Financial Analysis Of SHUANGHUI Based On Harvard Analytical Framework

With the development of economy and the improvement of residents’ income level,meat products have become an indispensable consumer goods in people’s lives.The increase in demand for meat products has provided opportunities for the development of Chinese meat products industry.The development of meat processing enterprises has made a qualitative leap and the market scope has expanded.The meat products industry has also experienced bumps in the development process.After the “Clenbuterol” incident in 2011,consumers’ trust in Chinese meat products enterprises has dropped significantly,and the meat products industry has been greatly affected.With the introduction of a series of national policies and the attention of relevant departments to food safety,enterprises have also become standardized,which has made the reputation of the meat products industry significantly improved.In recent years,with the fluctuation of meat prices,the change of consumers’ perceptions and the serious homogenization of products,the growth of the meat industry’s turnover and profits have generally slowed down.As a leading enterprise in Chinese meat products industry,SHUANGHUI has always played a pivotal role in the industry.Therefore,the use of Harvard analysis framework for the analysis of financial statements of SHUANGHUI is of great significance to enterprises and the entire industry.This paper takes SHUANGHUI as the research object and uses the Harvard analysis framework to make a comprehensive analysis of the financial statements of SHUANGHUI for the five years from 2013 to 2017.In terms of strategic analysis,the Porter Five Force model is used to analyze the situation of the meat industry,and the PEST model is used to analyze the macro environment of SHUANGHUI.In the aspect of accounting analysis,through the identification of key accounting policies and accounting estimates of SHUANGHUI,two items of inventory and fixed assets with a large proportion of assets are selected for accounting analysis.In terms of financial analysis,firstly,the three financial statements of SHUANGHUI from 2013 to 2017 are analyzed.Secondly,the ratio analysis is used to calculate the solvency,operating capacity,profitability,development capacity and cash flow,and compare these indicators with industry averages and the data of the three companies in the same industry.In terms of prospect analysis,predict objectively and comprehensively the development opportunities and risk challenges that SHUANGHUI may encounter in the future.Finally,through the above analysis,I found the problems in the business process of SHUANGHUI,and put forward corresponding suggestions.Through the analysis and research in this paper,we can understand that Chinese meat products industry is not concentrated,barriers to entry into the industry are high,the meat products industry will continue to develop in the direction of deep processing,and the profitability of the industry is expected to be further improved.SHUANGHUI has rich financial resources and significant competitiveness.It belongs to the leading enterprises in the industry.The status of the industry cannot be shaken.However,the product structure needs to be adjusted,and the company’s control over costs is insufficient,which leads to the deterioration of the company’s profitability;SHUANGHUI has low management efficiency of fixed assets,which has seriously affected the company’s operational capabilities.The rate of new fixed assets has been declining,reflecting that the company’s fixed assets are slow to update,and that there is no adequate preparation for expanding reproduction,which will have a negative impact on the company’s sustainable development capabilities.SHUANGHUI should focus on product transformation and upgrading in this situation,strengthen channel development,grasp market conditions,control procurement costs,and improve the efficiency of fixed asset operations,thereby promoting better development of enterprises.