The Analysis Of Bio-pharmaceutical Listed Company’s Profitability

The bio-pharmaceutical industry is considered to be one of the most promising industries in the21st century. Since the Reform and Opening, China’s bio-pharmaceutical industry has been maintaining at a rapid growth rate, and the annual average growth rate farly exceeds the gross domestic product during the same period, and powerful impetus to the entire national economy to achieve rapid development. In recent years, the central government and local governments have put forward relevant policies to support the development of the bio-pharmaceutical industry, and bring the bio-pharmaceutical as a strategic emerging industriy into the Twelfth Five-Year Plan, which means that the bio-pharmaceutical industry will get the strong support in the policy. Meanwhile, with the acceleration of the aging speed of our country’s population and the continuous improvement of people’s living standard, the biopharmaceutical industry will be faced with enormous potential of market demand. These factors will greatly promote China’s biopharmaceutical industry, so the rapid development of the bio-pharmaceutical industry will receive widespread attention in the future.Enterprises carry on production and business activities to achieve the most important goal to maximize profits and maintain healthy and stable development. In the performance evaluation and financial analysis, the profitability evaluation lies on the core position, and get widespread concern of the stakeholders in all aspects of business. Profitability is the important result of operation of the enterprise management personnel, and is the important guarantee to continuously improve the employee’s benefits, and is the major source to return investors and creditors of the corporate. Therefore, the profitability evaluation is essential for the enterprise.Based on the domestic and foreign’s profitability evaluation, this paper fistly carries an overall analysis on the profitability of our counrty’s bio-pharmaceutical industry, and get the whole industy’s development status, strategic position, development trends, profitability status quo and potential influencing factors. Then, this paper use the factor analysis to calculate the factor scores of the bio-pharmaceutical listed companies from2009to2011, and use multiple linear regression analysis to get the main factors and their impact. Finally, this paper give some measures to improve the profitability of bio-pharmaceutical listed companies.