Xinyu Company Financial Analysis System To Establish And Applications

This dissertation is to research on the finance analysis system of enterprises.The first step is to analysis the industrial environment and the geographic environment. This is to get a conclusion of the macro environment of the enterprise. Enterprises are operated in certain macro environment and the macro environment affects the business of the enterprises. The second step is to set up the finance analysis indexes. The finance analysis indexes should be set up considering the conditions of the enterprise itself and the macro environment. The finance analysis indexes should meet the requirements that the financial condition and the operating result of the enterprise be shown clearly, accurately and completely. The third step is to set up the accounting system. The accounting system should provide enough information that is needed when calculating the finance analysis indexes. By these three steps the finance analysis system has been set up.The purpose of the establishment of the finance analysis system is not only to evaluate the financial condition and the operating result of the enterprise but also to improve the performance of the enterprise. Certain analysis methods are introduced that could be adopted to evaluate the financial condition and the operating result of the enterprise. The basis principle of the analysis method is compare and contrast. The conclusion that gets out of the finance analysis will be one of the bases of the business decision.The conclusion of the finance analysis has s limitation and can not fully disclose the information of the enterprise. The businessdecision should not base only on the conclusion of the finance analysis.