Ratio Analysis - Pharma Industry

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 companies’ vis-à-vis the industry average for these ratios. 1. Debt-Equity ratio, 2. Current ratio, and 3. Interest coverage ratio
The 5 companies analysed include: 1. Vivimed Labs 2. Anuh Pharma 3. Tonira Pharma 4. Lincoln Pharmaceuticals 5. Dishman Pharmaceuticals & Chemicals

FACTS AND ASSUMPTIONS:
As for the industry averages and industry best ratios, we have taken the BSE Healthcare index, and treated it as a representative of the entire Pharmaceutical industry in India.
The ratios of each company within the index have been multiplied with the weight of the company within the healthcare index, so as to even out the contributions of each company while calculating the industry average and industry best ratios.

SOURCES:
We have sourced and referred data for our study through: bseindia.com nseindia.com moneycontrol.com rediff.com reuters.com bloomberg.com
Prowess (CMIE database)

OBSERVATIONS AND ANALYSIS: 1. DEBT-EQUITY RATIO:

Debt-Equity ratio for the five companies and the industry were found out to be as follows: | 2011 | 2010 | 2009 | 2008 | 2007 | Vivimed Labs | 1.26 | 1.87 | 1.38 | 0.77 | 0.31 | Anuh Pharma | 0.11 | 0.06 | 0.01 | 0.06 | 0.04 | Tonira