Financial Analysis Of Z Building Materials Company Based On Harvard Analytical Framework

Financial analysis is a way to study the development status of the company and evaluate the results of the business from the financial perspective,which plays an important role in modern enterprise management.With the rapid development of market economy,the macro environment and the overall development of industry play an increasingly important role in enterprises.Harvard analysis framework can evaluate the company in terms of Finance and non-financial aspects,break through the traditional financial analysis only in the form of statement data as the analysis object,and improve the financial analysis system.Cement industry,as an important part of traditional manufacturing industry,occupies an important position in China’s economic system.In recent years,with the continuous progress of national ecological construction,the cement industry has also been regulated by a series of macro policies,and the management mode and development direction have also changed greatly.This paper takes Z building materials company as the research object,and uses case analysis to analyze the financial affairs of Z building materials company under the framework of Harvard analysis,aiming to find out the existing problems and future improvement direction of Z building materials company,and can bring some reference significance to the cement industry.This paper first summarizes the research background,research purpose and significance,domestic and foreign research status and research methods,and expounds the related concepts and theories involved in the article.The main part of this paper is based on the financial analysis of Harvard analysis framework,and analyzes the company’s operation from four aspects:strategy,accounting,finance and prospect.In the strategic analysis part,the external and internal environment of Z building materials company is systematically analyzed through PEST analysis model,Porter five force model and SWOT analysis model,and the strategic environment of Z building materials company is analyzed in all directions.Accounting analysis part through the calculation of the proportion of each asset item to the total assets,selected the top three accounts for the fixed assets,inventory,accounts receivable three subjects for asset quality analysis.The method of comparative analysis is mainly used in financial analysis.On the one hand,the company’s financial data of 2015-2019 is used to make its own vertical comparison,on the other hand,it compares with the industry value horizontally.In this part,the financial statements and financial indicators are analyzed respectively.In the overall analysis of financial statements,the balance sheet and profit statement of the company are analyzed.In the financial ratio analysis,the solvency,profitability,operation ability and growth ability of the company are analyzed respectively.The indicators of solvency are the current ratio and quick ratio of the company’s short-term solvency,the ratio of assets and liabilities and property rights of the company’s long-term solvency;the indicators of profitability are gross profit rate,net interest rate and net equity Interest rate;the indicators selected for operating capacity are the turnover rate of receivables and inventory turnover,fixed assets turnover rate and total asset turnover rate in current assets;the indicators selected for growth capacity are year-on-year growth of operating income,net profit growth and total assets growth year on year.The future development of-cement industry is predicted and analyzed in the future.Through the analysis of Harvard analysis framework,five problems in the operation of Z building materials company are found:the accounting system of the company has defects,the management of inventory and accounts receivable is insufficient;the capital structure of the company is unreasonable,too dependent on the debt capital,and the equity capital is weak;the profitability of the company is weak and the growth momentum is insufficient;the company has insufficient talent reserve and technology innovation The new needs to be strengthened;the company lacks the risk management ability,and environmental protection responsibility plays an important role in the future development.Finally,the paper puts forward some suggestions for the improvement of the above five problems:to improve the risk management mechanism of the company,to improve the existing accounting system,to improve the existing capital structure and to expand the source of funds;to strengthen the cost management,to pay attention to the construction of assets;to strengthen the construction of the talent system,to attach importance to the technical talents;to establish risk prediction Police mechanism,strengthen the sense of environmental protection responsibility.I believe that through a series of financial analysis,we can help the company recognize its own advantages,grasp opportunities and clarify the future development direction.