专业会计英语论文.doc

精品文档Corporate Finance Assignment (Analysis report of Haier) name： class: accounting 123 number： 1、Company introductionHaier was incorporated in 1984, entrepreneurship in 26 years, insist on entrepreneurship and innovation spirit, create world famous brand from a shaky business has become a global collective small factory owns more than 70,000 employees, 2010 turnover 1357 billion yuan of globalization group company.Haier has become the first brand for global white goods, and was Newsweek (Newsweek website named as the world top ten innovative company.2、Financial ratios(1) Short-term solvencyCurrent ratio: （current assets）/ (current liabilities). The higher of the ratio. the richer of a firms capital turnover and the stronger of the firms solvency. Current ratio is a firms representative indicator to evaluate the solvency. The worlds universally acknowleged criterion is 2:1Quick ratio:(current assets-inventory)/(current liabilities).Its a measure of a companys liquidity and ability to meet its obligations. The general criterion is 1:1(2)long-term solvencyTotal debt ratio:(total assets-total equlity)/(total assets).For the creditors, The higher of the firms total debt ratio, the more liabilities it has and it may have a high potential profit margin, but at the same time, they have a high loan risk to take on.(3)Asset Management, or Turnover, MeasuresInventory turnover:(cost of goods sold)/inventory. The faster ths turnover is, the stronger the liquidity will be, so high inventory turnover ratio shows that the firm is able to change directions quickly.Receivable turnover: sales/(accounts receivable).It represents the ability that the company receiving their payment. The management efficiency is good when the ratio is high.Total assets turnover: Sales/(total assets). It measures how efficient a company use its assets.(4)Profitability Measures Profit margin:(net income)/sales. It measures how much the company can earn per dollarROA：(Net income)/(total assets). It gives the idea that how efficient the management is at using its assets to generate earningsROE:(Net income)/(total equity). It measures a companys profitability by revealing how much profit a company generates with the money of shareholders have invested.(5)Market Value MeasuresPrice-earnings ratio:(price per share)/(earnings per share) It measures how much investors are willing to pay per dollar of current earnings. High PEs are often taken to mean that the firm has significant prospects. For future growth. Of course, if a firm has no or almost no earnings, its PEs would probably be quite large.Market-to-book ratio: (Market value per share)/(book value per share).It compares the market value of a firms investments to their cost.3、Calculations and Analysis the financial ratios (20102012)(1)Solvency Solvency is an important index to reflect a firms financial conditions and operating ability. A low solvency not only reflects that the firm doesnt have enough money to meet the need. But also reflects the firm may not have the ability to pay the debt, even with the risk to face bankruptcy. Short-term solvencyWe can get through the Current ratio, Quick ratio and Cash ratio to analysis the short-term solvency. Current ratio=current assets/current liabilitiesQuick ratio=(current assetsinventory)/current liabilitiesCash ratio= (cash+CE)/current liabilities year Current ratio Quick ratio Cash ratio 20101.261.070.54 20111.210.980.50 20121.271.040.52Throuth the form, we can see, three indicators have reached the lowest in 2011, but short-term solvency basically unchanged in 2011 and 2012. By looking at the data, we know, the value of Haier is still within the normal standard in the industry, but its numer is obviously low, and when current ratio reach at 100% , the short-term solvency is higher, so, if the short-term solvency is not high, haier itself will face a certain degree of risk of insolvency.However, Quick ratio and cash ratio of Haier are the first, Current ratio is also in the industry iforefront, that means many companies in the industry are also faced with a certain degree of debt risk. (2) profitabilityProfitability means enterprise profit ability in a certain time period. Whether the business activities of enterprises with strong profitability, is very important to enterprises survival and development. For haier, it is a large group enterprise, if there is no high profit support, to gain the ability to continue to develop is obviously not possible. I will analysis haiers profitability by calculating main operation margins , net profit margin, ROI and ROE. profitability indicators of Haier dateMain operation margins(%)year-on-yearnet profit margin(%)year-on-yearROIROE2010/12/314.934.669,729.762011/12/315.5211.97%4.956.22%9.231.612012/12/316.6019.57%5.4610.30%8.828.27 Profitability of industry (2012) companyMain operation margins(%)Net profit margin(%)ROIROEHaier.6.65.468.828.27TCL.15.741.831.666.78Hefei Meiling22.841.732.086.5Gree electric appliances5.466.37.7227.59Through consulting relevant data and annual report, haiers net profit margin is slightly higher than the industry average, but its slightly lower than competitorsgree electric appliances; Main operation margins of Haier is behind the above competitors. This situation means that Period charge is too high. And it takes too much negative effect on the profit growth of the firm. ROI of Haier is the highest in above companies and remains stable in nearly 3 years, so, it means that asset utilization efficiency of Haier is good and it has a stable and lasting profitability. ROE reflect the shareholders income level and its used to measure the efficiency of using their own capital by the company. The higher its index is, the higher the investment benefits. ROE of haier has reached the industry ceiling. Its higher than that of gree electric appliances. It means the profitability of Haier is strong and its in the leading position in the industry.(3) Working capabilityWorking capability depends on turnover speed of assets, the running status of it, assets management level and other factors. Such as asset velocity, as a general rule, the faster the turnover of the assets is, the higher the use efficiency of assets is. So it means working capability of assets is strong. Working capability indexes includes receivable turnover, inventory turnover and total assets turnover. （receivable turnover）=net credit sales/accounts receivable（inventory turnover）=cost of goods sold/ inventory（total assets turnover）=net sales/ total assets Working capability deadlineReceivable turnoverInventory turnover Total assets turnover2010/12/3128.2913.052.072011/12/3123.909.431.852012/12/3119.038.411.61From this form, its not hard to see, the index of receivable turnover, inventory turnover and total assets turnover keep reducing for 3 years, it suggests the working capability of Haier is decreasing in that 3 years. Working capability of industry companyReceivable turnoverInventory turnoverTotal assets turnover Haier23.909.431.85TCL9.385.690.90Hefei Meiling14.054.221.20Gree electric appliances73.524.211.03From the form and through the annual reports, we can see, Although above index of Haier present the downward trend, yet its still in the high level in the industry4、conclusion(1) SolvencyAt present, the quality of the companys assets is almost good, liquidity and security are high.2010-2012, Haier reinforce to raise capital through long-term loans and the correct use and operation effectively. By these ways, the firm get a good profit. So while short-term debt paying ability is poor, the long-term debt paying ability is not weak. In order to the companys long-term stable development, its necessary for us to take positive measures to further improve the debt paying ability.(2) profitabilityThe operating income of haier has improved dramatically in 3 years, and main business profits is also at a high level in the industry and profitability is increasing year by year. But when we are busy expanding sales and the scale of production, at the same time, they have exposed increase problems of the sales cost, financial cost and management cost. So that the net profits has not increased in proportion. In a word, when Haier wants to expend sales and pursuit Innovation, they should pay much attention to improve the