The pharmaceutical industry is closely related to human life, which not only determines life and health, but also affects people's quality of life. With the acceleration of population aging and the growth of medical demand, the pharmaceutical industry has developed rapidly, but the competition in the pharmaceutical industry has also become increasingly fierce. In this context, improving profitability has become the key to the sustainable survival and development of pharmaceutical industry enterprises. In order to discover the deficiency of enterprise management and promote the rapid development of enterprise, enterprise managers must study a set of evaluation system which can accurately, comprehensively and scientifically reflect the current situation of company activities and management. This study takes Yunnan Baiyao Group Co., Ltd. as the object of study, and tests the profitability of the company by using the improved Du Pont analysis system. The report points out the current problems facing the company's profitability and proposes corresponding measures. This paper is divided into four parts: Summarizing the research background and significance of this topic, introducing research ideas and research methods, is the theme of the first part. The introduction of the improved DuPont analysis system and the theoretical framework for this study are the main topics of Part II, and the related concepts and theoretical foundations of the study are discussed. The third part introduces the basic situation and profitability of Yunnan Baiyao, establishes a preliminary understanding of it, and then analyzes the profitability of Yunnan Baiyao by using the improved Du Pont analysis method. The fourth part looks for the possible problems of its profitability through the process of analysis: one is the increase of cost pressure; the other is the lack of growth of main business; the third is the decline of accounts receivable turnover rate. The company can consider the following measures: first, improve production efficiency and control labor cost; second, focus on the research and development of main business and innovative drugs, strengthen brand differentiation; third, strengthen accounts receivable management and optimize sales strategy.
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