The Research Of Evaluation On Medicine Industry Listed Companies' Sustainable Growth

Based on empirical research methods, this thesis selects medicine industry as a sample of listed companies, and uses these enterprises'data from 2003 to 2007. This paper proposes the research of evaluation on medicine industry Companies'sustainable growth capacity.In this paper, the evaluation of medicine industry Companies'sustainable growth capacity considered both qualitative and quantitative point of view. This paper builds the sustainable growth evaluation system of medicine industry companies and uses One-Sample Kolmogorov-Smirnov Test and Wilcoxon Signed Ranks Test to test whether Chinese listed companies related to medicine industry have grown in a sustainable way. This article made reference to the relevant domestic and international study, and choose 15 original financial ratios. The Factor analysis found that profitability is the decision of sustainable growth ability, and they are positive correlation. The solvency affects sustainable growth ability more obviously, and have a positive correlation with sustainable growth ability. The current ratio, the ratio of cash and Sudongbilv has positive correlation with sustainable growth ability. The rate of assets and liabilities has a negative correlation. Operating capacity is not very significant. This is mainly by the decision of the special nature of the medicine industry; medicine industry is a high-tech, high-investment industry, medicine industry companies invest long-term recovery, the slow turnover of assets. The study found that sustainable growth ability related to the growth capacity was weak or negative correlation. Through cluster analysis, we fall medicine industry companies into three categories based on their Z ability, builds classification standards of sustainable growth capability of listed companies. The Empirical study of 69 sample companies show that 13 were rated as A, 22 were rated B, 34 were rated C. This is the front line with the analysis, that is, most of the medicine industry companies do not achieve sustainable growth. Through the test sample, we found this model has some predictive value of medicine industry Companies'sustainable growth capacity.This article hope that the sustainable growth evaluation system of medicine industry companies be helpful to evaluate the sustainable growth, and plays a Positive role to the securities market regulators, investors, managers of listed companies as well as macro-economic policy-making departments.