Category: Money Tips Date: 2007-05-10
Xiao Zhang Teacher:
Annual reports of listed companies of total asset turnover, the mobile asset turnover, inventory turnover and receivables turnover rate indicates that the operational capacity of the enterprises, which should be how to conduct analysis?
Shandong Li Yanming
Ms. Lee:
Viability refers to the operational capabilities of enterprise assets turnover, total asset turnover ratio can usually be used, mobile asset turnover, inventory turnover and accounts receivable turnover ratio of these four financial capacity of the operation of the enterprise layer by layer analysis of . Viability analysis can help investors understand the company's business conditions and business management. We Suning Appliance (002,024 market, information, advice, more), for example, to investors on how to carry out their operational capability analysis.
Total asset turnover ratio is the company's sales revenue and total assets ratio of the average balance. Suning 2004 sales of 91.1 billion yuan, an average total assets of 14 billion yuan; in 2005 sales increased to 16.04 billion yuan, with an average total assets is increased by 2.3 times, reaching 3.19 billion yuan. As the growth rate of total assets exceeded the growth rate of sales revenue, total asset turnover ratio fell from 6.49 to 5.
The decline in the ratio Suning opened in 2005, a large-scale stores have a direct relationship. To complete the "national cloth net" strategic pattern, Suning opened in 2005, the new store 65, the new landed more than 20 cities, while the original logistics, service system, the radius is limited, so Suning to conduct a large number of management platform The building, in order to support later in the same city, the building of other stores in the logistics and management. Suning's expansion strategy which makes the relatively high initial cost.
Current Assets Turnover is the company's sales revenue and the average balance of liquid assets ratio. With this ratio analysis, we can further understand the business operating within the capacity of the short-term changes. From the report shows that Suning 2005 sales of approximately 16.0 billion, an increase of 42.9%, while the average liquid assets more than doubled. A substantial increase in liquid assets does not bring about the same rate of sales revenue growth, so mobile asset turnover of 7.36 from 2004 down to 2005 5.61, indicating Suning efficient use of current assets declined.
Inventory and accounts receivable is a major component of current assets, therefore, can be achieved by inventory turnover and receivables turnover further analysis of flow changes. Suning to sell the main spot, therefore, only liquid assets receivables 4.75%, while the inventory was 50%.
Inventory turnover rate refers to the business cost of sales and inventory ratio of the average balances. Inventory turnover conditions can also be used to indicate the number of inventory days, it means that once inventory turns, the time required, the shorter number of days, indicating faster inventory turnover. Suning 2004 inventory turnover rate of 15.05, while in 2005 this ratio dropped to 10.33. Accordingly, the inventory turnover days from 24 days to 35 days. Marked decline in realized rate of inventory shows that the drop in sales of Suning, or there may be excess inventory problems.
Accounts receivable turnover refers to the enterprise a certain period the average credit balance of income and the ratio of accounts receivable. This indicator used to measure the corporate accounts receivable into cash-speed. As the credit income is not easy to obtain, in practice, to use more alternative credit sales revenue calculated. Suning customers are mainly individual consumers, in order to clear the way money, goods two transactions, credit revenues accounted for a small percentage of accounts receivable, so the data derived from sales revenue accounts receivable turnover is very high. In general, the higher the rate of enterprises shows that the faster the corporate collection accounts can reduce bad debt losses, and asset liquidity, the short-term solvency of enterprises will be enhanced, to a certain extent can make up for mobile the low rate of adverse effects. If the corporate accounts receivable turnover ratio is too low, then the efficiency of low corporate collection accounts or credit policy is relaxed, will affect the utilization of enterprise funds and funds of the normal turnover.
Nanjing University School of Business Accounting Department childlike innocence
