Financial Analysis Of LDJT Based On The Harvard Framework

As a new growth point of the national economy,the real estate industry has contributed to the rapid growth of China's economy.With continuous maturity of the real estate industry,the government's regulatory policies have gradually entered the deepwater zone and become normalized.In 2018,the government tried to guide the real estate industry back to rationality by frequently issuing regulatory policies.Within the grim economic climate,how to improve the comprehensive competitiveness of real estate companies has become an important management topic.The financial statements of an enterprise can reflect its operation roundly,and it is one of the critical responsibilities of modern financial functions to put forward corresponding operation and management suggestions for the future development of an enterprise by the analysis of financial data.Taking the financial data of LDJT Co.,Ltd.from 2014 to 2018 as an example,and combining with the previous scholars' theoretical research on financial statement analysis,the thesis,based on the Harvard Analytical Framework,analyzes the financial data of LDJT Co.,Ltd.in recent five years.The Harvard Analytical Framework overcomes the shortcomings of traditional financial analysis,and comprehensively considers the strategy,accounting and prospect analysis of an enterprise based on financial analysis,so as to make a comprehensive and accurate evaluation of the financial situation of an enterprise.With Harvard Analytical Framework,after deeply studying of strategic,accounting,financial and prospect analysis,it is found that LDJT Co.,Ltd.has experienced rapid growth of asset scale from 2014 to 2018,with an average annual compound growth rate of 39.55% of total assets.However,the rapid expansion of scale also has brought new management problems:(1)the debt level is at a historical high level,facing certain debt repayment risks.Although its debt level is lower than the industry average,it has been at a historical high in recent years.Therefore,it needs to speed up the pace of entering the capitalization market,increase shareholders' equity,broaden financing channels,reduce financing costs,reasonably control the level of financial leverage,and improve its ability to resist risks;(2)the profit situation fluctuates greatly,which is still far from aligning with the company's profit indicators.The company profited well in 2016 and 2017,but not very well in 2018;and compared with the companies having the same scale,there are some differences from the profit indicators.Therefore,the company needs to do well in the early product positioning,control cost while expanding the sales channels,and improve the input-output ratio of investment,avoiding the invalid expenditure caused by the rapid expansion of scale;(3)the company's operation cycle is becoming longer,and the operation efficiency needs to be improved.In 2018,all operating indicators of the company were at a low level in the past five years,and the turnover time of the asset became longer.Therefore,the company should integrate resources from three aspects of production,supply and marketing,ensure timely supply,improve the speed of selling rate,and speed up capital return.