Study On Financial Diagnosis Of Hengshun Vinegar Industry Co.

Condiments are supplementary foods that can add flavor to the diet and are a rigid demand in daily life.In recent years,with the rising consumption level of China’s residents,the tide of consumer upgrading has led to the development of the condiment industry.The condiment industry has the characteristics of low threshold and high potential,and is a typical "small product,big market" industry.According to the relevant data,the market scale of condiment in China has reached nearly 400 billion yuan in 2020,with a year-on-year growth of 15%.As a leading listed vinegar company,Hengshun Vinegar Industry is facing the problems of fierce competition in the industry,low market share and insufficient operational efficiency.Therefore,it is necessary to analyze the current financial situation of the enterprise through a comprehensive financial diagnosis,timely identify the problems and propose countermeasures.In order to make the diagnosis process clearer and the diagnosis results more comprehensive,this thesis selects the Harvard analysis framework to start the financial diagnosis of Hengshun Vinegar Industry,combines the internal and external environment in which the enterprise is located,selects the financial data from 2016 to 2020 for analysis,and proposes countermeasures.Firstly,the condiment industry is analyzed and the development profile of Hengshun Vinegar Industry is introduced.Secondly,the Harvard analysis framework is applied to make a financial diagnosis of the company,which is divided into four sessions.The first session,strategic analysis.The PEST model,Porter’s five forces model and SWOT analysis were applied to analyze the external environment and industry competitiveness of Hengshun Vinegar Industry.The second session,accounting analysis.Identify and analyze the quality of key accounting items.The third session,financial analysis.We analyzed the quality of financial statements from four perspectives,including assets,liabilities,earnings and cash flow,and used ratio analysis to compare the financial index data of Hengshun Vinegar Industry and peer companies.The fourth session,prospect analysis.Based on the analysis results of the previous three sessions,the strategic prospect and financial prospect of Hengshun Vinegar Industry are predicted,and the potential risks are predicted.Then,the financial diagnosis result report is generated according to the diagnosis process,evaluating the advantages of Hengshun Vinegar Industry in its development and the main problems existing at present,and analyzing the causes for the problems.Finally,countermeasure suggestions are proposed according to the problems of Hengshun Vinegar Industry.This thesis is important for Hengshun Vinegar Industry to solve the problems existing in the operation process,enriches the practical application cases of financial diagnosis in China’s condiment industry,expands the research content of financial diagnosis for condiment industry,and provides suggestions and inspiration for the development of other enterprises in the same industry.