The Research On The Financial Risk Warning Of The GJ Pharmaceutical Company

The pharmaceutical industry is one of the most concerned industries in China and is directly in relation with our daily lives,physical and mental health.With the development of our society,the market demand of pharmaceutical industry is increasing rapidly,which has placed an ever-growing requirement for this industry.Upon analysis,we found that even though the issuance of the related policies,the development of the society,the agglomeration of this industry,the growth in demand for drugs and the industry benefit have cast us a seemingly bright prospect,pharmaceutical industry is still a special business with high risk and high return.Changes in the macro environment have brought to us not only the opportunity for development,but also some daunting challenges.Therefore,it does have practical significance for us to discuss the Financial Risk warning of the GJ Pharmaceutical Company.With the GJ Pharmaceutical Company being our research objective,we begin by introducing the general research background,making clear of the research direction,and building the framework of our research analysis.Then,through the elaboration of the current research actuality,we summarize the theoretical basis for reference as the following research.Thirdly,we put forward the necessity for this company to establish a financial risk model after analyzing the financial status of the GJ Pharmaceutical Company.Finally,we establish a financial risk warning model and propose solutions to its financial issues.The process of establishing a financial risk warning model is as follow.Firstly,through qualitative analysis,we choose 18 possible indexes which are suitable for the enterprises by using the Delphi Method.Secondly,we implement quantitative analysis to these 18 indexes.With the help of Entropy Method and Correlation Analysis Method,we eliminate the replaceable indexes which have smaller weights.We will finally choose 11 financial indexes as the evaluation indicator of establishing this financial risk warning model and determine the weights of these indexes.Thirdly,with data from 2011 to 2015 used as sample,we apply Entropy Method and Efficacy Coefficient Method to establish a financial risk warning model which is suitable for the GJ Pharmaceutical Company and verify the practicability of this model by forecasting the financial condition of this company in 2016.Lastly,we propose solutions to this company according to the diagnosis and analysis of its warning status.The results of the GJ Pharmaceutical Company's financial risk warning arc:medium alert,medium alert,medium alert,severe alert,severe alert and light alert.The research conclusion of this paper is as follow.? Established a financial risk warning model which is suitable for the CJ Pharmaceutical Company.?Identified the main causes for the company's financial risk,and proposed corresponding measures of prevention.