The Application Research Of Harvard Analysis Framework In Financial Analysis Of Bright Dairy

With the improvement of the living standards of our residents,the acceleration of urbanization and the implementation of the second-child policy,people's demand for dairy products has greatly increased,which has led to the rapid development of the Chinese dairy industry.In the long-term situation,milk consumption has a large growth potential,and the dairy industry still has room for development.Bright Dairy,once one of the big three dairy industry players,has been far from Yili and Mengniu in recent years,with the risk of being squeezed out of the first echelon of dairy products.In order to help the management of the company to more clearly understand the financial status and operating performance of the company,this article chose Harvard Analysis Framework to make a comprehensive financial analysis of Bright Dairy.This article takes Bright Dairy as the research object and uses the Harvard analysis framework based on the financial statements of the five years 2012-2016 to analyze the business performance of Bright Dairy.In terms of strategic analysis,PEST analysis and SWOT analysis are used to analyze the industry environment in which the company is located and analyze the competitive strategy of the company.In terms of accounting analysis,through the identification of key accounting policies and accounting estimates,and accounting analysis of the relatively large fixed assets,inventory,and accounts receivable items in their assets,this article concludes that the selection and accounting estimates of Bright Dairy's accounting policies are reasonable and stable.In terms of financial analysis,it mainly analyzes the company's financial status,profitability and cash flow from the perspective of the three major reports,uses the financial ratio to conduct a comprehensive analysis,and compared the two other outstanding listed companies in the same industry.In terms of prospect analysis,objectively and comprehensively predict the financial outlook and business prospects of Bright Dairy,and make predictions for the future development of the company.Finally,through analysis,wefound out the problems in the business process of Bright Dairy and put forward suggestions for improvement.Through the study of this article,we can see that the dairy industry is fiercely competitive,Bright Dairy is currently in a critical period of industrial restructuring,the company's future development prospects are good,but the asset management level and solvency is slightly weaker,single product structure and quality and safety issues make it The profit space is squeezed.Bright Dairy should focus on the current situation of the company,attach importance to the upgrading of product structure,ensure the quality and safety of dairy products,and strengthen the management of assets and control of costs,improve solvency,promote better development of enterprises,and create greater profit margins.This article applies the Harvard Analysis Framework to the financial analysis of dairy companies.and has the same reference and guidance significance to the financial analysis of other similar companies.