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Quantitative analysis and qualitative analysis of the company's

Author: WeiZhi From: www.yourpaper.net Posted: 2007-11-21 13:27:26 Read:
Introduction

Securities market in China and development has been more than a dozen years, the development of stock markets is particularly striking, especially the mid-1990s until this year, the stock index from 300 points straight into the 000-point mark, so that the majority of shareholders bang natural heart. Stock analysts who still talk about the topic of the 2000 red 2000, 2000 now has become, for history's sake, Shenzhen and Shanghai stock market composite index with a record high. It marks China's national economy is in the rising phase of an unprecedented good. The stock market continued to take the cattle, especially the Shanghai stock market firm above 2000, has become a lot "Tangulunjin" unit "office worker" hot topic. With seven consecutive national macro-control policies to cut interest rates, the majority of people feel more and more to invest in the stock market is a lucrative investment program. However, the initial stage of China's capital market is still in the ascendant, there is a considerable gap compared with the mature foreign securities markets. So in today's securities markets, speculation still the dominant force in the market, and investors are very few. Many small investors chase sell the message light performance, and ultimately often fall into the trap of playing in the hands of institutions, lost down the drain. I believe that the development of China's securities market is mature and standardized direction the regime market, the State has also taken a series of regulatory measures, the final support price factor will be the level of performance of the company. With the development of the stock market, the quality of the investors will also be further improved. This article will be based on the Tianjin Global Magnetic Card Company's Annual Report, to help investors to grasp the performance of listed companies analysis method, so that the investors have predicted the company's prospects, master the basic skills of the investment direction.




Quantitative analysis of the company's

The quantitative analysis of the results of a public company for data analysis. The method enables investors and accurate understanding of the company's internal operations had the situation, to understand the future trends to enable investors to quickly grasp the reasons for the increase or decrease in the performance of the company, which decided to invest in operating strategy. This method has the accuracy, comparability and intuitive. Assessment of a company will use the method. Tianjin Global Magnetic Card Company 1998 and 1999 annual financial statements analysis is the use of a few key indicators:

Analysis of Financial Statements (1998)

A solvency analysis
1, short-term solvency analysis
Current ratio = current assets / current liabilities = 749203119.92/348865480.32 = 2.15

Quick Ratio = Current Assets - Inventories / Current liabilities =
749203119.92--52395224.26/348865480.32 = 2.00

2, long-term solvency
Asset-liability ratio = total liabilities / total assets = 523 237 828 .30/1527674160.25 = 0.34

Equity ratio = Total Liabilities / Equity = 523237828.30/1004436331.95 = 0.17

Equity ratio = long-term liabilities / Equity = 174372347.98/1004436331.95 = 0.17
The interest repayment frequency = Profit before tax / interest = 166710648.95/2177698.82 = 76.55

Second, Trading Analysis
1, total asset turnover = sales revenue / total assets = 285660417.91/1527674160.25 = 0.19 (s)
Total asset turnover days = 365/0.19 = 1921.1 (days)

Inventory turnover = sales revenue / inventory = 285660417.91/52395224.26 = 5.5 (times)
Inventory turnover days = 365/5.5 = 66.4 (days)

3, accounts receivable turnover ratio = sales revenue / accounts receivable = 285660417.91/1097308055.72 = 2.6
Accounts receivable turnover days = 365/2.6 = 140.4 (days)

4, accounts payable turnover ratio = cost of sales / payable accounts = 158851747.77/9095392.78 = 17.5 (times)
Accounts payable turnover days = 365/17.5 = 20.9 (days)

5, liquidity turnover of = the number of days of inventories accounts receivable days - payables days
= 66.4 140.4-20.9 = 185.9 (days)


Profitability Analysis
1, the gross profit margin = gross profit / sales revenue
= 285660417.91-158851747.77/285660417.91 = 0.44 = 44%

2, the profit margin = the bedtime profit / sales revenue = 166710648.95/285660417.91 = 58.4%

3, sales margin = Net Profit / Sales = 147464914.77/285660417.91 = 52%

4, return on capital = interest profit before tax / capital
= 2177698.82 166710648.95 / 1527674160.25-174372347.98 = 12.5% ??

