Enterprise’s Comprehensive Financial Analysis Based On Harvard Analysis Framework

The exposure of the melamine contained in San Lu infant milk powder in 2008 resulted in people’s disappointment at domestic dairy.Therefore,the daily industry developed difficultly with lots of problems in business,sales decline,accumulation of stock,and the risk of breaking the chain of funds.After the melamine event,with the help of the national dairy industry restructuring and revitalization plan,China’s dairy industry has entered the stage of development and adjustment.In January 9,2017,the national dairy development plan(2016-2020)put forward new requirements for the development of dairy industry which draw public’s attention again.Located in Urumqi,Xinjiang province,TR Dairy Limited Company is a health food processing base of the corps.In recent years,the Xinjiang region has also introduced the Corps dairy restructuring program to promote the development of the local dairy industry.With the support of national and regional policies,TR Dairy Limited Company enjoyed a great opportunity for development.Although some progress has been made,there is still a big gap between Yi li,Guang Ming and other famous dairy enterprises.This paper first describes the background and significance of the research and then tries to understand the basic theories,relevant methods,area of application and matters needing attentions of Harvard analysis framework by reading a lot of literatures at home and abroad.At the same time,this paper also analyzes the status quo and related policies and regulations both at home and abroad.Then the basic theory introduces the origin,the basic connotation of Harvard analysis and highlights its advantages.Then the current situation of TR Dairy Limited company was studied and the deficiencies of current financial analysis methods was pointed out.The following is the core of this paper which comprehensively analyzes the Harvard framework from four aspects: strategy,account,finance and prospect.Then reasonable suggestions are given from these four aspects.The last part is a summary of the full text on the basis of the application and research points.This paper agrees that the Harvard analysis framework is an effective financial analysis method and it can comprehensively analyze the current and future business.The following conclusions can be made by using the Harvard Analysis Framework to analyze the finance of TR dairy company: first,the key to expand the mainland market lies in constructing a perfect marketing system and should increase the electricity supplier channels while improve the traditional marketing channels at the same time so as to realize multi channel development strategy.Second,the growth of biological assets should be accompanied by an increase in milk resources and inventory accumulation and the inventory should be reduced and increase turnover.Third,there should be less debt financing and adjust the asset liability ratio to improve the lack of use of financial leverage and the low utilization of funds.Fourth,innovation is the key to the future development of dairy products.It is important to introduce professional equipments and senior personnel to achieve differential business model.