Financial Analysis Of Zhifei Using Harvard Analysis Framework

In recent years,with the general improvement of the national income level and the accelerated trend of population aging,the scale of the domestic pharmaceutical industry has continued to expand.As a private pharmaceutical company with vaccine products as its main products,Chongqing Zhifei Biological Products Co.,Ltd.(“Zhifei” for short)has maintained a momentum of continuous development,showing development potential beyond its peers.This paper takes the company as the research object,selects its financial data from 2016 to 2020,and uses the Harvard analysis framework to conduct a comprehensive analysis.First of all,at the strategic level,this paper uses the three models of PEST,Porter’s Five Forces and SWOT to analyze the economic environment,competitive environment and internal and external advantages of the company item by item.It is found that the product structure of Zhifei is not reasonable,and the performance growth is too dependent on agency products.Therefore,enterprises should adjust their development strategies,build a model of “mainly independent research and development,supplemented by cooperative research and development,and supplemented by technology introduction”,and build a core competitiveness with independent research and development as the main content.Secondly,this paper analyzes the accounting policies and accounting estimates of Zhifei through the identification of key accounting elements,and finds that the enterprise has the risk of modification in the depreciation period of some fixed assets,and the accounts receivable have the risk of bad and bad debts.Thirdly,this paper comprehensively evaluates the financial situation of Zhifei by means of trend analysis ratio analysis,and analyzes debt repayment,operation,profitability and development capability item by item.The analysis finds that the revenue of agency products accounts for a large proportion,which reduces the overall gross profit rate.A higher debt-to-asset ratio affects solvency.Next,this paper uses the introduction of the smooth index model to predict the financial situation of Zhifei and predict its development potential.Finally,on the basis of the above analysis,this paper puts forward suggestions for the decision makers of the enterprise,and can also draw lessons from enterprises in similar situations.