Analysis of the capital structure of the pharmaceutical industry —— Take Hengrui Pharmaceutical as an example

Abstract

Capital structure results from the enterprise’s financing mix in a certain period, reflecting the value composition and proportionality of the enterprise’s various types of capital. As an important indicator for judging the financial status of an enterprise, capital structure reflects, to a large extent, the enterprise’s ability to repay debt and refinance. Reasonable capital structure can effectively play the regulatory role of financial leverage, reduce enterprises’ financing costs, and improve their profitability. Whether the capital structure is reasonable affects the future development of the enterprise. Therefore, the management of the company should adjust the capital structure according to the actual situation of the enterprise and the market situation, and how to achieve the optimal capital structure is a problem worth discussing. This paper takes Hengrui Pharmaceutical as an example and analyzes the capital structure of the pharmaceutical industry. The in-depth study of the historical data and financial report of Hengrui Pharmaceutical reveals the capital structure and influencing factors of Hengrui Pharmaceutical, as well as how these factors affect the company’s financial performance. By analyzing the capital structure of Hengrui Pharmaceutical, we can understand the company’s debt level, debt ratio, asset structure, and capital source.