Research On Profitability Analysis Of B Coal Company Based On The Harvard Analysis Framework

Coal is a basic energy in China.Coal enterprises rely strongly on resource reserves,industrial life cycle is obvious,product differentiation is larger,and its external obvious character.From 2002 to 2011,the coal industry is in "golden ten years".However since 2012,the industry has entered the "cold winter".The price of coal has dropped sharply,and the market supply and demand has been seriously unbalanced.A series of problems have led to the coal enterprises’ facing difficulties in operation and occured massive losses.Since 2015,coal enterprises as the key regulators of supply side structural reform are facing new challenges and opportunities.In the process of optimizing the layout of coal development,the state gradually reduces the production scale of Henan base.In this environment,the future of coal enterprises in Henan province how to develop and how to maximize profits,which is the problem that enterprises Is the key point.This paper selects the first listed state-owned key coal enterprise--B enterprise as a case,analyzes the factors that affect its profitability by using Harvard analysis method,analyzes the current operation situation of enterprises,and explores the existing problems,so as to provide guidance for enterprises to turn losses into profits and continue operations.Based on a brief analysis of the characteristics of coal resource-based enterprises,the development status of coal industry,the common problems and the basic situation of B enterprises,this paper has made a comprehensive analysis of B coal enterprises based on strategic analysis.The strategic analysis mainly uses the PEST model,the Potter five forces model and SWOT model to analysis the company B.The analysis will include the external macro environment of the enterprise,business profit motivation,enterprise internal and external strengths and disadvantage for qualitative analysis;The pact of accounting will be analysised the identification of B enterprise key accounting policies and estimates,analysis and evaluation of key accounting policies and estimates,Information disclosure quality analysis,after that this paper will choose some important subjects to analysis,for reduce the possibility that the quality of financial reporting information will be affected.Financial analysis includescorporate profit statement analysis,cash flow analysis,and four financial indicators analysis,the author comprehensively evaluates the operation performance and profitability of enterprises.Finally,integrate the above analysis,the author makes a forecast of the future sustainable development of the company according to the actual characteristics of B company,and puts forward the factors that affect the profitability of enterprises and gives corresponding countermeasures and suggestions.At the same time,the author gives suggestions on the outcome of the problem.After research,the author found some problems existing in the B coal enterprises and put forward the corresponding countermeasures.In the business strategy,enterprises should pay attention to the problems of single industrial structure and tight coal reserves.The existing strategy of enterprises is more reasonable,but the effect of strategy execution is not ideal.Enterprises should optimize the industrial structure,achieve the overall listing of the main coal industry in parent company,and replenish the reserves of coal resources.At the same time,enterprises need to pay attention to the problem of increasing accounts receivable and higher inventory costs.Enterprises should speed up the turnover of accounts receivable and reduce costs to improve profit margins.In financial aspects,enterprises should pay attention to solvency and profitability,guard against financial risks,broaden the financing channels,revitalize the assets effective operation and optimize the development capabilities of enterprises.The future competitiveness of enterprises has no obvious advantage and their profitability is weak.Enterprises should adapt themselves to the industry trend,merger and reorganization,and carry out strategic transformation on the basis of strengthening the realization of strategy.