Financial Analysis Of Gree Electric Appliances Based On Harvard Analysis Framework

China’s economy is in a critical period from high-speed growth stage to high-quality development stage,and the home appliance industry is also facing transformation and upgrading,as well as opportunities and challenges.With the increasingly fierce competition in the home appliance market,it is particularly important to make financial analysis for enterprises.Harvard analytical framework can analyze the financial situation of enterprises from the perspectives of strategy,accounting,finance and prospects.It is a relatively complete and systematic analytical framework.Taking Gree Electric as an example,this paper analyzes its financial situation in recent five years by using the Harvard analysis framework,and finds out the problems encountered in the development of Gree Electric by using the comparative analysis method,so as to provide some reference for the future development of Gree Electric.Through the vertical comparison of the financial statements of Gree Electric appliances from 2015 to 2019,the horizontal comparison of Midea Group and Haier Zhijia,two top household appliance enterprises,is carried out.According to the analysis results,combined with the current economic and industrial situation,suggestions are put forward for the development of Gree Electric appliances.In the analysis of Gree Electric Appliance with Harvard analysis framework,in the strategic analysis,PEST method is used to analyze the macro environment of home appliance industry,and SWOT method is used to analyze the advantages and disadvantages,opportunities and threats of Gree Electric appliance.The research finds that Gree Electric Appliance has advantages in brand,R & D and sales channels,but its product diversification development is not smooth,and its foreign market competitiveness is insufficient.In the accounting analysis,this paper analyzes the balance sheet and income statement of Gree Electric in recent five years,and analyzes several important accounting subjects.In the financial analysis,this paper compares the solvency,profitability,operation and growth abilities of Gree Electric,Midea Group and Haier Zhijia.The results show that Gree Electric has strong solvency and profitability,but poor operation ability and weak growth ability.Through the prospect analysis,it is found that Gree Electric has both opportunities and challenges.In the future,Gree Electric can achieve better development by increasing R & D investment,comprehensively improving the competitiveness of various products,accelerating the integration of multiple channels,exploring new markets and other measures.