| Main contents:this paper focuses on researching on the financialanalysis of the construction company. The paper stress application of financial analysis in the construction company especially in the area of business management and decision based on financial analysismethods and Indicator system. The paper can be mainly divided into five parts:The first part is an overview of the full text. In this part, thetopic background, research significance, research purpose and the main content of the paper are introduced.For a long time, since the construction companies has high product value, long accounting cycle, obvious gradual characteristics of accounting, coupled with the extensive enterprise management,the application of financial analysis in construction companies has limits.Evaluate the operating performance and management effect,figure out the existing problems in the development of enterprises through financial data, find out the rows and establish reasonable range of thefinancial indicators, discover the disparity and area where it could use major upgrade are imperative for providing quantitative basis for performance evaluation in the future. The financial statements are able to reflecting the enterprise financial position, operating results and cash flow situation, however,a full description of the financial situation cannot be directly interpreted merely from data on the financial statements. Data on the financial statements, particularly cannot explain the quality of business conditions and operating results.Only the financial indicators of enterprises related data were compared in order to explain the financial situation in which the position, so to analyze financial statements. Only the result of financial indicators compared with relevant data can explain the position the company’s financial situation get.Therefore, it is Necessary to analyze financial statements.A good financial statements analysisis able to properly evaluate the financial position, operating results and cash flows, revealing the company’s future returns and risk. A good financial statements analysis can also check the budget completion ofassessment, assess performances of managers, help to provide establish a sound and reasonable incentives.The second part, describing the basic theory of financial statement analysis. It mainly expounds five basic analysis methods of financial analysis, including the concept and content, structure, trend, comparison, and the ratio of project quality analysis, which provides a theoretical basis for financial statement analysis. The third part introduces the problems exist in the construction company. It mainly manifesto that a huge increase appears in A Construction Group’s production value, at the same time but the project profitability are declining in the process of rapid development of A Construction Group in recent years. The group project management share increases year by year due to the preponderanceof collectivizing management, but the project management costs reduces each year. The business benefits of each subsidiary company did not show improvement either.As the market changes, along with the diversified development, resulting in costs of various business models come and go costs, changes in the various factors that affect profits urgent analysis and evaluation.If the reason of falling profits is not found, it is will affect the healthy development of the whole group unless a rational evaluation of the profitability of enterprises can be made.The fourth part, mainly research on application of financial analysis in A Construction Group, is the most important content of this article. In view of the existing problems in the financial status of Construction Company, emphasize factor analysis on artificial, material, professional subcontracting, direct cost through acquisition of large amounts of data, analyzing compound growth rate,cash flow of project quality and the causes of variation of the profitability of A Construction Group and8subsidiaries in recent5years, a conclusion is taking shape.The growth rate of output slowed as the size of company is increased, the larger the scale becomes, the smaller the increase in. Labor costs, material costs, machinery costs, indirect costs increase as output growth, growth rate is greater than the output growth rate, resulting in a decline in the growth rate of profit. Accounts receivable increase sharply, much faster than output growth, shortage caused by funds, resulting in financial costs, thereby reducing the profit growth. In the construction of gross margin higher than the clearing projects have been completed and the completion of outstanding items, explain that the project construction period of income and cost seriously is not synchronous, no statistics and collection value and cost according to the project image progress, and there are short-term behavior in pursuit of short-term profits. Because of the lack of cash flow of the enterprise security, causes the cost of external financing of enterprises increased year by year, thus affecting the quality of enterprise profit. Based on the conclusion of the analysis, counter measures and measures put forward suggestions to solve the problem, suggestion, in project management, the first to the design optimization of the project, improve the project gross margin level. Secondly, to make full use of technology resources, increase the profit space. Once again, the operational control mode intensive, shorten the supply chain, effectively save the purchasing cost. Through the information construction, save the cost of management. The establishment of the index database, so the introduction of enterprise risk early warning index database, the use of management accounting methods for enterprise management to provide guarantee to enhance. Comprehensive budget management of project. Control in the process of project design, reasonable construction scheme of the project, the direct cost, the price should be considered comprehensively. Once again, make sure the target cost of each node decompositionconform, price comparison, for comparison in the process will budget income and actual cost expenses, and put forward corrective measures. To improve the standard of financial accounting, statistics, output, cost accumulation in strict accordance with the image of progress, avoid the statistical and financial value is not consistent. Examination and evaluation of the project management aspect, firstly, to projectcompletion, production costs, debt payments, proje ct implementation and the management of infrastructure development to achieve node assessment objectives, target cost and project, combined with the construction management process. Secondly, to strengthen and improve the large audit work, we should strengthen the construction of the project in the project audit process tracking, but also strengthen and improve the effectiveness of the project to achieve the final audit. Again, establish and improve the incentive program, assessment and other incentive machine. Through financial statement analysis, found the decision support for enterprises to achieve profitable growth, enhance corporate management.The sixth part, the conclusion of the full text which is mainly summarize and evaluate the topic discussed in former part. |
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