Improving the F-Score Model for Financial Risk Analysis in the Pharmaceutical Industry

Abstract

The Z-Score model and F-Score model were applied to analyze the financial risk assessment of Chinese pharmaceutical enterprises, and the relationships and differences between the two models were compared. Based on the analysis of the evaluation results of the two models, factors specific to the development of the pharmaceutical industry and industry policies were considered and incorporated into the assessment indicators. The F-Score model was improved by adding two financial indicators, namely net profit growth rate and asset cash return rate. The improved model has more comprehensive financial indicators, more objective evaluation results, a more accurate F2 value, and a more stable trend change.