Based On The SCP In The Analysis Of Financial Statements Of GY Securities

The financial statements publicly disclosed by listed companies are the focus that the majority of investors, regulators, and research institutions analyze and play close attention to.Comprehensive and systematic analysis of the financial statements is an important way to understand a company. Through analysis, risks and opportunities can be informed and found in advance, so as to enhance the corporates’ ability of market operation, and promote the healthy development of the securities market.Traditional financial statement analysis has some inherent flaws. Firstly, it relies solely on financial data to evaluate the development of enterprises, and ignores the analysis of their environments and business strategy; Secondly, executives’choice of accounting policies and corporate accounting policies is subjective, which will undoubtedly increase the probability that financial statements conceal the actual situation; Lastly, traditional index system has many deficiencies, etc. Development of accounting theory and practice of financial statements requires us to build a more scientific analysis system. Basing on the traditional financial report analysis, K.G. Palepu, P.M. Healy, and V. L. Bernard of Harvard University proposed "Harvard Analytical Framework" which integrates strategic analysis and financial statement analysis."Harvard Analytical Framework" puts enterprise’s financial position in its overall strategy, analyzes its deficiencies and the threats it faces, looks for its core strengths and development opportunities, and then makes a scientific prediction for its future development. The main contents of "Harvard Analytical Framework" contain strategic analysis, accounting analysis, financial analysis and prospects analysis, and perfectly combine quantitative and qualitative analysis.Basing on the institutional background of the securities industry, using case study and "Harvard Analytical Framework", this dissertation analyzes the external factors that influence the development of GY Securities Company through a comprehensive financial analysis and research of the company from a strategic level. Then, this dissertation points out some problems of the company in some aspects such as specific business development strategy, core competencies, financial strategies, and internal control, and puts forward some reform measures.This article is organized as follows. The first part is the introduction, which describes the background, significance, research ideas and methods of this research, and tries to put forward the innovations and features of this dissertation. The second part is the theoretical basis. Firstly, this dissertation introduces the basic theory of traditional financial statement analysis. Then, this dissertation comprehensively expounded the most important strategic management theory of "Harvard Analytical Framework", including the theory of macroeconomic analysis, life cycle theory and Porter’s five forces model. Finally, this dissertation introduces "Harvard Analytical Framework" as the analysis tools of this research. The third part is the key section of this dissertation, namely financial analysis. This part completes the strategic analysis of GY Securities Company through the PEST analysis, industry profitability analysis and securities industry analysis, carries out accounting and financial analysis of this company. Because of the securities industry is full of nonoperational variables, model data are difficult to obtain, and the model ability is limited, so do not do this to forecast, then set up the fourth chapter with research conclusion and suggestions, and just make qualitative description. The last part is conclusion and reform proposals. The results are as follows.(1) GY Securities Company reflects domestic top level in terms of total assets, net capital scale, revenue innovation and risk control ability, with strong market competitiveness.(2) Compared with domestic top brokerage firms, GY Securities Company has no distinct operating characteristics in all business areas and financial indicators and plays the role of a follower, it has keep exploring and strengthening its own advantages.(3) The return on equity, gross profit rate, fixed asset turnover, total asset turnover, operating and administrative expense ratio, operating profit ratio and other financial indicators of GY securities company are low in comparison with industry level, indicating that the company’s operating capacity, asset management ability and financial efficiency need to be improved.(4) Traditional businesses of GY securities company face difficulties in performance growth, or even experience decline in performance. Innovative businesses surpass the formers, but are poor in business stability and competitiveness. Seeing into the future, GY Securities Company needs to strengthen the foundation position of traditional businesses, and plans different roads for innovative businesses.