Financial Performance of Pharmaceutical Companies Through Current Ratio Analysis.

The article focuses on evaluating the financial performance of selected Indian pharmaceutical companies through Current Ratio (CR) analysis over a ten-year period (2014–2024). By calculating the mean and standard deviation of CR values for ten major firms listed under the Nifty Pharma Index, the study assesses their short-term liquidity and financial stability, revealing that established companies like Divis Laboratories, Dr. Reddy's, and Sun Pharma maintained healthier and more consistent liquidity levels compared to newer or smaller firms such as Alkem and Laurus Labs. Statistical analysis confirms significant differences in liquidity management across these companies, highlighting variability in working capital practices within the sector. The study concludes that while the pharmaceutical industry generally sustains adequate liquidity, there is a need for more balanced financial strategies to enhance stability and long-term sustainability.