Financial Analysis Of SAIC Based On Harvard Analysis Framework

Automobile manufacturing industry is one of the pillar industries of our national economy.By the end of 2018,China’s annual automobile production and sales were27.809 million and 28.081 million respectively,ranking first in the world for ten consecutive years.China has become a veritable auto production and sales country.In2018,due to the adverse factors such as the slowdown of macro-economic growth and Sino US trade friction,the growth rate of China’s automobile industry is weak,but the domestic automobile industry still has a large market demand.In recent years,China’s automobile industry has thoroughly implemented the concept of innovative development,actively promoted industrial transformation and upgrading,deepened innovation,and constantly promoted high-quality development of the industry.Shanghai Automobile Group Co.,Ltd.(hereinafter referred to as "SAIC Group"),as a leading enterprise in domestic automobile enterprises,maintains the first position in the same industry in terms of market share and market value.In order to help stakeholders more clearly understand the financial situation of the enterprise,this paper chooses to use the Harvard analysis framework to make a comprehensive financial analysis of SAIC Group.This paper first expounds the relevant literature of financial analysis and the basic theory of Harvard framework,and introduces the basic situation of SAIC Group,then analyzes SAIC Group from four dimensions of Harvard analysis framework,namely strategy,accounting,finance and prospect.Through strategic analysis,this paper draws the conclusion that SAIC Group is in line with its own development strategic positioning;through accounting analysis of the large-scale subjects in SAIC Group’s assets,it comes to the conclusion that the accounting policies and accounting estimates of the enterprise are in line with the requirements of accounting standards for enterprises;through financial analysis,it is compared with the financial indicators of GAC group,Dongfeng Motor and Chang’an Motor,It concludes the advantages and disadvantages of SAIC in four aspects: solvency,operation ability,profitability and growth ability.Finally,according to the opportunities and challenges faced by the automobile industry,it analyzes the prospect of the industry risks faced by SAIC.In this paper,literature research,case study,comparative analysis and other research methods are applied to research and analysis comprehensively and carefully.This paper points out the improvement of SAIC Group and provides reasonable suggestions for its future development.As a leading enterprise in the domestic automobile industry,SAIC Group can maintain its dominant position in the fierce market competition in the future only by constantly adjusting itself under the increasingly complex macro environment and strict policy system.