Financial Analysis Of The Hisense Electric Co.LTD Based On Havard Analysis Framework

With the popularity of electrical energy,it have great superiority in the social production and human life.So,diverse of electrical appliances appear to adapting to the various humans’ needs.Electrical new materrials,new technology and the emergence of various types of eletrical are mutual interdependence and mutual development,they adapting to the needs°of electrical industy of the whole society.Household appliances are improtant items of our daily life.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 curent financial data in combination with its internal and external environment.The accurate and timely financial analysis provides the valueable information for the enterprise. Havard Analysis Framework is a great method for financial analysis.It is that analysis an enterprise’s financial situation,opportunities and threats in an enterprise’s external environment and advantages and disdavantages in its internal envrionment and thus guide its future development.Chapter one is about the reason I chose the title and the framework of the title.From now on, the structure of the title totally based on Havard Analysis Frameword.Chapter two is the starting point offinancial statement analysis in Havard Analysis Framework--focuses on making strategic analysis. Main successful factors and operational risks coming from the strategic analysis can lay a solid foundation for the following accounting analysis and rinancial analysis and offer a rational hypothesis to the ruture performance.Firstly,the thesis briefs the profile of Hisense Eletric co.LTD.Secondly,it makes an overall analysis on features of chinese home appliance industry followed by the competitive strategic analysis with tools of Porter’s5Forces Model,SWOT Analysis and so on.Chapter three’s focus is on accounting analysis on the basis of the previous chapter--strstegic analysis.Accounting analysis aims at evaluating to what degrees accountants in an erterprise can reflect the basic poerational performance of an enterprise.That means the Propriety of accounting policies and accounting estimates is evaluated after determining the flexibility of accounting.Rational accounting analysis can increase the reliability of financial analysis.The thesis assesses accounting policies and estimates concerning stocks,accounts receivable and fixed assets of the enterprise. Chapter four pays its attention to financial analysis,which aims at applying financial data to evaluaing present and past performance of an erterprise and at assessing its sustainability.In the assessment,transverse and longitudinal comparisons of financial data are made with ratio analysis approach and cash folw analysis.Chapter five is prospect analysis,which emphasizes the perdiction of the future of an erterprise.This chapter makes scientific prediction on the future of an erterprise,points out its devepment direction and provides backup for strategic decision-makers based on chapter two to chaptet four.The final chapter is conclusion.