The Application Of Harvard Analysis Framework In Financial Analysis Of Petroleum Enterprises

Oil is not only an important strategic resource for a nation, but also the most sensitive "nerve" in international political, economic and military relations. On November 29, 2003, when analyzing Chinese economic situation, President Hu Jingtao at the Central Economic Working Conference referred to finance and oil, the two conceptions in national economic security for the first time. Any enterprise expecting to do well in petroleum business must have a good grasp in national policy tendency, international political, economic relations in strategic term and thus in the development of the enterprise.Financial analysis, the core part of the whole financial activities, is judges and predicts of the past, present and future of the enterprise based on current financial data in combination with its internal and external environment. The accurate and timely financial analysis provides the backup for the decision-making of the enterprise.It is Havard Analysis Framework that analyzes an enterprise's financial situation, opportunities and threats in an enterprise's external environment and advantages and disadvantages in its internal environment and thus guide its future development on the basis of scientific prediction.Chapter one focuses on making strategic analysis, the starting point of financial statement analysis in Havard Analysis Framework. The objective of operational strategic analysis is to define primary profit impetuses and operational risks and assess profit potential of an enterprise. Main successful factors and operational risks coming from the strategic analysis can lay a solid foundation for the following accounting analysis and financial analysis and offer a rational hypothesis to the future performance. Firstly, the thesis briefs the profile of the enterprise. Secondly, it makes an overall...