Financial information is the most crucial part of the information core of every business enterprise.  It indicates whether the future development of the business is sustainable and therefore is an essential component of the approach and investigation of the target enterprise.  

Our financial investigations cover; basic business information, ownership structure, main business, financial conditions (inc. balance sheet, income statement, cash flow) and financial analysis.  Our corporate financial report constitutes a simple and practical survey of companies, helping the clients to grasp the basic information and financial status of the target companies.

Financial Data Analysis

Through the analysis of corporate balance sheet, income statement and cash flow statement of a particular date or during a certain accounting period , we can determine the overall operating situation, financial status, ability to realize cash income, financing capacity and capital strength of the target enterprises.
The Financial analysis can be broken down into three constituent parts:
•    Balance Sheet Analysis
•    Income Statement Analysis
•    Cash Flow Statement Analysis

Financial Ratio Analysis
Financial ratios are used to evaluate the return in earnings of an investment from year to year allowing you to compare different enterprises in the same industry at one point in time. The financial ratio analysis is most useful as a tool for comparing the returns and risks of different companies - aiding investors and creditors in making rational and wise decisions.
In general, the ratios of three aspects are used to measure the relationship between risk and return:
•    Solvency Capability——the ability of the enterprise to pay back debts.
•    Operating Capacity——the efficiency of the enterprise to use the capital.
•    Profitability——the capacity of the enterprise to obtain profit.
The three aspects are interrelated; financial analysis requires the comprehensive application of above financial ratios and both are impossible without prior financial investigation.
 

Financial Risk Analysis
Enterprises operating in the market economy will experience a variety of financial risks on a daily basis and across a spectrum of areas that if left unchecked could impact on its business activities. With the increasingly fierce market competition, financial risks play a continuously important role that deserves the prime attention of the enterprise.
Our Enterprise Financial Risk Analysis Includes:
•    Financial leverage analysis
•    Financing Structure Analysis
•    Solvency Risk Analysis

Comparative Financial Analysis of Major Competitors
We can perform a ‘Comparative Financial Analysis’ of major competitors that will take into account profitability, growth, liabilities, cost, etc. to best inform you of the state of the competition before entering a market.

Profitability analysis of major competitors:
Comparing the company's profitability indicators with its competitors and the profit margin against the average industry profitability is crucial to determine the position of the enterprise’s in terms of profitability within the industry.  We can investigate business operating expense ratios, management fee rates as well as the financial expense ratio of any company, allowing direct comparison to be made so that appropriate measures to improve the profitability of your enterprise can be put in place.

In growth analysis, the primary measuring indicators are production/sales rates and profit.  These rates are not treated in isolation, but instead are comparatively analysed so that the relationship between the two can be clearly identified.  Such a method allows in-depth conclusions to be made regarding the health of a target company.  Generally speaking, if the growth rate of profit is greater than that of production and sales the company is on a better stand.
 

We are also able to carry out other aspects of financial analysis including asset-liability ratio analysis and cost analysis to name a few.