Financial Quality Evaluation Of Listed Company Based On Financial Statements

With the development of economies, the financial quality evaluation has important status in social economic activity. The financial quality evaluation as a professional management technique, can not only provide support for practical decisions for a modern enterprise management, but also fully considers the need of various stakeholders. With the development of Chinese capital market, listed companies in China have become the important part in the market economy. Making financial quality evaluation on China listed company, will be conducive to promoting the healthy development of the capital market, and is beneficial to the improvement of the management of listed companies. In addition, if a listed company’s shareholders, creditors, potential investors and other external stakeholders demand to know the financial condition and results of operations of the listed company, it must be through the analysis of the company’s disclosure of information. Financial statements as a regularly published legal information of listed company, is the important reflect of financial condition and results of operations of the listed company. Through analysis the financial statements, can help the stakeholders to understand the management state of the enterprise, discern the quality of enterprises, predict the future of enterprises. Therefore, financial quality evaluation of listed company has practical significance.This paper first introduces the background, study objective and practical significance, introduced the history and current situation of domestic and foreign, introduced the research methods of financial quality evaluation, including the main financial indicators evaluation method and non financial index evaluation method. The main financial indicators evaluation method mainly includes financial index evaluation method, improved Dupont analysis, Waldo proportion score and factor analysis method; the non financial index evaluation method mainly include the Balanced Scorecard evaluation method. Secondly, introduced the basic theories of financial quality evaluation, including agency theory, strategic management theory, the connotation of financial quality evaluation, basic information, basic procedures and principles. Third, establishing the financial quality evaluation system, including the meaning and principle of construction, construction the financial evaluation index system, non financial evaluation index system and Comprehensive evaluation system of listed companies. Construction of comprehensive evaluation system of the listed companies including Dupont analysis system, Waldo proportion evaluation system and method of factor analysis. Fourth, evaluation the financial quality of TIANJIN BINHAI ENERGY&DEVELOPMENT CO.LTD through the construction of financial quality evaluation system. Includes introduce the basic situation of TIANJIN BINHAI ENERGY&DEVELOPMENT CO.LTD, evaluation the finance quality of TIANJIN BINHAI ENERGY&DEVELOPMENT CO.LTD through the financial evaluation index system, non financial evaluation index system and Comprehensive evaluation system, In order for corresponding management recommendations and management countermeasures with the results of the valuation. Finally, to summarize and outlook the financial quality evaluation, and expected to make contribution on the research of the financial quality evaluation on listed companies in China.