Research On Financial Risk Early Warning Of D Pharmaceutical Company

With the increasing difficulty of enterprise management and the intensification of market competition,the traditional comparison of individual financial data can no longer meet the needs of enterprises,but it is necessary to fully consider whether the enterprise can develop healthily in the future.Only by fully understanding its own financial risk level,timely financial warning,and maintaining sustainable profitability can it ensure its own production and development.As an industry standard setter,Company D’s products have been selling well for many years.However,due to the lag of its own research development and the intensified competition in the pharmaceutical market,Company D’s operating performance has not performed well;and in the process of financial early warning,Company D lacks financial evaluation standards and early warnings.The problem that the indicators are not representative makes it difficult for the management of Company D to make decisions based on the original financial analysis conclusions.Therefore,the financial early warning model of company D should be set up to make the financial evaluation more objective and comprehensive.Based on the relevant data of the current financial situation of traditional Chinese medicine industry,this paper selects the financial indicators that can reflect the financial risk of company D,obtains the financial early warning model by using the main cause analysis method in SPSS,and then uses the efficacy coefficient method to evaluate the accuracy of the model according to the actual financial situation of the company,And further use the 12 financial index data of50 listed companies in the traditional Chinese medicine industry in 2020 for factor analysis to calculate the public factor scores and comprehensive factor scores,so as to help company D find the current position of the enterprise in the industry.Finally,this paper summarizes the problems that D company should pay attention to in preventing financial crisis.To some extent,it is hoped to provide reference for the prevention of financial risks of company D and provide effective help for the sustainable development of company D.