Research On Financial Diagnosis Of AK Company Based On Harvard Analysis Framework

China is the largest producer of LED lighting products.After more than ten years of rapid development,the LED landscape lighting industry has gradually slowed down its overall growth rate,obvious product homogenization,fierce market competition,and gradually entered a mature stage of industry development due to the dual factors of internal and external environment.Especially,large-scale well-known projects include the theme light show project for the 40 th anniversary celebration of the reform and opening up in Shenzhen,the light show project for the 31 st World University Games in Chengdu The construction of lighting shows and other projects for the opening and closing ceremonies of the Beijing Winter Olympics has reached saturation.At present,small and medium-sized private enterprises in China are affected by the domestic and foreign economic environment,making their development difficult and facing various operational difficulties and risks,especially involving the supply chain and business of the United States and Europe.How to survive and develop in the current severe economic situation and complex domestic and international economic environment is a problem that every small and medium-sized enterprise must face.Based on the above research background,this article takes AK Company as an example.AK Company is a national high-tech enterprise that integrates the design,research and development,production,sales,and service of LED landscape lighting products and cloud control systems.This article uses the Harvard analysis framework to conduct a comprehensive diagnosis of the company.Firstly,use PEST analysis and SWOT analysis to conduct strategic analysis,analyzing the operating environment of AK Company from both macro and micro levels.Secondly,diagnose key accounting policies from three aspects: inventory,accounts receivable,and revenue to determine the reasonableness of AK Company’s financial data.Then,through horizontal and vertical comparisons,analyze the financial statements and financial indicators to clearly identify AK Company’s financial advantages,existing problems,and the reasons for the problems.Subsequently,the potential risks of AK Company were analyzed from three aspects: industry prospects,company prospects,and financial prospects.Finally,based on the Harvard analysis framework,it was found that there are deep-seated problems in the operation of the enterprise,and further improvement suggestions were proposed from the aspects of gross profit margin,sales expenses,accounts receivable turnover rate,and R&D conversion.