Corporate Governance

introduction

Financial analysis is based on financial reports and related information as the primary basis ,for the company's financial position and operating results to evaluate and analyze, reflect on the operations process advantages and disadvantages, trends, so as to improve corporate financial management and optimize the economic decision-making provide important financial information. Financial statements have large amounts of data, can be according to calculate a lot of meaningful ratio, these ratios involve all aspects of business management. 

Accounting ratio analysis simply is based primarily on the financial statements the data to use of a series of ratio analysis formula between the indicators to calculate the ratio for the inspection, measurement, evaluation and reflect the effectiveness of economic activity a mathematical analysis. [1]Accounting ratio is in financial statements the ratio between the two data, these ratios involved in all aspects of business management. Because they are relative numbers, excluding the impact of scale, establish the comparability of different comparison. Accounting ratios can evaluate an investment in the years between changes in income can also be compared at some point a different business sectors. Accounting ratio analysis can eliminate the effects of scale, to compare the benefits and risks of different companies to help investors and creditors to make rational decisions. Use of accounting ratio analysis to assess the company's performance and condition, is a very effective and simple way.

1. accounting ratio classification

As the demand for the interests of the different starting point, for the financial analysis of the requirements are different. But the overall business, the financial analysis of the contents can be summarized into three aspects: 1operational capacity analysis, reflect the efficiency of use funds; 2 solvency analyses, reflect the ability of companies to repay maturing debt; 3...