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

[1] Wang Xiaoqing, Zhang Yang. Financial Performance Evaluation of Yili Company Based on DuPont Analysis Method. Modern Business, 2024(09): 167-170. DOI: 10.14097/j.cnki.5392/2024.09.043.
[2] Pan Xue. Profitability Analysis of Dali Pharmaceutical Industry Based on DuPont Analysis Method. Modern Market, 2024(08): 162-164. DOI: 10.14013/j.cnki.scxdh.2024.08.026.
[3] Li Sifan, Wang Zhepu. Financial Analysis of BYD Company Based on DuPont Analysis Method. National Circulation Economy, 2024(02): 104-107. DOI: 10.16834/j.cnki.issn1009-5292.2024.02.028.
[4] Liu Hengshuo, Luo Gongzhi. Financial Analysis and Suggestions for Fosun Pharma in the Post-Epidemic Context. Chinese Price, 2022(10): 118-120.
[5] Li Xingran. Bio-thera: Losses will continue to be surrounded by Giants. Stock Market Dynamics Analysis, 2019(48): 38-39.  
[6] Zhou Shuo. Research on Corporate Profitability Analysis [J]. Business Economics, 2013(7): 25-26+46.

Sponsors, Associates, and Links

---

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Industrial Engineering and Innovation Management
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Financial Engineering and Risk Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics