A Case Study Of Pien Tze Huang's Financial Analysis Based On The Harvard Analysis Framework

With the development of economy and society,the principal contradiction of the society has been transformed into the contradiction between people's growing needs for a better life and unbalanced and inadequate development,and people pay increasing attention to their health and quality of life.Against this background,the big health industry is strongly supported by the state,contributing to the fast development of pharmaceutical industry and the establishment of more listed pharmaceutical companies.Different pharmaceutical companies have different management ideas and development strategies,and their business effects and prospects vary considerably.It requires that the information users master scientific methods of financial analysis,make comprehensive and objective analysis and judgment of company strategies,asset quality,profit quality,and even development prospects before making sensible judgments and decisions.Financial analysis is an important method to judge the status quo and future growth of an enterprise.However,the obsoleteness,singleness and one-sidedness of traditional financial analysis methods become increasingly prominent in the current complex and changeable market economy environment,unable to meet the decision-making needs of report users.Therefore,modern financial analysis must break the limitations of traditional methods,broaden the dimensions of financial analysis to identify the company's strategy,financial status,operation status,development prospect and the internal logic of these dimensions comprehensively,objectively and scientifically,so that the reasonableness of decision-making can be improved.Harvard analysis framework came into being under these circumstances.The paper selects the high-quality company in the pharmaceutical industry-Zhangzhou Pien Tze huang Pharmaceutical Co.,LTD.(hereinafter referred to as the Pien Tze huang Company)as an example and adopts the Harvard analysis framework to make comprehensive financial analysis from the four dimensions of strategy analysis,accounting analysis,financial analysis and prospect analysis and explores the internal logics of these dimensions based on the company's financial and non-financial data from 2009 to 2018.The paper provides a new analytical perspective for information users in decision-making.The analysis results are as follows.At the company's strategic level,the company is in a favorable environment and enjoys development advantages.It can take the SO growth strategy to give full play of the influence of its core products and expand its industrial scope.At the accounting analysis level,the asset scale and revenue of the company have been on the rise,and the proportion of fixed assets have been decreasing.The resulting light-asset strategy significantly reduces the operating risk of the company and the high proportion of monetary funds is conducive to the production and operation of the company.The financial analysis suggests that the company's financial risks are relatively small,so other investments can be appropriately increased to improve the return on capital.The strategic analysis,accounting analysis and financial analysis of the company suggest that that Pien Tze huang Company has a promising development prospect and potential with the strong policy support if it utilizes its own strategies,industrial position and brand advantages strategies properly.The case study suggests that Harvard analysis framework can comprehensively and objectively reveal the company's past,present and future financial conditions and development prospects through the four dimensions of strategic analysis,accounting analysis,financial analysis and prospect analysis,and effectively support the decision-making of stakeholders.