The Research Of Value Appreciation In Shizhuyuan Corporation Based On Financial Statements Analysis

Abstract:Modern enterprise management goal is value maximization, the financial statements are the epitome of business activity,and the transmission of financial information. Through the analysis of financial statements, can understand the enterprise’s financial position, operating results, cash flow, can understand the debt paying ability, operating ability, profitability,development ability of enterprises, which can evaluate the value of the enterpriseThis paper is devoted to give a full analysis and interpretation of financial statements from2010to2012of Shizhuyuan Non-ferro Metal Products Co. Ltd in Hunan province. First,make a brief controduction about the mineral industry, for example, the mineral industry background, the characteristics and status of mineral industry and the overview of Chinese Minmetals company and the the shizhuyuan non-ferro metal products co. On the one hand, by adopting the methods of comparative analytic approach, ratio analysis and trend analysis, a careful study and analysis of balance sheets, profit statements and the statements of cash flows in this company have been carried out, and the financial condition of the company and results of operation have been evaluated. On the other hand, by using qualitative analysis and quantitative analysis, financial targets such as solvency, performance level, profitability and development ability have been analyzed and evaluated.Combination of the above analysis, this paper seeks to find the problems in the process of increasing value,respectively from the aspects of capital cost, free cash flow, the duration. Then the paper analyzes the reasons of these problems from external and internal, such as the economic environment, financial environment, legal environment, industry life cycle, industry competition, technical, management, investment and so on. Finally the paper makes some suggestions for the shizhuyuan non-ferro metal products co. from lowing the cost of capital, increasing free cash flow, prolonging the duration,in order to provide reference for the company’s financial management.