Research On The Application Of Value Chain Analysis In Financial Analysis

With Chinese accession to the World Trade Organization and the further exacerbate trend of economic globalization, Chinese enterprises will integrate into the world economy. How to enhance their own competitiveness and how to secure victory in the global competition, is the grim task that every enterprise is bound to face. In a market economy, financial management will be the center of business management.Financial analysis is the effective measures to strengthen financial management of enterprises and to improve economic efficiency. Financial analysis is used to evaluate the operations and financial position, to test the implementation of financial goals and to identify existing problems and the causes, and then provides useful information for the financial projections, decision-making and control in the future.Some existing methods of financial analysis usually can find the existed problem, but cannot to provide solutions to the problems identified; can evaluate the financial situation of enterprises, but cannot to improve the situation. For example, a low rate of return on capital, through anglicizing, we know the reasons is that the inventory turnover is too high, further anglicizing, we know high inventory causes the product backlog. However, on the question of how to deal with the backlog products, financial analysis cannot answer. Therefore, in the financial analysis process, we can easily find that the financial analysis has some limitations.The traditional concept of cost limits the development and the implementation of financial analysis. It needs to make a breakthrough. Value chain brings a new flavor to the financial analysis. This thesis is different from the general financial analysis. It combines of empirical analysis and comparative research methods, invokes the relevant disciplines, such as supply-chain modeling, and takes into account some of the mature domestic financial analysis theory. It tries to combine the relevant content of value chain theory and takes into account of the actual conditions to analysis the constitution of the enterprise's value chain. This thesis builds the financial analysis model with the guide of the vertical, horizontal, internal three links of the value chain.In the empirical studies, this thesis combines practical case to analyze the financial indicators, to discuss the finance and to demonstrate the practical...