Case Analysis Of Company A

Firstly, this paper introduces existing methods relating to the financial information analysis at home and abroad and the latest development trend at the present stage. Sequentially, the study purpose and significant of this paper will be revealed. At present, the current management level, investors and other demanders of financial information in local companies are not able to make full use of financial information. This paper will focus on this problem and make full analysis on the financial information of the company by using routine financial analyzing methods and current popular EVA analyzing methods on the basis of traditional financial analysis and economic added value analysis. Consequently, some problems that possible happened on the enterprise management can be found and should be noted through the analysis.Basing on above study purpose, this paper will take Company A as the study object and carry out the analyses around two main threads, i.e. finance and management of Company A separately. During the period of analyzing the Company A's finance, it is found that the assets depreciation can barely bring loss to the Company A, but it causes low ability to obtain the profit for the Company. At the same time, the quality of long-term investment is quite low. On the aspect of income quality, it has a large deviation between its same basis of business profit and net cash flow happened in the business activities. The income quality is not ideal. The angle of view of management analysis will focus on the analysis of EVA and compare the analysis result of EVA with Company A's cost control and financial growth separately. Consequently, it is found that the financial management in Company A is not ideal. It behaved on the large deviation between traditional financial target and economic added target, which are used to evaluate the business achievement and manager's achievements. In addition, through the calculation analysis on Company A's EVA on core businesses, it is found that the unreasonable phenomena exists on the asset allocation of Company A according to the relevant principles of economic value added.Aiming at the management problems of Company A found in analyses, this paper puts forward some possible solutions, for example: to reduce the fund possession scales on receivable account and inventor, reduce the operating cycle of the company, increase the assets profitability, carefully and reasonably define the investment direction and scale, increase the management on profit quality and so on. The Company A should enhance the financial management to ensure the effective configurations of financial rights, decision-making rights such as: production and business, technology and personnel, strategic management and so on and supervision rights of the company and ensure the facticity and...