I. Company Profile
Beijing Tongrentang is a famous time-honored brand in Chinese medicine industry. Founded in the eighth year of Kangxi in Qing Dynasty (1669), it was officially dedicated to the royal pharmacy of Qing Dynasty from the first year of Yongzheng (172 1). After eight emperors, it lasted 188 years. The people of Tongrentang in the past dynasties adhered to the traditional old adage that "although the processing is complicated, we will not dare to save artificial flavor, although it is expensive, we will not dare to reduce material resources", and established the self-discipline consciousness of "people can't see, but God knows", which ensured the longevity of this golden signboard of Tongrentang. Its products are famous at home and abroad for their unique formula, excellent materials, exquisite workmanship and remarkable curative effect, and their products are exported to more than 40 countries and regions. At present, under the overall framework of the group, Tongrentang has formed three sectors of developing modern pharmaceutical industry, retail business and medical services, and has formed the "1032" project of ten companies, two bases, two hospitals and two centers, including two domestic and foreign listed companies, more than 800 retail stores and 28 overseas joint venture companies (stores), covering/kloc-0. Through the study of Beijing Tongrentang Co., Ltd., it is found that the financing structure of the company is unbalanced, with equity financing accounting for the vast majority, less debt financing, lower financial leverage and less than 30% asset-liability ratio. It reflects that the company's capital management efficiency is not high and its capital structure is somewhat conservative.
II. Calculation of solvency index of Tongrentang in 2008
(A) Tongrentang short-term solvency index in 2008
1. current ratio = current assets/current liabilities = 3401031369.24/842117738+0 = 4.04.
2. Accounts receivable turnover rate = main business income ÷ [(beginning+end) accounts receivable/2] = 2939049511.33/(339918440.25+330891.
3. Inventory turnover rate = main business cost ÷ [(beginning+ending) inventory ÷ 2] =1721837973.25/(1501477547.58+/kloc.
Quick ratio = quick assets/current liabilities = (current assets-inventory)/current liabilities = (3401031369.24-17653.92)/84638+0177773.
5. Cash ratio = (monetary fund+short-term net investment)/current liabilities = (180364784.08+0)/842117738.21=/kloc-
(B) Tongrentang 2007 long-term solvency indicators
1. Asset-liability ratio = (total liabilities/total assets) * 100%
=( 872085332.84÷4550072456. 13)× 100%= 19. 17%
2. Property right ratio = (total liabilities ÷ total owners' equity) × 100%
=(872085332.84÷3677987 123.29)× 100%=23.7 1%
3. Tangible net debt ratio = [total liabilities/(shareholders' equity-net intangible assets) ]* 100%
=[872085332.8÷(3677987 123.29-99077947.02)]× 100%=24.37%
4. Interest repayment multiple = (after tax profit+income tax+financial expenses)/financial expenses
=(350637339.59+65294600.07+4784 178.98)/ 4784 178.98= 87.94
Three. Analysis and Evaluation of Tongrentang's Debt-paying Ability in 2008
(A) Analysis and evaluation of short-term solvency
1. According to the data of Tongrentang in 2008 and 2007, make a historical comparative analysis, and the indicators of this enterprise are as follows.
Difference ratio in 2008-2007
The current ratio is 4.04 3.80 0.24 6%
Accounts receivable turnover rate 8.76 8.88 -0. 12-1%
Inventory turnover1.051.12-0.07-6%
Quick ratio1.921.90 0.021%
Cash ratio1.401.120.28 25%
(1) flow ratio analysis
As can be seen from the above table, the current ratio of this enterprise has increased by 6% over the previous year, and the short-term solvency of this enterprise has increased by 6% over the previous year. As can be seen from the balance sheet, the main reason for the increase in the current ratio is that the current assets increased by13.10% (3401031369.24-3033436) and the current liabilities increased by 6.28% (842/kloc-0
(2) The flow analysis of accounts receivable and inventory.
Project variance rate in 2008-2007
Monetary funds 1,180,364,784.0889,309,064.86291055,719.2232.73%.
Notes receivable 69,244,761.10235,585,929.75-166,341.168.65-70.6/kloc-0.
Accounts receivable are 330,891,674.76339,918,440.25-9,026,765.49-2.66%.
Advance payment is 26,862,949.54 24,365,438+07,308.65 2,545,640.89 65,438+00.47%.
Other receivables 13,183,545.8416,582,129.99-3,398,584.438+05-20.50%.
Inventory 1, 780,483,653.921,50 1, 477,547.58 279,006, 106.34 18.58%.
Total current assets are 3,401,03 1, 369.243,007,190,421.08393,840,948.16/kloc.
As can be seen from the above table, the main factor affecting the growth of current assets is that bills receivable decreased by 70.6 1% compared with the beginning of the year, mainly due to the decrease in the collection of bank acceptance bills in this period. Accounts receivable decreased by 2.66% compared with the beginning of the year, which was mainly due to the decrease in uncollected accounts of the company's subsidiaries in order to expand sales. The turnover rate of accounts receivable in this enterprise decreased compared with the previous year, while the turnover rate of inventory increased, indicating that the turnover rate of accounts receivable and inventory in this enterprise improved the liquidity of current assets. This is related to Tongrentang's strict control of accounts receivable policy in 2008, which has significantly improved its operating quality and better controlled its operating risks.
