Financial Analysis Of Hengyuan Coal And Electricity Company Based On Harvard Analysis Framework

The coal industry has an important position in China and is a pillar industry.2002-2011,was known as the golden decade of coal industry.However,since 2012,the coal inventory backlog has been severe,coal prices have fallen sharply,and most coal enterprises are at a loss.In order to alleviate this situation in the coal industry,the state has started macro-control since 2015.As the supply-side reforms continue to deepen,they have undergone increasingly profound changes.This article selects the first listed coal enterprise in Anhui Province-Hengyuan Coal and Electricity as a case,using the Harvard analysis framework to comprehensively analyze the financial data of the five years from 2014 to 2018 from four aspects.Analyze the financial status of the enterprise and dig out the existing problems.At the strategic level,the macroeconomic and policy environment is studied,and the SWOT analysis method is used to analyze the Hengyuan coal-fired power strategy.At the accounting level,it focuses on the analysis of accounting policies and accounting estimates for key subjects such as Hengyuan Coal and Electricity's fixed assets,accounts receivable and inventory.At the financial level,according to the financial data of 2014-2018,financial analysis is carried out around the four important aspects of the balance sheet,profit statement,cash flow statement,and solvency,operating ability,profitability,and growth ability.Du Pont analysis method studies the profitability and business performance of Hengyuan Coal Power.In terms of prospect forecasting,the Z-score model financial early warning system was established in combination with the previous three levels of analysis: strategy,accounting,and finance,to conduct prospect forecasting analysis on Hengyuan Coal and Electricity.Through the analysis of Hengyuan Coal Power's four levels,it shows that Hengyuan Coal Power has the advantages of brand and customer,location,management,mining technology,etc.The selected accounting policies and accounting estimates are in accordance with the accounting standards,and have good profitability and good cost control ability.But there are disadvantages such as low market share,poor inventory turnover ability,general fund operation ability,weak debt repayment ability,single main business,etc.The comprehensive analysis of Hengyuan Coal Power's future financial situation has a good forecast.Combined with the analysis,this paper puts forward development strategies and suggestions for Hengyuan Coal and Electricity to integrate into theoverall development situation with the help of location advantages and development opportunities,strengthen research and judgment,keep up with industry guidance,strengthen refined management,determine reasonable capital structure,focus on innovation and breakthroughs,and appropriate diversification.This paper studies Hengyuan Coal and Electricity,hoping to analyze the current economic situation,industry dynamics and financial situation faced by coal companies,to understand the internal and external environment of the industry,to provide suggestions for enterprises to continue to operate and develop well,and provide references for companies in the same industry.