Financial Analysis of the Pharmaceutical Industry Based on Dupont Analysis: Taking Guangzhou Baiyunshan Pharmaceutical Group as an Example

Abstract

As an infrastructure industry, the pharmaceutical industry is related to peoples livelihood and social stability and is one of the pillar industries of society. With the in-depth advancement of various medical policy reforms since 2021, the scale of Chinas pharmaceutical market has continued to rise, and the revenue and profit of the pharmaceutical industry have maintained steady growth, so the industry still has outstanding growth advantages. Based on the pharmaceutical industry, this paper selects Guangzhou Baiyunshan Pharmaceutical Group as the research object, takes the companys financial data from 2018 to 2022 as the basis, conducts a comprehensive study on the companys operating conditions based on DuPont analysis, and finds that Guangzhou Baiyunshan has problems such as high financial risk, low turnover of receivables and low profitability during its development. The paper puts forward the corresponding suggestions of saving expenditure, increasing income and focusing on sustainable development in solvency; improving enterprise credit policy and strengthening accounts receivable management in operational capacity; and optimizing pharmaceutical R&D investment and management in profitability.