What Is a Statement of Financial Position?

Financial status refers to the source and distribution of operating capital of an enterprise at a certain moment. Generally reflected through the balance sheet and its schedule. The financial situation is a reflection of the results of the business operations of the company in terms of funds. According to the corresponding relationship between the various projects, analyze and compare the corresponding projects between the occupation of funds and the source of funds. Whether to save. According to this relationship, if the source of funds in the enterprise's balance sheet and its corresponding capital occupation balance are relatively close, it means that the company's financial status is good; if the company fails to repay its debts on time and fails to complete its financial handover tasks, Reasonable occupation of working capital destroys the normal correspondence between the occupation of funds and the source of funds, resulting in difficulties in capital turnover and affecting the ability of the company to pay, which indicates that the company's financial situation is bad. In order to reflect and monitor the financial status of the enterprise, the enterprise should regularly prepare a balance sheet of funds and other statements, analyze and study the information provided in the statements, so as to find problems, put forward opinions, summarize experiences, and improve management. ^[1]

Financial status

The financial status of the company is a certain period of time

Quality characteristics of assets

Higher quality

It is generally believed that the evaluation of corporate financial conditions began in the late 19th and early 20th centuries, when credit evaluations were mainly for the service of banks. After the capital market was formed, the evaluation of the financial situation was extended to the profit evaluation for investors. After the development of the company's organization, the evaluation of the financial status has been expanded from external evaluation to internal evaluation to improve the internal management services for operators. Business management can learn a lot of detailed information

CVA

CVA (Cash Value Added)

It should be noted that measuring the CVA of the entire company only needs to expand one strategic investment project to multiple ones. The OCFD of a company is equal to the sum of the OCFD of each strategic investment in each period. Investment projects during their lifetime. If shareholder value is increased, the company's net present value and CVA must be positive.