Counterattack 1988

Hearing Zhou Xia's seriousness, Wang Lin corrected his attitude and asked, "What did you find? Was it someone making a lie?"

Zhou Xia said: "It's also possible that I'm not good enough to understand it, but I think that since you trust me so much, it's necessary for me to explain the problems I found to you."

Wang Lin nodded: "It should be so."

Zhou Xia said: "I'm learning how to look at financial statements recently. Whether a company is running well or not should be reflected in the financial statements."

Wang Lindao: "That's right, you are right to start here. Because you are the CFO, the chief financial officer, you have to manage the overall situation, not an accountant or a cashier."

Zhou Xia said: "To be clear, we can find the company's problems in the financial statements. The financial statements can help us recognize the potential risks. No matter how sophisticated the financial fraud is, there will always be clues, but this requires us to look at the details. Find out the whole process of finding the problem, such as whether the inventory in the balance sheet is reasonable? Is the goodwill too high? Is the cash flow obtained from the disposal of fixed assets in the flow statement?"

Listening to her talk, Wang Lin thought that he entrusted the right person!

Zhou Xia is a good helper.

She is calm and unmoved by emotion.

She is good at learning and studies hard.

Although she is a compatriot of the same mother, she is not as sentimental as Congee Congee.

Congee Congee is a literary type, but Zhou Xia is a career type.

Her short marriage at the beginning was because she paid too much attention to her career and affected her family life.

It's just that she didn't know it herself, and she didn't think it was wrong.

In Zhou Xia's consciousness, women should have their own careers and cannot rely on men for everything.

She even thought that a woman can live without a man, but she must not lose her career.

The things Wang Lin entrusted to her were all the most important tasks, and she lived up to expectations and did it in a reasonable and disciplined manner.

In the past few years when Zhou Xia has been in charge of personnel affairs, she has recruited many excellent talents for Aishiu Group, from senior executives to middle-level employees, to grass-roots employees, Zhou Xia has recruited talents wherever she goes.

Every year for the school recruitment, Zhou Xia will go to the town in person, and the major colleges and universities in Shencheng have left her footprints of hard work.

Before going public, Aishiu Group has withstood the test of malicious sabotage many times, including but not limited to competition methods such as poaching and prying talents.

But no matter how hard the opponent tries, the talent foundation of Aishiu Group is still as stable as a rock.

This is of course thanks to Zhou Xia!
Because of this, Wang Lin made up his mind to appoint Zhou Xia as CFO.

Compared with personnel work, the importance of financial work is self-evident.

After Zhou Xia took over the burden, she asked Wang Lin to give her a period of time to learn financial knowledge.

In the past few months, Zhou Xia has been reading books on finance whenever she has free time.

She applied for a crash course in finance at Shencheng University, and found the best master in this field for advice. Now she has entered the door of financial management.

Wang Lin gave her an encouraging look, motioning her to continue talking.

He hired Zhou Xia, of course, because he wanted to do a better job in finance.

Many people make money every year, but have nothing every year. He never knows where the money went?
Aixiu Group has tens of 10 people and hundreds of factories.

If you don't manage your finances properly, no matter how much you earn, it won't be enough to lose money.

Zhou Xia said, "Let me talk to you about the assets and liabilities first."

Wang Lindao: "I know this. We borrowed a lot of loans from the bank, and the interest is quite high."

Zhou Xia said: "The key items of liabilities are short-term loans, accounts payable, deferred income tax, etc. If a company often borrows money, then one day the company can't borrow money, can it continue to operate? These are assets and liabilities. We need to study some details of the table, and at the same time, through the data, we can see whether the company has a debt repayment risk and whether the short-term capital chain is broken, and these can get preliminary answers.”

Wang Lin was stunned: "Although we borrowed a lot of money, it's not that serious, right?"

Zhou Xia said, "I'm just talking about it in general."

Wang Lin took a long breath: "Then tell me the specifics."

Zhou Xia said: "Let me make an example. A company's monetary capital is 1 million, and the company's market value is 100 billion. Do you think this is reasonable? A company's goodwill is 25 billion, but the company's total market value is only 50 billion." 50 million, do you think this situation is normal? A company with a total market value of 10 billion and a construction in progress of 5 billion has been doing this for five consecutive years. Why can’t any company complete the construction in five years?”

Wang Lindao: "What do you want to say?"

Zhou Xia said: "Aixiu Group seems to be very prosperous, well-developed, and excellent in all aspects, but our debt is very high. Also, is our current market value inflated? Is this beneficial to our development?"

Wang Lindao: "In the past few years, we have indeed borrowed a lot of interest from the bank in order to expand the Aixiu Plaza. I think it is not a bad thing for a company to have a certain amount of debt. The company's debt ratio is 40% to 60%. The company's debt ratio is equal to the total liabilities divided by 100% of the total assets. Our company's current debt ratio is about 55%, right? I think this is normal."

Zhou Xia said, "Aren't you afraid of breaking the capital chain?"

