Evaluation Of Working Capital Of Luoxin Pharmaceutical Based On The Value Chain

With the vertical penetration of the world economic integration,enterprises are faced with complex and changeable market environment,and their development is difficult.The goal of sustainable development of enterprises needs to be implemented in all links of the value chain.The introduction of value chain management is conducive to the organic integration of procurement,production,marketing,finance and other links,so that all links in the development process of enterprises can form a coordinated and unified whole,so as to improve operation efficiency and enhance market competitiveness.The overall ca pital trend and overall operating efficiency of the company are directly affected by the level of working capital.The introduction of the value chain perspective in the evaluation of the level of working capital can clarify the value creation points of ea ch link of the enterprise’s operation and development,so that the capital can be invested in the link with a high rate of return.It can enable enterprises to reach agreements with suppliers and customers,which is conducive to controlling the procurement cost of raw materials and narrowing the relationship between the company and customers.Luoxin Pharmaceutical is a pharmaceutical manufacturing enterprise that mainly produces and develops drugs and pharmaceutical raw materials,and has a relatively complete value chain.Therefore,this paper chooses Luoxin Pharmaceutical as the research object and evaluates the working capital of the enterprise from the perspective of the value chain.Firstly,this paper analyzes the current situation of working capital according to the specific situation of working capital application in each link,combined with the relevant indicators such as the amount of working capital occupied and the turnover period in each link of Luoxin Pharmaceutical in the past 5 years;Secondly,according to the actual situation of Luoxin Pharmaceutical,a series of indicators were selected to evaluate the liquidity,efficiency,safety and coordination,and a system was constructed to evaluate the level of working capital,so as to avoid imprope r judgment of the working capital of the enterprise due to the abnormal performance of a single indicator.Then,based on the evaluation index system,the working capital of Luoxin Pharmaceutical was evaluated by using the objective and scientific entropy value method,and the evaluation results were compared with the industry competitors.It was found that among the four indexes affecting the level of working capital,the liquidity index and the efficiency were the focus of the working capital index evaluation system of Luoxin Pharmaceutical.Finally,according to the evaluation results,the optimization strategy of the working capital of Luoxin Pharmaceutical was analyzed,and the working capital level was proposed to be enhanced from the aspects of enhancing R & D capability,enhancing bargaining power with suppliers,adopting the method of supplier inventory management,strengthening accounts receivable management,etc.,so as to maximize the overall enterprise value of Luoxin Pharmaceutical.At the same time,it is also hoped that this study can find a new scientific method for the working capital management of pharmaceutical enterprises,provide help for increasing the efficiency of enterprises and improving the competitiveness of enterprises,provide certain reference significance for similar enterprises,and promote the common development of the pharmaceutical industry.