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Financial Analysis of the Biopharmaceutical Industry Based on DuPont Analysis: A Case Study of Bio-Thera Solutions, Ltd

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DOI: 10.23977/acccm.2024.060305 | Downloads: 0 | Views: 54

Author(s)

Yumeng Ding 1, Yanzi Xu 1

Affiliation(s)

1 College of Wealth Management, Ningbo University of Finance & Economics, Ningbo, Zhejiang, 315175, China

Corresponding Author

Yumeng Ding

ABSTRACT

This paper conducts an in-depth analysis of the financial condition of Bio-thera from 2019 to 2023 using the DuPont analysis method. The study reveals that despite Bio-thera's innovative capabilities in the biopharmaceutical industry, its financial performance is not satisfactory. The company's short-term solvency has weakened, and although its long-term solvency is within a safe range, the asset-liability ratio has been increasing annually, indicating potential financial risks. In terms of operational efficiency, the asset turnover ratio has decreased, and the inventory turnover ratio continues to decline, indicating a need to improve asset management efficiency and inventory turnover capabilities. Profitability indicators are below industry benchmarks, with a long-term negative return on equity. A comparison with Shanghai Fosun Pharmaceutical Group highlights Bio-thera's lag in key metrics. Based on the analysis results, strategic recommendations are proposed in this paper, including increasing research and development investment, promoting product innovation and diversification, implementing cost control measures, actively expanding the market, and enhancing competitiveness and profitability. This study not only provides a perspective for improving the financial condition of the company but also offers strategies to enhance market competitiveness for other enterprises, demonstrating significant value.

KEYWORDS

DuPont analysis, financial conditions, Bio-Thera Solutions, Ltd

CITE THIS PAPER

Yumeng Ding, Yanzi Xu, Financial Analysis of the Biopharmaceutical Industry Based on DuPont Analysis: A Case Study of Bio-Thera Solutions, Ltd. Accounting and Corporate Management (2024) Vol. 6: 31-41. DOI: http://dx.doi.org/10.23977/acccm.2024.060305.

REFERENCES

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