Financial Analysis Of X Auto Parts Enterprises Based On Harvard Framework

In the process of development,the automobile industry is increasingly showing the trend of globalization and professional process segmentation,and the improvement of the degree of specialization makes the automobile parts industry gradually independent of the automobile industry,and become an important part of the whole automobile industry.However,in recent years,affected by the economic downturn and demand,the automobile market continues to decline,and all kinds of adverse effects have been transmitted to the auto parts industry.In addition,due to the high price of raw materials,China’s auto parts enterprises are facing high operational risk and financial pressure.In recent years,with the emergence of the trend of "new four modernizations",the auto parts industry is also facing opportunities and in a critical period of transformation.How to survive the industry crisis and complete the industrial transformation and upgrading is the most concerned problem of the industry enterprises.Since the beginning of the scale of X enterprises in 2008,the X enterprises studied in this paper have always been in the leading position in the automotive parts segmentation field.After several successful overseas merges,the X enterprises in this paper have maintained a leading position in the field of segmentation,and achieved counter growth in 2018 and2019.However,affected by the industry environment,it is still facing a series of challenges such as insufficient profitability and high operational risk,as well as the development opportunity of transformation and upgrading of auto parts industry.In this paper,combined with the characteristics and current situation of the current domestic auto parts industry,based on the Harvard analysis framework,using the case analysis method,select the financial data and industry data in the annual report of X company to sort out,and analyze the company from four parts.Through the analysis,it is found that the enterprises have the problems of slow process of resource integration,low gross profit margin,imperfect supply chain and cash shortage.Then it puts forward some improvement suggestions for the enterprises,such as accelerating the integration,optimizing the supply chain,making reasonable profit distribution policies and speeding up the business transformation.