A Study On Financial Diagnosis Based On JL Co.,Ltd.

With the trend of economic globalization gradually deepened,China's enterprises not only faced with the competition of domestic enterprises,but also to respond to the influx of foreign enterprises in the Chinese market competition.The enterprise's own survival and development is facing great challenges.This is also a higher requirement for the financial management activities of the enterprise.The current financial management can not be limited to some financial data and analysis of the financial report,but rather to evaluate the actual situation of the enterprise.Therefore,the financial diagnosis came into being in our country,it is a comprehensive analysis of the financial business situation of enterprises,through the analysis of comprehensive financial indicators,which combine the balance sheet,income statement and cash flow statement organically,so as to find the key to restricting the profitability of enterprises,and then put forward effective financial management and operating management.For the financial analysis of the main body,the financial diagnosis is no longer stay in the superposition of surface data,but deep into the essence of the enterprises,from the source to analyze the business,understanding the real operating results and financial situation,and promoting the healthy development of enterprises.This paper firstly introduces the literature on financial diagnosis and summarizes it.Secondly,the meaning of financial diagnosis is redefined based on the introduced the theory of financial diagnosis.Again,this article briefly summarizes the procedures and financial indicators of the financial diagnostic analysis phase.Finally,the abovementioned theory combined with the actual case analysis.The complete financial diagnosis needs for regular follow-up survey of enterprises,therefore,This article also conducted a survey of the enterprise's post-improvement,which resulted in a complete financial diagnosis.For JL company specific financial analysis process is divided into three main steps:First,the company's balance sheet,income statement and cash flow statement trends and structure analysis;Second,the financial indicators analysis is divided into vertical and horizontal,which analyzed the solvency,operational capacity,profitability and growth capacity in turns.Third,with a comprehensive financial analysis method-DuPont system and factor analysis method,finding the existing problems,and quantitative analyzing the impact of the degree of the problem.Finally,based on the data discussed above,finding problems on JL company in the financial management and operating results,then putting forward rationalization proposals based on these problems.The characteristics and innovations of this paper are redefining and expanding the concept of financial diagnosis.In this paper,the relevant theory combines with case analysis.JL company belongs to the financial equipment industry,which receives highlyattention,and in the preparation of the paper,the People's Bank of China is about to issue a new version of 100 yuan banknotes,which has large impact on the industry.How to adjust their own business according to the unknown market environment,form a new profit model to maintain their leading position in the industry,enterprises face a great practical significance.In addition,in terms of JL company's research on some problems and countermeasures,it has reference for other enterprises in he same industry.