AN ANALYSIS OF LIQUIDITY MANAGEMENT OF SELECT PHARMACEUTICAL COMPANIES IN INDIA

Mrs.S.Vimala; Dr.J.P.Kumar

Volume : V, Issue : XII, December - 2016

AN ANALYSIS OF LIQUIDITY MANAGEMENT OF SELECT PHARMACEUTICAL COMPANIES IN INDIA

Mrs. S. Vimala, Dr. J. P. Kumar

Abstract :

The term �Liquidity� refers to the ability of a firm to meet its obligations in the short run usually one year. The Liquidity resources of a firm may be kept in various forms: cash in hand and cash at bank in current assets, reserve drawing power under a cash credit or overdraft arrangement and short term deposits. Cash balances in current account provide the highest degree of liquidity. This study examines how liquidity position of top five pharmaceutical companies based on sales. Statistical techniques like standard deviation, coefficient of variation, and Motaal�s test have been employed in order to examine the liquidity position.