Research On Asset Quality Evaluation And Improvement Countermeasures Of Yixintang Pharmaceutical Company

An enterprise is a profit-oriented organization.The essence of corporate assets is to bring in economic benefits to the enterprise.Good asset is a very important basis for maintaining business operations of the company,and high-quality asset is also a prerequisite for companies to obtain operating profits.Therefore,the quality of corporate assets directly affects the company's profitability,turnover and sustainable development capabilities.Timely analysis and understanding the quality of the company's assets is critical.Using Yixintang as a research case,our study analyzes the company's asset quality,and give some feasible suggestions and opinions on how to improve the company's asset quality.Yixintang Pharmaceutical Group has entered the top ten chain stores in China for many years in sales and direct stores.Analysis and evaluation of Yixintang's asset quality not only helps to understand the company's operating status,but also has reference value for other companies of the same type.Based on the previous studies,this paper summarizes the main characteristics of corporate asset quality in the pharmaceutical industry.We also construct a set of asset quality evaluation system for the case companies,including the existence,effectiveness,profitability and liquidity of asset quality.The first-level indicators consisting of four characteristics,and the 16 secondary indicators selected from these four characteristics.According to the case company's annual report information and its peer listed firms' annual report information,we uses the vertical and horizontal comparative analysis method and principal component analysis method to compare the asset quality of case company with other peer firms.Our evaluation of the asset quality of Yixintang Pharmaceutical found that,compared with the listed companies in the same industry,the asset quality of Yixintang generally performed well,but there were problems such as low asset profitability,low asset turnover rate and unreasonable asset structure.The possible main causes of these problems can be attributed to the low turnover rate of the company's accounts receivable,the company's poor inventory management,lower company's operation and management ability,too fast market expansion speed,and the unreasonable company's asset structure.Furthermore,we propose some feasible methods to solve these problems,such as accelerating the recovery of accounts receivable,strengthening the company's inventory management,improving the company's internal control management,appropriately reducing asset expansion speed and adjusting the asset structure of thecompany.