The Analysis Of Zhongtong Bus Financial Statements Based On The Harvard Analysis Framework

The bus industry is one of the main industries in the process of China’s economic development. With the rapid economy development in China, China’s bus industry is also developing rapidly. So far, China has become the world’s largest bus production base. Chinese bus’ s production and sale has ranked the first in a continuous 13 years throughout the world. In recent years, due to the provisions of the relevant national laws and regulations and the improvement of people environmental protection consciousness, the bus industry in China is developing towards the centre of “safety, energy saving, environmental protection”. Zhongtong Bus Company is in the top of the bus industry. It is worth to research that the company can transform and upgrade with the development trend of industry. Therefore, as a research object, Zhongtong Bus will be analyzed and evaluated comprehensively of its financial statements. This paper will also provide a basis for the managers to improve decision-making, and provide information purposes for the majority of investors.This paper select the famous Harvard analytical framework to analysis the 2009-2013 Zhongtong Bus financial statements. Firstly, this paper will introduce the basic logic of the analysis dimension of the Harvard analytical framework. As follows, it will make strategic analysis,accounting analysis, financial analysis and prospects analysis of Zhongtong Bus correspond to the four analytical dimensions of theHarvard analytical framework. This article takes strategic analysis as a logical starting point, to analyze the competitive strategy of the bus industry and Zhongtong Bus. Through the strategic analysis, we can clearly know the Zhongtong Bus’ s business background and development strategy. Accounting analysis objectively evaluate the principal accounting policies and accounting estimates of Zhongtong Bus’ s main assets such as inventory, accounts receivable, fixed assets to ensure the reliability of financial analysis conclusions. Based on the results of strategic analysis and accounting analysis, financial analysis section focuses on the evaluation of the structure of this company’s assets, liabilities, profit and cash flow. And it also focuses on profitability,risk, growth and so on. It will make qualitative predictions of the prospects for development of Zhongtong Bus and the bus industry through the analysis of the prospect. Finally, consequently on the basis of above analysis, this paper draws upon some suggestions based on the problems to not only aid the steady development of Zhongtong Bus, but also provide other enterprises use for reference from the way.