Financial Statement Analysis Based On Harvard Analysis Framework

With the enhancement of the country’s comprehensive strength,the overall development of China’s economy has shown a good trend.In China,the garment industry has always played an important role in supporting the development of China’s economy.However,in recent years,due to changes in national policies and consumer attitudes,some clothing brands have experienced a drop in sales,or even insolvency has forced to withdraw from the market.The root cause of this situation is that the company is inconsiderate in its own development strategy,comprehensive analysis of financial situation,and daily business planning.Making the financial statement analysis based on Harvard analysis framework can comprehensively and completely examine the current operation status of the enterprise,so as to adjust the development direction at any time and ensure that the enterprise develops along its own preset trajectory.H company is a leading enterprise in the domestic garment industry.Under the overall downturn of the industry,H company has achieved positive growth in performance and shown great potential for development.Its development experience can play a positive demonstration role for other enterprises in the same industry.Therefore,it is of high research value to analyze the financial statements of H company with the Harvard analytical framework.This article makes an in-depth study and analysis of the financial statements of H company with the Harvard analytical framework.In the aspect of strategic analysis,it main uses PEST and SWOT analysis of H company,which find out that,although H company still faces certain challenges in its future development,the implementation plan of its overall strategy still has certain reference value and educational significance.In the aspect of accounting analysis,by analyzing for H company main accounting policies and accounting estimates recognition,to inventory,fixed assets and accounts receivable three indicators to carry out research and came to the conclusion that the H company’s current main accounting subjects of accounting methods accord with national legal norms.In the aspect of financial analysis,through the analysis of a series of indicators concluded that H in recent years,the company’s profitability and development ability is good,multiple level data is better than that of the same industry competitors,strong momentum of growth,debt paying ability and operation ability is a bit weak,but the enterprise managers have given full attention,both abilities will also have certain promotion in the future.At the prospect analysis level,according to the early stage of the H company business activities,this article predicts H company in the enterprise management will focus on the channel construction,the development of electrical business sales channels,guarantee the stability of supply chain management,and it will continue to be stable and orderly development of H company.This article uses Harvard analysis framework to analyze H company’s strategy,accounting,finance and development prospect,and finally points out that,although the H company may encounter some problem in the process of firm growth,but the strategic adjustment of H company is timely and the financial system support is stable.The company has a promising future and a good trend,which is worth learning for other enterprises in the clothing industry.At the same time,on the basis of the above analysis,this paper summarizes the case study of Harvard analysis framework of H company,then draws research conclusions and puts forward solutions to the existing problems,aiming to provide reference for other explorers and to provide reference opinions for enterprise managers’ decision-making.