Research On The System Of Financial Statement Analysis From The Perspective Of Combination Of Macro And Micro Using XCMG And SANY's Cases

Enterprise's financial activities are extremely complex on account of the growing diversity of its organization forms and business areas in the market economy. It is increasingly important that how business managers can find management problems by financial statement analysis in order to deal with complex economic environment as well as how investors can make investment decisions by financial statement analysis. Construction machinery industry is an important part of manufacturing. Its centralization of production is low and it has a big gap with international advanced enterprises in business efficiency,business management and financial management. As two leading companies of different enterprise systems in construction machinery industry, the revenues of XCMG and SANY accounted for 50% of the total industry. How those two companies develop has a profound impact on the industry. And therefore to study financial statements analysis of the two companies is of great necessity. For the limitations of traditional financial analysis, the paper analyzes financial statement mainly through the methods of case studies, chart analysis and combination of macro and micro based on the traditional financial analysis and the industry average index. The paper's research mainly focuses on comparing the major accounting data,financial capability and consolidated results of the machinery industry's listed companies with the industry average index. During the research, the paper chooses the industry average indexes of business performance, profitability, solvency and cash flow as references.Compared with corresponding indicators of XCMG and SANY, the paper analyzes the financial status of the two listed companies from the investors' point of view to study whether business efficiency of different companies in the machinery industry differs in different systems. The following conclusions are based on the research of the full article: Rapid expansion and aggressive marketing patterns leads to financial risk, the fierce competition makes all kinds of marketing policy loosening; At the same time, rising raw material prices and labor costs makes profit margins decline which is obvious; the sales revenue growth or even negative growth and international acquisition integration results in the decrease of enterprise net assets yield; XCMG and SANY's recovery efficiency of accounts receivable drops further, the burden of debt grows heavier, profitability and solvency are weakened.Then we come up with the following suggestions: master macroeconomic policy and the market trends, strengthen internal control, comb processes, establish a risk management early warning mechanism, improve risk management; enhance management of accounts receivable and efforts to the collection; make endeavor to improve operating profit and strengthen sale management further.The innovation points of this article are mainly as the following. The paper puts forward a financial statement analysis system from the perspective of the combination of macro and micro, changes the limitations of traditional micro-specific analysis on financial statement analysis, forms a whole financial statement analysis system of both the micro and the macro.In the context of macroeconomic development research, compares the financial data with data from the same industry but not sticking up in microscopic comparison of financial data of the company in recent years. Taking the industry average dada as a measure to research the gap of company developing, analyzes the causes to make investment decisions.