Based On The Harvard Analytic Framework In The Comprehensive Financial Analysis Of Yanzhou Coal Mining Company Limited

The coal market is affected by the global financial crisis and the domestic environment.The market has reduced the demand for coal. The coal falling prices led to decline in profits of coal enterprises. Coal enterprise economic benefits have been seriously affected. So how to get rid of the current predicament and gain new vitality is the important matter for the development of coal enterprise. Yanzhou Coal Mining Company Limited(hereinafter referred to as Yanzhou Coal Mining,not be repeated for this article), it was announced in August 2015 that it had made it 32 th on to the China Top 500 Manufucturing Enterprises by the Chinese Manufacturers Association. And ranked 126 th in the China Top 500 Enterprises, as well as ranked 20 th in the China Top Multinational Companies in the same year, those make it become the typical representative of the coal industry enterprises. After the demonstration, Krishna G. Palepu、Paul M. Healy and Victor L. Bernard put forwatd the Harvard Analytic Framework which is composed of strategy analysis, accounting analysis, financial analysis and prospect analysis. Through putting Harvard Analytic Framework into practice could have a further understanding of the operating status of enterprise which has studied. Finding problems it has and supporting the management decision can help the enterprise achieve its long-term ambition.Basing on the data from 2011 to 2014 published by Yanzhou Coal Mining Company Limited, this paper applies several financial methods into Harvard Analytic Framework to Yanzhou Coal Mining Company Limited. According to the analysis conclusions, the paper offers proposals to the enterprise’s development. Strategy analysis is the starting of the framework, it can demonstrate the advantages and disadvantages of the enterprise, opportunities and challenges of the industry. Finally, it can lay a foundation of accounting analysis and financial analysis, provide directions to prospect analysis. The analysis tools are Porter’s 5 Forces Model and SWOT Analysis. In order to assess the matchs between accounting data and operating status, the next step is conducting accounting analysis and evaluating the stocks as well as accounts receivable. Then the paper pays more attention to financial analysis which aims at assessing the business performance and applying financial data to evaluating present as well as past performance of an enterprise. The analysis methods are ratio analysis approach and DuPont Identity. The last part gives priotity to prospect analysis, which emphasizes the prediction in the future of the enterprise. This part makes scientific prediction on the strategy and financial of enterprise based on the foundation of the 3 steps befor last step. It will put forward constructive suggestions for Yanzhou Coal Mining Company Limited.We can draw conclusions by applying Harvard Analytic Framework to Yanzhou Coal Mining Company Limited. On the strategic analysis, it needs pay attention to the threat of the present competitors and the buyers, change the weakness that meet the external challenges; on the accounting analysis, it needs highlight key accounting projects, such as stocks and accounts receivable, that invigorate enterprises; on financial analysis, it needs focus on the operation ability, long-term solvency and so on, preventing managing risks, enhancing the net interest rate, to maximize the value of enterprise. On the priotity and prospect analysis, it needs to plan from strategic and financial sides in order to speed up its transitions and developments.