Research On Profitability Evaluation And Improvement Countermeasures Of KY Group

As an industry closely related to the national economy and people’s lives,the pharmaceutical industry plays an indispensable and important role,and its value cannot be underestimated.At the same time,due to the features of high investment,high risk and strong cycle of the pharmaceutical industry itself,the pharmaceutical industry has always been regarded as a "sunrise industry".With the continuous evolution and fierce competition of the pharmaceutical market environment,many domestic pharmaceutical companies are actively exploring new business models to expand their living space.Improving profitability is the key to a company’s invincibility in the fierce industry competition,because it can visually reflect the company’s operating conditions and profitability.In this paper,KY Group is selected as the research object,and the profitability of KY Group is analyzed and studied by combining literature research method,quantitative analysis method and qualitative analysis method.Firstly,the concept of profitability and profitability evaluation is expounded,the relevant methods of profitability evaluation are introduced,and the steps of the entropy weight TOPSIS method are further described,and the relevant theories applied in the paper are clarified.Secondly,the company profile of KY Group is introduced and the profitability status of KY Group is studied.Thirdly,11 secondary indicators were selected from the four aspects of operating profitability,capital profitability,asset profitability and earnings quality to establish a profitability evaluation index system,and 20 sample companies in the Chinese medicine industry,including KY Group,were selected,and companies from 2017 to 2021 were evaluated based on the entropy weight TOPSIS method,and the evaluation results were obtained and the evaluation results were and itemized to understand the overall and sub-profitability level of KY Group.Through the summary,it is found that the reasons for the decline in profitability of KY Group are mainly due to weak product sales,insufficient cost control ability,poor inventory management level and insufficient control of accounts receivable.Finally,it proposes targeted profitability improvement measures for KY Group: adjusting product structure,controlling costs and expenses,optimizing inventory structure,and strengthening accounts receivable control to improve the profitability of KY Group.