Financial Diagnosis And Improvement Of China Express Based On Harvard Framework

With the advancement of science and technology and the development of the national economy,the air transport industry is also constantly developing and growing.Today,competition between companies in the air transport industry has intensified,alternative means of transportation such as high-speed rail have also developed rapidly,and business in the air transport industry has been affected by the coronavirus pandemic between 2019 and 2021.In the face of various external risks,the air transport industry should strengthen the internal management of enterprises.The Harvard analytical framework is to analyze the company’s external environment and internal business conditions to diagnose the company’s finances and propose improvement measures.Through the analysis of the main operating performance of China Airlines,it is found that the company’s operating income and profit are declining,in order to explore the reasons for this,this article takes China Airlines as the research object and uses the Harvard analysis framework to diagnose its finances.China Airlines is an airline mainly engaged in domestic passenger transportation,with the strategic goal of building a network-oriented airline.This article provides a financial diagnosis based on the Harvard analytical framework.The first is strategic analysis,which analyzes the external environment of the air transport industry through PEST,analyzes the competitive situation of the air transport industry through Porter’s five forces model,observes the advantages and disadvantages within the enterprise and the opportunities and threats outside the enterprise through SWOT analysis,and then proposes four alternative strategies.The second is accounting analysis,which first identifies the three important indicators of accounts receivable,fixed assets and construction in progress,and then analyzes its accounting policies and accounting estimates.The third is financial analysis,using the company’s financial data from 2018 to 2021,first analyze the company’s financial statements,then analyze its financial ratios,and finally use the improved Du Pont analysis method to conduct comprehensive analysis.The fourth is prospect analysis,first analyzing the development prospects of the air transport industry,then making financial forecasts for China Airlines,and finally predicting the risks of China Airlines.Through the diagnosis,the following diagnostic results were obtained: China Airlines has a clear and reasonable strategy,fierce industry competition,single operating income,lack of diversified operation,fixed asset depreciation method to be optimized,financing method to be optimized,profitability decline,operating capacity decline,cost rise risk,and good development prospects.According to the diagnosis results,the following suggestions are given: pay attention to cooperation with other companies,appropriately adjust the business structure,optimize the depreciation method of fixed assets,optimize the financing method,improve the speed of realization of accounts receivable,improve the ability of expense control,and use hedging tools to hedge the risk of rising costs.With the end of the epidemic and the improvement of China Airlines itself,I believe that the company will develop better and better,and realize its development vision of becoming a world-class regional aviation industry integration leader as soon as possible.