Research On Financial Analysis And Management Tactics Of Longsheng Company

With the constant increase of China's economy and the people's increasing income and also with the rapid expansion of modern commerce, China's fast consuming product markets have been moving on the fast lane of development in the past several years,which have promoted the development in the realm of commercial retail industry that have greatly changed in recent years.Longsheng Company, set up in 1998, the company had gone through both success and failure during the short period of its eight years' developments. Now, Longsheng is growing in the fierce competition of commercial markets.Therefore, the paper has mainly research purposes:By using the financial analysis/ the paper try to learn the company's operation situation and financial status, find out the shortcomings and problemsof the company and propose some solutions to the problems.This article firstly expatiate the basic theory of financial analysis, the paper selected ratio analysis and trend analysis as financial analysis approaches to employ financial statement analysis to 2003-2005 annual financial reports.The company's information and data come from the 2003-2005 annual financial reports.Charts were involved in the analysis inorder to make the result clearer.From the charts the trend of all kinds of ratioswill be showed over time.The type of ratio varies according to the specific interests of the users of the financial statements;then evaluate the company's profitability,growth,solvency and liquidiry,and cashflow status according to the company's annual report from 2003 to 2005;using Principal Component Analysis to grade the company's financial status from 2003 to 2005;in conclusion point out the problem that the company is facing now , at last, giving some financial management suggestions.