Study On Financial Sustainable Growth Of Yiling Pharmaceutical

With the deepening of the "Healthy China Action" and the continuous transformation of people’s health concept,the state continues to increase the investment in the pharmaceutical industry.During the 13 th Five-Year Plan period,the CPC Central Committee continuously emphasized the prominent position of traditional Chinese medicine,invested unprecedented efforts to continuously promote the reform of traditional Chinese medicine,and made historic achievements in the cause of traditional Chinese medicine.In recent years,policies have been introduced frequently in the TCM industry,and relevant TCM enterprises have also continued to welcome favorable policies,gaining opportunities for rapid development.However,many cases show that if an enterprise lacks the business philosophy of financial sustainable growth,it is easy to go to two extremes: one is to miss the opportunity due to conservative management;the other is to fall into the business risk due to blindly rapid development.Therefore,it is of great significance to discuss the financial sustainable growth of TCM enterprises with good development prospects.Based on the relevant theories of sustainable financial growth of enterprises and the Higgins financial sustainable growth model,this paper chooses Ling Pharmaceutical as the case enterprise to analyze its financial sustainable growth during 2014-2021.First of all,a brief introduction of Yiling Pharmaceutical,a certain description of its operating environment,and then a brief analysis of the overall financial situation of Yiling Pharmaceutical.Secondly,it calculates the sustainable growth rate of Yiling Pharmaceutical based on the Higgins model,then makes a horizontal comparison with other enterprises in the same industry,and then compares the difference between the sustainable growth rate and the actual growth rate through quantitative analysis,and finds that it has not achieved financial sustainable growth.Thirdly,through a specific analysis of the problems and causes in the process of financial sustainable growth of Yiling Pharmaceutical,it is found that Yiling Pharmaceutical has some problems,such as high actual growth rate,high proportion of cost and expense,working capital turnover to be improved,unreasonable capital structure,and profit distribution policy to be improved.Finally,the paper puts forward countermeasures and suggestions from the aspects of adjusting growth difference reasonably,controlling enterprise cost reasonably,strengthening asset management,optimizing capital structure and improving profit distribution policy.By analyzing the financial sustainable growth of Yiling Pharmaceutical,this paper can not only enrich the domestic research results on the financial sustainable growth of enterprises in the traditional Chinese medicine industry,but also provide useful reference for other enterprises in this industry to achieve sustainable growth.