Financial Analysis Of Zhongtai Automobile Company Based On Harvard Framework

From 2018 to now,due to the impact of macroeconomic downturn,Sino US trade war and the comprehensive withdrawal of China’s purchase tax policy,China’s automobile market has been facing tremendous pressure.The automobile market has ended the growth trend that has been maintained since 1991,showing a slight decline.At the same time,the periodicity of automobile industry is obvious,the product homogeneity is serious,and the development of automobile industry in China is facing unprecedented challenges.Therefore,it is particularly important for Zhongtai auto,an independe-nt brand auto manufacturer,to deal with the complicated environment of the current auto market.This paper uses the relevant theoretical knowledge of Harvard framework to analyze the operation of Zhongtai Motor Company in 2014-2018.First of all,it is strategic analysis.The paper first uses SWOT analysis to analyze the strategy of the enterprise at this stage,to make clear the advantages of the enterprise,and to realize that the core technology research and development of the enterprise is at a backward level,and the human cost investment is insufficient.Then it uses Porter’s five forces model to analyze the situation of the automobile industry where the enterprise is located,and to make clear that the competition between the existing enterprises is still very fierce As the bargaining power of customers is still very strong,enterprises still need to improve the level of technology research and development;the second is accounting analysis,which mainly analyzes whether the accounting policies and accounting estimates of Zhongtai automobile are reasonable.Firstly,this paper selects the key accounting subjects of enterprises,analyzes their quality,and further studies whether the account-ting policies and accounting estimates used by enterprises will lead to the distortion of accounting information.The research finds out that the depreciation of machinery and equipment in the fixed assets of the enterprise is too long and the proportion of bad debt provision of accounts receivable is unreasonable.Then it is the financial analysis.The article mainly analyzes the four aspects of solvency,profitability,operation ability and growth ability,and finds that there are still problems in the inventory manage-ment,long-term solvency and cost control of the enterprise The chapter also puts for-ward the corresponding suggestions;the last is the prospect analysis.The article first forecasts the risks that the enterprise will face from the internal and external aspects of the company,and then makes a prospect analysis on the enterprise.It finds that although the enterprise faces the risks of the macroeconomic environment,national policies,technological bottlenecks and costs,the enterprise only needs a little If the strategy of the enterprise is slightly adjusted and the enterprise continues to operate,the enterprise can certainly do better in the industry and achieve its goal of "being a first-class automobile enterprise".