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Conclusion

The study analyzes the profitability of the top 10 pharmaceutical companies in India using accounting ratios and One Way ANOVA, concluding that most companies exhibit similar working patterns with slight variations. Sun Pharma and Torrent Pharmaceuticals ranked highest in profitability, while Cipla ranked lowest, with an association found among most profitability ratios except the net profit ratio. The analysis indicates that financial management is crucial for maintaining liquidity and profitability, and suggests that increased capital investment and sales are necessary for improved performance.

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9 views1 page

Conclusion

The study analyzes the profitability of the top 10 pharmaceutical companies in India using accounting ratios and One Way ANOVA, concluding that most companies exhibit similar working patterns with slight variations. Sun Pharma and Torrent Pharmaceuticals ranked highest in profitability, while Cipla ranked lowest, with an association found among most profitability ratios except the net profit ratio. The analysis indicates that financial management is crucial for maintaining liquidity and profitability, and suggests that increased capital investment and sales are necessary for improved performance.

Uploaded by

baliyavasantkumar4671
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Conclusion

The process of data analysis by accounting ratios, graphical presentation as well as analysis. As a part
of statistical analysis in this research One way Anova is applied to found the conclusion. All most in
most of the ratios the null hypothesis is accepted. It shows that from the view point of different
profitability or efficiency aspects almost all the corporate hospitals have like similar working pattern.
They have very slight difference in their working style. At some ratios it is observed that they show
significant high or low up as well as down fluctuations. Conclusion of profitability analysis of
pharmaceutical business gives considerable idea from the view point of the study of this research.

The purpose of this study was toanalyze the profitability position of top 10 pharmaceutical
companies in India. To know about the profitability position of selected pharma companies, firstly
analyze the profitability ratios and with the help of anova, it is try to find out that if any association is
found between the profitability ratios. According to findings of the study, the study conclude that the
Sun Pharma(on the basis of C.V) and Torrent Pharmaceuticals (on the basis of mean) are secured top
position and Cipla (both on the basis of mean and C.V) secured the last position. The study also
concluded that, except net profit ratio, there isan association between remaining ratio.

Financial management has great importance in making management decisions. The financial
soundness of a company can be achieved maintaining liquidity and profitability of the company. The
purpose of this study was to measure the financial performance i.e. profitability of the selected
pharmaceutical companies. The analysis practically reveals that gross profit ratio, operating ratio,
return on equity capital, and earnings per share, have significant effect on the net profit ratio of the
selected pharmaceutical companies during the study period. However, profitability of the selected
pharmaceutical companies in India during the study period is satisfactory. During the period of study
there were a few ups and downs in the profitability but it did not affect the operations of the
companies to a great extent. If the Pharmaceutical Companies has to perform well, it has to invest
more capital and has to do more sales, only then it will improve its performance level. The
importance of analysing performance ratios, to make comparisons with the companies from the
same field of activity, to detect new tendencies and to make profitable changes require the use of
advanced specific tools for multidimensional analysis, equipment’s performance, qualified personal
for interpreting the analysis and the strengths to take important decisions for the prosperity of the
company

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