Finanical Analysis Of CG Company Based On Harvard Analytical Framework

CG excavator has been in the Chinese market for more than 20 years.In the past20 years,with the rapid development of China's economy,CG has ushered in its own glory in the Chinese market.As the active fiscal policy of 4 trillion Yuan driving in 2008,the excavator industry created its own mythology,and reached a historical peak.However,with the economic downturn in 2012,the excavator industry has entered a comprehensive adjustment period.There have been overcapacity,lack of demand,debt recovery difficulties and other issues,CG excavator felled into an unprecedented business dilemma.Taking the financial statements of Chengdu CG Company from 2011 to 2016 as the research object,this paper uses the framework of Harvard financial statements analysis to analyze and research CG company,mainly from the aspects of strategic analysis,accounting analysis,financial analysis and foreground analysis,using the theoretical analysis,case analysis and comparative analysis and ratio analysis methods,and so on.This paper first introduces the situation of CG Company.Based on the Harvard financial statement analysis framework,this paper take the strategic analysis as the starting point,and then analyzes the internal and external environment of CG,and identifies the resources,ability and risk of CG,laying the foundation for the follow-up accounting analysis,financial analysis and prospect analysis,guiding the overall logical structure of financial statements analysis.The effectiveness of the company's strategic analysis not only helps to correctly analyze and judge the company's accounting environment and accounting strategies,but also demonstrates the inherent causal and truthful reflection of the company's strategic and financial analysis.In the part of accounting analysis,the article focuses on four important statement items such as accounts receivable,accounts receivable-other,inventory,fixed assets and contingent liabilities to analyze whether the specific accounting policy choices and accounting estimates are appropriate,whether the quality of accounting information is distorted,assessing the overall assets,liabilities,profitability,laying the foundation for truth and comparability for the financial analysis below.The financial analysis mainly evaluates the company's operating performance,management efficiency and various financial control capabilities from the perspectives of the four major financial capabilities.Finally,the prospects analysis focuses on predicting and evaluating the future growth potential of CG Company.The final part of the thesis is the conclusion and management strategy.Through the application of the Harvard analysis framework to CG Company,on the business strategy,we should pay attention to the business risk under which the market share of CG is the only orientation and entrustment consignment mode.On the accounting,we should focus on the quality of claims,the appropriateness of using bad debt policy and the appropriateness of expected contingent liabilities arising from external guarantees.On financial analysis,we should focus on short-term solvency,operational capacity,preventing financial risks,improving the capital structure,enriching the capital.On prospects,we should be planning in the strategic and financial aspects,to speed up the restructuring plan of the CG.