Research On Financial Performance Of JN Pharmaceutical Company

The study of corporate financial performance has always been an important subject among academia and business community.Financial performance can reflect the current value and predict the future development of an organization.It is the key factor to the decision-making of external investors,as well as the basis to measure the internal business performance.Studying corporate financial performance can help managers get better understanding of financial status of company and figure out problems in management.That is to say,financial performance becomes the basis of improving corporate management and developing the business strategy.In this thesis,I selected JN Pharmaceutical Company as my target to study.After analyzing the company financial statements from 2013 to 2015 and comparing the company's financial performance with the benchmarks of industry,I found that although the pharmaceutical industry has a positive average sales revenue,the sales revenue scale of the company is shrinking,the return on assets(ROA)is declining every year,the profitability of enterprises is decreasing,the inventory turnover rate is low,the operating capacity is poor,and also the growth ability has a reverse trend recently.As a result,companies are facing the challenge of deteriorating business operation.According to the existing problems of financial performance and the actual situation of the enterprise,I analyzed the problems in the financial performance of the enterprise and influences to the development of enterprise.It is found that the operation of JN pharmaceutical company has some defects.For example,the investment of scientific research is insufficient.Excessive innovation leads to function deficiency of products in competing in the market.Some inner problems still exist,such as irrational capital structure,ineffective control of cost and expense,disabled management in production and marketing and improper corporate hierarchy.Based on all the analysis above,I provided some detailed suggestions on how to change status quo of company and how to improve the financial performance.