Financial Analysis Of FT Automobile Company Based On Harvard Analysis Framework

With the continuous advancement of the "One Belt,One Road" policy,the structure of China’s economy has also changed,and the automobile manufacturing industry plays an important role in China’s manufacturing industry.In 2018,domestic car production is 27.809 million vehicles,sales volume is 28.081 million vehicles.As people pay more attention to environmental protection,the country has introduced a number of new policies involving new energy vehicles,energy consumption management,which brings a new direction to the reform of the automobile manufacturing industry.At present,there are still many short plates in the financial analysis of Chinese automobile enterprises,in order to realize sustainable development,it is very important to carry out a comprehensive financial analysis of automobile enterprises.Based on the research of financial analysis,this paper analyzes the financial situation of FT automobile company by using the Harvard analysis framework and predicts the future development prospect.Firstly,the general situation of FT company and the development status and major changes of automobile industry are introduced.Secondly,the strategy analysis aspect: uses the Porter Five force model to carry on the industry competition pattern analysis for the FT automobile company,at the same time uses the SWOT analysis method to carry on the company’s internal competitiveness analysis;Through combining the analysis with the enterprise practice,obtains the enterprise concrete strategic orientation.Accounting analysis: by consulting the annual report of the enterprise to identify the accounts receivable,inventory,fixed assets accounting policies and accounting estimates and to carry on the longitudinal analysis for enterprise’s accounts receivable,bad debt,inventory and fixed assets of 2013 to 2017 and with Dongfeng Motor and China Heavy Truck horizontal comparative analysis,the quality of accounting information disclosure of FT automobile company is explained mainly from two aspects of the company’s main business and government subsidy at last.Financial analysis: from the vertical and horizontal angles to analyze FT automobile company’s profitability,operation capacity,growth capacity,solvency and cash flow to find the existing problems of enterprises,and use the DuPont comprehensive analysis method to make comprehensive analysis at last.Prospect analysis: using exponential smoothing method to make future financial forecast for FT automobile company,and then analyze the prospect of the company from the aspects of external risk and internal potential respectively.Through the financial analysis of FT automobile under the framework of Harvard analysis,it found that the existing problems of FT company in the adjustment of development strategy are not timely,asset management needs to be strengthened,and the proportion of enterprise expenditure should be reduced.At the same time put forward the corresponding solution,including: timely adjustment of enterprise strategy,strengthen asset management,improve the cost analysis system.The research of this paper can find out the main problems of FT company,to enhance the management level of enterprises,which is conducive to its sustainable development.At the same time,it can also provide reference for other enterprises to carry out financial analysis.