*Professor and Head/Dean, Department of Management Studies, Anna University, Regional Centre, Madurai, India
**Associate Professor, St. Michael College of Engg & Technology, Sivaganga, India
Online published on 9 November, 2016.
Analysis of financial statements gives a true picture to investors, creditors etc. The stakeholders of the firm are interested in knowing about the firm financial condition and wealth of the firm. Ratio analysis like Profitability, Working capital, debt equity ratio are the most important tool to monitor the financial performance of a company. In order to give a comprehensive view to determine performance, Altman Z-score model was used to analyse the pharmaceutical companies from 2009–10 to 2014–15. Cipla and Dr. Reddy's have a comfortable and consistent score for all the years while the remaining companies have a mixed trend. The growth in sales were not consistent i.e. fluctuations were noted for all the companies for all the years, even though CAGR was good for all the companies.
Z-score, Profitability ratio, CAGR, Debt equity ratio, Working capital
