Research On Financial Risk Early Warning And Prevention Of DB Pharmaceutical Company

With the progress of society,health care reform policy has been further promoted,but at the same time with the aging population phenomenon intensifies,Chinese pharmaceutical enterprises face the challenge while develop rapidly.The pharmaceutical industry is an industry which has a high risk.The reason for this risk is the three high characteristics of the pharmaceutical industry(high input;high risk;high return).Therefore,detecting the financial risk of pharmaceutical companies timely,has great significance for protecting the interests of stakeholders,and the sustainable development of enterprises.In conclusion,the establishment of financial early warning system for the industry,has a profound impact on the development of pharmaceutical companies.In this paper,studying DB's financial risk warning can help the company predict and prevent financial risks,and have a certain practical significance.The thesis takes DB pharmaceutical company as a case,through expanding the related financial risk warning,the theory of entropy method and efficacy coefficient method,forming a general understanding of financial risk warning.And then from the three aspects of assets,sales and cash flow situation,the study selects DB pharmaceutical company's nearly five years of key financial data to analyze the financial status of DB pharmaceutical company.On one hand,the study uses longitudinal comparison of the data.On the other hand,the study selects the pharmaceutical industry's financial data for the average horizontal comparison.Based on the mentioned above theory of the paper set,combined with pharmaceutical industry characteristics and their own financial situation,this study chooses financial data of DB Pharmaceutical company from 2011 to 2015.Through the combination of entropy method and function coefficient method,the paper explains the four aspects of financing risk respectively,funding risk,investment risk,operational risk,income distribution risk,to build a set of the financial risk early warning system for DB pharmaceutical company.According to the correlation analysis,the corresponding financial indexes are selected.The weight of the index is determined by the entropy method.The financial risk of DB pharmaceutical company is evaluated synthetically by effective coefficient method analyze.The financial risk early warning score is calculated for the past three years.Finally,combining with the results of financial risk early warning,from the five aspects,this study puts forward the specific measures to prevent financial risk,including the establishment of DB pharmaceutical companies financial risk early warning regulators,financing,investment,operation and income distribution of DB pharmaceutical companies.It hopes that this study will provide some reference for the financial risk warning of DB pharmaceutical company.