A STUDY ON FINANCIAL PERFORMANCEOF PHARMACEUTICAL INDUSTRY

A firm's performance measurement has been the subject matter of discussion for decision-makers as managers,
planners, economists, and academic staff since long many years. It is the process of measuring the results of
a firm's policies and operations in monetary terms. Financial performance analysis includes analysis and
interpretation of financial statements in such a way that it undertakes the full diagnosis of the profitability
and financial soundness of the business. This term is also used as a general measure of a firm's overall
financial health over a given period of time and can be used to compare similar firms across the same
companies or to compare companies or sectors in aggregation. Financial analysts often assess the firm's
production and productivity performance, profitability performance, liquidity performance, leverage
performance, asset utilization performance, and growth performance. The financial performance analysis
identifies the financial strengths and weaknesses of the firm by properly establishing relationships between
the items of the balance sheet and profit and loss account. In this paper, an attempt has been made to
analyse the profitability position of five leading pharmaceutical companies in India with the help of mean,
standard deviation, ratio analysis and one way anova. The study is conducted by taking into account of the
data for five years from 2016-2017 to 2020-2021. The Pharmaceutical companies selected for study are
Lupin, Cipla, Biocon, Sun pharma, and Reddy. The financial performance of these companies is evaluated
and found that the profitability of the selected pharmaceutical companies in India during the study period is
satisfactory.