Research On Financial Performance Evaluation Of Listed Companies In Chinese Medicine Industry

Under the background of the current socialism with Chinese characteristics entering a new era,the development of Chinese patent medicine industry is the need to implement a healthy China strategy and the only way for our people to move towards a happy and happy life.Using scientific and reasonable financial performance evaluation methods to evaluate the financial performance of the entire industry is of great significance.Through quantitative analysis of various financial indicators of the enterprise,we can understand the status of the industry and grasp the operating trends,so as to evaluate whether the operating performance is considerable,whether the enterprise’s objectives have been achieved,whether the managers have fulfilled their duties,whether the funds are safe,whether the debts can be repaid on time,provide reliable information to the government,the people and investment institutions,and affect the decisions of relevant investors.A comprehensive evaluation of the financial performance of listed companies in the Chinese patent medicine industry can find common and special problems in the industry,learn from enterprises with strong comprehensive strength,alert lagging enterprises to improve their deficiencies,strengthen their comprehensive competitive strength,improve the level and quality of financial performance management of Chinese patent medicine enterprises,and provide beneficial enlightenment and reference for the overall progress and development of the industry.Firstly,this paper defines and elaborates the related concepts such as financial performance evaluation of listed companies in Chinese patent medicine industry,"principal-agent theory","contingency theory" and "stakeholder theory",and sorts out and analyzes the researches made by scholars at home and abroad on performance evaluation and financial performance evaluation in medicine field at present,so as to lay a theoretical foundation for this research.Secondly,it introduces the basic situation of listed companies in the Chinese patent medicine industry,defines the scope of the Chinese patent medicine industry,and introduces the development status and characteristics of the industry.On this basis,based on the performance data of 27 Chinese patent medicine listed companies in Shanghai and Shenzhen stock exchanges by the end of 2018,an entropy weight model is established to analyze the contribution degree of different abilities to financial performance,and a weight distribution scheme suitable for Chinese patent medicine industry is obtained.The revised Wall scoring system is used to comprehensively measure the financial performance of the industry,and the comprehensive ranking of all levels and total scores is obtained.Finally,the article summarizes and analyzes the research results,and puts forward countermeasures and suggestions to improve the financial performance of listed companies in Chinese patent medicine industry.The conclusions of this paper are as follows: the resources of Chinese patent medicine industry are unevenly distributed and the trend of two-level differentiation is obvious;the overall profit potential of the industry is large,and the problems of asset utilization rate and capital structure are obvious.Some of the more comprehensive Chinese patent medicine companies bring more profits and short-term solvency.Some proprietary Chinese medicine enterprises are hindered by low efficiency in the use of assets,poor circulation of inventories,long payback period of accounts,and great pressure on capital turnover.There are the following innovations in this paper: At present,the financial performance evaluation of Chinese medicine industry tends to be mature in China,but the scope of Chinese medicine industry as one of its branches is not large,which results in its financial performance evaluation being roughly included in the fields of Chinese medicine and even medicine.During the financial performance evaluation,the Chinese patent medicine industry in the field of traditional Chinese medicine is further subdivided.For the first time,the empirical research method of combining the objective entropy weight model with the revised Wal-Mart scoring system is applied to the Chinese patent medicine industry,which overcomes the defect of unreasonable weight distribution in the revised Wall scoring system in the past,and comprehensively evaluates the financial performance of the Chinese patent medicine industry and puts forward countermeasures and suggestions.