Wang Lindao: "The asset-liability ratio is an index used to measure the ability of an enterprise to use creditors to provide funds for operating activities, and to reflect the safety of creditors' loans. It is obtained by comparing the total liabilities of the enterprise with the total assets. All assets belong to the debt ratio. Different industries and different companies have different asset-liability ratios, some are 30%, and some are as high as 80%. Our current debt ratio is at a medium level, calculated based on our company's profitability , this is not high. Even if the capital chain is broken, we can still achieve a balance of assets and liabilities.”

Zhou Xia said: "Maybe I'm worrying too much! I haven't been in touch with finance for a long time. I always thought that the company is very profitable and has a lot of spare money! When I saw such a high debt, I was really surprised!"

Wang Lindao: "But you are right in reminding us that we should pay attention to the issue of the debt ratio. It is beneficial to reduce it appropriately. How about this, when you are officially appointed as CFO, you can help me calculate it carefully and control the debt ratio. Around 35%. Is that okay?"

Zhou Xia said: "According to my observation, our debts mainly come from the expansion of Aixiu Plaza. In other words, our factory is profitable, but because the expansion is too fast, the speed of making money cannot keep up, so you borrow money Building a square. Is this kind of expansion considered blind? Can’t we move forward steadily?”

Wang Lindao: "When doing business, the emphasis is on an exclusive opportunity. I believe that large-scale urban complexes will have a huge market in first-tier cities, especially in the next 20 years, the business will be very good, so I borrowed money to invest , carry out rapid expansion. I am still conservative, if I am more courageous, I can build a love show square in every province and city of the country.”

Zhou Xia said: "My God! You are so ambitious! Then you have to borrow all the money in the bank to complete your great cause."

The two looked at each other and laughed.

Zhou Xia said: "Let's talk about the debt ratio first. Let me talk about the income statement. There are many things to look at in the income statement. Needless to say, the revenue includes sales expenses, management expenses, R&D expenses, and financial expenses. Expenses and so on need to be studied in depth to see if they are reasonable.”

Wang Lindao: "I have a hard target for the investment in scientific research. I ask that it account for about 5% of the revenue. We are not a high-tech company, but the research and development of various new products and new products cannot be stopped, and doing business is like sailing against the current. , If you don’t advance, you will retreat.”

Zhou Xia said: "It turns out that this is also your standard! I said that so much money is invested in research and development every year! I used to only pay attention to personnel work and didn't pay attention to this area. I was shocked when I saw that the research and development costs were so high! Is it too much? Is it necessary to invest so much in research and development?"

Wang Lindao: "In some high-tech companies, R&D investment accounts for about 15% of revenue! That's scary!"

Zhou Xia said, "Okay, let's talk about the income statement again."

Wang Lindao: "There should be no problem with this one, right?"

Zhou Xia said: "I only talk about what I see, what I get, and what I think. I don't know if it's right or not."

Wang Lin said: "Okay, you can continue."

Zhou Xiadao: "The income statement is nothing more than three subjects, the cash flow from operating activities, the cash flow from investment activities, and the cash flow from financing activities. Among the specific subjects of operating activities, we should focus on the sales of goods and the receipt of labor services. If you compare this data with revenue, you can see whether the company is making money from its main business."

Wang Lindao: "Well! Our main business is still a factory."

Zhou Xia said: "Yes, this business is profitable, and the profit is also considerable. But the profit of Aixiu Plaza is a bit weak. Through the fundraising activities in previous years, I can see how much money the company has borrowed. We need to understand a truth, If a company relies entirely on borrowing money to operate the company, then what is the point of the company's business? The company's business can't make money, so how can it be used to repay these debts?"

Wang Lindao: "You have observed very carefully, which is worthy of praise. So far, the overall operating income of Aixiu Plaza cannot offset the borrowing and interest. As I said just now, we are now in the expansion period, so there are a lot of borrowings. .But we need to see the profits from inflation and currency devaluation. We borrow money now, and we will not lose money in the long run.”

Zhou Xia said, "How do you know that there will be inflation in the future?"

Wang Lindao: "This is the law of economic development, and it cannot be avoided. Now you can buy a handful of vegetables for [-] cents, but in the future you will not be able to buy even a scallion for [-] cents."

Zhou Xia said, "Isn't what you said too scary?"

Wang Lin smiled and said, "Maybe you won't even see ten-cent bills in the future?"

Zhou Xia said, "It's as if you can predict everything!"

Wang Lindao: "I'm not foreknowledging, I'm discovering economic laws. Believe in my judgment, there will be no mistakes. We have borrowed billions now, but it is easy to pay back the billions in the future. .”

Zhou Xia let out a long sigh: "Billions! Is it easy? I wouldn't believe this if someone else said it!"

Wang Lin stretched out his hand and lifted her beautiful chin: "Then, do you believe me?"

Zhou Xia's delicate body trembled slightly: "What are you doing?"

"you!"

"Ok?"

Wang Lin kissed slowly, using actions to answer what he was going to do next...