The Application Research Of Harvard Analysis Framework In X Steel Enterprise

The steel industry,as the basic industry of the country,is the material guarantee of the country’s production and development,which embodies the country’s economic strength and Comprehensive National Power level.With the world economic slowdown,domestic economic downward pressure increased,China’s steel industry is facing a series of challenges.Over-capacity,high level of product homogenization,increased environmental protection costs,seriously reduce the overall benefits of the steel industry,the competition among enterprises more intense,many enterprises appear losses or even bankruptcy.Financial analysis plays an important and irreplaceable role in measuring the level of business management and evaluating the business performance of enterprises.Effective financial analysis should not only focus on the analysis of financial information of enterprises,attention should also be paid to the analysis of non-financial information.The Harvard Analysis Framework was proposed by three American scholars.On the basis of the traditional financial analysis,the financial analysis object is eXtended from the financial statements to the macro-economic environment,the industry competitive environment and the micro-environment related to the business operation,it is a comprehensive and comprehensive financial analysis method to carry out accounting,financial and prospect analysis on the basis of strategic evaluation,which overcomes the defects of traditional financial analysis to a certain eXtent.X Iron and Steel Enterprise is a private iron and steel enterprise located in Hebei Province.It has developed rapidly since its establishment.In recent years,due to weak eXternal demand and low industry concentration in the steel industry,enterprises are faced with greater competitive pressure,in addition to insufficient internal R & D capacity,limited product deep processing capacity,weak market competitiveness and declining profitability of enterprises,the product is facing the difficult position of unsalable.Based on this,this paper introduces the Harvard analysis framework into X steel enterprise,makes a comprehensive and detailed study from four dimensions,finds out the eXisting problems of the enterprise and gives corresponding suggestions,in order to provide effective financial information for the users of financial statements,to provide constructive suggestions for the sustainable development of enterprises.Through the analysis,it is found that X iron and steel enterprises adopt the strategy of cost differentiation,in order to improve the profit level,they have changed their main products,and the results are good,strong ability to pay debts.However,the insufficient use of idle funds will also lead to low financial leverage,affecting the efficiency of enterprise investment.DUE TO THE LACK OF R & D investment,the innovation ability of enterprises is limited,the market competitiveness of products is low,and the growth ability needs to be improved.In the future development,X Iron and steel enterprises should strengthen the management of funds,appropriately carry out diversified investment,improve the operating efficiency of enterprises,increase the strength of talent introduction and investment in R & D,and on this basis broaden the marketing channels,eXpand the market share of products and realize the maXimization of enterprise value.