Chapter 2 Financial Analysis（财务分析）

Learning Objectives

●Know how to compute and interpret important financial ratios.

●Know how to compute and interpret important financial ratio systems.

●Be able to develop a financial plan using the percentage of sales approach.

The financial statement is the key element of the corporation.In this chapter，we introduce the basis of financial analysis，and the useful ratios in the practice of financial analysis，which helps the beginners form a systematic method to measure the firms.financial status or make the comparison between firms of different sizes.Moreover，not only can we assess different aspects of firms by historical information，but we can also arrange financial planning based on the financial statement.We thereby introduce the percentage of sales approach，to summarize the projected future financial status of a company in the form of pro forma financial statements.