Enterprise credit report is a kind of comprehensive document reflecting the credit status of enterprises provided by the enterprise credit system, which contains the basic information of enterprises, credit information and other relevant information. Corporate credit reports usually use charts and indicators to show the credit data of the enterprise, these charts and indicators help the searcher to quickly understand the credit profile of the enterprise, but also need some interpretation methods. This article describes how to read the charts and indicators in the corporate credit report provided by the consulting firm, and how to use this information for effective credit analysis and decision-making.

Enterprise credit report is one of the main credit products provided by the enterprise credit system, which provides comprehensive and accurate comprehensive credit information to the inquirer, provides important decision-making reference for all kinds of credit transactions, and reduces unnecessary credit risks and losses. Enterprise credit report is a comprehensive record of all kinds of economic activities of enterprises, reflecting the credit status of enterprises, is the basic product of enterprise credit system.

The enterprise credit report objectively records the basic information of the enterprise, credit information and other information reflecting its credit status, and reflects its credit status in a comprehensive, accurate and timely manner. In order to facilitate the searchers to quickly understand the credit profile of the enterprise, the enterprise credit report usually uses charts and indicators to display the credit data of the enterprise. These charts and indicators help inquirers visually compare, analyze and assess a business's creditworthiness, but they also require some interpretation. This article describes how to read the charts and indicators in the corporate credit report provided by the consulting firm, and how to use this information for effective credit analysis and decision-making.

How 1. Read Charts

A chart is a tool for visualizing data, which can help searchers more easily understand the relationships, trends, and differences between data. In the enterprise credit report, the common chart types are bar chart, line chart, pie chart, radar chart and so on. Different types of charts are suitable for displaying different types of data, so the searchers need to choose the appropriate reading method according to the characteristics and purpose of the chart.

A histogram is a chart that uses columns of different lengths or heights in the vertical or horizontal direction to represent the size or scale of data. Histogram charts are suitable for displaying disaggregated or sequential data, such as data by industry or year. Histogram can help queriers compare the difference or proportion of data between different categories or time periods. When reading the histogram, the searchers need to pay attention to the following points:

Observe the length or height occupied by the column in the vertical or horizontal direction, corresponding to the value marked on the axis, reflecting the size or scale of the data.

Observe the gaps formed between the columns in the vertical or horizontal direction to reflect whether there are significant differences or changes between the data.

Observe whether the columns are distinguished by color or style, reflecting whether the data has different attributes or characteristics.

Observe whether the columns are stacked or grouped, reflecting whether the data is hierarchical or associative.

How 2. Read Indicators

An indicator is a tool that presents data in a numerical or proportional manner, which helps inquirers more accurately measure and evaluate the creditworthiness of an enterprise. In the enterprise credit report, the common types of indicators are financial indicators, credit rating indicators, credit risk indicators and so on. Different types of indicators are suitable for reflecting different aspects of credit information, so inquirers need to choose the appropriate reading method according to the meaning and purpose of the indicators.

A financial indicator is an indicator that uses financial data to measure the operating and financial condition of a business. Financial indicators can reflect the profitability, solvency, growth capacity, capital structure and so on. Financial indicators are usually expressed as ratios or percentages, such as net profit margin, asset-liability ratio, operating income growth rate, etc. Financial indicators can help inquirers analyze the financial performance and risk level of an enterprise, but they also need to consider the industry and market environment in which the enterprise operates. When reading financial indicators, inquirers need to pay attention to the following points:

Observe the numerical size of the indicator and compare it with other data or standards to reflect the financial level and strengths and weaknesses of the enterprise.

Observe the trend of the indicators and compare them with historical data or expected targets to reflect the financial changes and development direction of the enterprise.

Observe the relationship between the indicators, analyze the financial structure and strategy of the enterprise, and reflect the financial balance and coordination of the enterprise.

Observe the relationship between the indicators and the industry or market, consider the impact of external factors on the enterprise, and reflect the financial competitiveness and adaptability of the enterprise.

Net profit margin represents the net profit earned by an enterprise per unit of operating income, reflecting the profitability of the enterprise. The net profit margin of the target enterprise is12.6%, higher than the industry average (10.6%), but lessACompany (15.3%), indicating that the target company has strong profitability, but there is room for improvement.

The gearing ratio represents the ratio of the total liabilities to the total assets of the enterprise, reflecting the solvency of the enterprise. The asset-liability ratio of the target enterprise is45.8%, below the industry average (54.5%), is also lowerB、C、DSuch as the company, indicating that the target enterprise has a strong solvency, but may also mean that the capital utilization rate is not high.

The growth rate of operating income indicates the growth rate of the enterprise's operating income relative to the previous year, reflecting the growth capacity of the enterprise. The operating income growth rate of the target enterprise is18.2%, higher than the industry average (14.4%), also higher than all competitors, indicating that the target company has a strong growth capacity, but also need to pay attention to whether there is a risk of excessive expansion.

By reading these financial indicators, the inquirer can understand the financial situation and advantages and disadvantages of the target enterprise, as well as the comparison and difference with the industry and competitors. The inquirer can make further credit analysis and decision-making based on this information.