Quality Of Corporate Financial Condition Analysis Of Theoretical Research,

Based on the analysis of the drawbacks of current financial analysis theories, this dissertation puts forward a tentative idea of setting up a theoretical framework for the quality analysis of financial position. Starting from a series of concepts, the dissertation makes a detailed study of the quality analysis theory of financial position. And the research is done from several aspects: quality analysis of assets, quality analysis of capital structure, quality analysis of earnings, quality analysis of cash flows and quality analysis of financial information. Hence the quality analysis theory framework of financial position is established.The whole article consists often chapters.Chapter One differentiates and analyses the concept of financial analysis, and the concepts of financial statements, accounting statements, financial reporting and financial position, all of which are relevant to financial analysis.Chapter Two discusses current financial analysis methods. It points out that current financial analysis methods have a lot of drawbacks.Chapter Three expounds and proves the inevitability of the emergence of quality analysis theory of financial position of enterprises.Chapter Four puts forward the theoretical framework of quality analysis of financial position. It points out that this quality analysis theory is one which analyzes the quality of a business financial position (partly or wholly), and that the theory mainly includes basic concepts, contents and methods relevant to quality analysis.Basic concepts relevant to quality analysis theory mainly comprises quality of financial position, quality of assets, quality of capital structure, quality of earnings, quality of cash flows and quality of financial information.Chapter Five puts forward the theory of assets classification according to their quality. The author says that assets can be divided into three categories: (1) assets that can be realized according to their book value; (2) assets that can only be realized under their book value; (3) assets that can be realized above their bookvalue.Based on the above classification, the disndion puts forwar an idea that thequality of Inain asset items (current assets, fixed assetS, invesbent, inbogible assetSand deW taxes) can be analyZed according to the assets' talque forrishcs.ChaPte Sis analyZes the qtality of caPital ShaUre, and the twaCt ofretwg and debt-tO-equlty on the quality of caPitaI bo.Chapter Seven analyZes quality of edngs. The emPhasis is on the quality ofthe eamins' fonnation process and the endin results. ms CliaPter also analyZesthe sitalons caused by the deterioration in qodity of eamings.ChaPter Eigh Systematically analyzes quality of cash fiows. SW frOm theprocess of a business's economic achvity it discloses the reati~ botWee theresult and PrOcess of the change of cash flows, along with the re1ationshiP betwendifferen tyPes of cash flows and their corresPOnding econondc aCtivihes.ChaPte Nine analpes some factrs Which AnpaC the qualty edysis ofWial POsition.CbaPter Ten PrObes into the aPPlication of ratio analysis in the quality analysisof twial POsition. It POints out tba ratio analysis can be used, tO some eXten todo the qtalty anaIysis of bocial POsihon. HoweVer close attenhon should be Paidto the ldsions of financiai information. TherfOre, haportanCe theuld be attaChedto the Me ofnonmoneop information.