Full name: financial evaluation
Brief introduction: Financial evaluation refers to the financial evaluation of an enterprise, which starts with the analysis of its financial risks, evaluates the factors such as capital risk, business risk, market risk and investment risk faced by the enterprise, monitors and evaluates the enterprise risks by signals, and formulates corresponding feasible long-term and short-term risk control strategies according to its causes and processes, so as to reduce or even eliminate risks and make the enterprise develop healthily and sustainably.
Main contents:
When carrying out financial evaluation, financial statements need to be prepared first, and financial statements are the main basis of financial evaluation. Basic statements include cash flow statement, profit and loss statement, capital source and operation statement, balance sheet and foreign exchange income and expenditure statement; Auxiliary reports include fixed assets investment estimation table, current assets estimation table, investment plan and fund raising table, price basis table of main output and input, production cost estimation table of unit product, amortization estimation table of intangible and deferred assets, depreciation expense estimation table of fixed assets, total cost estimation table, product sales income and sales tax and additional estimation table, loan repayment and interest calculation table, financial foreign exchange flow table, etc. These financial statements have a common format and requirements.
Financial evaluation index
1. Project profitability index: this is the main evaluation index for calculating the financial internal rate of return and the payback period of investment. According to the characteristics and actual needs of the project, financial net present value, investment profit rate, investment profit rate and capital profit rate can also be calculated.
Internal financial rate of return (IRR) refers to the discount rate that the present value of the annual net cash flow of the project is equal to zero during the whole calculation period. It reflects the profitability of the funds occupied by the project and is the main dynamic evaluation index to examine the profitability of the project. The internal rate of return can be obtained by trial and error method according to the net cash flow in the financial cash flow statement. The larger the number, the better. When the internal rate of return obtained is not lower than the industry benchmark rate of return or the set discount rate, it is considered that its profitability has reached the minimum requirements and can be considered acceptable in financial evaluation.
The payback period of investment refers to the time required to compensate the total investment with the net income of the project, and it is the main static evaluation index to examine the financial repayment ability of the project. Its calculation formula is:
Payback period of investment = (the year when the cumulative net cash flow starts to show positive value)-1+ the absolute value of the cumulative net cash flow in the previous year ÷ the net cash flow in the current year, and the smaller the value, the better. When the calculated payback period of investment is not greater than the industry benchmark payback period or the set payback period, it shows that the project is feasible.
The financial net present value (NPV) refers to the sum of the net cash flow of each year in the project calculation period to the present value at the beginning of investment according to the industry benchmark rate of return or the set discount rate. It is a dynamic index to examine the profitability of the project during the calculation period, and the larger the value, the better. NPV can be calculated according to the financial cash flow statement. When the net present value is greater than or equal to zero, the project can be considered feasible.
Investment profit rate, investment profit rate and capital profit rate are static relative indicators reflecting the profitability of the project, which can be calculated according to the relevant data in the income statement. The calculation formula is as follows:
Investment profit (tax) rate = [total annual profit (tax) or average annual profit (tax) ÷ total investment of the project ]× 100%.
Capital profit rate = (total annual profit or average annual profit+capital) × 100%.
The bigger these indicators, the better. When the obtained value is not lower than the industry average, the project is considered feasible.
4. Liquidity index of the project: mainly calculate the asset-liability ratio, loan repayment period, current ratio, quick ratio, etc.
The asset-liability ratio is an indicator reflecting the financial risks and solvency faced by the project in each year, which can be calculated according to the balance sheet. Its calculation formula is:
Asset-liability ratio = (total liabilities/total assets) × 100%
Generally speaking, the asset-liability ratio of the project is relatively high during the investment period (about 100%), but it should decrease year by year after it is put into production, and finally reach a suitable level (such as about 60%). It should be pointed out that there is no fixed index to measure the asset-liability ratio, and its size is influenced by many factors, such as the stability of enterprise profits, the growth rate of turnover, the asset structure of industry competition, the strength of enterprises and the term of liabilities. For example, powerful enterprises, projects with great market potential and rich returns can be set high.
Current ratio and quick ratio are indicators reflecting the repayment of current liabilities in each year of the project, which can be calculated according to the balance sheet. Its calculation formula is:
Current ratio = (current assets/current liabilities) × 100%
Quick ratio = (quick assets/current liabilities) × 100%
Generally speaking, the current ratio is 2∶ 1, and the quick ratio is 1∶ 1.
The loan repayment period refers to the time required for the repayable funds to repay the loan principal and interest after the project is put into production. It can be calculated directly from the fund source and operation table and the domestic loan repayment and interest calculation table. The smaller the number, the better. When the loan repayment period meets the requirements of the lending institution, the project is considered to be solvent.
13. analysis of foreign exchange effect: it is a project involving the export of products to earn foreign exchange and the replacement of imports to save foreign exchange, which needs to be analyzed. Analysis indicators include foreign exchange financial net present value, exchange cost and saving foreign exchange cost.
Foreign exchange chart
The present value of financial foreign exchange can be calculated through foreign exchange statements, using the discount rate of foreign exchange loan interest rates and the calculation method of net present value. The larger the number, the better. If the value is greater than zero, the project is considered feasible.
The financial exchange cost refers to the RMB amount of USD 65,438+0 to be converted, which is equal to the ratio of the domestic present value of the export products invested and produced in the project calculation period to financial net present value of foreign exchange, and the smaller the value, the better. When the value is not greater than the national standard exchange rate, it is considered feasible.
Saving foreign exchange cost means that the amount of RMB needed for saving foreign exchange is USD 65,438 +0, which is equal to the ratio of the present value of domestic resources invested in the production of substitute imported products to the net present value of foreign exchange saved by substitute imported products during the calculation period of the project, and is mainly used for the production of substitute imported products. The smaller the number, the better. When the value is not greater than the national standard exchange rate.
4. Financial evaluation parameters: The State Planning Commission regularly calculates and publishes them, mainly by publishing the average (benchmark) income level of investment in various industries, providing authoritative reference standards for project evaluation.