ROE = Net profit / Equity = 147464914.77/1004436331.95 = 14.7%

Analysis of Financial Statements (1999)

A solvency analysis
1, short-term solvency analysis
Current ratio = current assets / current liabilities = 483265830.97/271242521.11 = 1.78

Quick Ratio = Current Assets - Inventories / Current Liabilities
= 483265830.97-21336604.58/271242521.11 = 1.70

2, long-term solvency
Asset-liability ratio = total liabilities / total assets = 422962505.77/908976323.67 = 0.47
Equity ratio = Total Liabilities / Equity = 422962505.77/486013817.90 = 0.87

Equity ratio = long-term debt / equity = 151719984.66/486013817.9 = 0.31

Interest repayment frequency = Profit before tax / interest = 108137719.82/1813239.01 = 59.6



Second, should the shipping capacity analysis
1, total asset turnover = sales revenue / total assets = 296859775.53/908976323.67 = 0.33
Total asset turnover days = 365/0.33 = 1106.1 (days)

2 Inventory turnover = sales revenue / inventory = 296856775.53/21336604.58 = 13.9
Inventory turnover days = 365/13.9 = 26.3 (days)

3 Accounts receivable turnover = sales revenue / accounts receivable = 296959775.53/80321721.47 = 3.69
Accounts receivable turnover days = 365/3.69 = 98.9 (days)

4, accounts payable turnover ratio = cost of sales / accounts payable = 155490183.50/35366841.43 = 4.39
Accounts payable turnover days = 365/4.39 = 83.1 (days)

5, liquidity turnover of = the number of days of inventories accounts receivable days - payables days
= 26.3 98.9-83.1 = 42.1 (days)
Profitability Analysis

1, the gross profit margin = gross profit / sales revenue = 296859775.53/155490183.50 = 0.48 = 48%

2 sales margin = the bedtime profit / sales revenue = 108137719.82/296859775.53 = 0.36 = 36%

3, sales margin = Net Profit / Sales = 86929689.71/296859775.53 = 29%

4, return on capital = interest profit before tax / capital
= 1813239.01 108137719.82 / 908976323.67-151719984.66 = 14.5%

ROE = Net profit / Equity = 86929689.71/486013817.9 = 17.9%

Analysis and explanation

From the 1998 and 1999 annual financial statements, we can see that the short-term solvency of the company have been greatly improved, its current ratio and quick ratio increased from 1.7 to 2 above, this description of the company in the short term ability to repay the debt up and down a lot of effort, with the ability to cope with an emergency situation, the long-term solvency also increased its interest coverage ratio increased from 59.6 in 1998 to 76.5 times in 99 years, the repayment of interest capacity has no need to worry, we can see from the equity ratio in the 8-year equity ratio is 0.31, 99 0.17, in the amount of debt and issue stock to take a certain strategy. Although the 99-year debt amount and shareholders amount has been significantly improved, but the relative proportion of the two occurred changes. Occupy a smaller share of the debt equity ratio, and the amount of shareholders price has increased, which prove that the company in 99 years to take a prudent financing policy, because the company's main products are magnetic cards, including credit cards, phone cards, membership cards, etc., most of which are consumer durables. Therefore, there must be the possibility of the increase in accounts receivable and inventory. Therefore, the lower leverage ratio. You can reduce the risk of debt.
As can be seen from its operating capacity analysis, inventory turnover and accounts receivable turnover period than those of 98 years has significantly extended. Accounts payable cycle is significantly shortened, resulting in the enterprise funds outflow much faster than inflow speed. So the liquidity turnover period of 99 years is higher than 98 years, the accounts receivable will be more and more, can easily result in bad debts and bad debts, causing financial failure.
Its profitability can be seen Miscellaneous gross profit margin of 99 did not increase, but the company in terms of management fees and operating expenses under effort to reduce these two teams, while the business tax reduction, its sales profit margin has been a corresponding increase. Global Magnetic Card Company 98 years as investment companies are most concerned about the shareholder's investment rate of return, return on equity was 17.9%, the ratio is pretty good. But dropped to 14.7% in 1999. The proportion of annual report data show that the company's profit after tax has been greatly improved, but the company 99 years 10 to send 5 distribution plan and shareholders' equity also increased significantly. ROE decreased.








Qualitative analysis of the company's

Investors in listed companies before investing not only based on its analysis of the annual report of data, but also the background information of the company, engaged in the industry, market competitiveness and the future prospects for analysis, because the stock The price usually reflects the company's operating performance, and also reflects the expectations of the shareholders of the company's future performance, if the company's future prospects are not optimistic, despite prior performance was adequate, its shares false still does not have a greater rise space, and perhaps disappointed investors due to the decline in the qualitative and quantitative analysis is equally important for investors.
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