Research On Financial Performance Evaluation Of LK Pharmaceutical

With the development of economy and the improvement of research and development technology,the pharmaceutical industry has entered a new stage of drug development.Drugs are also becoming safer,with zero side effects and multiple ways to use one drug.Pharmaceutical manufacturing industry is an important industry of national economy,and the developed degree of pharmaceutical manufacturing industry is an important index to measure a country’s medical level.The outbreak of the novel coronavirus in 2020 has further promoted the pharmaceutical industry’s demand for drug research and development.Improving drug safety and speeding up drug development are also major breakthroughs of our time.Therefore,in this context,it is particularly important to evaluate the financial performance of pharmaceutical enterprises and put forward the corresponding methods to improve performance.This paper takes LK Pharmaceutical Company,one of the four major antibiotic production companies,as the research object to evaluate and analyze its financial performance.The article first discusses the relevant basic theories involved in the article,such as factor analysis method and financial index method,and then elaborates the reasons for choosing factor analysis method and financial index method for performance evaluation.Secondly,it introduces the general situation of LK Pharmaceutical Company,including general situation and operating status.Thirdly,through the factor analysis method,the financial data of LK Pharmaceutical Company from 2015 to 2021 was compared with other80 companies in the same industry for horizontal comparative analysis,in order to find out the gap between LK Pharmaceutical Company and other companies in the same industry and the reasons.Through the analysis of financial indicators,the longitudinal comparative analysis of the company’s own situation is carried out to find the problems existing in the company’s financial performance.Finally,the paper analyzes the horizontal and vertical analysis results so as to put forward relevant suggestions for the future development of the company.It is hoped that the research in this paper can help company managers to understand the financial performance of the company,find out the shortcomings of the company,optimize and improve,and solve problems in a targeted way,so as to achieve the purpose of improving the financial performance of the company and enhancing the competitiveness of the company in the same industry,which can be of some help to the future development of the company.