Comprehensive Analysis And Evaluation Of GET Company’s Financial Statements

With the rapid development of capital market,the stakeholders of a corporate need to know the financial position and operating results.And financial statements are a formal record of this financial activity within a special period.But financial statements is a high-concentration version of accounting language,which means it needs the analysis of the professionals in order to reappear the company’s production and business activities.Only through analyzing the financial statements,information user and decision makers can get the exact information of company’s financial position and operating results as the reference for business decisions.Financial analysis has gradually formed a set of complete methodologies.But cash flow has not been given enough attention in this theory.With taking the index into analyzing,it can be a better way to assess the quality of corporate earnings and financial risks.Therefore,by adding the cash flow index to improve the DuPont analysis index system,we can make the financial statements analysis more efficiency and effectiveness in the foundation of net interest rate.In this paper,by seeming the strategic analysis as a starting point,we will construct a financial system which is more comprehensive,stratified and practical through accounting analysis,financial analysis,DuPont Analysis respectively.From the view of financial reports external users,this article focuses on the accounting analysis,financial analysis and DuPont analysis.Firstly,we take GET company(2008-2012 years of financial statements)as the research object,using comparative analysis,trend analysis,ratio analysis,basic financial analysis chart and other analysis method to carry out analysis of accounting,the accounting policies and accounting estimates change,key account specific analysis,evaluation of accounting to reflect the enterprise actual state of operation level.Secondly,we do quality analysis to GET’s profitability,solvency,operational capacity,growth and cash flow from its financial statements and do comparative analysis to the counterpart GD Company.Lastly,we use modified DuPont analysis method to take company’s profitability and equity for the current ability into accounting to reveal the relationship between indicators,identify key impact of changes in financial position and comprehensive analysis of the company’s financial position and operating results,in order to evaluate current and past business results of operations and assess their continued viability.Based on the above analysis,we have comprehensive conclusions:a)the company has a stable financial structure,financial risk is small;b)the operating capacity needs to be strengthened;c)the company profit ability is falling,d)the company has better growth ability.Through the GET Company’s financial analysis and evaluation,we can understand the company’s current financial situation,development trend,and identify the company’s management problems.To solve the problems,the company should strengthen the management of receivables and production costs,improve product margins and the management of monetary funds,and broaden the financing channels appropriately to help company in the current development process and improve management to make the right business decisions and improve their overall efficiency.Meanwhile,it will play an important role for outside investors to assess the value of the company.