Analysis of Financial Performance of Top 10 Pharmaceutical Companies
Sahil Mehta, Siddhant Mugdiya, Vedaant Karwa, Vaarenya Gutgutia, Radhika Chaudhary,
Mr Navneet Bhatt
Operations Management
B. Com(hons) Semester VI
SVKM’s NMIMS Anil Surendra Modi School of Commerce
Abstract
The thesis applies performance evaluation of pharmaceutical companies in India. It means to assess the company's performance. By analysing the ratios of 10 Indian pharmaceutical businesses, the primary goal is accomplished. In order to determine the pre- and post-Covid impact on a firm's financial performance, we evaluated the financial performance of pharmaceutical companies over the course of three fiscal years: FY 2018–19, FY 2020–21, and FY 2021–22 (note: FY 2019–2020 was not considered while analysing, as it was an abnormal year due to lockdown). Various financial ratios, including those for liquidity, asset management, profitability, and market value are assessed. Finally, the best performance among 10 organisations is measured. The formula was developed for a ratio study of ten enterprises for the fiscal years (FYs) 2018–19, 2020–21, and 2021–22. For evaluating performance, it is one of the most crucial factors. Ten organisations are used in the graphical analysis and comparisons to measure various financial ratio analysis types. The ability to pay off short-term debtors and overall cash are both indicated by the liquidity ratio. It assesses the performance of the two pharmaceutical businesses' short-term creditors in each of the three categories—current ratio, quick ratio, and cash ratio. The asset management ratio gauges how efficiently a business uses and manages its assets. For pharmaceutical firms, it measures into seven categories, including account receivable turnover, average collection period, inventory turnover, account payable turnover, account payable turnover in days, fixed asset turnover, and total asset turnover. A company's performance is assessed using its profitability ratio, which compares earnings to sales, total assets, and net worth for both pharmaceutical firms. Analysis of the top 10 pharmaceutical businesses is measured overall.
