The Research on Enterprise's Comprehensive Financial Analytic Methods

Abstract

Based on the overview and appraisal about several typical comprehensive financial analytic methods, this article concludes that the analysis upon the enterprise's comprehensive financial situation is characterized with multi-level and fuzziness, and accordingly puts forward a comprehensive fuzzy evaluating method in the format of a multi-layer mode which classifies the evaluatiing standards into both quantitative and qualitative standards. Combining with an example, this paper analyzes and describes the new method mentioned above. Enterprise's financial analysis constitutes an essential basis to evaluate an enterprise's financial situation and measure its operating result. A rational financial analysis not only facilitates an enterprise to explore its potentialities, make use of its advantages to the maximum extent and realize the financial goal as Enterprise Value Maximization but also helps those existing and would-be investors to make right investmental decisions. As a result, either owners, creditors, operators or government officers attach great importance to an enterprise's financial situation from different perspectives. There are many analysing standards including but not limited to solvency, operating efficiency, profitability and development efficiency etc. used to summarize and assess an enterprise's financial situation and operating results. The ultimate purposes for financial analysis consist in revealing and exposing an enterprise's operating and financial status comprehensively and appraising the quality of its economic efficiency systematically and scientifically as well. Any analysis upon certain single financial standard is partial and sporadic. Therefore, it is very necessary to introduce relevant standards into an organic system for correlated analysis, namely, the comprehensive financial analysis.