Financial Analysis Of Wuliangye Based On Harvard Analysis Framework

Financial analysis is to make better decision-making for investors.Through the financial situation,business results and cash flow of the company,the company can fully understand the operation of a company through financial situation.Through financial analysis,we evaluate the operation of an enterprise,find out the problems existing in the enterprise,and put forward some corresponding operational suggestions for these problems,and make some predictions in the future development direction.The author selects the Harvard analysis framework to analyze the enterprise.The liquor industry is a traditional industry in China.It has a long history and is also part of our culture.In China,after ten years of liquor,the scale and income of liquor companies have developed rapidly.Beginning in 2012,with the convening of the party's 18th National Congress,the anti-corruption work,the restrictions on alcohol,restrictions on hospitality,and the policy of opposing extravagance and waste have a serious impact on the liquor industry.Liquor enterprises have been affected to some extent,and sales have declined.The liquor companies focused on various policies and market changes based on Wuliangye and Maotai,and actively adjusted accordingly.This paper selects Sichuan Yibin Wuliangye Co.,Ltd.,through the collection and compilation of its 2013-2017 annual report,adopts the Harvard analysis framework,analyzes its industry background and company strategy,analyzes accounting quality,financial analysis and prospect analysis,and further competes with Guizhou.Maotai,Yanghe shares and Luzhou Laojiao conducted comparative analysis.Through financial analysis,we found the advantages and problems of Wuliangye and provided suggestions for its future development.According to the analysis,Wuliangye has performed well in six aspects,mainly including strong inventory operation capability and higher inventory turnover rate than competitors;fixed asset turnover rate is superior to other competitors;accounts receivable accounted for a very low asset ratio;The debt ability is not only short-term debt repayment or long-term solvency,but also superior to Guizhou Maotai,Yanghe and Luzhou Laojiao;the company's EVA is greater than 0,the company is at the value creation stage;Wuliangye Company has sufficient cash,and the business activity is the company The main source of income and profits,the company is in a benign state.Wuliangye has a downward trend in the 2013-2015 indicators,but it has gradually recovered in 2016-2017.Although there is a gap with Guizhou Moutai,it is still benign.Through analysis,it is also concluded that Wuliangye needs to be further optimized in the management of current assets,especially bills receivable,in terms of cost control and at the same time strengthen brand focus and sinking and flattening of channels to make Wuliangye Company The strategy can be better implemented,reducing the company's operational and financial risks,and meeting better opportunities and challenges.