Financial Analysis Of Datong Coal Industry Based On Harvard Analysis Framework

Coal resources dominate the energy structure of our country.Since 2012,the coal industry has bid farewell to a decade-long golden period,and coal prices have begun to suffer a deep decline.In 2015,a large number of listed coal companies began to suffer losses,and coal companies are facing increasing financial risks and operating pressure.Based on the above background,this article uses the Harvard analysis framework to study the Datong Coal Mine,and collates the financial data of the enterprise and it's competitors from 2012 to 2016 to make comprehensive analysis.In terms of strategic analysis,using macroeconomic and policy analysis,Porter five force analysis and SWOT analysis.In accounting analysis,using accounting policies and estimates and the quality of accounting items to analyze the enterprise's inventory items,accounts receivable items and fixed assets items.In the area of financial analysis,using indicators,trends and structure analysis of the enterprise's solvency,profitability,operating capacity and cash flow are carried out,and finally using the financial distress analysis and financial strategic matrix analysis to measure the financial distress of the enterprise and evaluate the operating and financial situation of the company comprehensively.In the aspect of prospect forecast,the objective and comprehensive forecast industry's development prospect and the enterprise's development prospect,and put forward the development suggestion.According to the problems analyzed all above,hoping that it can provide reference for the same industry.Through analysis,the following conclusions have been drawn: In the background of current coal market oversupply,the coal industry is highly competitive,the threat of alternatives is small,the industry barriers are high,and the buyer's bargaining power is poor,Datong Coal Mine has high brand recognition and advanced technology.Convenient transportation and other competitive advantages.However,the current overall financial status of the company is relatively poor.Although its short-term solvency and cash flow guarantees are stronger,the divestment of fixed assets and changes in accounting policies have made greater contributions to profit growth.In essence,,the profitability,operating ability,and the development ability are poor,and fall into a certain degree of financial difficulties.At present,the company is a deducting cash surplus company,and its current core disease is its lack of profitability.The article suggested that the companies can take action such as broadening the sales market,increasing operational capacity,promoting product diversification,and improving the level of refined management.