| Power industry is the basic industry of the national economy. It is one of the pillars of the energy system, and provides energy resources to the production and people’s life. At the same time, the development of power industry is an important microcosm of the national economy prosperity, which reflects the progress of the society. Nowadays, the development of enterprises relies on the support of the management methods and management tools. Financial analysis, which plays an important role in the enterprises’ development, is gradually adopted by the enterprise managers as an essential management tool. Financial analysis method is a specialized analysis system with tools in enterprise management, and it builds different index frame system for where the target company’s industry characteristics, enterprise type stage of development, and specific objectives. In recent years, the financial analysis framework is studied a lot. The Harvard Analytical Framework proposes a set of brand-new financial analysis framework which conquers the existing problems in traditional financial analysis system. By applying the enterprise strategy as the a start, it analyze the problems and propose the solution by using accounting policy analysis and financial ratio analysis, and ultimately it predicts the trend of future development of enterprises through the prospect analysisBased on the Harvard Analytical Framework, the origin of financial analysis concepts and the development of the system are combed in this paper by using literature research method to look up a large number of papers. XJ Electric Corporation 2010-2014 financial statements are analyzed by using quantitative analysis method. The characteristics of traditional financial analysis are summarized in this paper and the main contents of the Harvard Analytical Framework are described. Along with the basic situation of XJ Electric Corporation, the analysis of the adaptability of the Harvard Analytical Framework to be used in XJ Electric Corporation is carried out. At the level of enterprise business strategy, the competition of the power secondary equipment industry, where XJ Electric locates, is analyzed by using the competitive strategy analysis model. The SWOT analysis method is also practiced to analyze the competition advantages and disadvantages of XJ Electric. At the level of accounting analysis, the key asset accounts are identified through the analysis of the structure of the XJ Electric Corporation’s main asset accounts:accounts receivable, inventories and fixed assets. The key accounting policies of above tree assets are also analyzed. At the level of financial analysis, the balance sheet and income statement ratios analysis are carried out, using different financial indicators on the company’s solvency, operational and profitability analysis, while using the Du Pont analysis system to evaluate financial indicators comprehensively. At the level of the foreground analysis, the financial situation of XJ Electric Corporation is evaluated comprehensively combined with the analysis of the prospect of secondary electric power equipment industry, and some corresponding suggestions are put forward, and the development prospects of the XJ Electric Corporation is forecasted.Through the analysis, the following conclusions could be drawn:XJ Electric Corporation owned the strong profitability and steady growth in sales revenue. The financial leverage ratio is low. The financial risk is low. The future of the enterprise will still own the space to enhance with the gradual increase in the state power industry and power grid investment, through the transformation, upgrading, and structural adjustment. In this paper, the Harvard Analytical Framework is applied in XJ Electric Corporation’s financial analysis, which has reference value to the other enterprises of the same type. |
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