The Financial Analysis And Evaluations Of Tianmu Pharmaceutical

With our country entering the stage of the socialist market economy, the capital market gradually becomes mature and the financial statement is no longer a simple digital record, but serves as an economic information system to reflect the operation and management activities of enterprises. It plays a part in predicting the strategic behaviors and related risks and is an important foundation of enterprise value evaluation. Effective financial information can provide decision support for stakeholders such as investors, managers and creditors, and plays an indispensable role in social and economic activities.Pharmaceutical manufacturing industry plays an important part in promoting the development of the national economy. This thesis takes Tianmu Pharmaceutical, which is the Chinese medicine part of the medicine manufacturing industry of China, as the research object by using PEST Model and Michael Porter’s Five Forces Model, trying to analyze the macroeconomic environment and competition states. The data is based upon the financial reports from 2011 to 2014, and takes the arithmetic mean of 10 enterprises as the industry reference data, including Pien Tze Huang, Bai Yun Mountain, DONG-E E-JIAO, China Resources San-jiu, Tasly, Tai Chi Group, Yi Bai Pharmaceutical, Sig Pharmaceutical, Tongrentang, and Yunnan Baiyao. Moreover, intuitive line graphs are supplemented. The thesis conducts qualitative and quantitative analysis upon the financial ability index between Tianmu Pharmaceutical and companies of the same industry. In the end the thesis applies the Du Pont System to carry out comprehensive financial evaluation.Tianmu Pharmaceutical, as the first listed company of Chinese medicine manufacturing, has been successfully reformed from state-owned enterprises. However, it takes on a poor production and operation condition in recent years. The worsening financial condition and the unsatisfactory index indicate that it is in a state of financial distress. This thesis explores the existing problems and the reasons for failure and puts forward some corresponding countermeasures for Tianmu Pharmaceutical, hoping that a clear strategic objective and a rational strategic plan can be formulated, the internal management system can be completed, the corporate performance raised, the current plight reversed and a sustainable and healthy development accomplished.