The Financial Analysis Of Company A Under Harvard Analytical Framework

Financial analysis is an important basis for evaluating the operating performance and financial condition of a company.It is used to measure the current financial situation and predict the future development trend by summarizing and evaluating the past financial activities.For internal and external information users financial analysis plays an important role.However,due to variety of financial analysis methods and accounting assumptions,traditional financial analysis framework has many limitations,couple with the impact from non-financial factors like macroeconomic environment and industry development,information users cannot make right decision and judgment on enterprise's financial status and operating results.Harvard analysis framework combined quantitative and qualitative analysis,comprehensively analyzed opportunities and threats of external environment of the enterprise,as well as advantages and disadvantages of internal conditions.To a certain extent,Harvard analysis framework overcame the shortcomings of traditional financial analysis.From strategic point of view to analyze financial situation of the enterprise,make scientific prediction and direction for the future development of the enterprise.In view of this,we use Harvard analysis framework comprehensively analyzed company A's industry development status quo,business strategy,earning quality,asset quality together with risk level.This method overcame limitations of traditional financial analysis,grasp company overall business situation,the business prospects for prediction.