The Research Of Financial Analysis To Huolinhe Opencut Coal Industry Corporation Limited Of Inner Mongolia

The coal industry in China has developed very rapidly in the ten years from 2003—2013.It has made great contribution to the economic growth of China.However,after the development of the golden decade,the coal industry has took a sudden turn and investment growth has slowed down rapidly,Coal companies suffering from the impact of development bottleneck.On the one hand,there is an imbalance between supply and demand due to the excessive inventory of coal companies;On the other hand,due to the international economic environment,the price of coal had undergo a price inversion between the domestic and overseas market.Under the influence of multiple factors,the profits of coal companies are decreasing year by year,it has greatly damaged the domestic coal industry’s sustainable development.In order to change this situation in the coal industry,In 2016,our government had proposed and implemented the production capacity policy to help the coal industry to reduce excess capacity,therefore the coal companies could get out of the dilemma and then gain healthy development.Under this industry background,this essay has utilized financial analysis as a basic tool to comprehend the development of coal companies in the current economic environment.It also discusses the far-reaching impact of the production capacity policy on the development of coal industry.Financial analysis is an analysis and evaluation of economic information which related to business operation,making proper estimation based upon the current situation and future trend of the enterprise.Financial analysis is an important link in economic management.It is the continuation of enterprise accounting.In this essay,the open pit coal mining company has selected as the analysis object among more than 30 listed coal mining companies.It has collected and collated the company’s financial statements and related public finance information for last three years,a variety of financial analysis tools has been used to discuss the real business conditions of the company.It has conducted a comprehensive and systematic analysis of the real business conditions of the company.This essay has conducted financial analysis of the open pit coal mining company.Start with the theoretical content of financial analysis then elaborated the meaning,purpose,methods and steps of financial analysis,also listed the limitations of financial analysis.While establishing the overall theoretical framework of financial analysis,in the meantime it has gathered an objective and rational understanding of financial analysis.On the basis of financial theory,firstly,it has analyzed the cash flow statement,profit statement and balance sheet of the open pit coal industry,and evaluated the rationality of the financial structure of the company and summarize the trend of the financial situation of the company in the last three years.Then the trend of the company’s financial indicators and indexes,in-depth probe of the difficulties which reflected with the financial indexes.Finally,it has employed the wall’s comprehensive scoring method and du Pont analysis to evaluate the company’s real business situation and development in the market.