Financial Analysis Of Shaanxi Coal Industry Based On The Harvard Analysis Framework

In the context of macroeconomic fluctuations and a downturn in the coal industry,Coal companies face varying degrees of financial problems such as difficulties in sales,falling coal prices,difficulty in recovery of accounts,and tight cash flow.The uncertainty of the external environment of coal enterprises has intensified.Traditional financial analysis methods can no longer meet the needs of coal companies for financial analysis.However,there are few studies on the financial analysis of coal companies for the macro environment.The Harvard analysis framework is a mature financial analysis method.The framework fully studies the financial status of a company from the strategic level,the accounting level,the financial level and the prospective level,so as to obtain a more systematic and accurate financial analysis result.Therefore,it is necessary to use Harvard analysis framework to analysis the financial status of coal companies.Based on the actual needs of coal companies,this paper uses Shaanxi Coal as the case study object,using the Harvard analysis framework,based on the accounting level and the financial level data,combined with the non-financial factors of the strategic level to conduct a comprehensive financial analysis of Shaanxi coal industry.At the strategic level,the macro-environment of Shaanxi Coal Industry was analyzed in terms of political environment,investment and financing environment,and sustainable development.Porter Five Forces model was used to analyze the industry environment of Shaanxi coal industry,and SWOT analysis was applied to Shaanxi Coal business strategy analysis.At the accounting level,analysis was conducted based on changes in major account:ing policies for 2012-2016 and related key accounting items.At the financial level,according to the 2012-2016 financial statement data,Shaanxi Coal Industry's solvency capability was analyzed from the financial status,cash flow,long-term and short-term debt repayment levels,and Shaanxi Coal's operational capacity was based on operating indicators and working capital requirements.The analysis was carried out to analyze the profitability of Shaanxi Coal Industry based on profitability indicators,profitability quality,profitability trends,and DuPont analysis.At the prospective level,qualitative research is conducted in conjunction with corporate strategies,and Z-score models are established based on accounting and financial related indicators for quantitative research.Through the above studies,it is shown that Shaanxi Coal has financial difficulties such as financing difficulties,strong buyer bargaining power,threat of substitutes,and single main business,rising costs,weak debt repayment ability,etc.It is recommended that Shaanxi Coal Industry expand financing channels,enhance product advantages,and optimize Main business projects,formulate reasonable debt repayment and operation plans,and establish a sound strategic decision-making and supervision mechanism to avoid financial risks in a timely manner,with a view to providing decision support for the future operation and development of coal companies.