Research Of Financial Analysis And Evaluation Based On The Harvard Analysis Framework

The purpose of financial statement analysis is to provide effective reference information for various users of financial statement by evaluating past operating performance,measuring current financial status and predicting future development trend.The traditional financial analysis mainly evaluates the financial data,and lacks the consideration of the environmental impact in the method,lacks the systematic analysis in the process,and because the financial data is susceptible to the impact of accounting policies and accounting estimates,its conclusions are often too extensive,and it is not easy to accurately grasp the evaluation results.The Harvard Analysis Framework is a systematic financial analysis framework which is different from the traditional financial analysis methods.It combines non-financial data with financial data,conducts multi-level analysis from four aspects of strategic analysis,accounting analysis,financial analysis and prospect analysis.This framework can evaluate the operating results of an enterprise and financial conditions from a strategic point of view.So it's a systematic and scientific financial analysis framework.With the release of market access conditions for financial industry by national regulatory authorities,people pay more attention to financial enterprises.Ping An is a representative enterprise that started with insurance and rapidly developed into a domestic comprehensive financial group.Due to the different departments of Ping An are independent of each other,that acted its financial analysis usually stay in index calculation and comparison.The financial analysis of Ping An is mainly using the method of ratio analysis and comparative analysis,and are often limited by themselves financial data,because it lacks the comparison with that of the industry,It is difficult to accurately evaluate its position.The Harvard Analysis Framework is applied to Ping An in this paper.On the one hand,the application of the Harvard Analysis Framework to domestic enterprises can make the mutual promotion of theory and practice,on the other hand,put the financial statement analysis in the environment of enterprise operation,consider the management strategy of enterprises,combined with the evaluation of accounting data and analysis of the prospects,the conclusion is more complete and reliable,and can produce certain enlightenment function to the domestic insurance companies.Based on the introduction of the domestic and foreign theoretical literature about financial analysis,this paper focuses on the content of the Harvard Analysis Framework theory and analyzes the advantages of this framework.Taking Ping An as the case study object and applying the Harvard Analysis Framework to Ping An.Based on this,the comprehensive evaluation and relevant Suggestions were obtained.According to the analysis of the Harvard Analysis Framework,Ping An is facing both opportunities and challenges.On the one hand,the state attaches more and more importance to the industry,and residents' increasing consumption ability and consumption consciousness will promote the development of the industry.On the other hand,the competition situation in the industry is unprecedentedly severe.The key for Ping An to maintain its development momentum lies in how to maintain its competitive advantage and overcome the existing problems.On the whole,Ping An has adopted the business strategy of "high profit and low turnover".While ensuring solvency,Ping An has an excellent performance in profitability,and its net return on equity ranks the first among the five largest listed insurance companies.China's insurance industry has entered a new stage of deepening reform,opening up and accelerating development,and enterprises will face more fierce competition.Although the changes in the financial industry will bring about the remaking of the market pattern,considering that Ping An has taken the preemptive opportunities in the mixed operation,the rapid response of Ping An to the market indicates,Ping An has an optimistic development prospect.Finally,this paper makes a comprehensive evaluation of Ping An based on the Harvard Analysis Framework,analyzes the current problems that Ping An needs to pay attention to,and puts forward some relevant Suggestions,I hope this paper is enlightening to the insurance companies and the other industries.