Financial Analysis And Evaluation Of Jiangsu Hengrui Medicine Co.,Ltd

With the development of economy, we have paid more attention to financial statement analysis of listed companies. The current requirements for statement users is how to understand information contained in statements and to make related analysis. We define the financial analysis as follows. Financial analysis is a kind of economic activity. Based on financial accounting information, financial body conducts management activities through special financial analysis methods in order to analyze these subjects including of the past and present economic transaction and operational matters such as financing, managing, distribution and profitability and so on.The study object of this thesis is Jiangsu HENGRUI Medicine CO.LTD. The traditional financial analysis methods have not applied to the analysis of the company. The 12th five-year plan will support the biological medicine as a key industry, it will become the pillar industry of national economy in our country.Traditional medicines market become more competitive in 2012 because of the lower traditional tumor products prices. However the development of molecular targeted drugs momentum seems to be overwhelming. In such a complex background, as the nation’s largest traditional tumor drug production enterprise,how Hengrui medicine to deal with?what is the operating results and financial situation? So we builds the new comprehensive analysis system combing financial statement analysis with enterprise strategy analysis and industry analysis, and then,taking use of comparative analysis of financial statements, financial capacity analysis and Du Pont analysis., we make quantitative and qualitative analysis based on the 2010-2012 annual financial reports of Jiangsu HENGRUI Medicine CO.LTD in combination with three listed companies-Beijing SL, HISUN, SIHUAN pharmaceutical and Gloria pharmaceuticals 2009-2012 annual financial reports. At last, we point out the problems existing in the company and put forward reasonable suggestions, so as to provide some improvement information from stakeholders’ standpoint.