Financial Statements Analysis Based On Harvard Analysis Framework Of Jilin Forest Industry Co.Ltd.

Jilin Forest Industry Co.Ltd.(hereinafter referred to as “Jilin Forest Industry”),as a leading enterprise in the wood processing industry in Jilin Province,has made important contributions to the wood processing and wood bamboo and rattan brown grass products industry in Jilin Province.However,in recent years,affected by factors such as increased economic downward pressure,national restrictions on mining policies,and continuous regulation of real estate,Jilin Forest Industry,who suffered from the policy black swan,has entered a difficult transition.Jilin Forest Industry's main wood-based panel business has been greatly affected,operating profit.A sharp decline,the trend of loss expansion in 2015.In July 2018,the State Administration of Taxation adjusted the VAT refund policy for the wood-based panel industry.The tax rebate rate was adjusted from 80% to 70%,and if it was included in the high-pollution,high-environment risk product catalog,the VAT refund rate will drop to zero.This casts a shadow over the outlook for the wood-based panel industry.Based on the policy background of the wood-based panel industry,this paper applies the Harvard analysis framework to the comprehensive analysis and research of Jilin Forest Industry financial statements.In terms of strategic analysis,this paper uses the Porter Five Force model to analyze the internal and external environment of Jilin Forest Industry,and its industry is fiercely competitive.As economic development enters a new normal,Jilin Forest Industry has launched strategies such as product differentiation,brand differentiation,personnel differentiation,policy differentiation and diversified structure to enhance the company's profitability and sustainable operation capabilities to bring to shareholders' good return.In terms of accounting analysis,it focuses on the analysis of Jilin Forest Industry's key accounting policies and accounting assessments,and makes a reasonable assessment of Jilin Forest Industry's accounting policy changes to determine whether there are management risks such as false profits.The analysis shows that although Jilin Forest Industry changed the accounting policies of the company in 2014 and 2017 according to the requirements of the Ministry of Finance,the two changes did not have a significant impact on the financial statements of Jilin Forest Industry.In addition,the inventory and fixed of Jilin Forest Industry Assets and accounts receivable were analyzed.In terms of financial analysis,it mainly analyzes four aspects: balance sheet,profit statement,cash flow statement and important financial indicators.It is concluded that Jilin Forest Industry cost management control is relatively good,repayment pressure is high,and profit quality is not high.Conclusions such as low return on assets and low profitability.At the same time,this paper uses the DuPont analysis model to make a vertical comparison of Jilin Forest Industry itself and a horizontal comparison with companies in the same industry.The short-term debt repayment pressure is obvious and has a certain short-term debt risk.In terms of prospect analysis,with the transformation of Jilin Forest Industry and asset restructuring,the main business diversified,profitability and anti-risk ability have been improved,asset size and asset quality have also been improved,and corporate vitality has been continuously enhanced.Based on the analysis results of Harvard financial statements,this paper puts forward four suggestions for Jilin Forest Industry to implement differentiated strategy,improve internal governance environment,expand market sales and strengthen cost management.Implement a differentiated strategy,focus on detailed decomposition,use continuous innovation as a means to form differentiated competitive advantages;improve internal governance environment,prevent internal fraud through internal supervision such as the Commission,audit committee,and compensation committee,and reduce commission Agency costs;strengthen sales management,grasp the balance between price and profit,grasp the golden period of new industries,form a brand effect,and use policies such as credit,promotion and incentives to promote sales.Strengthen cost management,identify redundant and controllable sales and management expenses,reduce expenses,and increase utilization.In summary,although Jilin Forest Industry faces many problems,if the company can properly solve the existing problems and risks,it can reduce the performance fluctuations,and it is expected to achieve long-term sustainable development in the future.