YQ Company Financial Diagnosis Based On The Harvard Analysis Framework

With the progress of technology and the development of economy, the status of auto industry in the progress of national industrialization becomes more and more important and the auto industry gradually becomes the pillar industry of national economy. From the perspective of individual demands, the auto industry improved people's living quality and meet the demand of citizen travel; from the perspective of social development, the auto industry promoted the development of some relevant industry like steel, high-tech industry and it also stimulate country's fiscal revenue.Although our country's auto industry started late, it's speedy development made our country's automobile production and consumption ability ranked to the first place in the world within fifty years. However, the capacity of independent innovation is not strong enough, therefore, during the 12 th five-year plan, china auto industry's core task is to be stronger. The target of 13 th five-year plan is export our county's car to other countries. Under this circumstance, there is practical significance to study the auto industry. As one of our country's big car group, YQ's financial condition is very representative and it can reflect auto industry's condition, thus provide some useful advices about corporate governance to other companies.This paper selects YQ company as the object of study, use the Harvard analysis framework to conduct a comprehensive diagnosis about YQ company's business and financial condition. First, this paper introduces YQ company's basic information, then regards YQ company's strategic analysis as logical starting point to analyze auto industry's condition by using five competitive force model. Based on the above analysis results, the paper also finds out YQ company's strength, weakness,opportunity and threat by conducting SWOT analysis. Right after that, the paper conducts an accounting, financial, prospect analysis to YQ company. The financial analysis is the most important and main content of this paper which mainly diagnose company's debt paying ability, operation ability, earning capability and development capability by elaborating YQ company's financial statement. After the analysis above,we find out the unclear investment strategy, imperfect asset management, huge period expenses, poor financing channels and outdated development strategy lead to YQ company's problems. Finally, the paper put forward some feasible suggestions based on the above problems.