The source of funds used by enterprises in the process of production and operation should be stable and reliable, which is the fundamental guarantee for the long-term survival and development of enterprises. Enterprises can obtain the required funds from different channels, which can be summarized into three parts from the balance sheet: short-term liabilities, long-term liabilities and owners' (shareholders') rights and interests.

The so-called capital structure refers to their respective proportions, which involves major financial decision-making issues of enterprises, such as financing decisions and working capital financing policies.

As far as the capital structure theory is concerned, every enterprise has its own optimal debt and owner's (shareholder's) equity proportion structure. Under this optimal structure, the weighted average total capital cost of the enterprise is the smallest and the enterprise value is the largest.

2. Operational capacity analysis

Operational ability is the ability to use enterprise assets for production and operation. The production and operation process of an enterprise is essentially a process of using assets to realize capital appreciation. How to use assets is directly related to the degree of capital appreciation and the solvency of enterprises.

Whether the various assets of an enterprise can be fully and effectively utilized is mainly reflected in the speed of asset turnover and the ability to bring income to the enterprise.

3. Solvency analysis

Solvency is an enterprise's ability to pay off due debts or the degree of cash guarantee. In the process of production and operation, in order to make up for the shortage of their own funds, enterprises must borrow money from abroad.

The premise of debt management must be to repay the principal and interest on time, otherwise the enterprise will be in trouble and even endanger its survival.

4. Profit analysis

Profitability is the ability of enterprises to make use of various economic resources to obtain profits. Profitability is the fundamental purpose of enterprise production and operation, and it is also an important symbol to measure the success of enterprise operation.

It is not only the focus of enterprise owners (shareholders), but also the problem that enterprise managers and creditors are very concerned about.

5. Development capacity analysis

The development ability of an enterprise is its potential ability to expand the scale of production and operation and enhance its economic strength on the basis of survival.

The scale and strength of an enterprise are the core content of its value, which indicates its potential profitability in the future. The sustainable development ability of enterprises is not only the focus of real investors, but also the focus of potential investors and employees. Through the calculation and analysis of the enterprise's operating income growth ability, asset growth ability and capital expansion ability, we can measure and evaluate the enterprise's sustainable and stable development ability.

6. Cash flow analysis

Cash flow analysis mainly analyzes the inflow, outflow and net flow of enterprise cash.

Understand the main source of cash inflow, the main destination of cash outflow, the change of net cash increase and decrease and the cash shortage in a certain period, evaluate the business quality of enterprises, predict the changing trend of future cash flow, measure the future solvency of enterprises, and prevent and resolve the financial risks brought by liabilities.