Financial Analysis Of Gold-tide Company Based On The Harvard Analysis Framework

Agriculture and animal husbandry are the pillar industries of our national economy all the time,it is the fundamental guarantee for the existence of the 1.4 billion Chinese people,feed industry serves as the intermediate industry of agriculture and animal husbandry,also playing a very important role in the whole economy.China's feed industry started later than western developed countries,but in just a few decades has made remarkable achievements,became the world's largest feed producer.However,compared with mature industrial enterprises,China's feed industry enterprises still have problems such as extensive management,imperfect management system,weak financial system and low technical content.With the deepening of reform and opening up and the continuous growth of China's economy,China's feed industry enterprises are undergoing a process of transformation from traditional industry to modern industry,it is urgent to analyze the development status of enterprises in this industry,find the problems in the feed industry and propose feasible solutions by means of multi-dimensional financial analysis framework and other means.This essay is based on Harvard analysis framework and takes Gold-Tide,typical representative of feed industry enterprises,as the target company and use its financial data from 2013 to 2017 to do comprehensive analysis.First is strategic analysis,PEST model is used to analyze the external macro environment of Gold-Tide,and SWOT model is used to analyze the internal advantages and disadvantages of the company as well as the external opportunities and threats.Furthermore,it uses accounting analysis,this essay analyzes and evaluates the target company from asset quality,liability quality and profit quality three aspects.Then on the basis of accounting analysis,it makes a horizontal and vertical financial analysis of this company from four aspects: operation ability,debt paying ability,cash flow and profit ability.Finally this essay analyzes and predicts the development prospect of the company and the whole feed industry.Through applying Harvard analysis framework to Gold-Tide,this essay finds that the enterprise not only has not formulated a business model conforming to the industry development trend,but also adopts the centralized strategy of taking the production base as the center and radiating the surrounding market.Because it has touched too many provinces in a short period of time,the distribution of resources is scattered and the management scope is too large.Many subsidiaries have been unable to open the sales situation for many years and have been losing money,which has become a drag on the development of the company.At the same time,the company is negligent in the management of enterprise assets,and the accounting estimation of inventory depreciation reserve and fixed assets impairment is not prudent enough,and the internal control system related to assets may be defective.At present,the company still lacks a set of feasible cost management and risk prediction system,which makes its production cost vulnerable to the impact of raw material price fluctuations.The company relies heavily on external funds to maintain its normal operation,and has a single financing channel and unreasonable financing structure.In view of these problems,this essay puts forward a series of suggestions for reference,and forecasts the future development prospect of the company according to industry status quo and the business development strategy implemented by the company's management in recent years.