Financial Analysis Of A Company Based On Harvard Analysis Framework

The Harvard analysis framework contains four parts: strategic analysis,accounting analysis,financial analysis and prospect analysis.The Harvard analysis framework is not limited to traditional financial analysis.It only analyzes the financial data of past events.It also makes a predictive analysis of the company’s future development prospects and plays an important role in strategic decision-making.Liquor is a unique distilled liquor in China and is very popular among the people.Liquor industry is developing rapidly,but industry development is greatly affected by industry policies and laws.With the rise of mass consumption,the competition in the entire liquor market is fierce and the concentration of the industry is increasing.A Company is the only listed wine company in Hunan Province.Its financial data and competitive environment have commonality with other regional strong brand wine companies.This paper selects the Harvard financial analysis framework to conduct a comprehensive and effective financial analysis,aiming to find out the problems of A company and putting forward effective suggestions.Based on the Harvard analysis framework,this paper conducts financial analysis of A Company according to the financial data from 2014 to 2017.The strategy analysis module starts with the development status of A Company,the development status of liquor industry and the macro environment analysis of liquor industry,analyzing the advantages,disadvantages,opportunities and threats of A Company.The accounting analysis module selects key accounting subjects for accounting policy and estimation analysis,and analyzes the quality of accounting subjects.It is concluded that the financial data of A Company is true and reliable,and provides the preconditions for the financial analysis chapter.The financial analysis module analyzes the five aspects of profitability,operational capability,solvency,growth ability and cash flow,and draws analytical conclusions.The prospect analysis module analyzes the development prospects of the liquor industry and A company.Then based on the analysis of the previous chapters,I pointed out the problems that A Company is currently facing: high sales expense ratio and insufficient brand building.And propose corresponding improvement measures.I hope that I can provide reference to other similar wine companies while improving the operation of A Company.