The Research On Improving Financial Situation Of M Food Company In Yangon Myanmar

As Myanmar has begun to pursue the rapid development of a market economy, SMEs are also experiencing a rapid increase, are becoming more competitive, and the internal and external environment has undergone tremendous change in relation to Myanmar. Consequently, corporate financial statements reflect the financial position and operating results of an enterprise for a certain period. Financial analysis is not only fundamental for internal purposes, but aims to achieve a comprehensive and accurate understanding of the management of the enterprise over time. Yet, financial analysis can also help predict future customer demand and to make financial decisions.As from Myanmar (financial diagnosis direction) overseas student, I studied the methods and tools of financial diagnosis, a preliminary understanding of the Chinese small and medium-sized food enterprises, then using the traditional methods of financial analysis.Taking Myanmar’s "M Food Company" as an example, it analyses and compares the financial statements for2010to2012, exploring M Company’s statements, financial problems, and providing recommendations.This article provides a literature review section dealing with the study of both the operating status and financial statement analysis of small and medium-sized food companies. The third chapter provides basic analysis using a range of methodology:comparative analysis, trend analysis, ratio analysis and factor analysis. With these analytic methods, the paper analyses the balance sheet and income statements of "M Food Company". Chapter Four uses a specialized financial analysis method; first uses "5factor corporate analysis method" and takes M Food Company’s financial statements for the last three years as the subject. Then Chapter Five uses a radar chart to further understand the financial condition of the enterprise for the last three years, its operating conditions as well as future management trend. The paper uses balance sheet and income statement data analysis of M Company’s solvency for both past and present, profitability, operational capacity and solvency analysis as well as parity. Operation and management problems can be found through index analysis, with countermeasures proposed to address issues raised.