(3) quick ratio analysis
The quick ratio in 2008 was 65,438+0.92, compared with 65,438+0.90 in the previous year. The slight increase in quick ratio in this period is mainly due to the increase of current assets by 65,438+03.10%, inventory by 65,438+08.58% and current liabilities by 6.28% compared with the previous year.
(4) Cash ratio
In 2008, the cash ratio increased by 25% compared with the previous year, indicating that the ability of enterprises to repay short-term debts with cash has improved. Mainly due to the substantial increase in the stock of cash assets of enterprises. The main reason for the decrease in the cash ratio in this period is that the monetary funds in this period increased by 32.73% compared with the previous year [(180364784.08-889309064.86)/889309064.86 = 32.73%], and the current liabilities increased by 6.28% compared with the previous year.
From the above analysis, we can draw a conclusion that compared with the previous year, the short-term solvency of enterprises has improved and their ability to pay has been enhanced.
2. According to the data of Tongrentang in 2008, it was compared with Yunnan Baiyao and China Resources Sanjiu. Yunnan Baiyao is a pharmaceutical production, management, wholesale and retail enterprise with Chinese patent medicine as the main component. China Resources Sanjiu mainly sells chemical raw materials, western medicines, Chinese patent medicines, Chinese herbal pieces and nutritional supplements. These three enterprises all belong to the pharmaceutical industry.
The actual index value of the enterprise and the reference value of the same industry are as follows.
the year of 2008
Indicator Tongrentang Yunnan Baiyao Huarun Sanjiu
Current ratio 4.04 2.6 1.59
Accounts receivable turnover rate 8.76 32. 19 10.52
Inventory turnover 1.05 3.42 4.33
Quick ratio1.921.841.29
Cash ratio 1.4 1.35 0.44
(1) flow ratio analysis
As can be seen from the above table, the current ratio of Tongrentang is higher than that of Yunnan Baiyao and China Resources Sanjiu, indicating that the short-term solvency of enterprises is relatively strong.
(2) Liquidity analysis of accounts receivable and inventory.
As can be seen from the above table, the turnover rate of accounts receivable of Tongrentang is very close to that of China Resources Sanjiu, but it is very different from that of Yunnan Baiyao, which shows that the accounts receivable of Tongrentang are too high relative to the sales revenue. In 2008, Tongrentang overused credit sales to expand sales, but never recovered the payment, resulting in poor asset liquidity. Compared with China Resources Sanjiu and Yunnan Baiyao, the inventory turnover rate is much slower, indicating that the inventory is too much relative to the sales volume. In 2008, Tongrentang optimized its inventory structure, which was higher than that of the previous year, but its inventory turnover rate was significantly lower than that of the same industry, and its liquidity was poor.
(3) quick ratio analysis
Tongrentang's quick ratio this year is higher than that of the same industry, indicating that the company's short-term solvency is higher than the industry average. It can be seen that the main reason is the increase of current assets and the decrease of current liabilities.
(4) cash ratio analysis
Tongrentang's cash ratio this year is slightly higher than that of the same industry, indicating that the company's ability to repay short-term debts with cash is average.
Through the above analysis, it can be concluded that Tongrentang's short-term solvency is higher than the industry average. However, accounts receivable and inventory occupy a large amount, which affects the liquidity of assets and is the next problem to be solved.
(B) Analysis and evaluation of long-term solvency
1. Through the data of Tongrentang in 2008 and 2007, make a historical comparative analysis. The actual index values of this enterprise are as follows.
Difference rate of indicators in 2008 and 2007
Asset-liability ratio19.17%19.41%0.24%1.24%.
The proportion of property rights is 2.71%24.09% 21.38% 88.75%.
Tangible net debt ratio is 24.37% 24.47% 0.10% 0.41%
Interest repayment multiple 87.94 37.96-49.98-131.66%
(1) Asset-liability ratio analysis
As can be seen from the above table, the asset-liability ratio of Tongrentang this year is 1.24% higher than that of the previous year, and it has maintained a low asset-liability ratio for both years, indicating that the long-term solvency of the enterprise is weak and the financial risk is slightly higher.
Difference rate of indicators in 2008 and 2007
Owner's equity is 3,677,987,123.29 3,380,346,627.45 297,640,495.849%.
In which: undistributed profit is 1, 292,671,265. 17 1, 085,590,031.58207,081.
Total liabilities are 872,085,332.84,865,438+04,329,930,438+0.57,755,402,438+0.37%.
In which: current liabilities are 842,117,738.21792,341,31.5849,776,406.636%.
Long-term liabilities are 29,967,594.63,265,438+0,988,599,438+03,7,978,995.50 36%.
Total assets are 4,550,072,456.13,4,194,676,558.16,355,395,897.97 8%.
In which: current assets are 3,401,03 1, 369.243,007,190,421.08393,840,948.6438+06/kloc-0.
The main reasons for the change of asset-liability ratio are:
1) owner's equity increased by 9% over the previous year, of which undistributed profit increased by 19% this year.
