The Financial Diagnosis Report Of Lanzhou Guotai Real Estate Co.,Ltd

From winter in2007, the government strengthens adjustment to the house market. The current policies on currency and housing credit is harmful to housing companies of small and middle scale which have low level of financial management. It is impropriate for them to use this kind of financial management which cannot find problems. They should improve their management according to their own conditions.Lanzhou Guotai Housing Company is a small private housing company. Confronted with fierce competition, this company has realized that they are short of fund and the profits are getting lower and they should solve these problems.This paper studies the case of Lanzhou Guotai Housing Company. First, this paper uses financial diagnose theories and skills to get some enlightenment of financial diagnose of the company. Then this paper analyses the present condition of the company and find problems of the company. Through analyzing current flow, abilities of debt-paying, running and development, this paper clarifies the causes of the crisis of the company.Finally, this paper gets the conclusion and raises five advices for the improvement of the company:(1).to ease fund stress and avoid financial crisis;(2). to take measures to analyses market and find opportunities;(3). to improve management system;(4). to strengthen employees’ training;(5). to establish financial guiding warning system.This study is aimed at helping GuoTai Company to change the unpleasant situation and provide some references for other companies.