Financial Statement Analysis Of Tianrun Dairy Co.,Ltd Based On Harvard Analysis Framework

The post-epidemic era has brought new opportunities and challenges to dairy enterprises.The epidemic factors make consumers pay more and more attention to their own health,which directly promotes their attention to healthy food.Dairy products are rich in nutrition and have become the food for consumers.At present,China’s average consumption of milk accounts for only 1/3 of the world’s average level.It can be seen that the consumption market potential of dairy industry is huge;At the same time,although the dairy enterprises have the "nutrition halo",it can not completely eliminate the impact of the epidemic,especially the upstream milk source enterprises are affected by the changes in raw material prices,and the soaring feed costs have almost led to the continuous decline in the profits of all dairy enterprises,and the survival and survival among enterprises is increasingly fierce.The head enterprises still continue to penetrate the market relying on the scale advantage,and the pressure on regional dairy enterprises of scale has increased sharply,Based on the coexistence of pressure and new opportunities in the dairy industry,there is great room for development in the long run.Tianrun Dairy is the largest regional dairy enterprise in Xinjiang at present.In 2015,with the help of Aiklin yogurt,it quickly opened the domestic and foreign markets.Its products were popular and popular with consumers.With continuous innovation,it ranked among the top 20 dairy enterprises in China.However,in the face of fierce competition among enterprises,a large number of homogeneous dairy products seized the market.In recent years,the growth rate of Tianrun’s business income has been declining,especially the market share of low-temperature yogurt has hardly increased,Even in 2020,the growth rate was negative.In the critical period when the enterprise was based in the Xinjiang market and headed for the whole country,Tianrun Dairy had the problem of slow income growth in its own development process,and the market share was seized and divided up;The foothold of enterprise development is profit,and the data comes from financial statements.The analysis of financial statements of enterprises can objectively and comprehensively evaluate the financial situation of enterprises,find out the problems restricting the development of enterprises from the statement level,and introduce the Harvard analysis framework on the basis of traditional financial statement analysis,which can effectively make up for the shortcomings of traditional financial statement analysis that only makes quantitative analysis of financial data,The Harvard Framework combines financial data analysis and management quality analysis.From the perspective of enterprise strategy,it uses financial data analysis to evaluate management quality.It is the most mature financial statement analysis tool at present.The Harvard framework is divided into four parts.First,through strategic analysis,we use PEST-SWOT analysis tool and Porter’s five-force model to fully understand the internal and external environment of Tianrun Dairy and the current situation of enterprise operation.Second,we evaluate the rationality of financial data through accounting analysis to ensure the authenticity and reliability of the data.Third,we use comparative analysis method and ratio analysis method,combined with quantitative analysis of the data,It mainly finds out the problems of the management quality such as the operation ability and profitability of the enterprise from the horizontal and vertical angles,and finally forecasts the enterprise’s prospects,uses the financial risk early warning model to predict the enterprise’s risks,and finds out the possible risk points to determine the sustainable development ability of the enterprise.Through the above analysis,find out the deficiencies of the enterprise in strategy formulation and daily operation,and put forward reasonable suggestions,which will help the development of the enterprise.Through analysis,it is found that after the backdoor listing in 2013,Tianrun Dairy implemented an expanding business strategy,and the business concept driven by innovation led Tianrun to launch the online red Aiklin yoghurt.The product differentiation strategy helped it gradually grow into a leading dairy enterprise in Xinjiang.From the perspective of accounting information quality,the choice of accounting policies conforms to the industry and regulations,and the quality of financial information is good,However,there are also shortcomings in the development process of the enterprise.The turnover rate of fixed assets and inventory continues to decline,the efficiency of asset investment is insufficient,the long-term solvency is insufficient,the debt financing is not well utilized,the profitability is poor,and the growth rate of revenue slows down.In view of the above problems,from the perspective of improving the enterprise strategy and strengthening the management quality,the company proposes to continue to explore the potential market,enhance the core competitiveness strategy,and strengthen the brand construction,Strengthen the asset management and other suggestions.