Financial Statements Of Listed Companies Analysis

In the market economic environment, it shows obvious economic globalization trend. The corporation competitions becomes vehemence, the money market is more and more perfect, and nowadays, the organizationforms and business fields are various, that caused the complexity of business actions. The financial analysis body should provide the necessary reference based on the scientific and systematic analysis. Since financial analysis is introduced to China, it has experienced a rapid development As for the improvement made in financial analysis, two currents are concerned, one is theoretic research, the other is empirical research on some listed companies. However, most research being done is not on analysis about some specified companies, which is called case analysis, but research in the light of general phenomena. In the last years, some global companies such as Xerox and some Chinese listed companies such as Lantian Joint-stock were exposed financial scandals one after another, which shows fully that it is imperative to emphasize the importance of research on financial case analysis.China is a large agricultural, the pesticide chemical plate is the focus of attention for the vast number of investors. Sanonda Co., Ltd has ever enjoyed "the first Chinese pesticide stocks," However, since 2003, it's operating results are not satisfactory. Even though in 2005 , Sanonda Co., Ltd went into the China Pesticide Chemical Corporation's embrace ,its performance is still mediocre, for the marketing margin and the main business profit margins are declining. Why? It is necessary to analyse.The author based on comparative analysis of the same industry, combined with trend analysis, ratio analysis, charts and DuPont analysis to analyse Sanonda's financial situation from 2003 to 2007. First of all, the author analysed the main statements of Sanonda by comparing to Shandong Dacheng Company Limited and revealed the company's strengths and weaknesses. Secondly, by analysing all kinds of financial indicators of Sanonda in this five years to reveal the problems and the reasons. Third, DuPont analysis methods were used by analyzing the three years of financial results of Sanonda. Through the study we found that the company's asset quality and profitability were not good, but the capital structure was rational .The short-term solvency was strong, the long-term solvency and the main business profitability were weak. In a word, the company's financial situation was very common. Finally, in view of the actual situation of the company, some suggestions were put forward about strategic choice of financial proposals. In the same time, the corresponding countermeasures were also raised about other problems of the company.During the study, three aspects of the useful work have been done. Firstly, based on the existing basic theories and methods of the financial statements analysis, the author made a specific analysis and application on .Sanonda Co., Ltd and has done a great deal of painstaking work for it. Secondly, two amendments have been done on DuPont 1.The original target of net debt interest bearing liabilities has been changed to avoid a negative net debt at the loss of the practical application of the meaning of the formula. 2. Sustainable growth rate target was added into the target net assets per share decomposition, the net assets per share were divided into net assets per share for the beginning , sustainable growth and equity growth rate , making use of the system to analyse listed companies more comprehensive and effective. Third, some practical proposals were put forward for the company's financial situation and the problems on it's operating.