What Are The Misunderstandings In Financial Analysis Of Enterprises?

With the continuous improvement of the quality of financial personnel and the gradual implementation of enterprise accounting standards, the basic financial problems of enterprises have been gradually solved, and the demand for authenticity of financial information has gradually been pformed into the value research of financial information.

Through the analysis and research of financial information, improving the practicability of financial information and providing better support for management decisions has become a topic of common concern among business operators, investors and regulators.

enterprise

Easy to walk into

Financial analysis is so important, but it is not easy to do well in financial analysis.

Most financial analysis reports or boring reading, or no analysis conclusion, or analysis of subjective assumptions, are generally lacking in depth and low in use value.

The causes of these problems are related to several misunderstandings in financial analysis.

Myth 1: Analysis for analysis is out of touch with demand for financial analysis.

Some financial analysts do not fully communicate with the needs of the analysis report, do not really understand the real purpose of the analysis, and get the financial data in a hurry to analyze.

This kind of financial analysis is only for analysis. The type of analysis, the scope of analysis and the choice of analysis focus are basically subjective, which is basically out of line with the needs of analysis. Users of the analysis report are also unable to obtain really useful information.

Misunderstanding two: financial theory, financial management and management detachment

When financial analysis is carried out by some financial analysts, it is often difficult to jump out of the inherent thinking inertia of the financial system, carry out a comparison and analysis with a pile of financial data, and make a lack of understanding of the major business decisions and important business situations of the enterprises, thus making financial analysis only stay in the financial field, and can not really analyze the specific financial problems and financial data from the perspective of enterprise management.

Misunderstanding three: on the report forms, the list of matters outside the concern is not high.

Some financial analysts only stay at the level of financial statements, mainly analyzing 3 accounting statements, ignoring the analysis of important external matters such as business environment, land value, external guarantee and contingencies.

Such a financial analysis, because of the limited analysis basis, easily ignores the potential risks and problems of those gorgeous companies, and it is also difficult to dig out the potential value of those enterprises with unsatisfactory performance, and the conclusion of the analysis is often misleading.

{page_break}

Misunderstanding four: data on the data, the real induction, refining less.

Some financial analysis data describe a lot of space, data analysis efforts are very small, or lack of data between the comparative analysis, causal analysis, or not the financial data and financial indicators in series analysis, or did not sum up and extract the views, so that we can not dig out the financial data behind the economic essence, the formation of appropriate analysis conclusions.

Such financial analysis, without the support of economic language, can only be regarded as a simple statistic.

Misunderstanding five: comprehensive analysis is too comprehensive to hide the truth of the business.

Part of the financial analysis, especially the comprehensive financial analysis, is only around the comprehensive data, and it is easy to hide the real situation of the enterprise without the analysis of the different business plates or the hierarchical layers of the enterprise.

This is especially true for the financial analysis of enterprise groups under the diversified development mode. If different businesses or enterprises, or good or bad, or increase or decrease, if we look at the whole and do not look at the structure, it will be too general. The conclusions often tend to be neutral and plain, and we can not see the specific circumstances of the enterprises, especially covering some abnormal situations.

Misunderstanding six: more historical data analysis, less prospects for the future.

The purpose of financial analysis is not only to understand the past and present situation of enterprises through accumulating historical financial data, but also to understand the future trend of enterprises and predict the future development trend of enterprises through the analysis of the development trend of enterprises.

However, many financial analysis just ignores this point. There are more analysis of the past and present, and few forecasts and prospects for the future, which greatly reduces the role of navigator in financial analysis.