Luzhou Co., Ltd. Engaged In Performance Evaluation

The financial reporting is the most comprehensive; the fullest most and accurate first material which synthesis reflects a company's financial situation, the operating results and the trend of development, as well as the investor understood the company, the decision investment behavior. Simultaneously the financial reporting is also the main carrier that the enterprise interior and exterior carries on the communication, additionally, is the analysis tool that business financial manager must to grasp.But the appraisal of enterprise operating results is not only takes to the business finance condition, the management performance and the cash flow comprehensive survey and the appraisal one kind of management of economy work, but also is business finance accountant's continuation and the important component of financial control. That uses the figures and relative information, Uses the special method to carries on the financial reporting to gather together, the processing, the analysis, the comparison, the appraisal and so on, makes the quality synthetic evaluation to the business finance condition and the management performance, and proposes the improvement financial situation measure means. Through the statement analysis, it may supply new accountant information for the report users. This accounting analyzed information is very important to enterprise's administrative Department, the investor, the operator and the concerned parties. We can also say that the statement analysis is the accountancy sublimation. In recent years, with the consummated and development of the global economic, competition gets more and more intense, the financial analysis has the very vital role and the significance to the enterprise investors, the creditor, the enterprise superintendents.This article introduces statement analysis's background at first, and then points out the inevitable choice to listed statement analysis under the business model of being entrusted with managing, and to classify and induce all special interest groups concerned on the financial reporting. Finally it introduces some commonly methods and the synthesis analytic method to analyze report, as well as have utilized these analysis methods to carry on the detailed explanation of Luzhou Laojiao Limited Company as a financial reporting's case. The article analyzes the details according to the foreign announcement financial data and other related contents of this company between 1991 to 2006, regarding this company's financial ratio, particularly, cash ability, the credit capacity, profit ability, transport business ability as well as the develop power, and then contrast it on horizontal and the longitudinal. It Uses the financial"five forces"the analytic method, that's the Short-term credit capacity analysis, managed capacity analysis, long-term credit capacity analysis, profit ability analysis and development strength analysis,to appraised the enterprise from five aspects to manage the achievements the method. Because"five forces"in the analytic method involves enterprise's each aspect about financial situation and operating results, therefore the operator may understand enterprise's operating results and the prospects for development by adopting"five strength"the analytic method. This analysis's result may provide the decision-making or the reference from the different sides to the financial reporting concerns. This article has then pointed out several limitations about the statement analysis. Because of these limited existence, the users of report can't rely on the report data excessively. It explains this limitation through some small cases. Finally, in view of the limitation mentioned ahead, the article further proposes some corresponding improvement conception in order to get a better service for report users.