1、 Preface Company Introduction Overview of the annual report The business environment The auditors Analysis of the companies financial statements CodaSince the operating environments for economic entities are dynamic,accounting must also stay current with changing environments.Only then can it possib
2、ly retain its relevance and reliability for economic decision-making.International accounting is in direct response to the globalization phenomenon.In order to better understand international accounting,our group chose two companies-Siemens&Haier.We compare and analysis the annual financial reports.
3、Company Introduction:Siemens Company is created by Nashville Von Siemens in 1847 and it headquarters in Munich,Germany.Siemens Company has been 160 years.It is currently one of the worlds largest electric companies,and in Europe,ranking second.In 190 countries it set up enterprises,and its employees
4、 are about 44 million.Siemens has more than 900,000 shareholders,and is the worlds largest one of the listed companies.From March 2019,Siemens shares on the New York stock exchange(NYSE)listed for trading.Siemens global business operation respectively by 13 business groups is responsible,including S
5、iemens financial service Co.,LTD and Siemens real estate assets management group.Company Introduction:Its main business scope：Information&communications,automation&control,power,transportation,medical system&lighting and so on.We can go to siemens to learn more about Siemens Company.Haier Company:Ha
6、ier Company:As we all know,Haier Company headquarters in Qingdao of our country.Haier is the leading brand of white goods globally and the most valuable brand in China.With its 29 manufacturing plants,8 comprehensive R&D centers,19 overseas trading companies across the world and more than 60,000 glo
7、bal employees,Haier has involved into a giant multinational corporation.Haier Company:Haier Company:As of this year,Haier as established 61 trading companies(19 outside of China),8 design centers(5 outside of China),29 manufacturing facilities(24 outside of China)and 16 industrial parks(4 outside of
8、 China).In addition,the company maintains 58,800 sales outlets in over 160 countries.Haier is achieving its goal of building a global brand using the Three-in-One localization strategy.Haier employs more than 50,000 people around the world,and has created 10,000 jobs outside of the PRC.We can go to
9、haier to learn more about Haier Company.Typically,we can find six different sections in the annual reports:1)Financial Highlights;2)Company and Products;3)Management Discussion and Analysis;4)Financial Statements and Footnotes;5)Statement of Management Responsibility and the Report of the Independen
10、t Accountants;6)Basic Company Facts.Financial HighlightsFinancial HighlightsCompany and ProductsCompany and ProductsManagement Discussion and AnalysisManagement Discussion and AnalysisThe two companies have some same kinds of products but they have more different kinds,and their coverage of the prod
11、ucts is also obviously different.The different industry environment and the different governments policy make different management discussions.And so on.The business environment The business environment in which the company is operating is important.And the business environment entails economic,lega
12、l and socio-political factors.Understanding how these factors influence the companys operations and business strategy will enable us to have a richer basis for interpreting its financial picture.You or me?Have you didnt i.Haier has its own advantages as well as Siemens.But here we will talk the thre
13、at they faced.With Chinas household electrical appliance enterprise continuously rise,technical improvement,Haier must constantly improve science and technology innovation level,and improve their advantage.Also should towards multi-industry development direction,in order to improve their own competi
14、tiveness.Facing Haiers informatization,domestic peers about is watching haier external informatization lively,while tightening their internal informatization,this is Haier faced the threat.Along with the development of Haier,Haier began by domestic began to international consequences of march,so man
15、y is make overseas enterprises such as SONY,Panasonic,Samsung,LG,Siemens,and so on became Haier rivals.Make it develop international market by some obstacles.Siemens,as a transnational enterprise,has its own advantages but also face the similar threats.In our capital markets,public accounting firms
16、perform an important audit(attest)function to provide confidence in the integrity of those statements.We read the companies audit report to learn more about what is happening in the public accounting profession.Through the audit work,can restrict economic activities in various negative factors can i
