What is a corporate credit report?

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. The enterprise credit report mainly includes the following contents:

Enterprise basic information: including enterprise name, registration number, legal representative, registered capital, business scope, date of establishment, registration authority, etc.

Enterprise credit information: including the loan status, guarantee status and bad record of the enterprise in various financial institutions.

Other information of the enterprise: including the relevant records of the enterprise in the tax, industry and commerce, judicial and other departments, such as tax payment, administrative punishment, litigation cases, etc.

What are financial statements?

The financial statements are prepared under accounting standards and reflect the financial position and operations of the accounting entity to the owners, creditors, the government and other relevant parties and the public. The financial statements mainly include the following:

Balance sheet: Reflects the financial position of an accounting entity at a specific date (e. g., year-end, quarter-end, month-end), I .e., assets, liabilities, and owner's equity.

Profit statement: Reflects the accounting entity's operations and their distribution (or compensation) during an accounting period (e. g. year, quarter, month), I .e. income, expenses and profits.

Cash flow statement: Reflects the inflow and outflow of cash and cash equivalents of the accounting entity during an accounting period, I .e. the source and destination of cash flows.

Statement of changes in financial position: Reflects the causes and results of changes in the owner's equity of an accounting entity during an accounting period.

Note: Additional notes and interpretations of the data in the financial statements are provided to increase their transparency and comparability.

What is the difference between the two?

By definition, both are documents that reflect the financial position of the enterprise, but with the following differences:

The purpose of the enterprise credit report is to provide comprehensive credit information to help the inquirer assess the credit risk of the enterprise, and the purpose of the financial statement is to provide the business results and financial position of the enterprise, and to help the inquirer assess the operational efficiency and profitability of the enterprise.

The contents are different: the contents of the enterprise credit report cover the basic information, credit information and other information of the enterprise, reflecting the credit history and credit status of the enterprise; the contents of the financial statements cover the assets, liabilities, owner's equity, income, expenses, profits and cash flow of the enterprise, reflecting the financial situation and operation of the enterprise.

The preparation methods are different: the preparation method of enterprise credit report is to process and analyze all kinds of credit data collected and sorted by enterprise credit reporting system according to certain standards and rules to form comprehensive evaluation and rating; the preparation method of financial statements is to summarize and classify according to accounting data and accounting standards and norms to form accounting statements.

The scope of use is different: the scope of use of enterprise credit reports is for all kinds of credit transactions, such as financial institutions, suppliers, customers, partners, etc.

How does a consulting firm evaluate the financial position of an enterprise from multiple dimensions?

As a service organization that provides professional solutions for enterprises, consulting firms need to evaluate the financial situation of enterprises from multiple dimensions in order to provide appropriate strategic advice for enterprises. Consultants can be evaluated from the following aspects:

Financial ratio analysis: By calculating and analyzing the ratio between the data in the financial statements of an enterprise, it can reflect the solvency, operational capacity, profitability and development capacity of the enterprise. Commonly used financial ratios are current ratio, quick ratio, asset-liability ratio, interest coverage multiple, total asset turnover, inventory turnover, accounts receivable turnover, return on net assets, gross margin, net margin, etc.

Cash flow analysis: By analyzing the data in the cash flow statement of the enterprise, it can reflect the cash inflow and outflow of the enterprise, as well as the source and destination of the cash flow. Commonly used cash flow indicators are net cash flow from operating activities, net cash flow from investing activities, net cash flow from financing activities, and free cash flow.

Credit rating analysis: By referring to the data in the enterprise credit report, it can reflect the comprehensive credit level of the enterprise, as well as its reputation and competitiveness in the market. Commonly used credit rating criteria include the comprehensive rating and evaluation results provided by the credit system, as well as the special rating and evaluation results provided by third-party agencies.

Industry comparative analysis: through comparative analysis with other enterprises in the same industry or in the same category, it can reflect the relative position and advantages and disadvantages of enterprises in the industry. Commonly used comparative indicators are market share, growth rate, profit margin, cost rate, etc.

Champu Consulting Company Service Case

Champu Consulting is a company specializing in market research, investment and financing consulting and.IPOListing consulting and other services institutions, with rich industry experience and customer resources, in a number of areas to provide customers with professional solutions. The following are some specific examples of clients served by Champ Consulting:

A new energy vehicle manufacturer: The company is a company focusing on the R & D and production of electric vehicles and smart vehicles, with independent technology and brands, and its products are popular in domestic and foreign markets. The company plans to achieve in the next three years.IPOListing requires a comprehensive financial advisory service from Champ Consulting. Through in-depth analysis of the company's financial statements, credit reports, industry data, etc., Shangpu Consulting assessed the company's financial situation and listing potential, and formulated a reasonable listing strategy and plan for it to help the company successfully completeIPOPreparations for listing.

A medical device manufacturer: The company is an enterprise specializing in the research and development, production and sales of medical devices. It has a number of internationally leading patented technologies and products, serving hospitals and clinics around the world. The company wants to find the right investment institution or partner to expand its market share and scale. Through a comprehensive evaluation of the company's credit reports, financial statements, industry trends, etc., Shangpu Consulting has found investment institutions or partners that meet its needs and conditions, and has carried out effective communication and coordination for them to help the company achieve successful investment and financing transactions.

An e-commerce platform: The company is an e-commerce platform that provides one-stop services such as online shopping, payment, and logistics. It has a large number of users and products and is one of the largest e-commerce platforms in China. Through market research, the company wants to understand the consumer behavior and preferences of its users, as well as the strengths and weaknesses of its competitors, in order to optimize its products and services and improve its market competitiveness. Through the analysis of the company's users, commodities, transactions and other data, as well as the comparative analysis of its competitors, Shangpu consulting company provides a detailed market research report, including user portrait, consumption habits, satisfaction, loyalty, market share, growth rate, profit rate and other indicators, and puts forward targeted suggestions and improvement measures.

Conclusion

Enterprise credit reports and financial statements are two different but important documents that reflect the financial situation of enterprises, and they have their own characteristics and functions. As a service organization that provides professional solutions for enterprises, consulting firms need to evaluate the financial situation of enterprises from multiple dimensions in order to provide appropriate strategic advice for enterprises. Champu Consulting is a company specializing in market research, investment and financing consulting and.IPOListing consulting and other services of the organization, in a number of areas to provide customers with professional solutions.