Summary
This video introduces general analysis techniques such as horizontal and vertical analysis to evaluate financial performance. By analyzing the structure of a business through ratios like the self-funding ratio, one can assess its ability to be autonomous and make safe investments. A high self-funding ratio indicates security in investments, while a high percentage of debt signals potential risks and excessive debt levels in a business. Overall, understanding financial statements and ratios is crucial in comparing the financial health of different businesses.
Overview of Analysis
Introduction to general analysis and distinction between horizontal and vertical analysis.
Horizontal Analysis
Analyzing the structure by determining proportions compared to total indicators.
Vertical Analysis
Analyzing structure vertically by examining the proportion of different components.
Financial Statements Analysis
Examining financial statements to understand changes and differences in financial performance.
Financial Structure Analysis
Analyzing financial structure using ratios and comparing financial health among businesses.
Analysis of Self-Funding Ratio
The speaker analyzes the self-funding ratio of the business, indicating its ability to be autonomous. The self-funding ratio is calculated by dividing the total equity plus long-term debt by the total capital. The business has over 10,000 billion in equity, indicating a substantial self-funding capacity.
Comparison with Short-Term Investments
A comparison is made with short-term investments, showing that the total equity of over 10,000 billion is much higher than the short-term investments of over 27,000 billion. This suggests a significant investment in short-term assets.
Identification of Safe Investment
The speaker discusses how the self-funding ratio can help identify safe investments. A high self-funding ratio indicates safety and security in investments.
Discussion on Dangerous Investments
The speaker highlights the risks of dangerous investments by comparing self-funding ratios. An example is given where a high percentage of debt to be paid indicates a negative sign of excessive debt, posing risks in investments.
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