Financial Analysis Of SCG Company Base On Harvard Analysis Framework

Recent years,the shortage of fresh water resources and the rapid development of the economic,have made the water management industry draw attention of government,citizen and the capital as well.Due to the particularity in start-up investment,long period,and the low profit,the entry requirement for this industry is relatively high.At the same time,the completion in the industry is gradually more and more fiercely due to the expansion of the companies under the support of government and the investment capital.More problems have been exposed because of the over speed expansion as well as the technology immaturity.Therefore,as an essential tool of providing supportive information for decision making,financial analysis is rather important.This article will use the Harvard Analytical Framework to analyze the public financial reporting data and internal document(relevant data of revenue and profit,operation activity and extra)of Case Company Simulation,try to explain the analyzing target,process and conclusion of Harvard Analytical Framework along with giving support to information-users in making decision.This article has 5 main parts.The first part is introduction which firstlyintroduces the background and the meaning of this article as well as the analyzing method and the innovation point.The second part is the strategic analysis of the case.In this part,background of Case Company and its industry has been given.Additionally,PEST and SWOT analyzing tools have been used for the external environmental analysis and the internal location as well which in order to introduce the Harvard Analytical Framework.The third part is the key point of this article which is using Harvard Analytical Frame work to Analyzing the financial report of the case company which in order to find the hidden problem in the case company.By analyzing the balance sheet,comprehensive income statement,cash flow,financial ratio and comprehensive analysis,the real financial status,operating condition could be determined.The forth part is the forecast of the case company and the industry.Lastly,the fifth part is to make conclusion of this article and to give advice to the internal management team and external investors based on the found problems.By analyzing,the case company got the problems of decrement of profit,large cost,decrement in ability of paying debt,low ROI in the environmental protection industry,relying on external fund to expand too much.Therefore,the advice given by this article ismainly focusing on building core competence,diversifying,controlling the cost and restructuring for internal management team.For external users,take the chance of policy and the case company and the industry worth investing and have good space of developing under current situation.