YA Company Financial Analysis Based On Harvard Analytical Framework

As a pillar of the national economy,the department store retail industry is facing an unprecedented crisis.Its former glory has faded away due to the rapidly expanding e-commerce industry.China’s bureaucratic luxury ban is also the reason why YA company,as the largest department store retail enterprise in Hunan province,suffered from problems such as weak performance and lack of competitiveness.Thus,the strategic policy of the enterprises becomes an issue of higher priority.However,the traditional financial analysis only targets financial data.The defective conclusion fails to perform as the basis for the enactment of enterprise strategies.While Harvard Analytical Framework can make up for the deficiency,which is why it can better meet the needs of enterprise’s future development.Through consulting literature on financial analysis,the author reviewed the state of affairs of financial analysis and introduced the Harvard Analysis Framework and its merit before analyzing the macro/micro-environment and competing strategy of YA company from a strategic perspective.Then,according to the financial statements and data released by YA company from 2015 to 2020,the author evaluated the quality of accounting items and financial indicators of the company through accounting and financial analysis.A forecast of the company’s prospects and possible risks shall be generated based on the aforementioned analysis.Finally,corresponding solutions are proposed to address problems to ensure a long-term,stable,and healthy development for YA company.The study found out that despite its local influence,YA company,as a local company in Hunan province,has a series of operation and management problems that lead to the weak competitiveness in the market,such as unreasonable investment decisions,low capital operation efficiency,limited financing channels,and outdated management system.In addition,YA company has some financial risks according to a financial early-warning test under the Z-Score model.The growing risks tend to indicate a discouraging future development.Therefore,YA company should analyze and solve the risks in operation based on the actual situation to improve its operation and management level.