Analysis Of HH Tobacco Company’s Financial Statements Based On Harvard Analysis Framework

Tobacco redrying enterprises is an important part in the value chain of tobacco industry,in cigarette industrial production plays a important role in the protection of,made outstanding contributions to improve the processing quality of Chinese style cigarette,focus on creating the cigarette brand.In recent years,the continuous promotion of the joint reorganization and its own reform and development,out of a tobacco leaf tobacco re baking and cigarette industrial enterprises co ownership,the development path of the depth of integration.In this context,operating environment and business strategy occurred profound changes,and effective financial analysis,we must first understand enterprise’s operating conditions,enterprise’s profession characteristic and competitive advantage analysis,identify the critical success factors and risks,finally can make enterprise financial statement analysis.Three professor at Harvard PEP,Healy and Bernard presents analytical framework to integrate the strategic analysis and financial analysis,Harvard analysis framework,the framework is composed of strategic analysis,accounting analysis,financial analysis and development prospects analysis four elements,more conducive to don’t performance motivation and hidden behind the risk consciousness,so as to evaluate the sustainability of current performance and to predict future performance.Combined with the institutional background of the tobacco industry,with the Harvard analysis framework,huahuan International Tobacco Co.,Ltd.(ABS ring company)as an example,the 2010-2014 financial statements of longitudinal and transverse analysis,writing this article is divided into four parts.The first part is introduction,expounds the research background and practical significance,and by the Harvard analysis framework analysis method and content,Havard analysis framework and the traditional financial analysis methods of comparison,the Harvard Analysis Framework in practice application and effect of the three aspects of the research are introduced in this paper,constructs the research ideas and research framework of the article.The second part for Harvard Analysis Framework and an overview of the financial statements analysis theory,definition and the goal of the Harvard analysis framework are introduced,and the evaluation of the effect of the Harvard analysis framework,and introduces the theoretical basis of analyzing the theory of asymmetric information,market on the basis of the school,School of classical studies,empirical accounting research school’s financial statements and provide a theoretical basis for theHarvard Analysis Framework in China ring in corporate financial analysis in the application.The third part for the pursuit of integration development strategy of central China,the company’s financial statements analysis,first of the Chinese ring company basic situation,external environment and the company value and company SWOT carries on the strategic analysis,secondly in Huahuan company critical accounting policies and accounting estimates are analyzed,then to China ring the company’s solvency,profit ability,operation ability,development ability and cash flow analysis,finally,the development prospects of the company analysis.The fourth part is the research conclusion and suggestion,through the analysis of four aspects of Harvard Analysis Framework,it is concluded that Huahuan company overall development smoothly,economic running faces many pressures and challenges,for the development of the enterprise facing problems,put forward to promote with the depth of the cigarette industry,actively develop new sources of growth,the all-round cost management,advance the innovation of technology and management improvement Suggestions.This paper concluded that the following analysis conclusion: Huahuan company is currently in the enterprise development promotion period,in the same industry moderate asset size,financial condition is relatively good,for the high level of profitability,operating a small risk,cash flow is sufficient,the financial risk is very small.At the same time,enterprises are faced with the problem of tobacco resources reduction,the overall excess capacity,the cost of a large increase in pressure and other issues.This paper through the analysis pointed out that China ring company to strengthen further cooperation with the Shanghai Tobacco Group,determine adhere to brand oriented and industry development strategy of the integration of,firmly grasp the threshing and redrying enterprises processing services business location,to "Chinese","Huangshan","Nanjing" key brand orientation,brand research development direction,through the demand docking,docking technology,management and culture docking,to achieve key industrial enterprises and the depth of integration,the integration of development,is expected to China ring the company’s future business performance will continue to improve.