Analysing The Annual Report Of Pinggao Electric

The annual report is the most important way for stakeholders to understand joint stock companies, through interpretation and analysis of the annual reports of the companies, we can know the past, evaluate the present and predict the future fully and accurately. This paper, taking the State Grid subordinate company——PingGao Electric Company (A shares code 600312) as the research object, read the annual report from 2010 to 2014 and analysis the level of company’s financial management, based on the research conclusion, suggestions for improvement are put forward on the company’s management.This paper first reviews the development of financial analysis, introduces the main methods of financial analysis, then briefly introduces the general situation, development history and the main products of the company. Secondly, according to the balance sheet, income statement, cash flow statement and statement of stockholders, the detailed analysis and summary are made.Then this paper also analyzes the company’s 2010-2014 financial statement from five dimensions:debt paying ability, profit ability, running ability, growth ability, the ability to obtain cash. And this paper selects three electrical equipment manufacturing enterprises that A shares listed for the same industry horizontal comparison, to see its position in the industry, thus founding its advantages and disadvantages, figuring out the direction then improve.After using the DuPont analysis method on the company’s return on equity between 2010 and 2014, taken apart on change factors one by one to find the secret of business growth. Finally, by SWOT analysis, this paper analyzes the superiority, shortage, opportunities and challenge of the company, introduces the future development trend of electric equipment industry, and in light of this put forward the development proposal. Based on the conclusion after studying, this paper gives recommendations to the company’s management.In addition, this paper also introduces a comprehensive analysis method which based on the ranking of financial indicators, uses PingGao Electric for example to illustrate the use of this method. Comparing to Standard financial ratios and comprehensive coefficient analysis, Wall comprehensive scoring system, the method avoid the selection and use of the standard value, average, it can reduce the statistical error of the standard value, the average production process. Hope the method brings you certain help in financial analysis in the future.