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Accounting

ISSN 2369-7407 (Online) - ISSN 2369-7393 (Print)
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Volume 11 Issue 2 pp. 91-102 , 2025

Financial performance of the selected Indian pharmaceutical companies: An empirical analysis Pages 91-102 Right click to download the paper Download PDF

Authors: Biplob Chowdhury, Somnath Das

DOI: 10.5267/j.ac.2025.3.002

Keywords: DuPont, Return on Equity (ROE), Operating Profit Margin (OPM), Interest Expense Ratio (IER), Assets Turnover Ratio (ATR), Tax Retention Ratio (TRR), Equity Multiplier (EM)

Abstract: The Indian Pharmaceutical Industry has gained tremendous momentum during the last few decades. Considering its importance both in the social sector and in the economy of our country a study has been endeavored to analyze the nature and movement of Return on Equity (ROE) of 9 selected companies listed in National Stock Exchange (NSE) in India during a period of 15 years from 2006-07 to 2020-21. This analysis has been conducted using DuPont. Step Regression has been used to measure to explain ROE by its predictors such as Operating Profit Margin (OPM), Interest Expense Ratio (IER), Assets Turnover Ratio (ATR), Tax Retention Ratio (TRR) and Equity Multiplier (EM). Study shows a substantial relationship between ROE and OPM in case of large cap companies. But most of the mid and small cap companies have shown a different relationship where other predictors such as ATR, TRR and EM are proved to be significant to explain ROE.

How to cite this paper
Chowdhury, B & Das, S. (2025). Financial performance of the selected Indian pharmaceutical companies: An empirical analysis.Accounting, 11(2), 91-102.

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Journal: Accounting | Year: 2025 | Volume: 11 | Issue: 2 | Views: 32 | Reviews: 0

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