Financial Analysis Of Yunnan Baiyao Co.Ltd. Within Harvard Framework

In recent years,much medicine policy has been introduced.On one hand,the enterprise's equipment standards increase.On the other hand,the implementation of controlling drug prices,a smaller share the traditional Chinese medicine industry occupies,and raw materials prices continued to rise,those has brought many business risk and financial pressure to the Chinese medicine manufacturing enterprise.How to successfully pass the crisis by the reform of the industry has become the industr's most concerned about.Yunnan Baiyao since 1993 has a good reputation in the industry,its overall operation has been more stable,and always maintain a leading position in the industry.In this crisis,how it perform and whether it can continue to maintain a leading state?As a kind of financial statement analysis system,the Harvard analysis framework has been developed and has been accepted by most people.It focuses on the overall financial situation,operating results and cash flow of the enterprise from four aspects:strategy,accounting,finance and prospects.By combining the business strategy and financial situation,the evaluation of corporate finance has been more nearly reliable.This paper used this frame to analyze YUNNAN BAIYAO GROUP CO.,LTD.knowing about the enterprise overall operational and financial conditions for 2011 to 2015,in order to answer mentioned questions and to predict the future development of enterprise and put forward reasonable suggestions to lay the foundation.Based on the relevant research results at home and abroad,combined with the current domestic Chinese medicine manufacturing industry characteristics and the present situation,using Harvard analysis framework,by selecting the its annual report data and financial data collected from the industry,which from enterprise strategy,the quality of accounting information,financial situation,and development prospects to point out view of the company analysis.Finally,the overall financial situation of the company is evaluated,and some personal suggestions are put forward for the shortcomings of the company,and the advantages are summarized.