专业会计英语论文

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 firm’s capital turnover and the stronger of the firm’s solvency. Current ratio is a firm’s representative indicator to evaluate the solvency. The world’s universally acknowleged criterion is 2:1Quick ratio:(current assets-inventory)/(current liabilities).It’s a measure of a company’s 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 firm’s 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 ratiois high.Total assets turnover: Sales/(total assets). It measures how efficient a company use its assets.(4)Profitability MeasuresProfit 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 company’s 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 firm’s investments to their cost.3、Calculations and Analysis the financial ratios (2010—2012) (1)SolvencySolvency is an important index to reflect a firm’s financial conditions and operating ability. A low solvency not only reflects that the firm doesn’t 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 assets—inventory)/current liabilitiesCash ratio= (cash+CE)/current liabilitiesThrouth the form, we can see, three indicators have reached the lowest in 2011, butshort-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 it’s 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 enterprise's 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 haier's profitability by calculating main operation margins , net profit margin, ROI and ROE.Through consulting relevant data and annual report, haier's net profit margin is slightly higher than the industry average, but it’s slightly lower than competitors—gree 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 it’s 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. It’s higher than that of greeelectric appliances. It means the profitability of Haier is strong and it’s 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 assetsturnover and total assets turnover keep reducing for 3 years, it suggests the working capability of Haier is decreasing in that 3 years.Haier present the downward trend, yet it’s still in the high level in the industry4、conclusion(1) SolvencyAt present, the quality of the company's 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 company's long-term stable development, it’s necessary for us totake 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 operation and management and control the increase of operating cost. By these ways, they can maintain improving steadily of profitability at the time they have the higher basis of it.(3)working capabilityFrom the perspective of the whole operation, Qingdao haier operating capacity is higher than others, but in order to the each given index, they have a downward trend in recent years. The firm should pay much attention to maintain the stability of the occupancy and revenue growth in the future. In a word, Now, the company's overall trend is positive, and it’s in a high speed period of development, there will still be strong further future development potential.5、References（1）《海尔集团财务分析及业绩评价》—涂锐（2）沙洁. 企业财务报表分析[J]. 财会研究, 2004,(10)（3）华杰.浅谈如何分析企业财务报表[J].内蒙古煤炭经济,2009(4):65-67（4）《会计专业英语》第四版；——常勋，肖华（5）Charles T.Horngren. Introduction to Management Accounting. Prentice Hall.1998。