International Research Journal of Commerce , Arts and Science

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

Impact Factor* - 6.2311


**Need Help in Content editing, Data Analysis.

Research Gateway

Adv For Editing Content

   No of Download : 266    Submit Your Rating     Cite This   Download        Certificate

LIQUIDITY MANAGEMENT OF SELECT PHARMACEUTICAL COMPANIES IN INDIA

    2 Author(s):  B. PRAVEEN KUMARA, DR. M. THYAGARAJAN

Vol -  10, Issue- 3 ,         Page(s) : 11 - 20  (2019 ) DOI : https://doi.org/10.32804/CASIRJ

Abstract

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.

1. Eljelly, A. (2004). “Liquidity – profitability tradeoff: an empirical investigation in an emerging market”, IJCM, 14 (2).
2. Kaiser Kevin and Young David S., (2009), Need Cash? Look Inside Your Company, Harvard Business Review, May 2009, pp 44-51.
3. Kumar, A.V., and Venkatachalam, A. (1995). Working Capital & Profitability–An EmpiricalAnalysis.The 30(10),748-750.
4. Luther, C.T.R. (2007). Liquidity, Risk and Profitability Analysis: A Case Study of MadrasCementsLtd. 42(10),784-789.
5. Moraes, Sherin (2010) "Liquidity Vs. Profitability - striking the right balance",http://campus.murraystate.edu/academic/faculty/larry.guin/fin330/liquidity%20vs%20pr ofitability.htm, "the liquidity vs. Profitability trade off", date accessed: 23rd August 2009.
6. Niranjan Mandal, Dr. B. N. Dutta Smriti Mahavidyalaya, Burdwan Suvarun Goswami (2010), “Impact of working capital management on liquidity, profitabilityand non-insurable risk and uncertainty bearing: a case study of Oil and Natural Gas Commission (ONGC)”, University of Burdwan, Great Lakes Herald Vol 4, No 2, September 2010.
7. Nandi Chandra Kartik (2012), Trends in liquidity management and their impact on profitability- a case study, Great Lakes Herald ,Vol 6, No 1, pp 16-30.
8. P.K. Singh (2004), “Working Capital Management in Lupin laboratories Ltd.- A Case Study”, The Management Accountant Journal, Vol. 39, No. 9, pp. 534-539.

*Contents are provided by Authors of articles. Please contact us if you having any query.






Bank Details