Wuliangye And Kweichow Moutai Financial Statement Analysis

In the development of market economy, accounting, the universally acknowledged"language of business", increasingly reflects his growing power.As the carrier of"business language"- the financial statements, is a systematic and comprehensive record of the economic activities of the enterprises, and thus it causes growing concern by the people of relevant interests. Investors and other users primarily through the financial reports to learn the current financial position, operating results and cash flows of the enterprises to predict the future trends.Substantive results will seldom get purely from the simple numbers and words on the financial statements. Only by using certain methods and analytical skills, combined with the actual situation, can reach a correct understanding of the limitations of financial statements themselves, and get a comprehensive and integrated analysis on the balance sheet, income statement and cash flow statement. The commonly used methods in China currently are ratio analysis, comparative analysis, trend analysis and so on. Primarily based on the ratio analysis, make an evaluation on the overall financial position and operating results of the enterprise from the aspects of corporate solvency, profitability, operational capacity and capacity development.This paper sets Wuliangye and Maotai Liquor as examples and mainly through ratio and comparative analysis to get a detailed analysis of the profitability, asset liquidity, liabilities, asset utilization, cash creativity and capital markets performance of the two companies, which based on their respective annual financial reports 2006 - 2009 published online in Giant Tidal News. Besides, this paper also tries to use ROE and EVA decomposition to make an in-depth study of the financial status of the two companies. By evaluation and development prediction of them, it comes that the two were both in good financial condition, but reserve a lot of funds. While strengthening the internal management, the two should also conduct strategies shift: Wuliangye should implement in-depth development strategy to occupy more market space and share while Maotai should make better use of financial leverage to expand the market, strengthen the market construction of low product to seek new profit growth point and promote the stable development of the company.