A Financial Analysis of Wanxin Media Company from the Perspective of the Harvard Analytical Framework
DOI: https://doi.org/10.62517/jbm.202609115
Author(s)
Peiji Lin1, Chenxuan Wang 2
Affiliation(s)
1Xiamen Xian Yue Hospital, Xiamen, Fujian, China
2Xiamen University of Technology, Xiamen, Fujian, China
Abstract
Based on a literature review, this paper analyzes the advantages of the Harvard Analytical Framework and traditional financial analysis. It examines the financial condition of Wanxin Media within the Harvard Analytical Framework, conducts a strategic analysis using the PEST method, and performs a SWOT analysis. A financial analysis of Wanxin Media is carried out, focusing on short-term solvency, long-term solvency, profitability, operating capacity, development capability, and accounts receivable, followed by a prospect analysis. The study reveals that Wanxin Media possesses strong solvency; however, its capital structure exhibits notable irrationalities, characterized by an excessively high proportion of shareholders’ equity and a relatively small scale of liabilities, which fails to fully leverage the positive effects of financial leverage. Moreover, the excessive proportion of shareholders’ equity also results in a relatively low return on equity. Overall, Wanxin Media’s development strategy tends to be conservative. In the future, the company could moderately utilize financing and debt operations to reasonably reduce operating costs, while effectively deploying idle funds to expand its business scale and explore the market based on favorable demand conditions.
Keywords
Wanxin Media; Financial Analysis; Harvard Analytical Framework
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