The Study On Harvard Analysis Framework Application In Financial Analysis Of XH Co., Ltd.

Stakeholders need to understand the business and financial condition of enterprise. financial analysis is one of the important channels to understand the operating conditions. Financial data is the object of financial analysis. If financial data can not objectively reflect the company’s overall operating conditions, the reference making can not be objective. In order to make scientific decisions, this paper uses the Harvard analysis framework to combine financial analysis and strategic analysis, to analysis corporate accounting policies, the macroeconomic environment, behavioral characteristics of market participants, to eliminate the effects which internal and external factors distorted financial data, to analysis economic significance behind financial indicators, and then determine the financial position and business trends.This paper is divided into five chapters: The first chapter is an introduction, including research background and significance, research ideas and methods, research and innovation. The second chapter is a literature review and theoretical basis, mainly about financial analysis and Harvard analytical framework relevant literature, and basic logic and analysis dimensions of Harvard Analytical Framework. The third chapter is the status quo and development trend of China’s medical device industry. The fourth chapter analyzed the application of Harvard analysis framework on the Medical XH case, including strategic analysis, accounting analysis, financial analysis and prospect; The fifth chapter includes conclusions and suggestions, to presented conclusions of this study and propose suggestions for the corresponding conclusions.This paper concludes the following conclusions: First of all, the enterprise should notice the high risk of liability, optimize the debt structure, and weaken the debt pressure. Secondly, the enterprise should intense operating cycle, analysis the market demand, accelerate inventory turnover; Thirdly, the enterprise should strengthen management, enhance profitability. Last but not least, the enterprise should pay attention to the integration of mergers and acquisitions, and enhance the comprehensive strength.The innovation of this paper is to chose XH medical as the case, apply the Harvard analysis framework, providing an important reference and a financial analysis for medical instrument companies, enriching the theory and practice of medical device companies financial analysis.