2) Total liabilities increased by 7% over the previous year, including current liabilities increased by 6%, long-term liabilities increased by 36%, and long-term liabilities increased significantly.
3) Total assets increased by 8% over the previous year, of which current assets increased by 65,438+03%. The ratio of current assets to total assets was 765,438+0% last year and 74% this year, with little change compared with the previous year.
The company has not adjusted its capital structure, and its long-term solvency has been enhanced, but the enhancement is not large and the financial risk is low.
(2) Analysis of the proportion of property rights
As can be seen from the above table, the property right ratio of Tongrentang has increased by 88.75% compared with the previous year. It shows that the long-term solvency of enterprises decreases, the financial structure risk increases, and the ability of owners' equity to bear the debt risk weakens.
(3) Analysis of the debt ratio of tangible net assets
The tangible net debt ratio of Tongrentang this year increased slightly by 0.4 1% compared with the previous year, indicating that the company's long-term solvency declined slightly and its financial risks increased. The financing ability of enterprises has also improved.
(4) Analysis of interest repayment multiple
Difference rate of indicators in 2008 and 2007
Operating profit is 415,931,939.66378,595,452.8437,336,486.829.86%.
Financial expenses are 4,784, 178.98,10,244,655.73-5,460,476.75-53.30%.
Interest repayment multiple is 87.94 37.96 49.98131.66%.
The repayment interest multiple of Tongrentang this year has increased by 13 1.66% compared with the previous year. The main reason for the increase of interest repayment multiple is that the operating profit increased by 9.86% compared with the previous year, and the financial expenses decreased by 53.30%. However, the growth rate of operating profit is much faster than the growth rate of financial expenses, indicating that enterprises have enough profits to repay interest expenses.
From the above analysis, we can draw a conclusion that compared with last year, the long-term solvency of enterprises has improved, financial risks have decreased, financing ability has decreased, and financial leverage has not been fully utilized.
2. According to the data of Tongrentang in 2008, make a comparative analysis of the same industry. The actual index value of the enterprise and the reference value of the same industry are as follows.
In 2007
Indicator Tongrentang Yunnan Baiyao Huarun Sanjiu
Asset-liability ratio (%)19.17% 35.46% 32.44%
Property right ratio (%) 23.7 1% 54.93% 48.02%
Tangible net debt ratio (%) 24.37% 57.93% 78%
Interest repayment multiple is 87.94 332.22113.46.
(1) Asset-liability ratio analysis
As can be seen from the above table, the asset-liability ratio of Tongrentang this year is lower than the reference value of the same industry, and the negative asset-liability ratio is low, indicating that the company has strong long-term solvency. The company adopts a conservative financial strategy, which shows that the company's financial risk is low.
(2) Analysis of the proportion of property rights
As can be seen from the above table, the property right ratio of Tongrentang is obviously lower than the reference level of the same industry, and the enterprise has strong long-term solvency and low financial risk.
(3) Analysis of the debt ratio of tangible net assets
Tongrentang's tangible net debt ratio this year is significantly lower than the reference value of the same industry. It shows that the long-term solvency of the enterprise is relatively strong and the financial risk is obviously low. Borrowing capacity is not high, and its financial leverage is not fully exerted.
(4) Analysis of interest repayment multiple
Tongrentang's debt service multiple this year is much lower than the reference value of the same industry, indicating that enterprises have sufficient funds to repay debt interest and their long-term solvency is weak.
Four. conclusion and suggestion
Tongrentang's solvency is generally enhanced compared with the previous year, and it is also a company with strong solvency in the same industry.
The current ratio, quick ratio and cash ratio in the short-term solvency of enterprises are obviously higher than that of the previous year, and the solvency is also stronger than that of the same industry. The turnover rate of inventory and accounts receivable is also higher than that of last year, but it is at a low level compared with the same industry, indicating that the accounts receivable and inventory structure and policies of enterprises still need to be adjusted.
Compared with the previous year, the asset-liability ratio, property right ratio and tangible net debt ratio of enterprises' long-term solvency have all decreased, and the interest payment multiple has increased, indicating that enterprises have enough profits to pay interest expenses. Compared with the same industry, it has obvious advantages, but it shows that enterprises have not made full use of financial leverage.
The main problem of Tong Ren Tang is that the company adopts a conservative financial strategy. In enterprises with stable operating income and an upward trend, the debt ratio can be increased. Because the operating income of the enterprise is stable and reliable, and the profit is guaranteed, even if the debt financing amount of the enterprise is large, it will be able to pay the due principal and interest because of the smooth capital turnover and stable profit, and will not encounter higher financial risks. Equity financing accounts for the vast majority, debt financing is less, financial leverage is lower, and asset-liability ratio is lower than 30%. It reflects that the company's fund management efficiency is not high.
Suggestions for the development of this enterprise:
1. Strengthen the management of accounts receivable and speed up the collection of accounts receivable.
2. Strengthen inventory management, carefully check the inventory status, deal with non-performing assets in time, and check the purchase price.
3. Appropriately borrow money and put it into operation, and use financial leverage to improve corporate income.