Financial Diagnosis And Improvement Of K Company Based On Harvard Framework

Because of the high degree of correlation and strong driving force,the real estate industry plays an important role in the national economy,which enhances the national economy and improves people's lives.With the “Thirteenth Five-Year Plan”of the NPC and CPPCC reported,insisting in the urbanization of people as the core,taking urban groups as the main form,and accelerating the pace of new urbanization,China officially enters the tide of new urbanization construction,which makes the real estate industry face new challenges as well.Thus,how to develop better under the new situation is requiring the housing industry's consideration.This paper carries on the financial diagnosis analysis to the K company that transforms to the industry real estate under the new situation,and puts forward some suggestions and improvement measures accordingly.The traditional financial analysis is only used for financial data,so the analysis result is inevitably one-sided.While this article introduces the Harvard analysis framework method and analyzes the financial performance of K company from four dimensions,we hope it can provide some beneficial references to the housing enterprises for developing in new situation.This paper adopted the case study,literature review,factor analysis and other accounting research methods to compare the horizontal and vertical analysis of K company.Then,it briefly introduced K company's introduction,organization profile and basic financial data.Furthermore,we have entered the core part of this paper,during which we conducted a comprehensive and multi-angle analysis of K company's finance from the four dimensions in strategy,accounting,finance,and prospects.Finally,the article draws the following conclusions.The turnover rate of inventory and accounts receivable is low.Thus,the management of accounts receivable should be strengthened.Meanwhile,the credit limit of accounts receivable customers should be strictly controlled,and the credit limit of accounts receivable customers that have more than a certain accounts receivable age should be canceled.At the same time,the cost of sale should be increased,in order to reduce the inventory rate.The company's financing costs are high,and its solvency is weak.So the company's financing channels should be broaden.K company should adopt multi-channel financing without putting all eggs in one basket,and maintain the current level of corporate profitability,as the high level of profitability is the strong guarantee for solvency.Since the development of the industry is unbalanced,K company should improve the business structure,and appropriately welcome strategic partners to improve the company'sprofitability and operational capacity.In general,K company is a heavy-asset company which needs high attention to cash flow in daily business activities.The debt service and operational issues should be observed slowly,adjusted in time,and improved slowly.It is hoped that the article's financial diagnosis and proposed improvement measures for K company based on the Harvard analysis framework can provide some supplements to the financial analysis as well as the theoretical research of the Harvard framework,also provides some positive references and benefits China's housing companies in facing new challenges.