Harvard Analysis Framework: A Comprehensive Approach to Financial Evaluation

The text describes the Harvard analysis framework, which combines strategic analysis and financial analysis to provide a comprehensive and reliable evaluation of a company's financial status. The framework includes four components: strategic analysis, accounting analysis, financial analysis, and prospect analysis. Strategic analysis considers non-financial information from the internal and external environment of the enterprise to provide a theoretical basis for accounting and financial analysis. Accounting analysis evaluates the authenticity of financial statements through special methods. Financial analysis analyzes financial indicators and compares them with other companies in the same industry to discover the company's advantages and disadvantages. Prospect analysis evaluates the company's future development potential based on the environment and past operating conditions and provides a basis for investment decisions and development plans.