Research On Financial Risk Management Of Jincheng Pharmaceutical

The pharmaceutical field has always been closely related to the development and livelihood of the country.With the improvement of people’s living standards and the enhancement of economic strength,the pharmaceutical industry has received more and more attention,and the country and people are paying more and more attention to health issues.In recent years,the reform of the medical system has also brought opportunities and challenges to the pharmaceutical industry.From the implementation of the "two ticket system" policy in 2017 to the promotion of the "4+7" drug procurement work carried out by the Medical Insurance Bureau in 2019,the introduction of these policies has a significant impact on the construction of China’s pharmaceutical system and the development of pharmaceutical enterprises.In this context,the problems in the pharmaceutical industry have gradually emerged.In order for the pharmaceutical industry to develop in a long-term and healthy manner,it is necessary to identify potential financial risks,take appropriate and effective financial management measures,and enhance the ability of the pharmaceutical industry to respond to financial risks.This thesis takes Jincheng Pharmaceutical as the research object and analyzes and studies the identification,evaluation,and prevention of financial risks based on Jincheng Pharmaceutical’s data from 2017 to 2021.Firstly,I have reviewed and studied relevant domestic and foreign literature,sorted out relevant concepts and theories,and laid a theoretical foundation for the following text.Secondly,introduce the basic situation of Jincheng Pharmaceutical and analyze its financial situation from the balance sheet,income statement,and cash flow statement.Use the financial ratio analysis method to identify the company’s financial risks from four aspects: debt repayment,operation,profitability,and development.Once again,16 indicators were selected from four aspects of debt repayment,operation,profitability,and development,and 17 companies were selected as sample companies.The entropy weight Topsis method was used to evaluate Jincheng Pharmaceutical horizontally and vertically.Based on the evaluation results,it was found that Jincheng Pharmaceutical faces financial risks such as a single financing structure,a large backlog of inventory,unstable profitability,and insufficient research and development efforts in debt repayment,operation,profitability,and development.Finally,based on relevant theories and combined with the actual financial risks of Jincheng Pharmaceutical,risk prevention measures are proposed from the aspects of reasonable control of debt ratio,acceleration of inventory turnover rate,improvement of foreign exchange management level,and increased product research and development efforts.