Analysis Of Lier Chemical’s Financial Statements Under Harvard Analysis Framework

As the world’s population continues to increase,so does global demand for food.The limited arable land and extreme climate disasters further jeopardize food security,also simultaneously promote the development of pesticides and genetically modified crops.Crops are extremely harmed by weeds during the growth process,which are not only vectors for spreading diseases and pests,but also compete for the nutrients,water,and light needed by crops,which in turn affects the growth of crops.GM crops are more resistant to disease and insects than conventional crops,which can simplify farmers’ labor and increase crop yields.As the most scaled category in the pesticide market,herbicides can kill or suppress weeds and are indispensable products in modern agriculture.Glufosinate is the fastest-growing herbicide variety in the market in recent years,which has attracted high market attention,and the increase in glufosinate-resistant transgenic crop varieties has further promoted the development of glufosinate.As the world’s largest glufosinate manufacturer,Lier Chemical has a very high market share at home and abroad,and the development of the glufosinate market has enabled Lier Chemical to obtain excellent performance in this market with its advantages.Therefore,this thesis selects Lier Chemical as the research object,analyzes and evaluates it from a financial perspective,and hopes to provide a decision-making basis for enterprise managers and reliable information for investors.This thesis uses the Harvard analysis framework to study Leer Chemical,select the company’s financial data from 2017 to 2021,and analyze the company from four aspects:strategy,accounting,finance,and prospects.Firstly,this thesis is from a strategic perspective,using PEST,SWOT and Porter’s five forces model to analyze the internal and external environment and development direction of the company.Secondly,through accounting analysis,we evaluate the accounting estimation policy and quality of the company’s assets,and also analyze the company’s profit and cash flow.Thirdly,financial analysis is carried out based on the analysis results of strategy and accounting.The company’s overall financial status,growth capacity,and the gap with peer companies are analyzed vertically and horizontally through Du Pont analysis.Finally,based on the analysis of the above three parts,the prospect analysis is carried out.Combined with qualitative and quantitative aspects,through the prediction of the development prospect of Lier Chemical,the current business problems are pointed out,contemporary suggestions put forward.This thesis hopes to provide some reference value for Lier Chemical’s managers and investors,and also provide sort of reference significance for enterprises engaged in pesticide industry.