Financial Analysis Of Geely Automobile Company Based On Harvard Analysis Framework

On December 11,2011,China officially joined the World Trade Organization,and the automobile market was gradually opened.With the establishment of the global economic integration division system and the transfer of the automobile manufacturing industry,China's automobile industry has formed a full range,multi-variety of all types of vehicle and parts production and supporting systems.Leap-forward development has been achieved in terms of industrial R&D,scale,structural adjustment,and market expansion.Although China's automobile industry started relatively late compared with developed countries,with the steady growth of China's economy and the continuous improvement of people's income level,the automobile industry is developing at a high speed.National auto companies represented by Great Wall,Dongfeng,Geely and BYD have become a new force in the auto market.From technology to market,it has fierce competition with foreign automobile brands.Its market share has increased year by year,and its comprehensive competitiveness has been improved,which has enabled China to gradually realize the transformation from a large automobile production country to a strong automobile industry.In January 2018,due to the withdrawal of preferential policies for automobile purchase tax,the transformation and upgrading of automobiles has not yet ended,the air quality is not good and the import tariffs are lowered,and so on,China's automobile sales have slowed down overall.In 2017,the sales volume of passenger cars in China was 24.718 million,an increase of only 1.4% year-on-year.However,the outstanding independent brands still maintain a relatively fast growth rate,and the growth rate of SAIC,GAC and Geely is strong.Among them,as a representative of the national automobile enterprise,Geely has obvious advantages.In 2017,the sales volume was 1,305,200,an increase of 63.31%,the rest of the national brand car companies have experienced different degrees of decline.Domestic brand cars show an obvious Matthew effect,the stronger the stronger,the weaker the weaker and the he gap is gradually widening.It can be seen that in China's national automobile industry,Geely has a certain industry representativeness as a leading enterprise in the first line.This paper selects Geely Automobile Company as the research object and conducts financial analysis based on Harvard analysis framework,aiming to provide reference information for independent brand car enterprises.This paper is divided into four parts,aiming to apply Harvard analysis framework to Geely Automobile Company which is the representative enterprise of China's private automobile industry.Combine qualitative and quantitative analysis to interpret companyreport data to provide effective support for corporate decision makers and other report users,the first part analyzes the background of the automobile industry from the macro environment,clarifies the theoretical significance and practical significance of this research,and then combs the domestic and foreign literatures,and use research methods such as case analysis and comparative analysis are used;The second part elaborates the financial analysis theory and Harvard analysis framework related theories,including the limitations of traditional financial analysis methods and the advantages of Harvard analysis framework;The third part is the research focus of this paper.It is divided into four chapters: strategic analysis,accounting analysis,financial analysis and prospect analysis.Firstly,it introduces the basic situation and development status of Geely Automobile Co.,Ltd.,and then builds IFE-EFE internal and external key factor evaluation matrix combined with SWOT analysis for strategic analysis.Accounting analysis is based on the understanding of the basic characteristics and control framework of accounting information,the identification of important accounting items in the industry and the analysis of key accounting policies and accounting estimates of enterprises.Financial analysis including report analysis and ratio analysis.Prospect analysis is based on the above information for the company's risk prediction and development prospects.The fourth part is the financial analysis of the Harvard analysis framework for Geely Automobile.It proposes improvement suggestions on the problems existing in the company's current operations,and draws conclusions and forecasts.The final conclusion of this paper is,For Geely Automobile Co.,there are problems such as technology upgrade risk,low operational efficiency,macro environmental risk,and industry competition risk,enterprises should strengthen scientific management and improve operational level;Expand industrial layout and seek comprehensive development;Improve R&D capabilities and promote technology upgrades,which have certain reference significance for enterprises and other self-owned brands.