Analysis Of Financial Early Warning Of Henan ZJ Jewelry Co. Ltd.

Henan ZJ jewelry company was founded in2009, the Zhengzhou area is the largest, most varieties of professional jewelry sales company. The main sales of investment gold bars, gold jewelry and jade and other high-end jewelry. Company sales have grown steadily in recent years, but influenced by the international gold price fluctuations, business and financial risks, through the analysis on the main financial statement of Henan ZJ jewelry company, calculation of financial ratios of three years and other financial information, and with the Shandong gold (600547),(600655) and in the Yu Garden shopping mall gold (600489) compared with three the same industry listing Corporation’s main financial data, evaluate the financial ratios and put forward the improvement suggestion, has the very strong practical significance and use value of Henan ZJ jewelry company.A balance sheet item Henan ZJ jewelry company’s analysis found that:in the current assets has increased the proportion of borrowing money, smaller in short-term debt, equity holders of the company steadily improve. The income statement income from2012to2013year-on-year growth of9.15%and32.16%respectively, the company operating costs rose22.56%and47.01%; reflect the main activities are operating cash flow analysis. The ratio analysis indicated that the ZJ jewelry company:from2011to2013three years the flow rate at an average of more than2, higher than the industry average of1.1gold, the company short-term debt paying ability; asset liability ratio from2011to2013were28%,35%,31%, lower than the average trade around52%over the same period; from2011to2013, the rate of inventory turnover respectively.2.27times/year,1.95times/year,2.48times/year, from2011to2013turnover of current assets were2.26times/year,1.73times/year,1.88times/year, lower than the average peer over the same period. In recent three years, total assets growth rate fluctuations in the state, is lower than the industry average, the reason is the company’s investment growth, affected by the current assets and total assets turnover is slow, weak ability of development company. The financial data of the company depends on the company’s business and development capacity, Henan ZJ jewelry company’s financial analysis data show that: must adjust management ideas to promote the profit ability and development ability.So Henan ZJ jewelry company should:continue to maintain solvency strong advantage, improving debt ability, to play the role of financial leverage; keep commodity quality, through in the domestic large-scale jewelry fair, improve the company’s reputation; hold you and other promotional activities to increase traffic, improve the sales performance and operations of the company daily cost control ability; spending appropriate advertising and increase sales channels at the same time, improve the company’s profitability; seize the opportunity to add local stores, expanding the company’s market coverage and market share; take the debt financing and equity growth mode to improve the company’s total assets growth rate.