Financial Analysis Research Of A Group Based On Harvard Analytical Framework

A Group Company,A listed enterprise in Shenzhen Stock Exchange,belongs to the textile and garment industry.Affected by the trade war between China and the United States in recent years,the epidemic at home and abroad and the slowdown of the world economy,the development of this industry has slowed down significantly.At present,the supply of production capacity generally exceeds the demand,and the industry is facing severe challenges.The financial analysis of A Group company by using Harvard analysis framework can reveal the problems existing in the development of the enterprise,which is convenient for the enterprise to optimize and adjust in the future work.Harvard analysis framework mainly includes strategic analysis,accounting analysis,financial analysis and prospect analysis.Accounting information quality will affect the results of financial analysis,the results of financial analysis will affect the enterprise’s prediction of the future prospect,and the analysis results of the prospect will affect the formulation or adjustment of the strategy.Harvard analysis framework is a closed-loop analysis.Based on the relevant data of A Group company from 2017 to 2021,this paper conducts a systematic analysis from the four aspects of strategy,accounting,finance and prospect of Harvard analysis framework,but focuses on financial analysis.At the level of strategic analysis,PEST model analysis,Porter’s Five Forces model analysis and SWOT analysis tools are mainly used to carry out A comprehensive strategic analysis of Group A.At the level of accounting analysis,the overall identification of the company’s accounting policies,accounting estimates and accounting information quality is carried out.At the same time,the key balance of presentation,transactions or events are systematically analyzed.At the financial level,it mainly analyzes the solvency,operation capacity,profitability and development capacity of the enterprise,and makes an overall evaluation based on Du Pont analysis tool.At the same time,it also analyzes and evaluates the cash flow of A Group company.In the perspective of the industry to which the enterprise belongs is analyzed,combined with the situation of the enterprise and self analysis.Through the analysis of the above four levels,it is found that there are mainly five problems in the group.First,the competitive advantage has not been given full play,and strategic adjustment is urgently needed.Second,the quality of accounting information needs to be improved,internal control needs to be strengthened;Third,the structure of asset allocation is unreasonable and the solvency is weak;Fourth,the asset turnover speed is slow,the enterprise profit level is poor;Fifth,the risk management is insufficient,the enterprise reputation is damaged;Sixth,innovation capacity is insufficient,technology needs to be strengthened.According to the above problems existing in enterprises,different suggestions are given from the aspects of strategic adjustment,improvement of internal control,asset structure allocation,risk warning and improvement of research and development system.Through the financial analysis and research in this paper,various policies and systems formulated by managers in the future will be more in line with the actual situation of enterprises,and the competitiveness of enterprises will be further improved.At the same time,it can also help investors and other stakeholders to better understand the enterprise,so as to make decisions.