A comparative Study on the Performance of Working Capital Management of Large and Small Pharmaceutical Companies in India

Dr .R.Kavitha; Dr. R.Shanmugam

Volume : IV, Issue : III, March - 2015

A comparative Study on the Performance of Working Capital Management of Large and Small Pharmaceutical Companies in India

Dr . R. Kavitha, Dr. R. Shanmugam

Abstract :

Efficient management of the working capital is one of the pre–conditions for the success of any enterprise. Efficient management of the working capital implies the management of various components of working capital in such a way that an adequate amount of working capital is maintained for the smooth running and for the fulfillment of the twin objectives of liquidity and profitability of a firm. To assess the performance of large and small Indian pharmaceutical companies, the data have been collected for the period of 10 years from 2002–03 to 2011–12. Statistical measures average, standard deviation; ratio analysis, Motaal�s liquidity test, Kendalls coefficient of concordance and chi–square test have been used for the analysis. Results of the study concluded that there are no significant differences in the large and small firms as for as utilization of working capital and its various components in different periods.