17、mprove the economic management level and economic benefit,and to promote the social and economic order of healthy.Analysis of Analysis of the companies financial statements the companies financial statements Assets and liabilities comparison analysis Debt-repaying ability analysis Operating capacity
18、 analysis Profitability analysis Return on investment Growth Cash flow Cash solvency Cash earning from salesCash earning from investment Assets and liabilities Assets and liabilities comparison analysiscomparison analysisHaier(Haier(￥:Yuan):Yuan)Siemens(in millions Siemens(in millions of)of)20092009
19、2019201920192019200920092019201920192019Total assetsTotal assets17,497,152,517,497,152,530.38 30.38 12,230,597,712,230,597,777.64 77.64 11,188,965,111,188,965,146.13 46.13 94,9294,926 6 94,4694,463 3 91,5591,555 5 Percentage(%)Percentage(%)100%100%100%100%100%100%100%100%100%100%100%100%Total Total
20、liabilitiliabilitieses8,698,036,548,698,036,544.26 4.26 4,444,539,264,444,539,269.25 9.25 4,043,222,734,043,222,732.27 2.27 37,0037,005 5 42,4542,451 1 43,8943,894 4 Percentage(%)Percentage(%)49.71%49.71%36.34%36.34%36.14%36.14%38.9838.98%44.9444.94%47.9447.94%Total equityTotal equity8,752,239,048,7
21、52,239,042.94 2.94 7,701,057,747,701,057,740.24 0.24 7,056,129,117,056,129,118.08 8.08 27,2827,287 7 27,3827,380 0 29,6229,627 7 Percentage(%)Percentage(%)50.02%50.02%62.97%62.97%63.06%63.06%28.7528.75%28.9828.98%32.3632.36%We can see that Haiers debt structure is rising year by year,as Siemens is d
22、ropping.But they all keep in a certain range.And the range is reasonable.The companies use the financial leverage effectively and also avoid the risks because of lots of liabilities.Assets and liabilities comparison analysis comparison of structure percentage Debt-repaying ability Debt-repaying abil
23、ity analysisanalysis Haier(Haier(￥:Yuan):Yuan)201920192019201920092009Current assetsCurrent assets7,790,863,868.227,790,863,868.227,863,333,591.847,863,333,591.8412,895,061,310.8412,895,061,310.84Current Current liabilitiesliabilities4,043,222,732.27 4,043,222,732.27 4,444,539,269.25 4,444,539,269.2
24、5 8,698,036,544.26 8,698,036,544.26 Current ratioCurrent ratio1.93 1.93 1.77 1.77 1.48 1.48 Siemens(in millions of)Siemens(in millions of)201920192019201920092009Current assetsCurrent assets47,932 47,932 43,242 43,242 44,129 44,129 Current Current liabilitiesliabilities43,894 43,894 42,451 42,451 37
25、,005 37,005 Current ratioCurrent ratio1.09 1.09 1.02 1.02 1.19 1.19 The calculation shows that in Haier Company every 1 Yuan current liabilities have 1.93 Yuan liquidity support in 2019.But the next two years the index drops.This shows Haiers debt security level has decreased.The index of Siemens is
26、 going up,its debt security level is improved.Operating capacity analysis HaierSiemens2019200920192009total assets turnover2.52 2.05 0.83 0.81 inventory turnover34.04 23.88 4.10 3.91 Total asset turnover reflects enterprise asset to create sales revenue ability.The two companies total assets turnove
27、r decreases in a small range.And Haiers sales revenue ability is better than Siemens from the data.However,two of them have good asset management efficiency.From the data,Haiers index of inventory turnover is a little high.Compared with 2019,the index in 2009 has decreased.Anyway,the inventory liqui
28、dation ability of Haier is strong;the level to take fund is low.And Siemens is not as good as Haier,but its ability is more stable.Profitability analysis Haier(Haier(￥:Yuan):Yuan)Siemens(in Siemens(in millions of)millions of)201920192019201920092009 20192019 20192019 20092009cost of cost of goods so
29、ld goods sold ratioratio0.74 0.74 0.77 0.77 0.81 0.81 0.67 0.67 0.73 0.73 0.77 0.77 operating operating income income ratioratio0.05 0.05 0.04 0.04 0.03 0.03 0.27 0.27 0.27 0.27 0.29 0.29 net profit net profit ratioratio0.04 0.04 0.03 0.03 0.03 0.03 0.03 0.03 0.08 0.08 0.06 0.06 The two companies co
30、st of goods sold ratio is low.This shows two of them have a high level on cost control.And the operating income ratio of them keeps a stable level.Sales net interest rate per unit reflects the enterprise sales income gained in the amount of the net.Siemens net profit ratio has a modest increase,whil
31、e Haier stay the same on the whole.All above indicate both of them keep a stable profitability through the daily business activities.Return on investment HaierSiemens2019200920192009return on total assets(ROA)9.71%9.71%5.92%5.92%22.62%22.62%22.05%22.05%return on equity(ROE)13.26%13.26%9.17%9.17%20.6
32、5%20.65%14.77%14.77%ROA is an important kind of financial indicators.The index embodies the relationship between the assets using efficiency and the fund application effect.ROA of Haier decreases by 3.79%in 2009 compared with 2019.This indicates that Haiers ability of return on investment decreases.
