With the establishment of China's market economy system and the improvement of modern enterprise system, the financial situation and operating performance of enterprises have become the main issues that investors pay attention to. Through a series of financial indicators, investors can make investment decisions for future earnings and related investment risks. Effective financial analysis can extract internal information from the financial report, so as to understand the actual operation and financial situation of the enterprise, and provide necessary reference for the operation of the enterprise. Management, finance, profit and capital are the next business plan of the enterprise. Taking Yunnan Baiyao company as an example, this paper analyzes the correlation of financial indicators, understands the basic situation and existing problems of its development, and puts forward corresponding countermeasures and suggestions.
