Financial Analysis Research Of LiNing Company Based On The Harvard Framework

Under the background of the complex economy and society nowadays, the traditional financial analyses can no longer meet the needs of financial statement users. Because such analyses just concentrate on companies’ financial ratios. But Harvard analytial framework make a deteailed analysis to business strategy, accounting, finance and the prospects. Through analyzing we can find out the relevant issues and current pressures according to the research mentioned above, especially Li Ning company. The competition in market is so fierce that this company has faced challenges on not only the suppress from the international famous sports brands, but also the threat from the domestic sporting-goods firms. Above all, the financial analyses are especially important for Li Ning company during its challenge process.This paper takes Li Ning as the object of study, using the Harvard analysis framework on the financial statements of the company from 2009 to 2013 were analyzed. This article first to the Li Ning company introduces the general situation of the enterprises and the overall business situation, and then according to the four elements of Harvard framework of Li Ning company strategy analysis, accounting analysis, financial analysis and prospect analysis. In business strategy analysis, by analyzing the external environment of Li Ning company, found that Li Ning company in the development of the industry facing the opportunities and threats; Through the analysis of Li Ning company’s internal conditions, find the advantages and disadvantages existing in the management strategy; And find out the root of the problem. In accounting analysis, through to the Li Ning company assets and profit and loss accounts and accounting policies and accounting estimates is analyzed, it is concluded that Li Ning company’s overall accounting policies and accounting estimates used correctly, but in the accounts receivable provision for bad debt provision and depreciation of fixed assets on the problems still exist, the root of the problem is the company’s accounting policies and accounting estimate value degree is not enough. In financial analysis, through to the Li Ning company’s solvency, profitability, operating capacity and four indexes such as cash flow analysis, found that Li Ning company’s solvency, profitability and operation ability in the fall, the main reason is that the influence of corporate strategy, corporate sales revenue, appear a large number of inventory. In the business strategy of the company on the basis of analysis, accounting analysis and financial analysis, the sporting goods industry and the development prospect of Li Ning company forecast, the author thinks that Li Ning company has good development prospects.By applying the Harvard analysis framework to the analysis of Li Ning company’s status quo, we can see that there are many problems in the daily management. And based on the studies about the existing problems, the related conclusion can be drawned that Li Ning company is facing with challenges and opportunities. In the end of this paper, the author put forward some constructive proposals as follows for Li Ning company’s long-term prospects. The company’s managers should make efforts to improve the level of business strategy, perfect the accounting policy, improve the level of financial management, strengthen the innovation ability. All of these are aimed at helping combat the coming pressure positively in the future development and seize the emerging opportunities.