Financial analysis is a process that the enterprise’s basic business activities as the object, the financial statements as the main sources of data, analysis and synthesis as the main method, so as to know the enterprise system. Its purpose is to know the past of enterprise, evaluate now and predict the future, in order to help enterprise stakeholders to improve decision making. Among them, the enterprise stakeholders (report users), including enterprise managers, equity investors, creditors, suppliers, governments, and other business related organizations and individuals.Equipment manufacturing industry is the important pillar of the national economy, is the important constituent of Shanxi "12th five-year plan" transition development. Therefore, in this article, we analyses the financial statement of Jinxi Axle the representative of the equipment manufacturing industry in Shanxi, to understand the enterprises operating results and financial situation, and to show financial management suggestion of the future development.This article includes six chapters. The1st chapter is introduction, to state the research background and purpose, content and ideas, and research methods; The2nd chapter is the theory about the financial analysis, to show the significance and the theory of financial statement analysis; The3rd chapter is internal and external environmental analysis, we analyze it from two aspects, national macro-control and micro enterprise management, in order to grasp the market environment of enterprises; The4th chapter is the financial statement analysis, we analyze the financial statements by statement analyze and ratio analyze in2007-2011of Jinxi Axle, and master the solvency, operation ability, profitability and development capacity; The5th chapter is the comprehensive evaluation and the suggestion, based on the analysis of internal and external environment and the result of the financial statement analysis, to evaluate the financial situation of enterprises, and provide recommendations on financial management; The6th chapter is the conclusion. |