Financial Statement Analysis Of Sinockin Securities Based On Harvard Analysis Framework

After more than 40 years of reform and opening up,China’s economic development has made remarkable achievements.In 2020,China’s per capita GDP will reach US $4382.The Engel’s coefficient of Chinese people’s life has been decreasing,and the Engel’s coefficient in 2019 has decreased by about 2percentage points compared with that in 2016,which indicates that the living standard of Chinese residents has been continuously improved and the quality of life has been significantly improved.This marks a major reform of China’s capital market,in order to further improve the ability of serving scientific and technological innovation enterprises,enhance market inclusiveness and strengthen market functions.With the steady development of the domestic economy,China’s capital market will usher in a new situation of prosperity and development.The current competition in the securities industry is relatively fierce.As an important participant in China’s capital market,the management and business development of listed securities companies have attracted more and more attention of scholars at home and abroad.This thesis uses the Harvard analysis framework to analyze the financial statements of Guojin Securities.The research of the full text is mainly analyzed from four specific aspects.The first is strategic analysis,which uses PEST and SWOT models to study the macro environment and industry status of Guojin Securities;The second is accounting analysis.First,it identifies and estimates the main accounting policies selected by Guojin Securities,and makes an in-depth analysis of the main accounting subjects;The third is financial analysis.Three listed securities companies and Guojin Securities,which are also in the second tier of China’s securities industry,are selected to use the financial statement data from 2015 to 2020 to analyze the relevant financial indicators from both horizontal and vertical aspects,and then evaluate the solvency,operating ability,profitability and development ability of Guojin Securities,and compare and analyze the financial indicators related to the operation and management efficiency.The fourth is prospect analysis,which predicts the future prospects and possible financial risks of Guojin Securities through qualitative and quantitative analysis methods.By using the Harvard analysis framework to analyze the above four dimensions of Guojin Securities,it can be seen that Guojin Securities is currently at the middle level of China’s securities industry,and the brokerage business of Guojin Securities is growing.The foundation of individual customers is constantly stable,the annual business volume is constantly rising,and the business management level of enterprises is constantly improving.On the whole,the growth ability of Guojin Securities is relatively good The future development prospects are good.However,Guojin Securities has a trend of decreasing the sales profit rate,return on assets and other financial indicators of enterprises after 2018,which indicates that Guojin still has weak links in business cost control,management expense control and other aspects.Therefore,it is suggested that Guojin Securities should focus on strengthening the control of enterprise operating costs,and can also reasonably control the speed of asset expansion by increasing the number of business departments step by step;In addition,we should also pay attention to the abnormal changes of key financial indicators and vigorously improve the awareness of financial risk prevention;To further optimize the management of enterprise assets,continuously improve the profitability and operating capacity of enterprises,give full play to the economic benefits of assets,and achieve sound development,we should strengthen and consolidate the comparative advantages of investment banking business in the securities industry,and strive to maintain a higher level in the competition of China’s securities industry.At the same time,it pointed out its existing problems such as low profit contribution rate of value customers and small business scale of non-local business departments,and put forward its own suggestions to innovate various businesses and expand the development advantages of investment banking business.