Hongri Pharmaceutical Financial Analysis Based On Improved DuPont Analysis System

In recent years,with the rapid development of the economy,the gradual improvement of the medical system and the aging of the population,China's investment in medical treatment is increasing,and the scale of the pharmaceutical industry is expanding year by year.At the same time,with the continuous reform of the country and the introduction of new national policies,the market environment of the pharmaceutical industry has gradually undergone major changes,and competition among enterprises has become more intense.Although Hongri Pharmaceutical has developed rapidly in recent years,its profit fluctuations are still relatively large,and its financial situation is still unstable.In the era of fierce competition in the pharmaceutical industry,in order to strengthen the competitiveness of Hongri Pharmaceutical,It is especially important to conduct financial analysis to help them find problems in the company's development.In this paper,Hongri Pharmaceutical,which is the first batch of companies in China and the first GEM enterprise in Tianjin,is selected as the research object.First of all,the research background,research purpose and research significance of this article are briefly explained,the relevant literature of experts and scholars at home and abroad are sorted and evaluated,and the research content of the article and the research methods used in this article are introduced.Secondly,introduce the relevant theoretical knowledge used in this article,introduce the concepts,principles and limitations of the traditional Du Pont analysis system,and then introduce the idea of improving Du Pont analysis system,so as to form a sustainable growth rate as the core Improve Du Pont analysis system.Again,this article uses the improved Du Pont analysis system to conduct a longitudinal analysis of Hongri Pharmaceutical's financial situation from 2014 to 2019,and at the same time selects Shanghai Pharmaceuticals,which is a leader in the same industry,as a horizontal comparison.According to the characteristics of the improved Du Pont analysis system,the Four aspects of sustainable development capacity,profitability,dividend payment capacity and cash flow are used to conduct vertical and horizontal financial analysis of Hongri Pharmaceutical,and observe the development trends of its various indicators.Then,based on the improved Du Pont analysis system,based on the financial analysis results of Hongri Pharmaceutical,find out the problems and reasons for the company's sustainability,profitability,dividend payment abilityand cash flow.Finally,according to the problems found in the analysis,combined with its actual development situation,it puts forward corresponding suggestions on how to improve sustainable development capacity,profitability,dividend payment capacity and improve cash flow status,so that Hongri Pharmaceutical can be faster in the future better development.