Research On Profitability Evaluation Of GR Company

The proposal of "new normal" means that the state has begun to pay more attention to the balanced and all-round development of the economy,as well as to the support of private enterprises,an important part of the market economy,and has promulgated many supporting policies,which have greatly encouraged the development of private enterprises.As a unique characteristic industry in China,the development of Chinese patent medicine pharmaceutical industry has been paid more and more attention by the state,and the public's voice for Chinese traditional medicine is also growing.GR company is the earliest group of enterprises engaged in Chinese patent medi cine in the province.Now it has developed into a larger enterprise that can extract Chinese medicine ingredients in the province.Whether the enterprise can grow bigger and stronger and achieve long-term development directly depends on whether it has better profitability.For any enterprise,profitability is the primary issue of management.To make an objective and comprehensive evaluation of the profitability of the enterprise itself is of great significance for the enterprise to clarify its profitability level,find out the management omissions and improve its profitability.Based on the characteristics of private non-listed companies of GR company and the industry specificity of proprietary pharmaceuticals,this study re-selected the profitability evaluation index suitable for GR company,and established a comprehensive profit which covers four aspects: operating profitability,capital profitability,asset profitability and earnings quality.On the basis of the profitability evaluation system,the factor analysis method is introduced and the comprehensive evaluation scoring model of GR company's profitability is constructed by using SPSS statistical tools.Based on the financial data of 2014-2018,the comprehensive scoring situation and its changing trend of GR company's profitability in the past five years are obtained,and two factors that have the most significant impact on GR company's profitability are also obtained.The overall score and two core factors are taken as the object of study,and the horiz ontal and vertical dimensions are analyzed to get the evaluation results of GR company's profitability.Through the evaluation,it is found that although the overall profitability of the industry has declined in recent years,the downward trend of GR company is larger than the downward trend of the industry,and has gradually dropped from the good value of the industry to below the industry average.Through the analysis of the main factors extracted,it is found that the deficiencies in cost control,invent ory management and accounts receivable management seriously affect the improvement of their profitability.In view of this situation,through the actual investigation of enterprises,the corresponding countermeasures and suggestions are put forward to help GR company improve its profitability.