Financial Statements Analysis Of Datang Telecom Technology Co.Ltd

Along with the rapid development of capital market, all parties (e.g investors, debtors, enterprisers, audit and tax departments, agencies etc.), which have the economic interest relation with enterprises, usually take special purposes to analyses the financial statements about them. As for financial statement, which means structural description of the financial status, operating results and cash flow, generally include balance sheet, income statement, cash flow statement, statement of change in shareholders' equity and the attachment to financial statements. These statements introduce the financial status, operating results and cash flow etc. of enterprises in different perspectives.The traditional financial statements mainly conduct the analysis of financial index, which cannot closely combine the industry status and enterprise strategies; meanwhile the statements rarely link the reality and accuracy of accounting data with the analysis of financial index. However, this article breaks the traditional way to build the comprehensive analysis system based on strategic analysis, accounting analysis and financial analysis. It founds on the financial statements of Datang Telecom Technology Co., Ltd during 2006-2008 as for the basic research materials; at the same time it connects the industry data of telecom with the competitive strategy of Datang Telecom Technology Co., Ltd. This article makes sure operation risks, the drivers for the profit operation and qualitative evaluation on enterprise profitability. It confirms the quality and reliability of accounting information. Based on above, the article analyses the mutual and logic relation among financial indices by using comparable analysis methods, ratio analysis methods, factor analysis methods and comprehensive analysis methods etc., and apply comparable analysis methods to ZTE Corporation to know the liquidity, the capacity of assets' management, the profitability and comprehensive financial condition of Datang Telecom. Finally this article points out some problems existed in operation and administration of the enterprise. At the same time it provides reasonable suggestions for decision-makers in order to make rational decision.