Study Of Financial Risk For The Pharmaceutical Manufacturing Industry

The pharmaceutical manufacturing industry is a developing and growing industry, it is beneficial to people’s livelihood, and also plays an important role in society. As our country has entered the aging society, economic development and the increase in disposable income and other factors have driven the demand for medicinal products. The pharmaceutical manufacturing industry is developing more rapidly, with the rapid development at the same time; the pharmaceutical manufacturing enterprise is facing more complex and changeable financial risks in the process of production and management. In China, how to avoid financial risks and seize the opportunities are the realistic problems in the pharmaceutical manufacturing enterprises.This article consists of five chapters. First, analyzing the financial risks through the pharmaceutical manufacturing industry characteristics. And then,this article study the financial risks of the pharmaceutical manufacturing industry, according to the identification of financial risks, the assessment of financial risks and the idea of financial risks control.The chapter one of the article identifies the object of study, research objectives, research ideas and research methods. Object of this paper is based on the management of financial risk perspective pharmaceutical manufacturing industry. The research purpose is to make pharmaceutical manufacturing enterprise in advance have some knowledge and preparation about possible risks and reducing the financial risks.The chapter two describes the various academic literature views of financial risks classification, sources, warning model and so on, as well as academics specializing in the financial risks for the pharmaceutical manufacturing industry.Chapter three presents risk concept and characteristics about the financial risk of pharmaceutical manufacturing industry. What’s more, this paper analyzes risk factors and possible financial risks of pharmaceutical manufacturing industry. Chapter four discusses identification and control of financial risks about pharmaceutical manufacturing industry. Identification of financial risks from two angles of qualitative and quantitative. Identification of qualitative includes funding risk, investment risk, operational risk and other financial risk. And analyzing the factors of developing financial risks from two ports about internal and external. From the quantitative point of view, this paper uses simple statistical analysis and selects nearly three years of financial data of pharmaceutical manufacturing industry which own independent R&D technology. This chapter analyzes the Z-Score model and the F-Score model with the data and draws s conclusion that the F-Score model is more suitable for China’s pharmaceutical manufacturing enterprise than Z-Score model by comparison of the data and the actual situation of the industry. Based on the identification of financial risk, This article make a financial risk assessment on pharmaceutical manufacturing companies through using a simple lever analysis method. And according to own characteristics and performance in the pharmaceutical manufacturing, and then the corresponding financial risks control measures are put forward.In the chapter five, this chapter analyzes various financial indicators of company financial data analysis. And then analyzing the company how to control the financial risks.Main contribution of this paper is more comprehensive for financial risks analysis in the pharmaceutical manufacturing industry by industry characteristics and industry status. In the quantitative analysis of financial risks, there is a conclusion that F-Score model is more suitable for China’s pharmaceutical manufacturing company. All in all, this paper plays a reference role in the pharmaceutical manufacturing industry.This article is something inadequate. This article just did a simple statistical analysis, but did not carry out special empirical analysis. It leads to undepth study about how to quantify and recognize the financial risks in the pharmaceutical manufacturing industry. On the other hand, some questions such as financial risks forewarning model are worthy of further study in the pharmaceutical manufacturing industry...