A Research On Financial Analysis For Dong Feng Automobile Co.LT Based On Harvard Analytical Framework

Due to the continuous progress of science and technology and the popularity of the Internet,the automobile industry is in a new stage of transformation and upgrading.DongFeng Automobile Co.LT which is one of one of the most outstanding automobile enterprises in China have some problems with its financial statements.Its accounts receivable has increased,profits have declined and even losses have occurred.In order to explore the reasons,this paper uses Harvard Analytical Framework to analyze its financial situations and puts forward reasonable suggestions for its development.In recent years,the development and innovation reform are particularly obvious.The good momentum of the development of China's new energy and intelligent network vehicles is driving the relevant automobile companies to accelerate the transformation and upgrading in related fields.However,there are some problems in the process of operation and development of automobile enterprises.Financial analysis is the most direct and effective way to understand the existing problems of automobile enterprises.Financial analysis has developed into a mature and complete system over the years.However,due to economic development and social progress,the limitations of traditional financial statement analysis to analyze financial statements are becoming more and more prominent,therefore they cannot meet the needs of people for financial information.The emergence of Harvard Analytical Framework overcomes the inherent limitations of traditional analytical methods,it can analyze the business and financial situation of enterprises more comprehensively.I select DongFeng Automobile Co.LT as the research object in the paper,and use the Harvard Analytical Framework which is based on the strategic level and analyzes accounting,finance and development prospects to analyze the financial and operating situations of the company,affirm the results achieved,such as using the "Internet +" marketing mode,reducing raw materials in order to achieve inventory reduction and car light weight,increasing R & D investment to promote the development of driverless technology and new energy vehicles.Meanwhile,I find that its accounts receivable increased,profit declined dramaticly,the weak ability to borrow money,the core competitiveness of passenger cars has not been well reflected,and the costmanagement needs to be strengthened.Finally,in view of problems mentioned above,it is proposed to establish and improve the modern cost strategic management system,improve the recovery rate of accounts receivable and account management,enhance the R&D strength and service level,so as to promote the smooth transformation and upgrading of DongFeng Automobile Co.LT in the wave of technological innovation and make great progress.