Application Research Of Harvard Analysis Framework In A Children's Wear Enterprise

With the sweeping of economic globalization and the deepening of China's opening up,more and more international children's wear brands have flooded into the domestic market.At the same time,the extension of ready-to-wear brands and the addition of e-commerce children's wear forces have made the domestic children's wear market extremely competitive.This requires financial analysis to help the managements of children's wear enterprisesto identify opportunities/risks in a timely and accurate manner,to “know one's self and know the enemy” and quickly respond to measures to win the initiative in market changes,otherwise the survival and development of enterprises will be greatly challenged.Through the research on the existing financial analysis of A children's wear enterprises,this paper finds that the current strategic analysis is not comprehensive,objective and systematic.It does not deeply analyze the quality of accounting information,neglecting the integration of financial indicators and non-financial indicators and the prospect analysis does not quantify risk.They are all deficiencies of traditional financial analysis method.The Harvard analysis framework can make up for the lack of traditional financial analysis by combining financial analysis with qualitative analysis and qualitative analysis.Based on this,this paper mainly uses Company A—a children's wear enterprise's publicly disclosed financial information for 2015 to 2017 as the research basis,and uses Harvard analysis framework analysis method to comprehensively analyze and evaluate it.It is concluded that:(1)The strategic analysis dimension: Company A should should rely on its own technology accumulation and brand advantages to properly expand its strategy;(2)The accounting analysis dimension : The inventory management of Company A still needs to be improved,and the turnover and profitability of fixed assets need to be improved,high quality of accounts receivable;(3)The financial analysis dimension: The overall quality of Company A's assets is high,there is no obvious use of non-performing assets;the overall quality of the capital structure is medium,the financing channels need to be broadened;the profit and cash flow quality is good;(4)The prospect analysis dimension: If Company A chooses to take a diversified development path,it may create more room for development and take its profitability to a new level.Finally,the conclusion of this paper is drawn as: Harvard analysis framework analysis method is more suitable for Company A than traditional financial analysis method,and the analysis results are more comprehensive,objective and specific.