Effect of Capital Structure on Profitability of Pharmaceutical Companies

Authors

  • Rajesh Kr. Gupta
  • Pramod Kumar Dayalbagh Educational Institute, Dayalbagh
  • Ankita Singh Dayalbagh Educational Institute, Dayalbagh

DOI:

https://doi.org/10.33516/maj.v51i3.26-35p

Abstract

The overall analysis of impact of profitability on capital structure reveals that there is a significant relationship between debt equity ratio and operating profit of the selected pharmaceutical companies in India in case of Lupin Ltd and Divis laboratories and when we talked about relationship with net profit ratio as well as return on capital employed it could be seen in Lupin Ltd, Cipla, Cadila Healthcare, Divis laboratories, Aurobindo pharma and Torrent Pharmaceuticals. The very crucial problem in every business is financing the firm's assets and every business wants optimum capital structure which means it offers guarantee for optimum returns, but the determination of such an optimum capital structure is a formidable task in practice.

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Published

2016-03-01

How to Cite

Gupta, R. K., Kumar, P., & Singh, A. (2016). Effect of Capital Structure on Profitability of Pharmaceutical Companies. The Management Accountant Journal, 51(3), 26–35. https://doi.org/10.33516/maj.v51i3.26-35p

Issue

Volume 51, Issue 3, March 2016

Section

Cover Story
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Scopus
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Europe PMC

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