Study On Financial Risk Evaluation Of Jincheng Pharmaceutical

Pharmaceutical industry is an important industry related to the national economy and people’s livelihood,and is one of the seven strategic emerging industries in China.Affected by the country’s policy of supporting the development of the pharmaceutical industry,the steady growth of the disposable income,the accelerating trend of population growth and aging,and the increasingly comprehensive health care system,the prosperity of the pharmaceutical industry will continue to maintain steady growth.At present,the pharmaceutical industry as a whole has good fundamentals,and some sctors have a high degree of prosperity.With the development of science and technology in China,the medical industry is facing great opportunities and challenges.The competition of the medical industry is becoming more and more fierce,and its financial risk is also becoming more and more prominent.Under the background of policy support and technological innovation,how to control the financial risks of enterprises is a crucial problem.Shandong Jincheng Pharmaceutical Group Co.,Ltd.,or Jincheng Medicine(Stock Code:300233),listed on the Shenzhen Stock Exchange in 2011.This article explores the financial risks of Lanzhou Pharmaceuticals,focusing on Lanzhou.First of all,the concept of financial risk and causes of understanding the characteristics of financial risk,risk management content and process,for the following analysis to lay the foundation.Secondly,the financial situation of Jincheng Pharmaceutical Company is analyzed from three statements and four capabilities.Then,from the four aspects of profitability,debt paying ability,operation ability and development ability,12 financial indexes are selected to construct financial risk system to identify and evaluate financial risk,by analyzing the financial data of Jincheng Medical Company from 2160 to 2020,we find that there are some financial risks in Jincheng Medical Company,such as single mode of borrowing,poor management of inventory and accounts receivable,serious loss of exchange and impairment of goodwill.Then,using the method of entropy weight and efficiency Coefficient to determine the weight of financial indicators,the risk level of Jincheng Pharmaceutical was analyzed.The results show that:On the whole,Lanzhofinancial risk worsened in 2020,profit risk and development risk declined seriously in 2020,and the risk grade is higher,the operation risk and the repayment risk overall development is stable,but the operation risk also has the downward trend in recent years,is worth paying attention to.Finally,the general situation of the specific causes of Lanzhomedical financial risk,the paper pforward that the financial risk of Lanzhou medicine should take such measures as raising the utilization ratio of assets,reducing the cost of products,innovating the way of borrowing,optimizing the capital structure,perfecting the collection system of accounts receivable,perfecting the inventory management system and increasing the income of main business.By analyzing the general situation of Jincheng Pharmaceutical Financial Risk and putting forward rationalization proposals,this paper also provides reference value for other pharmaceutical manufacturing enterprises to control financial risk.