Financial Situation Assessment of the China Petrochemical Corporation

Abstract

First of all, shareholders may have to take decisions whether they have to continue with the holdings of the company's share or sell them out. The financial statement analysis is important as it provides meaningful information to the shareholders in taking such decisions. Secondly, the management of the company is responsible for taking decisions and formulating plans and policies for the future. Therefore, they always need to evaluate its performance and effectiveness of their action to realize the company's goal in the past. For that purpose, financial statement analysis is important to the company's management. Thirdly, the creditors are the providers of loan capital to the company. Therefore they may have to take decisions as to whether they have to extend their loans to the company and demand for higher interest rates.

First of all, shareholders may have to take decisions whether they have to continue with the holdings of the company's share or sell them out. The financial statement analysis is important as it provides meaningful information to the shareholders in taking such decisions. Secondly, the management of the company is responsible for taking decisions and formulating plans and policies for the future. Therefore, they always need to evaluate its performance and effectiveness of their action to realize the company's goal in the past. For that purpose, financial statement analysis is important to the company's management. Thirdly, the creditors are the providers of loan capital to the company. Therefore they may have to take decisions as to whether they have to extend their loans to the company and demand for higher interest rates.