, by using portfolio theory of investment, a new set of economic evaluation model in which the risk measurement is added to the traditional index system is built in this paper. In this model, the validity of project decision is largely guaranteed by calculating revenue level of per risk. Several sets of data from an oil enterprise are carried out. The results support the validity of this new model.Lastly, some suggestions aimed at improving the financial condition and the validity of project decision of oil enterprise are offered.