Analysis Of Financial Statements Of CL Building Decoration Company Based On Harvard Framework

Since China’s deepening reform and opening up in 1978,with the rapid growth of the national economy,the people’s ideological level and material and cultural level has been constantly improved,which also makes modern people have a deeper yearning for their beautiful living environment.The original Chinese traditional architecture can no longer meet the material living environment needs of modern Chinese urban residents,and people pay more attention to the beauty of architecture and environment and the enjoyment brought by life.Therefore,this has also promoted the rapid and healthy development of China’s modern construction industry and interior decoration industry,making architectural decoration enterprises gradually establish a firm foothold in China’s consumer market and continue to grow.With the gradual maturity of China’s construction market,the number of architectural decoration enterprises has been very large,has reached more than 100,000,but the number of qualified enterprises is only less than half,and there are as many as 280,000 with business licenses but no qualifications,the competition is extremely fierce.In addition,with the improvement of living standards,consumers are increasingly pursuing the environmental protection of buildings and the aesthetics of buildings,and have higher and higher requirements on materials and innovation.In this case,if architectural decoration enterprises want to be invincible in the fierce competition,they need to base themselves on the actual situation of the enterprise,make reasonable positioning,and have the development target suitable for the trend of The Times.Financial analysis is one of the core parts of financial activities.It is the business judgment and forecast made on the past,present and future of an enterprise according to its financial data,internal environment and external environment.As the main body of market economic activities,enterprises do not exist independently.Their economic activities are not only affected by the operation strategies of the market and the financial policies of the country,but also have a great correlation with the current macroeconomic environment and the background of the industry.Based on the perspective of internal users of financial statements,this paper takes Harvard Analysis framework as the research foundation and CL Architectural Decoration Company as the specific case to analyze and study the financial statements of enterprises in the five years from 2014 to 2018.According to the basic situation of CL Architectural Decoration Company,this paper,on the one hand,summarizes the traditional financial analysis methods,and on the other hand,elaborates the relevant contents of Harvard analysis framework,thus making corresponding financial analysis on CL architectural Decoration Company’s application of Harvard analysis framework.In terms of enterprise strategy analysis,PEST and Porter’s five Forces model is adopted to analyze the enterprise itself and the industry.In the aspect of enterprise accounting analysis,through the analysis of CL building decoration company’s main asset items,select the accounting items that have an important impact on the enterprise for analysis and research.In the aspect of corporate financial analysis,a series of analysis is made on the financial statements of CL Building Decoration Company.The main method of corporate financial statement analysis is ratio analysis,analyzing the company’s four abilities of profit,operation,debt repayment and growth,and comparing with other two companies in the same industry.In the aspect of enterprise prospect analysis,it comprehensively and objectively predicted the future development trend and financial ability prospect of CL Building decoration Company and put forward relevant Suggestions.Through analysis,this paper can draw the following conclusions: CL Building Decoration Company’s performance of some relevant financial indicators is good,but compared with the same industry,there are still many deficiencies,specific performance in the company’s capital structure is unreasonable,the asset utilization rate is low,accounts receivable turnover days long.To solve these problems,CL Building Decoration company needs to take corresponding measures,such as changing development strategy,seizing development opportunities,strengthening environmental protection,persisting in innovation,improving asset utilization ratio,strengthening inventory management,and improving capital structure.As for CL Architectural Decoration Company,its overall financial situation still has a great room for improvement.If the company can make timely adjustments,it will also have a higher level of improvement.In this paper,Harvard analysis framework is adopted to comprehensively analyze the financial status of CL Architectural decoration company,which makes up for the shortcomings of simple data analysis in traditional financial analysis and applies it to architectural decoration enterprises,hoping to promote the development of architectural decoration enterprises.