An Analysis Of M Enterprise’s Vertical Integration Strategy From The Perspective Of Financial Statements

Traditional financial analysis based solely on indicators can no longer meet the needs of increasingly diversified enterprises,nor is it suitable for modern enterprise management.The implementation effect of corporate strategy is reflected in financial statements,and report data is a reflection of corporate strategy.Therefore,it is necessary to combine corporate strategy with financial statement analysis.This article provides a new perspective for financial analysis and strategic analysis by innovating traditional financial statement analysis models and using new perspectives to evaluate the implementation of the strategies adopted by enterprises behind the data through financial statement analysis.Due to factors such as geographical location and market environment,Enterprise M has adopted a vertical integration strategy of "self breeding and self cultivation",and its achievements have been unanimously recognized within the industry.Through the research on corporate strategy and financial analysis literature,summarize the existing research results,and determine the basic ideas for case analysis in this article.Select M Company,a leading pig breeding company listed on the market,as the case object.Firstly,use PEST analysis method to macro analyze the industry environment;Then it introduces the general situation of M company and analyzes the strategic environment using SWOT;Secondly,select the key accounting indicators and 17 main financial indicators of the four capabilities in the three major financial statements for the recent 2016-2021 years,horizontally compare the strategies of the same size and select different S enterprises,analyze the strategies of M enterprises,and summarize the operational results of the implementation of M enterprises’ strategies;Evaluate the implementation effect of M company’s vertical integration strategy based on report analysis;Finally,optimization suggestions are made for the problems encountered in the implementation of the strategy.I hope it can provide reference for the development of case enterprises and even other enterprises in the pig breeding industry.The main conclusions drawn in this article are as follows: In recent years,M company’s vertical integration strategy has produced positive results in cost control,profitability,and sustainable development.However,during the implementation of the strategy,there are also certain problems in the enterprise’s operation,such as unreasonable debt structure leading to high asset liability ratio,overly aggressive investment choices,high financing costs,excessive investment in fixed assets,and poor liquidity of working capital.However,these are also inevitable risks under the vertical integration strategic model.In general,all indicators of M company’s financial statement data are consistent with the strategic orientation adopted by the company,and it is quite effective to reflect the implementation results of M company’s strategy through financial statement data.In the long run,combining the industry environment and internal financial analysis,the vertical integration strategy implemented by M Enterprise is the trend of future industry development.Enterprises should continue to adhere to this strategy,combining with the optimization suggestions in this article,to provide reference for enterprises to reduce the problems and risks brought about by the vertical integration strategy.