Financial Statement Analysis Of SATURDAY Based On Harvard Analysis Framework

This year marks the 40 th anniversary of China’s reform and opening up.Recently 30 years,Chinese shoe industry experienced a paragraph of rapid development.Nowadays,shoe industry realizes sufficient competition basically,facing with a gradual rise in production costs and new consumption channels.Traditional shoe stores and their brand premium suffered a heavy blow.Their profit model has changed and their advantages have dissipated.SATURDAY Corporation is the first listed shoe enterprises in China which once gotten much outstanding achievement.Its profitability was close to or even beyond the industry giants—BELLE and Daphne.With annual operating income of less than 800 million,it can create nearly 100 million net profits.After the Initial Public Offerings,the company expanded its scale and was once regarded as the leader of China’s future fashion women’s shoes by the industry.Its stock price rose steadily and became an investment hotspot for a time.However,its performance in recent years is far less than that of the brilliant,even at a huge loss.In addition to the negative impact of the overall decline of the industry,its strategic layout and management problems also exist.In order to find out the reason behind the problem,it is necessary to make a systematic financial analysis.In the current economic environment,enterprises are faced with not only rigid data in the process of development,but also surging market environment and unique competitors.Therefore,it is far from enough to only analyze the data of financial statements.It is necessary to make a quantitative and qualitative financial analysis of the enterprise based on the strategic analysis in combination with the internal and external environment of the enterprise.So,I use the Harvard Analysis Framework to conduct a qualitative and quantitative analysis of the financial statements of the SATURDAY from 2013 to 2017,and puts forward Suggestions for the existing problems of the company at the present stage.There are four chapters in this paper.The first chapter is the introduction,which includes the research background,significance,methods and contents,as well as the theoretical basis and literature review.The second chapter describes the basic situation of the company,including the nature of the company and the business of the company’s current operating conditions.The third chapter is the core content of the thesis.That is the financial analysis of the SATURDAY in the Harvard Analysis Framework.In terms of strategic analysis,it is found that the company is now in the industry environment where new consumption channels rise and consumer demand changes.Facing the situation of sufficient competition among enterprises in the industry,the company actively explores the development path and formulates the development strategy with the core goal of "creating a fashionable IP circle".After the identification and evaluation of key accounting policies,I carry out the specific financial analysis of SATURDAY,using a variety of financial analysis methods and found that the company has the problem of unreasonable assets and capital structure,high financial leverage and poor profitability.In addition,in order to implement the new strategy and weaken the business of footwear products,the company pays attention to the development of the fashion new media field,and the provision for large inventory decline caused by inventory overstocking over the years,as well as the goodwill impairment provision of the footwear subsidiary,which is also the direct cause of the company’s huge losses in 2017 By analyzing the existing risks of the company and predicting its prospects according to the analysis results,this paper believes that its development results are affected by many factors,and whether its development prospects are positive or not depends on whether it can successfully raise capital and form its unique core competitiveness.Chapter four puts forward relevant Suggestions to solve the problems existing in the company,and provides substantial help and support for Saturday’s sustainable development.