Financial Analysis Of Shandong Steel Based On Harvard Analysis Framework

Steel is an important industry of economy, its level of development represents economic development level of a country. Chinese steel industry has a long history. It has established a complete system after years of rapid expansion, and plays an important role in economic development.Chinese steel industry is facing severe challenges because of overcapacity, price fall, which force the steel industry to upgrade. Overcapacity has been relieved and economic benefit has improved in 2014, but plenty of minor enterprises are still gloomy. It will take a long time to solve the problem of overcapacity, environment pollution and lack of fund.JiNan steel merged with LaiWu steel and changed into ShanDong steel in 2012. It continues to adjust the layout, eliminate the backward, enhance quality for years, and has become the representative of chinese steel. ShanDong steel is facing a series of problems in the past few years, and was deficit in 2012 and 2014.This article is according to the Harvard analysis framework. Strategy Analysis mainly identifies operational risks that corporate faced by analyzing the external and internal environment; Accounting analysis mainly analyzes if the accounting policies and accounting estimates that accounts receivable, inventories, fixed assets chose were appropriate; Financial analysis analyze statements and financial ratioes to judge the performance of the company in the past; According to the analysis above, prospects analysis is to predict the future, and reveal the opportunties and challenges in the future.