International Research Journal of Commerce , Arts and Science

 ( Online- ISSN 2319 - 9202 )     New DOI : 10.32804/CASIRJ

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Vol -  10, Issue- 3 ,         Page(s) : 11 - 20  (2019 ) DOI :


Companies need to have sufficient cash flow inorder to carry out their operations thereby minimizing the risk of inability to meet their short-term and maturing liabilities. This ability to meet the short term liability is a measure of company´s liquidity. Efficient management of liquidity is thus one of the most important decisions regarding current operations of any company. In this paper, a study on the liquidity management of five selected pharmaceutical companies in India has been undertaken. The companies selected for the study are Sun Pharmaceutical Industries Ltd., Lupin Ltd., Cadila Healthcare Ltd., Cipla Ltd. and Dr Reddys Laboratories. The study has been undertaken for a period of five years from 2013-2014 to 2017-2018. The techniques of mean, standard deviation, coefficient of variation, ratio analysis, and Motaal’s ultimate rank test has been applied to analyze the data. The study found that among the selected pharmaceutical companies , Lupin Ltd and Dr. Reddys Laboratories had a favorable liquidity position.

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