33、So the company should pay attentions.And Siemens ROA just decreases by 0.57%.It doesnt matter and just keep this level.ROE,an index that based on the owners equity,assesses the companys enterprise profitability and investment reward ability.Though ROE of the two companies decreased in 2009,they are
34、still in the front row.GrowthGrowth HaierSiemens20192019200920092019201920092009net assets growth ratio0.09 0.14(0.076)(0.003)sales growth ratio0.03 0.08 0.067(0.009)total assets growth ratio0.09 0.43 0.032 0.005 The net assets growth ratio reflects the capital accumulation of a company.It is a symb
35、ol to show a companys strong,and it is the source of a companys expanded reproduction.Haiers net assets growth ratio is a little low.Haier has the ability to improve its capital preservation sex.The index of Siemens is negative.It shows owners equity is damaged.Sales growth ratio of the two companie
36、s is almost equal to zero and even less than zero.They should pay more attention to product sales.Assets are the resource of earning revenues and the security of debt repayment.The total assets growth ratio of Haier and Siemens is almost equal to zero.This indicates both of them have adopted conserv
37、ative development strategies.Cash flow Cash solvency Cash earning from sales Cash earning from investment Cash solvencyCash solvencyHaier(￥:Yuan)Siemens(in millions of)201920192009201920192009cash flow to current debt ratio31.63 29.65 53.19 22.38 21.86 18.13 This table shows Haier and Siemens have a
38、 flush liquidity.Cash earning from salesCash earning from salesHaier(￥:Yuan)Siemens(in millions of)201920192009201920192009cash flow to net sales ratio4.34 4.33 14.03 13.56 12.00 8.75 cash flow to net profit ratio169.55 134.63 336.55 243.24 157.68 268.68 cash flow to operating profit ratio73.49 115.
39、87 525.64 47.43 44.10 32.14 The cash flow to net sales ratio of Haier is increasing year by year.Its ability of cash earning from sales is improving.But Siemens is decreasing.Siemens should pay attention.According to the cash flow to net profit ratio,Haier and Siemens,on the basis of net profit achi
40、eved,their ability to achieve the net cash flow from operating activities is high.The cash flow to operating profit ratio reflects the ability of a company to achieve the net cash flow from operating activities on the basis of net profit achieved.Both of them have a high ability and Haier is higher
41、than Siemens.Cash earning from investment Haier(￥:yuan)Siemens(in millions of)201920192009201920192009cash flow to net assets ratio18.12 17.11 52.86 33.15 33.90 24.59 cash flow to total assets ratio11.43 10.77 26.44 10.73 9.83 7.07 Cash flow to net assets ratio inflects the companys ability to achie
42、ve the net cash flow from operating activities with total assets input.Haier has the strong ability.While Siemens decreased in 2009.However Siemens this ability is still satisfactory.Cash flow to total assets ratio shows the cash return ability with the cash input by owners of enterprises.Haiers thi
43、s ability is clearly stronger than Siemens.Siemens should pay more attention.All above,Haier and Siemens are worthy of well-known enterprises.And Haier is obviously better than Siemens from the data.Moreover,today is advocating energy-saving and environmental protection.Environment report is more an
44、d more important.Haier and Siemens have realized this early.They have paid attention to keep energy saving and environmental.But I also want to raise a question about this:whether the used products which customers eliminated should be recycled.If they solve this question,it will be a way to increase resource utilization rate.1.Haier annual reports2.Siemens annual reports
