A Study of Cash Flow Analysis of Pharma Companies in India

The present study examines the Cash flow analysis of Pharma Companies during the period of 5 years. Financial ratios are applied in measuring the Cash flow performance and statistical as well as econometric techniques are employed in order to assess the behavior of the selected ratios. The study is done using the Balance sheet, Profit and loss account, and other financial information of the Pharmaceutical sector.

The analytical tools used for the study are ratio analysis and ANOVA for the five Pharmaceutical Companies. The financial information obtained was analyzed using the appropriate techniques and it was found that the Cash flow analysis level decreased in the year 2019 to compare the past years. The reason behind this is decreasing in inventories, sundry debtors, cash, and bank balance. The company liquidity ratio is more than the ideal ratio which shows that the company has no liquidity problem. The current Ratio was increasing and decreased from the year 2016-2020 the ratio was equal to the ideal ratio in the current year which shows the liquidity position of the company’s goods. Ideally, the quick ratio should be 1:1.


In general, analysis of Cash flow analysis trends, the relationship of Cash flow analysis to sales, liquidity of Cash flow analysis, analysis of the management of components of Cash flow analysis, and the management of Cash flow analysis and working capital finance of five Pharma Companies in five years from 2016 to 2020.


To study the Cash flow analysis of the Pharma Companies.
To study the Current assets to total assets of the Companies.
To Analyze the Quick ratios of the Pharma Companies.
To analyze the Current  assets  and  sales Position  of the Companies
To provide suitable suggestions to improve the Cash flow position in the Company.


The study is undertaken to study the analysis of Cash flow analysis and working capital requirements of Selected Pharma Companies such as Dr. Reddy’s, Cipla, Aurbindo Pharma, Sun Pharma, and Ranbaxy for Five years.


The data is analyzed from the Financial statements of the Five selected Pharma Companies using  Ratio and ANOVA.


The secondary data was collected from the Pharmaceutical sector
The Study is limited to the Cash requirements of Pharma Companies

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