Research On Optimization Of FX Company’s Profit Model Based On Financial Analysis

As the basic guarantee for people’s health and happiness,the pharmaceutical industry has been the center of attention.The improvement of the pharmaceutical system and the government’s strong support helps to achieve diversified development in pharmaceutical industry.However,the continuous adjustment of relevant policies has increased the cost of pharmaceutical companies and brought challenges to the operation and management of companies.Meanwhile,it has also brought fierce and even unhealthy competition to the pharmaceutical industry.Therefore,a pharmaceutical company must choose a reasonable profit model for its sustainable operation with a promising prospect.FX company,a prominent pharmaceutical company,covers the entire pharmaceutical and health industry chain.Due to the huge challenges for the pharmaceutical industry,it is of great significance to study the profit model of this company.The research begins with the research background,research significance as well as literature review of profit model.Based on theoretical framework,the case analysis involves the general situation of the pharmaceutical industry,and a brief introduction of FX company.After that,the PEST and SWOT analytic methods are employed to conduct the internal and external situation.According to the theory of five elements,an in-depth analysis of FX’s profit model and its characteristics is conducted.Besides,the research analyzes the profit model of the FX from the perspective of financial analysis.The research analyzed FX’s solvency,operating capacity and profitability,as well as its profit quality,in order to evaluate FX’s financial status.To identify FX’s shortcomings,the research conducts comparative analysis between FX and Hengrui Medicine.Based on the theory of five elements,the research finds out four disadvantages of FX’s profit model,as well as the causes.After that,four related optimization suggestions are proposed.It is hoped that the current research can gain deeper insights to the optimization of the profit model of the pharmaceutical industry.