International Journal of Commerce and Management Research

Authors
Dr. M Jegadeesh Waran, Ramapriya R

Abstract
Indian Pharmaceutical Industry has played a key role in promoting and sustaining development in the vital field of medicines. It ranks very high in the third world, in terms of technology, quality and range of medicines manufactured. Liquidity or Solvency management is very important for every organization it analyzed on the basis of short term and long term solvency or liquidity. The objective of the study is to find out the impact of solvency and working capital on profitability of select multinational pharmaceutical companies in India. The period of the study is from 2000-01 to 2014-15. Secondary data is used for the study. The data analysis was done using Ratio analysis and statistical tools like mean, standard deviation, coefficient of variation, compound annual growth rate and multiple regression. The results of regression analysis point out that the GlaxoSmithKline laboratories, Lupin, Sun Pharma and Cipla Pharma has significant influenced on Profitability ratios of Net Profit, Return on Assets and Return on Capital Employed. Abbott Pharma, Biocon, Pfizer, Ranbaxy, Dr.Reddy’s and Aurobindo Pharma has not significant influenced on Profitability ratios. Hence these pharmaceutical companies should pay more attention to improve Net Profit, Return on Assets and Return on Capital Employed.