Financial Statements Analysis Of ANNE Incorporated Company Based On Harvard Analysis Framework

Since the beginning of the 21 st century,China has developed rapidly and become one of the world’s leading powers.But it also faces some problems,the environmental pollution is one of them.The relevant government departments and the public have realized the seriousness of environmental pollution.So Management environment,change current situation is the matter that must take seriously at present.In the process of environmental governance,some industrial enterprises have become the focus of governance.The paper industry brings the problems of resource utilization and environmental pollution,and its influence on resource and environment cannot be ignored.In order to reduce the environmental pollution,the relevant departments require papermaking enterprises to increase the sewage treatment equipment,so the cost of papermaking enterprises will be greatly increased.Some enterprises with weak profitability and small scale have difficulty in development and gradually withdraw from the paper industry or strategic transformation.ANNE Incorporated Company is one of the listed companies in the paper industry,but its business performance fluctuates greatly in recent years.In particular,there were large losses in 2014 and 2017,and the performance in other years was not optimistic.The financial performance in recent years has a lot to do with the diversification strategy transformation stage of Anne,which can be said to be a typical representative of the paper industry in the transformation of the Internet industry.Taking ANNE as the research object,this paper makes a deep analysis on the operating results and financial situation of ANNE by using harvard analysis framework,which is different from traditional financial analysis.In the strategic analysis,this paper analyzes the external industry environment faced of ANNE with PEST analysis method,and analyzes the internal environment of ANNE with SWOT analysis method,and evaluates the appropriateness of their strategic choices in combination with internal and external environment.It is found that Anne’s choice of diversification strategy transition is a wise decision in line with the current situation,but the lack of innovation ability and research ability will become the resistance to development.In the accounting analysis,this paper preliminarily identifies the key accounting subjects based on the company’s diversification strategy and current development,and analyzes accounting policies and accounting estimates with companies in the same industry.In the financial analysis,this paper finds that the financial situation of ANNE is greatly affected by diversification strategy,especially in terms of profitability.In order to develop the diversification strategy,ANNE frequently acquired subsidiaries,and a large amount of goodwill appeared in the company’s financial statements.Because the acquired company failed to meet its performance promise in 2017,ANNE withdrawn for impairment of goodwill,the company’s net profit fell sharply.In order to promote the diversification strategy,ANNE purchased subsidiaries by issuing shares and paying cash,and raised supporting funds.Compared with companies in the same industry,the capital structure of the company is not reasonable.Therefore,the ratio of debt and equity should be reasonably matched to reduce the cost of capital.At the early stage of the development of digital copyright business,the payback cycle is relatively long,which makes the operating efficiency of receivables of ANNE low.Therefore,it is necessary to improve the management level of receivables and focus on the overall operating efficiency of assets.In the perspective analysis,this paper expounds the industry prospect and company prospect of Anne.This paper believes that if ANNE actively responds to risks in strategic transformation and improves management level,it will have a broad future.