Financial Analysis Of SG Automotive Group Based On Harvard Analysis Framework

With the continuous development of China's economy and the improvement of living standards,the automobile industry has become an important industry to stimulate the development of national economy.However,in recent years,the problems of environmental pollution and traffic congestion have become the focus of people's attention.The State strongly supports the development of new energy vehicles and gradually replaces traditional fuel vehicles.As a member of the New Energy vehicle field,the development of SG Automotive Group is worth the reference of automobile company in the same industry.The traditional financial statements simply analyze the company's operating situation according to the financial indicators.However,it is difficult to separate the non-financial indicators such as human resources,company strategic direction from the company's management.The Harvard analysis framework can be used to analyze the impact of different accounting policies on corporate financial indicators from the perspective of corporate strategy,and to predict the future of the company.It can make up for the limitation of traditional financial statement analysis.The article first introduces the basic information of SG Automotive Group and the contrast Company.In Chapter 3 and Chapter 4,the financial statements of SG Automotive Group from 2012 to 2016 are analyzed using the Harvard Analytical Framework.The first part of the Harvard Framework analyzes the industry environment of the company through strategic analysis.Using SWOT analysis method to evaluate SG Automotive Group,it is found that the innovation ability of SG Automotive Group is weak.The second part through the accounting analysis of the company found that the accounting policies for accounts receivable and fixed assets of SG Automotive Group are different from those of other companies in the industry.The third part,through the analysis of the financial statements and financial ratios of SG Automotive Group,the company has poor solvency,because SG Automotive Group borrows a lot in the short-term and the long-term.The management level of accounts receivable should be improved,and the management efficiency of fixed assets should be improved.The profitability of the company is low,However,through the evaluation of the development ability,it is found that the company still has a great space for development in the future.In the foreground part,the risks faced by SG Automotive Group are expounded and the future development prospects of the company are evaluated.The conclusion section points out the problems existing in SG Automotive Group and puts forward some suggestions for improvement.Finally,the conclusion is drawn that SG Automotive Group should adjust and improve its business model properly and it will develop well in the future.