Financial Analysis Of HBE Company Based On Harvard Analysis Framework

In recent years,the demand for electrical control is increasing in developing countries.China is one of the largest developing countries in the world.The economy has been developing rapidly.Especially in recent years,the industrial scale of new energy vehicles is also constantly expanding,and the bright spots of new energy automobile parts manufacturing enterprises appear frequently,which gives more high-tech enterprises opportunities and makes China's manufacturing industry become increasingly powerful.At the same time,it is also an opportunity and challenge for HBE,which is also an electrical machinery and equipment manufacturing enterprise.For enterprises,financial management is an important factor to ensure their normal operation,and financial analysis is the core of financial management.However,the traditional financial analysis used by HBE cannot combine the strategic analysis with the financial situation of the enterprise.The traditional financial analysis only conducts quantitative analysis on the company according to the data of financial statements,but ignores the influence of external environment and its own strategy on the company's business situation.HBE company can use Harvard analysis framework to analyze business results in a more comprehensive and multi-angle way,which has a good reference value for the company to improve business performance and improve business decisions,and to some extent solves the defects of traditional financial analysis.This paper applies the Harvard analysis framework to conduct qualitative and quantitative analysis on the financial situation and operating results of HBE company.The strategy analysis includes the macro-environment analysis with PEST analysis,the industry environment analysis with Porter's five forces model and the competitive strategy analysis with SWOT analysis.Identification of danger signals through accounting analysis,accounting analysis mainly includes key accounting policies and accounting estimates as well as the analysis of important accounting items.Financial analysis includes capital structure analysis,financial position and operating results analysis and cash flow index analysis.Outlook forecast includes industry outlook and company outlook.Through the above analysis,problems existing in the operation of HBE company were found,and corresponding countermeasures were put forward.The purpose of this paper is to conduct a more effective analysis of HBE's financial results and operating conditions through Harvard analysis framework,so that Harvard analysis framework can be better applied to electrical machinery and equipment manufacturing enterprises.