Study On Financial Statement Of Huaxia Bank

This paper analyzes Huaxia Bank’s financial condition and operating condition fromthe perspective of investors. Applying Horizontal Analysis, Ratio Analysis andCommon-size Financial Statements and other methods, this paper analyses the keyfinancial data of Huaxia Bank in nearly three years, especially in2012, to identify themajor changes and trends in recent years, and explore the reason for the change and thechange in the internal logic.Based on the analysis of Huaxia’s Income Statement, Cash Flow Statement, BalanceSheet and its Capital and Asset changes in particular, this paper reveales that HuaxiaBank’s profit is on the rise,and the lending interest income accountes for58.14%of totalrevenue, showing that the company’s main business profitability is strong, with relativelystable profitability. The company’s ability to generate cash from operating activities isstrong, for the company’s long-term development provides a strong financial support. Bycomparison with other companies’ cash flow from operating activities, it founds thatHuaxia bank still relied mainly on banking deposit and loan business,which meanedrevenue structure is relatively simple. In nearly three years, the capital adequacy ratio andthe core capital adequacy ratio of Huaxia Bank is changeable, increased in2011whiledecreased in2012. It indicates the strength of internal accumulation of capital is weak, andthe company’s profitability needs to be strengthened. But overall, the company operatingsystem is relatively robust.Huaxia Bank’s solvency indicators in line with industry level, with certain solvency,there is no huge pressure of debt.Company’s profits in2012growth slowed, while theprofitability indicators tend to rise, showing the company has a stable profitability.Whether it is in the view of current assets turnover or total asset turnover, there’s noobvious changes. Apparently, the use efficiency of assets has not significantly improved.In the end, applying peary’s analysis and evaluation method of Cornwall, the papermakes a comprehensive analysis about the company’s financial.According to the companyresults,it evaluates the prospects and the core competitiveness of the company, andmakes a reasonable forecast about the future of the company.