A Study On Financial Evaluation Of Xin Cheng Color Steel Plant With The Annual Production Capacity Of10000Tons

Financial Evaluation is based on the existing tax system and thenational price system. It is usually used to analyze、calculate of directfinancial benefits and costs of certain project，make the preparation offinancial statements，calculate the evaluation indicators，inspect theprofitability, liquidity and financial position of foreign exchangebalance of certain project，in order to judge the Financial viability ofprojects. As a main micro-enterprise investment of market economy，thefinancial evaluation of the project generally，Xin Cheng color steel isno exception. Therefore，“A study on financial evaluation of Xin Chengcolor steel plant with the annual production capacity of10000tons”is chosen as the subject. By the results of financial evaluation of XinCheng color steel project, the feasibility of the project’s conclusionis presented, and not only a targeted and predictable reference toinvestment decisions for the project, but also a reference for the futurerelated research is provided.In this paper, mainly use literature, comparative analysis, combiningtheoretical analysis with positive analysis，and other research methods.Firstly，analysis methods of financial evaluation through domestic andinternational and financial evaluation index system and then combined theactual situation of Xin Cheng produced10,000tons color annual ofbuilding materials project, selected the cash flow analysis method as thebest financial evaluation method for the evaluation of the project.Secondly, make the combination of investment cash flow statement,use cashflow analysis methods，from three aspects to make the financial evaluationof the project，those are the profitability analysis、the breakevenanalysis、 and the sensitivity analysis, drawn out the financialevaluation conclusions as follows，the analysis Xin Cheng produced10,000tons color annual of building materials project is financially viable.Finally, the author analysises the possible problems in the financial evaluation process of the project, and proposes targeted solutions.Specifically, the paper is divided into six parts, each part will beoutlined as follows:The first part is foreword. This study describes the background andresearch purposes, domestic and foreign research and developments onfinancial evaluation of certain project, the main contents of this articleand research methods, and that the corresponding innovation and maybeinadequate.The second part is the basic principle of financial evaluation.Include the principles and roles of the financial evaluation, the methodsand index systems of financial evaluation. Among them, the financialevaluation methods include: Wal-score method, DuPont analysis method,cash flow method, and EVA method; and the composition of the financialevaluation index system covers the internal rate of return index, paybackperiod indicators, financial net present value index, investment profitmargins index, and profit and tax investment ratio indicators.The third part is the general situation of the Xin Cheng color steelplant with the annual production capacity of10000tons. First, a briefintroduction to color steel market situation in china and the situationof Xin Cheng color steel plant is made, then market positioning and SWOTanalysis of Xin Cheng color steel plant with the annual productioncapacity of10000tons is given.The forth part is the financial evaluation of Xin Cheng color steelplant with the annual production capacity of10000tons. First of all,on the basis of the existing financial evaluation methods, elected thesuitable one for Xin Cheng color steel, and then using the selected methodto make qualitative analysis of the financial condition of Xin Cheng colorsteel plant; Second, chose the appropriate set from various financialevaluation indicators to build the financial evaluation index system forxin Cheng color steel plant, and then made empirical analysis of thefinancial status of xin Cheng color steel plant; Finally, summarize theresults of financial evaluation of xin Cheng color steel plant from thequalitative quantitative analysis.The fifth part analyzed the probably problems and coping strategies of the financial evaluation of Xin Cheng color steel plant with the annualproduction capacity of10000tons. The probably problems of the financialevaluation of Xin Cheng project are as follows: financial evaluationmethod selected is unscientific, financial evaluation index system isimperfect, the data sources of financial evaluation can not be trusted,and the reference to financial evaluation is bias. The correspondingcoping strategies to address these issues are as follows: financialevaluation together with a variety of evaluation methods, adding therelevant factors to improve the evaluation process.The sixth part is the closing remarks.