The Financial Analysis Of Changchun Group Store Company Limited

Since financial analysis is brought into our country, it develops very fast, andwe have got plenty of accomplishments including the following two aspects: forone thing, it focuses on theoretical discussion, ie. The financial indexesinfluencing financial situation, analytical methods etc; on the other hand, it isempirical research on the financial indexes of Chinese public companies. Most ofthe researches aim at the same economic phenomenon, very little cases target atthe specific company. In these years, financial scandals appeared in China andworld wide, these facts speak volumes for financial analysis which should bestrengthened in practice.As we all know that accounting can provide some effective information aboutthe operative efficiency. It is very important for many people (investors,capital-creditors and supervisors included) to master financial analytical skills, sois it for the inter-firm personnel. No matter how b the company is, the managersknow the financial analysis well, they can find some problems ahead of time andtake corresponding measures to improve corporation operation.The firm itself and outside providers of capital-creditors and investors allundertake financial statement analysis. The type of analysis varies according to thespecific interests of the party involved. Trade creditors (suppliers owed money forgoods and services) are primarily interested in the liquidity of a firm. Their claimsare short term, and the ability of the firm to pay these claims quickly is best judgedby an analysis of the firm's liquidity. The claims of bondholders, on the other hand,are long term,. Accordingly, bondholders are more interested in the cash-flowability of the firm to service debt over a long period of time. They may evaluatethis ability by analyzing the capital structure of the firm, the major sources anduses of funds, the firm's profitability over time, and projections of futureprofitability.Investors in a company's common stock are principally concerned with presentand expected future earnings as well as with the stability of these earnings about atrend line. As a result, investors usually focus on analyzing profitability. They...