Company News

www.LegiEX.com official: three strokes to teach you to understand the financial report

www.LegiEX.com official: Three strokes teach you to understand the financial report The orientation and the three-dimensional self-display are also a comprehensive "physical examination" of the market participants on the company.

(1) "Things"

The simple summary is what the company's main business is doing. What happened to him in the past year and what he wants to do in the future.

Grasping this main line, you will have an overall impression of this company. You have to buy other people's stocks, you have to figure out what they do. By understanding the company's main business, you can roughly judge the current industry situation of the company, whether it is the sunrise industry or the sunset industry, and what is the future development prospect.

After understanding what the company is doing, you have to pay attention to whether he has done anything bad in the past. Including, you have to see if he has litigated with others or whether he has been punished. Regardless of his ability, his "mind" cannot be distorted. In addition, the future strategy is also very important. After all, the investment is the company's future.

(2) "People"

There is a classic saying in the field of private equity investment such as VC / PE: "invest first", which means that the core personnel of the company is the company's most critical resource. This sentence is not false in the annual report. What about people in that annual report? Simple, grasp three "people", namely the actual controller, manager and developer.

The actual controller is the helm of the company's ship. It must be fully considered by the actual controller where and how it will be driven. Whether the actual controller is stable and the strategic layout made is critical to the company.

The roles of managers and developers are equally important. Looking at the annual report, you have to see who the directors and supervisors of the company are and what their background is.

If Dong Jian Gao is nepotism, then you have to be careful, indicating that there is a problem with the company's governance structure. This company may be a typical family business, and there is a "one word" situation. The R & D staff can be said to be the company's "hope star".

The core of a company's future is still R & D talents. Only good R & D personnel can continuously "make blood" for the company.

R & D personnel, you have to pay attention to their academic background, work history, R & D results, R & D trends, patents and other intangible assets. The proportion of the company's R & D investment in revenue is an intuitive reflection of whether the company can continue to innovate!

(3) "Finance"

Speaking of annual reports, the highlight is the financial report. The financial report is divided into three major tables and notes, which are similar to people going to the medical examination. Each index on the medical examination form is accompanied by a note.

Many people are prone to dizziness when faced with a variety of reports and figures, and they do not know where to start. In fact, mastering the methods and grasping the main subjects will certainly be able to discover the mystery from the icy figures.

The balance sheet is the main form that reflects a company's assets. The company's "muscle" and how much money it owes are reflected in the table. But the "family background" reflected in the table is not true, or not, it must be looked at. Let's take monetary funds as an example.

Previously, monetary funds were considered to be the least likely subject to be faked, because its presence is directly reflected in bank accounts, and the audit agency is also the easiest to audit the subject. But it is precisely the simplest subject, but it exposes the most shocking "two health" fraud case.

The logic of Kangmei and Kangde's new currency funds fraud is that there is cash in the account, but most of them are restricted currency funds or "overnight" funds. That is, although cash exists, it cannot be used by the company due to pledges, etc. Or the company transfers the funds to the account for audit on the balance sheet date, and then transfers out after the balance sheet date.

Some of the net profit may not depend on the main business, rely on subsidies, dispose of assets, or rely on changes in fair price gains; others are the deliberate misuse of accounting methods, for example, you have to be careful about the provision for impairment of assets. 2. Is the income that should not be confirmed secretly confirmed?

www.LegiEX.com's innovative solutions are your gateway to the foreign exchange market. Since its establishment in 2016, we have been continuously striving to build and maintain a good trading environment and are committed to providing customers with the best quality services.

Our team has extensive customer experience and expertise. These valuable experiences, especially in the special needs of customers and technological innovation, give us a unique and unique advantage.

We constantly update and improve our trading system, and strive to build a bridge between customers and the trading market, so that you can become a winner in the foreign exchange market.