Financial Analysis And Diagnosis Report Of Lanzhou Minbai

In modern enterprises,especially in Stock Enterprise,financial analysis and diagnosis have become an important way to carry out financial decisions and operate management for shareholders,creditors,executives,and other stakeholders.Comprehensive and systematic financial analysis is an important approach to understand a company.Through the financial analysis and diagnosis,the company would be informed the business risks and crises in time and identify opportunities,which help to improve the management of the company.Located in the central business district of Lanzhou City,Lanzhou Minbai has competitive advantage in geographical position and expand its business to its neighboring cities.At present,Lanzhou Minbai deals in general merchandise,wholesale,retail,catering,hotel.Affected by online retailers and the intensification of world market competition,the profitability of Lanzhou Minbai have declined.In this study,the traditional analysis methods,such as statement analysis and financial capacity analysis,were mainly used to analyze and diagnose the financial situation of Lanzhou Minbai.Firstly,the analyses of the structure and trends of balance sheet,income statement,cash flow statement indicate that Lanzhou Minbai have problem in the cash flow management,capital structure and assets operation efficiency.Secondly,through the analysis of solvency,operating capacity,profitability,and growth capability,this study found that the overall ability of Lanzhou Minbai are relatively weak but business profitability.The majority of evaluation index is lower than the industry average.Meanwhile,Radar Chart was used to reflect the safety,liquidity,profitability and growth of the company.In safety and growth,Lanzhou Minbai was low-performing in the industry.DuPont analysis framework was used to disassemble and analyze the shareholder rights guerdon rate.The net assets income level are found to be mainly constrained by the decline in operating efficiency of assets,rather than the volatility of net interest rate.Last but not least,repair measures were put forward according to the diagnosed financial problems and proposals on the management were made on the risk of the management.To achieve steady growth performance and expand the company's influence,Lanzhou Minbai should further integrate internal resource,expanding business ideas,enrich business mode,innovate marketing channel,and respond actively to changes in the market and Industry.