Based On The Financial Statement Analysis Of DZCM Company Under The Harvard Analysis Framework

At present,China's economic development has entered a new normal and new situation which requires new development.However,cultural industry is highly valued by relevant governing departments with self-evident importance as a special industry of national economy.Furthermore,because of its huge growth potential and many preferential policies,the development of cultural enterprises will be further improved under the new historical conditions.DZCM is the only listed company of cultural publishing in Gan Su province.Its magazine “readers” is popular at home and abroad,and has successfully received wide attention from various industries since its launch.As a less developed areas in economy good enterprise culture class,its development history before and after the launch,especially its financial performance for its future development is undoubtedly holding important reference values.However,Harvard Analysis Framework structured a strict theoretical system of financial statement analysis with its the four steps of unique strategy analysis,accounting analysis,financial analysis and prospect analysis as a more comprehensive analysis method compared to traditional financial statement analysis.Based on Harvard in the specific application of the DZCM Company,this paper systematically applied the comprehensive analytical framework such as financial ratios and other related financial indicators and studied the relevant trends by the company annual financial statements analysis from 2013 to 2016.Moreover,some of the problems that exist are revealed while relevant improvement measures are suggested which has a certain reference against related enterprise.The research found that: the net profit of DZCM is decreasing year by year while its assets keep rising against its low asset management efficiency,and its corporate debt is maintained at a low level and cash flow is abundant.Meanwhile,the following suggestions are proposed over the problems found: relevant strategies shall be timely adjusted to promote the development and transformation of enterprises;the production management shall be effectively improved to reduce excessive overhead costs;special attention shall be paid to the rational allocation and funds use while the benefits of funds shall be fully played to enable the enterprises with better development.