Study On The Correlation Between Working Capital Management Efficiency And Company Performance Of Listed Pharmaceutical Companies In China

With the increasing needs of the people for a better life and the increasing emphasis on the concept of healthy life,the demand of pharmaceutical manufacturing industry of China has been growing in recent years.However,with the deepening of the "medical reform" and the impact of the new epidemic on the industry,the survival pressure of the pharmaceutical manufacturing industry is becoming increasingly obvious,the innovation requirements are increasing,and the capital needs are increasing,and the pressure on capital is also increasing.Working capital is referred to as the "blood" of the company,injected a steady stream of vitality to the company's operating management.Working capital management is also a very important part of financial management work.Improving the efficiency of working capital management is helpful to guide the company efficient use of its own funds,alleviate the pressure on pharmaceutical companies' funds,and improve the company operation.This thesis sorted out the domestic and foreign research on the relationship between working capital management efficiency and company performance,and selected the financial data of 204 listed pharmaceutical manufacturing companies in Shanghai and Shenzhen stock markets from 2009 to 2018 as the empirical research object.Using the working capital turnover period to measure the efficiency of working capital management,and the working capital management efficiency evaluation index is subdivided into four parts: purchase channel,production channel,marketing channel and financial activities,with the rate of return on total assets as the agent variable of the company performance.Firstly,through a two-way fixed-effect model,an empirical study analyzes the correlation between working capital management efficiency and company performance.The results show that:(1)there is a positive linear correlation between the working capital management efficiency and the company performance of listed companies in pharmaceutical manufacturing industry of China;(2)there is a positive linear correlation between the working capital management efficiency of purchasing,production and marketing channels and company performance;(3)the working capital management efficiency of financial activities is not significantly correlated with company performance;(4)among the three channels of operating activities' working capital management efficiency,the marketing channel has the greatest influence on the company performance.Secondly,taking Sichuan Kelun Pharmaceutical Co.,Ltd.as a case,combined with the empirical analysis conclusion,comparing the working capital management efficiency and the company performance nearly five years of trend,it was found that the working capital management efficiency of operating activities is related to company performance of KelunPharmaceutical.Analyze the capital structure of Kelun Pharmaceutical and the current status of operating capital management efficiency of operating activities,and propose corresponding optimization suggestions to the problem to help Kelun Pharmaceutical improve company performance.At the same time,it can also be used as a reference for management of other pharmaceutical manufacturing companies to make working capital management decisions,to help the company optimize its working capital management efficiency and ultimately achieve the goal of continuous growth of company performance.