Enterprise Development Strategy Analysis Based On The Financial Statements Of Listed Companies

In the background of economic globalization, accounting is the internationally accepted commerciallanguage. As a language used to record economic activities of enterprises, it has strong function. And as thesummary of accounting work in a whole accounting period, financial statements at the end of each accountingperiod comprehensively and systematically record the track of enterprises’ business. As a listed company hasmasses of external interest groups like creditors, suppliers, customers and investors, it is demanded to fullydisclose its financial statement data, which enables us to analyze the company’s financial situation, profitabilityand operational status in this fiscal year on the basis of disclosed data. However, the traditional financialstatements analysis is only for the sake of reporting rather than the deeper analysis. The study of enterprisedevelopment strategy based on the analysis of financial statements is to convert disclosed financial statementdata into more useful information and then analyze it to a deeper level from the aspect of enterprises’ strategicmanagement, as well as to analyze and predict enterprises’ future development strategy through analyzingfinancial statements, thus better meeting the needs of both external interest group and internal management oflisted companies.This article first introduces some common methods of analyzing financial statements. After that, it usesanalysis theories and methods to deeply analyze the financial statements of Adidas from 2005 to 2010, andchoose Nike and Lining as comparison objects to find out Adidas’ advantages and disadvantages in debtpaying ability, asset management capacity, profitability and cost control capacity in both long and short term.Then it analyzes the external environment and business condition of Adidas by adopting analysis methods ofPESTES and Five Forces Model as well as conducts research on enterprise itself by adopting Value ChainAnalysis. At last, by integrating the financial statement analysis and strategic management analysis of Adidas,it gets the logic relationship between the two and establishes enterprise strategy analysis system based on theanalysis of financial statements.