Application Of Financial Diagnosis In Y Company

As an important means to understand the operation and financial status of enterprises,financial diagnosis has become an important part of enterprise financial management.At present,China’s pharmaceutical retail industry has obvious regional characteristics,and the trend of "separation of medicine" reform is becoming increasingly obvious,which brings unprecedented opportunities and challenges to enterprises in the industry.Under this background,this paper chooses Y company,a regional representative enterprise in the industry,as the research object of diagnosis,and uses financial diagnosis to help it find the problems and causes in operation and management,so as to meet the opportunities and challenges,and further clarify the direction of breakthrough development in the domestic market.Based on the financial statements of Y Company from 2014 to 2017,this paper uses PEST analysis,value chain analysis and life cycle judgment to make a preliminary diagnosis and analysis of the company’s current operating situation and development environment.It finds that the company is facing the development dilemma of national market expansion difficulties,poor profitability of stores,transformation pressure,coexistence of performance and policy and legal risks.Therefore,based on strategic orientation,this paper constructs a new financial diagnosis system from a new perspective,which takes maximizing enterprise value as the overall goal,value-driven factors and core competitiveness as the foothold,and uses trend analysis,ratio analysis,comparative analysis,chart analysis and bench marking management to diagnose.From this,the problems and causes of Y company are found: financing knot.Irrational structure is the main reason for the decline of corporate value of Y company;inadequate inventory management leads to weak profitability;inadequate operational capacity makes the efficiency of capital utilization of the company low;and single value-added service mode hinders the development of diversification of the enterprise.Therefore,this paper argues that Y company should improve the financing structure,optimize inventory management,optimize the expansion schedule and store type of control stores,enhance the cooperative management effect of operating funds,innovate service modes and improve service level.The financial diagnostic activities carried out by Y company also have certain reference significance and reference value for the development of similar enterprises:when the industry concentration is intensified,enterprises should not only accelerate the expansion of stores,but also pay attention to the optimization of store management to achieve internal and external coordinated development;the key to enhance the profit of stores is to improve operating efficiency,especially inventory and working capital management.The trend of transformation and upgrading is unavoidable,and the key is to improve the operation and management ability.