North China Pharmaceutical Financial Risk Analysis And Control Research

Pharmaceutical manufacturing industry is an important industry related to people’s livelihood,with the economic and social progress and development,health issues become the focus of attention,so the development of pharmaceutical manufacturing is more and more concerned by the country and the people.Compared with developed countries,China’s pharmaceutical manufacturing enterprises generally lack the ability of independent innovation,pharmaceutical products produced by the majority of enterprises have low technological content,most enterprises lack of products with independent intellectual property rights,coupled with China’s pharmaceutical market competition has become increasingly fierce,this series of problems make China’s pharmaceutical companies have financial risks.How to effectively control the financial risk of enterprises is one of the main problems faced by the pharmaceutical manufacturing enterprises in China.North China Pharmaceutical Co.,Ltd,referred to as NCPC,is one of the largest pharmaceutical companies in China,take this company as the object of study,using literature research,inductive analysis and factor analysis,to analyze the financial situation of this company in the past five years from the four aspects of financing,investment,operation and distribution.The financial index of 142 listed pharmaceutical companies in China in 2015 and the financial data of each year since the funding of NCPC were selected as the sample to horizontally and vertically evaluate the financial risk level of NCPC.The results of the study showed that NCPC had great financial risk in the last five years,the ability of debt servicing and profitability was weak,the overall size of the debt was larger,the structure of debt was unreasonable,the way of financing is single and the company lack of scientific investment decision and distribution system,and it had poor inventory and accounts receivable management Finally,this paper puts forward the relative reasonable control measures of financial risk for NCPC.For example,NCPC could control the size of the debt,adjust the capital structure,use a variety of financing methods;strengthen the management of investment risk,increase investment in innovation project;strengthen the management of accounts receivable and inventory,improve the internal control mechanism;improve the system of income distribution.The purpose is to be able to provide reasonable reference for NCPC to control financial risks,and to providereference and reference for other pharmaceutical companies.