Academic Journal of Business & Management, 2026, 8(3); doi: 10.25236/AJBM.2026.080304.
Mengxi Li1, Xin Song1
1Business School, University of Shanghai for Science and Technology, Shanghai, China
This paper takes Company C, a pharmaceutical R&D outsourcing enterprise listed on the Science and Technology Innovation Board (STAR Market), as the research object. It employs a comprehensive methodology including PEST analysis, Porter's Five Forces Model, and financial ratio analysis to systematically evaluate its macro-environment, industry competition, and internal financial condition. The study finds that while the company benefits from policy dividends and industry growth, it faces risks such as high customer concentration, increased occupation of working capital, and rising leverage. The core section introduces the Z-Score model for quantitative measurement of financial risk. The calculation results show that the company's adjusted Z-score consistently falls within the "gray zone," indicating a need for continuous attention to liquidity risk. Based on these findings, this paper proposes targeted response strategies aimed at balancing business expansion and financial stability. These strategies include optimizing the customer structure, strengthening cash flow management, implementing strategic capital allocation, and improving operational efficiency. The paper aims to provide a reference for Company C and similar high-tech service enterprises in financial risk management and sustainable development.
Pharmaceutical R&D Outsourcing (CRO), Company C, Z-Score Model, Porter's Five Forces Model, Financial Condition
Mengxi Li, Xin Song. Financial Risk Analysis of Company C Based on the Z-Score Model. Academic Journal of Business & Management (2026), Vol. 8, Issue 3: 31-39. https://doi.org/10.25236/AJBM.2026.080304.
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