Financial Analysis Of Xiaomi Group Based On Harvard Analysis Framework

When conducting financial analysis of an enterprise,through the use of financial statement data analysis and calculations,it cuts into all aspects from multiple different perspectives,gains an in-depth understanding of the company's operating conditions,discovers its potential risks,and predicts its development prospects,thereby providing users of financial reports Valuable reference information.In the era of global economic integration,competition among enterprises is becoming increasingly fierce,and the business activities of enterprises will naturally be affected by the macro environment.Traditional financial analysis is only an analysis of past financial data,which can no longer meet the current market environment.The Harvard analysis framework makes up for its shortcomings and adds analysis of non-financial data,such as analyzing the industry's macro environment through PEST.Through SWOT analysis of the company's internal environment and analysis of the company's strategic choices.Through the use of the Harvard analysis framework,a comprehensive analysis of the company is carried out to find advantages and potential problems,and provide some suggestions based on the development of the company.With the rapid development of the Internet,the Internet of Things,and artificial intelligence technology,China has paid more and more attention to the intelligent industry.This article takes Xiaomi Group as an example.First,it analyzes it strategically,and introduces Xiaomi Group's business profile,business scope and operation.Performance,etc.,analyzed the macro environment of the high-tech industry through PEST,analyzed the internal situation of Xiaomi Group with SWOT,and analyzed and evaluated its strategic choices.Secondly,using Xiaomi Group's financial statements from 2016 to 2018,the important accounting subjects of Xiaomi Group are analyzed,including long-term investments,inventories,prepayments and other receivables that are measured at fair value through profit or loss.The analysis and interpretation of the subjects can better judge the reliability and authenticity of Xiaomi Group's financial information.Then,this article uses Xiaomi Group's balance sheet,income statement and cash flow statement from 2016 to 2018,and comprehensively interprets its operating status through vertical comparative analysis and horizontal comparative analysis.It also uses the ratio analysis method to evaluate the profitability,debt service ability,operating capacity and development ability of Xiaomi Group,providing valuable reference data for corporate management,creditors and investors,and can further understand the operating status and future development of Xiaomi Group space.By combining the above analysis,this article also carried out a risk analysis and development prospect prediction for Xiaomi Group.Finally,according to the problems existing in Xiaomi Group,relevant suggestions were put forward,such as attaching importance to research and development capabilities,optimizing differentiated strategies,and grasping the degree of hungry marketing to help them enhance their competitiveness and market share,and also for other companies with similar situations.for reference.