Baoshan Iron And Steel Co., Ltd. Analysis Of Financial Condition

Applying multiple analysis methods such as Horizontal Analysis,Ratio Analysis and Common-size Financial Statements, this paperanalyses the key financial data and its development tendency of baosteelfrom 2003 to 2005, especially 2005. The variety reason and its intrinsicrelations of financial indicators are presented.Based on the analysis of Baosteel's Income Statement, Cash FlowStatement, Balance Sheet and its Capital and Asset change in particular,this paper reveals that the Baosteel is transferring from asset-heavyoperation to asset-light management. Baosteel increase the Total DebtRatio in its capital structure to utilize the Financial Leverage effectssufficiently. Comparison of the key financial indicators betweenBaosteel and domestic typical counterparts by means of horizontalcontrast, the financial status of baosteel and the operation tendency ofthe whole of Chinese iron & steel enterprises can be understand deeplyfrom macroscopical angles.This paper also sums up Baosteel operation status and thecharacteristics of financial change in 2005 after finishing the analysis ofabove items step by step.According to the financial trend of 2005, combining thedevelopment of steel industrial, this thesis tries to predict the Baosteelperformance and suggest the possible financial problem of 2006.