Keywords
Cash flow ratios
Financial analysis
How to Cite
Abstract
This research paper investigates the financial soundness of Sun Pharma Ltd. and Aurobindo Pharma Ltd., two major Indian pharmaceutical companies, by analyzing key cash flow ratios over the period from 2018-19 to 2022-23. The study focuses on five critical ratios: operating cash flow ratio, critical need cash coverage ratio, cash interest coverage ratio, cash flow margin ratio, and cash per share. Using t-test analysis, the research evaluates the statistical significance of differences in these ratios between the two companies. The findings provide a detailed assessment of the companies' short-term financial health and operational efficiency. This analysis offers valuable insights into their liquidity management practices, contributing to a deeper understanding of financial stability within the Indian pharmaceutical sector.
References
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