Ratio Analysis - Pharma Industry

876 WordsSep 25, 20114 Pages
niit university | CAPITAL STRUCTURE – RATIO ANALYSIS | FINANCIAL MANAGEMENT | GROUP 10 | | MBA (BANKING AND FINANCE) | TERM II | SUBMITTED BY: | DEEPTI SHARMA | DEVANSHU JUNEJA | ROLL NO. : | 067 | 068 | MOBILE NO. : | 07737801787 | 09602869642 | INDIVIDUAL CONTRIBUTION | Undertook entire calculation and analysis for Anuh Pharmacy and Lincoln Pharmacy in addition to part analysis of Dishman Pharmacy and the industry ratios | Undertook entire calculation and analysis for Vivimed Laboratories and Torina Pharmacy in addition to part analysis of Dishman Pharmacy and the industry ratios | OBJECTIVE: Through this study, we have tried to compare and analyse the following 3 ratios for 5 pharmaceutical…show more content…
Sun Pharmaceuticals, which was not amongst those selected for our study, displayed the highest current ratio throughout the five years included for our analysis. 3. INETREST COVERAGE RATIO: | 2011 | 2010 | 2009 | 20018 | 2007 | Vivimed Labs | 2.73 | 2.85 | 4.73 | 5.72 | 8.14 | Anuh Pharma | 134.46 | 118.45 | 23.57 | 44.98 | 183.61 | Tonira Pharma | 0.25 | 1.41 | 3.56 | -1.73 | 3.05 | Lincoln Pharma | 6.46 | 6.49 | 4.51 | 5.03 | 4.99 | Dishman Pharma | 2.38 | 4.10 | 5.04 | 8.07 | 10.26 | | | | | | | Industry Average | 34.57 | 33.92 | 11.06 | 7.71 | 5.78 | | | | | | | Industry Best | 404.60 | 376.11 | 99.586 | 73.459 | 66.105 | | Sun Pharmaceuticals | Glaxo Smithkline | Interest coverage ratio is defined as: EBIT (Earnings before interest and taxes) / Interest expense The industry average for this ratio has constantly grown over the last 5 years. The companies included in our study however do not seem to display this trend, and are far below the industry average recorded each year. A higher interest coverage ratio indicates the ease by which an entity can service its interest obligations. Thus, though the companies included do not carry high levels of debt, their interest

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