Category: Money Tips Date: 2007-02-22
Asset quality analysis refers to the balance sheet through asset analysis to understand the quality status of corporate assets, analyzing whether there is limited liquidity, such as the sluggish assets, bad debts, mortgages, guarantees, etc., determine the actual profitability of the assets ability and liquidity. Through the analysis of the quality of enterprise assets, enabling the various stakeholders of the business situation in a comprehensive and clear understanding and awareness.
Analysis of asset quality, usually you can use the following three methods.
First of all, compared with adjusted net assets per share of net assets per share, which can be broadly reflect the limited liquidity of the assets in the proportion of net assets.
Secondly, given the limited liquidity of the accounting project, the so-called illiquid assets into cash and cash equivalents refers to the capacity and the assets for sale, the ability to repay debt. Usually through analysis of accounts receivable, other receivables, advances receivable aging to reflect the degree of liquidity.
Third, the analysis of mortgage and guarantee the project, you can understand the business or risk, in the event of default, the mortgage assets may affect the normal production and operation of enterprises, which have increased business uncertainty. Below we Wuzhong Industrial Co., Ltd. Jiangsu asset quality, for example, to conduct a detailed analysis.
Jiangsu Wuzhong 2005 Annual Report shows net assets per share was 2.14 yuan, the adjusted net assets per share of 2.103 yuan. Net assets per share reflects an enterprise end of the net assets and equity ratio, adjusted net assets per share reflects the deduction for bad debts, impairment of fixed assets, impairment of intangible assets and other impairment, and eight non-recurrent of gains and losses after the net assets and equity ratio, this can be more accurately reflect the profitability of corporate assets and liquidity. Because the impairment is the enterprise for the future losses that may occur as a forecast report on the current period is not the actual loss; non-recurring gains and losses is not a sustainable business that can sustain the benefits which the ability to account for these factors, obtained Adjusted net assets per share to more truly reflect the business operation. At the same time, the adjusted net asset / net asset per share, the higher the ratio, asset quality, the better.
Next, we analyze accounts receivable, other receivables and prepaid accounts of aging (see table).
Can be seen from the table, the number of year-end accounts receivable balance of the book is 3.1 billion, with the opening number of 351 million yuan, down 0.41 billion yuan, but aging analysis point of view, showing the characteristics of long aging. The end of more than 1 year were higher than the beginning of the proportion of accounts receivable ratio, he explains the business accounts receivable are not sufficiently explain the other hand, enterprises should strengthen credit business credit evaluation system, as short as possible period of corporate money withdrawn from circulation. Second, the year-end accounts receivable of 3.1 million yuan with 16.55%, or 051 million yuan in the 1-2 years of aging, accounting for accounts receivable less than 1 year the beginning of the proportion was 17%, indicating that in 2004 the newly elected accounts receivable, 17% in 2005, were not recovered. Then we look at the accounts receivable bad debt provision for the proportion of five years provision for accounts receivable aged less than 50% the proportion of all, demonstrated the company's accounts receivable aging longer to recover the possibility that more optimistic forecasts, only when the aging of accounts receivable in more than 5 years, the company was 100% provision for bad debts. If the company's future beyond recovery the longer aging arrears, provision for bad debts may not cover the loss, then the subsequent gains or losses during the impact will be relatively large.
Followed by analysis of other receivables. Other receivables of the final number is 105 million, compared with the beginning of the number of 036 million yuan, a difference of 069 million yuan. The reason is that the company accounts receivable owned subsidiary of Jiangsu Industrial Co., Ltd. to be merged in early payments to offset end of the year because of Jiangsu Industrial Co., Ltd. not included in the consolidated statements of the scope of the amount receivable, the company is not to be offset by the merger. From the aging of view, the end of other receivables ratio of less than 1 year has been greatly improved, almost double the beginning of the year, and more than 1 year at all aging segment has a very large proportion of the reduction, indicating enterprises in the right Other accounts receivable receivables taken measures to have been greatly improved, shortening the period of funds withdrawn from circulation. But the proportion of bad debt accrual of view, the existence of accounts receivable with the same problem, namely, the low percentage of bad debt provision for the event of bad debt losses, the company's future profit and loss will have a significant impact.
Come analysis of prepayment, prepay account number is 252 million year-end, with the opening number of 190 million yuan compared with an increase of 062 million yuan. The reason is that the company down the procurement and acquisition of loan advances and garment export growth of a larger cause. From the aging of view, showing the characteristics of long aging. 2-3 years of aging in particular, the number is almost the beginning of the end of the number of 2.7 times. Stated that there did not form part of the funds business inventory or production capacity, but was shelved in other enterprises, the longer the aging, the possibility of receipt of the purchased assets, the less.
Finally, we analyze the company collateral, guarantees the situation. As of December 31, 2005, Jiangsu Wuzhong the cumulative balance of 368.7661 million yuan of foreign security, both occurred in 2005, such external security department of the company-owned and holding subsidiaries and related companies in bank borrowings and bank acceptance bills of credit provided guarantees. External guarantee balance of the cumulative total consolidated net assets of the end of the period to 41%, did not exceed the "Securities Act" provisions of 50%. As of December 31, 2005, Jiangsu Wu mortgage assets is as follows: mortgage real estate and buildings are stated at cost accumulated 191 million yuan, mortgages total original value of 106 million special equipment, totaling 297 million yuan, accounting for fixed assets, the proportion of 53%. Original value of the land use right mortgage accumulated 050 million yuan, accounting for intangible assets, the proportion of 79%. Company will Suzhou City Commercial Bank Limited 56.85 million shares (the carrying amount of 56.85 million yuan) investment pledge to the Bank of China Wu branch for 050 million yuan loan, the company's Suzhou, long-term equity investment commercial banks accounted for 7% of the total equity investment . As can be seen from the above data, mortgage of land use rights accounts for the highest proportion of intangible assets, but the proportion of total assets, intangible assets, but only 3%, so mortgage land use rights of the little effect on total assets. Second, mortgage houses and buildings and machinery equipment, a larger proportion of more than 50%, but the proportion of fixed assets to total assets, 25%, the overall business conditions will not be greatly affected. The Bank of China pledged to invest in commercial banks in Suzhou, a long-term equity investments accounted for only 7% of the company's operation was less affected.
