A STUDY ON LIQUIDITY AND SHORT-TERM SOLVENCY POSITION OF SELECT PHARMACEUTICAL COMPANIES IN INDIA

Pharmacy sector is one of the growing sectors in the Indian economy.This indicates huge potential for growth. The present study attempts to analyze the liquidity and short-term solvency position of the select pharmaceutical companies in India, in termsof current ratio, liquid ratio and absolute liquid ratio for the period of 10 years from 2008 to 2017. For the study five companies have been selected based on top market capitalization. The study found that the current ratio of Cipla Ltd.,Lupin Ltd. and Piramal Enterprise Ltd. are holding more current assets compare to standard norms 2:1 ratio andthe liquid ratio of Cipla Ltd. and Lupin Ltd. are maintaining more than the rule of 1:1. But the absolute liquid ratio of all companies is belowthe standard norms of 1:2. It can be conclude that the liquidity position of the select firmsare not satisfactory. The findings of the study provides insights into the financial health of the select pharmaceutical companies in India.