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This study delves into the solvency and liquidity positions of prominent pharmaceutical companies in India, aiming to provide insights into their financial robustness and ability to meet short-term obligations. Utilizing key financial metrics such as current ratio, quick ratio, and interest coverage ratio, the analysis focuses on Arubinda Pharma, Lupin Ltd., Cipla Ltd., Dr. Reddy's Laboratories, Sun Pharma, and Torrent Pharma. The findings reveal that Arubinda Pharma consistently exhibits strong liquidity positions, supported by high current and quick ratios. Lupin Ltd., Cipla Ltd., and Dr. Reddy's Laboratories showcase moderate to high liquidity levels, accompanied by consistently robust interest coverage ratios, indicative of sound debt servicing capabilities. However, Sun Pharma and Torrent Pharma display moderate interest coverage ratios, with Sun Pharma experiencing some fluctuation over time. Overall, the selected pharmaceutical companies demonstrate solid liquidity and solvency positions, with occasional deviations, emphasizing their overall financial health in the industry. Keyword: Pharmaceutical Industry, Financial Ratios, India.
Abhijit Roy (Tue,) studied this question.