The shares you have and the stock you want to buy.Why do not you do the financial analysis of the company?···Part 1

The shares you have and the stock you want to buy.Why do not you do the financial analysis of the company?···Part 1

If you are already investing in stocks, you will be worried about the trends of your own shares.Also, if you want to buy a new one, you may be wondering if the stock price will rise or fall.Basically, stock prices are determined by corporate performance, but financial analysis is to analyze the profitability and safety of the company as well as the balance sheet and profit and loss statement introduced in another article.It's called.This time, I will explain the indicators used in the financial analysis.

What is financial analysis?How do you use it?

Financial analysis is an analysis of the company's profitability, safety, growth, etc. based on the numerical value of financial statements such as balance sheet and profit and loss statements, and compared to industry standard values and other companies in the industry.It refers to evaluating.Based on the analysis results, the current situation will be understood, and companies will make future management decisions.This time, we will look at what the analysis is, how it is calculated, and how it is used.

What kind of analysis is there?

Generally, financial analysis is generally classified into the following four.・ Profitable analysis, safety analysis, growth analysis, productivity analysis This time, we will look at the profitability analysis and safety analysis. 1. An analysis of seeing how much profitable analysis companies are making and how effective they are using capital. Specifically, by comparing the profits of profit and loss statements, sales with the balance sheet, etc., the proportion of profits (profit acquisition capacity) and capital efficiency of companies are analyzed. What you do. The main indicators used are as follows. Total asset profit margin (ROA) = net income ÷ total assets × 100 self -capital profit ratio (ROE) = net income ÷ 己 資 資 資 資 資 売 売 売 総 総 総 総 総 総 総 総 総 総 総 総The most important indicator of the rate = sales ÷。。。。。。。。。。。。。。。。。。。。。。 ROA is decomposed as a net profit margin (net income / sales) and total asset turnover (sales / total assets), which is a net profit margin for improving ROA. It means that there are two ways to improve and to improve the total asset turnover rate. In other words, companies with high ROA can not only have a high profit margin, but can easily use capital to lead to profits. The higher the value, the higher the value, the more efficient management, the more efficient management. These two are profitable analysis in terms of capital. In addition to this, the profit margin of sales, sales profit ratings, sales profit ratings, and sales of sales. There are various indicators because the industry average varies depending on the type of industry, so it cannot be compared. These are profitability analysis in terms of sales. Total asset turnover is an index that sees how much efficiency the total asset can get sales. The higher this indicator, the higher the capital efficiency, and the higher the profitability, the higher the profitability. 2. Safety analysis safety analysis is an analysis that sees the safety of management, such as how much the company has the ability to pay and whether there is a possibility of bankruptcy. Specifically, it can be analyzed mainly by comparing the assets, debt, and capital of the balance sheet. The main indicators used are as follows. Fluid ratio = fluid asset ÷ flow liabilities × 100 fixed ratio = fixed assets ÷ 己 資 資 資 資 資 資 資 資 資 資 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総 総The fluid ratio is an index that sees the repayment ability depending on how much of the accounts payable and the borrowed debt that requires repayments within one year, such as borrowed debt that can be cashed in a short period of time and how much the current assets are owned. The fixed ratio is an index that sees the proportion of fixed assets, and there is no problem when corporate performance is going well, but if business performance deteriorates and corporate finance becomes severe, management is unstable. Includes elements. The equity ratio is to see the stability of corporate management. By the way, if you have a building or equipment, you can increase the equity ratio by being depreciated.

It is not a number seen only in a single year

If you look at it in this way, you may not want to see or find out, especially for those who are not good at numbers.However, this indicator does not make much sense to look only at a single year.If the numbers have improved (deteriorated) compared to the previous year, you may not have much trouble reading.Especially last year, there are many companies that were influenced by Corona, so in that case, I think it is okay to just see how it changed.Writer: Makoto Tanakubo Makoto Kubo Administrative Scrivener Office Representative

Financial Field Editorial Department