TY - JOUR
T1 - Supply chain performance, profitability and liquidity
T2 - An analytical study of indian pharmaceutical sector
AU - Ali, Anis
N1 - Publisher Copyright:
© 2021 by the authors; licensee Growing Science, Canada.
PY - 2021
Y1 - 2021
N2 - The study aims to find out the relationship between Supply Chain Performance (SCP), profitability, and liquidity of selected leading Indian pharmaceutical companies. The study is based upon the secondary data available on the website of the concerned Indian pharmaceutical companies. The SCP defines the operational velocity and is measured by the manufacturing efficiency (inventory days), ability of recovery from the debtors (accounts receivables days), and payment to creditors (account payables days). Profitability is the relative measurement of the earning capacity of the business organization and facilitates the comparison among the business organization of similar industries. The liquidity in a business organization refers to the state of pay ability of the short term liabilities in ordinary business activities. Profitability and liquidity are the bi-polar concepts in the business organization. There is an optimum balance between liquidity and profitability is expected for the growth and development of the business organization. Ratio analysis is to be used to analyze the SCP, profitability, and liquidity while Karl Pearson’s correlation and Spearman’s rank correlation applied to get the correlation between SCP, profitability, and liquidity of the companies, and relative relationship between a correlation of profitability and profitability to liquidity ratio of all selected companies. It is observed that there is moderate relationship gross profitability, profitability on the owner’s fund, and liquidity. But there is a negligible relationship between liquidity and return on total resources or profitability on total assets. The Indian pharmaceutical companies with higher profitability are much sensitive about the co-movement of profitability and liquidity. The SCP of the Indian pharmaceutical companies negatively and positively but negligibly affects the profitability and liquidity of the Indian pharmaceutical companies.
AB - The study aims to find out the relationship between Supply Chain Performance (SCP), profitability, and liquidity of selected leading Indian pharmaceutical companies. The study is based upon the secondary data available on the website of the concerned Indian pharmaceutical companies. The SCP defines the operational velocity and is measured by the manufacturing efficiency (inventory days), ability of recovery from the debtors (accounts receivables days), and payment to creditors (account payables days). Profitability is the relative measurement of the earning capacity of the business organization and facilitates the comparison among the business organization of similar industries. The liquidity in a business organization refers to the state of pay ability of the short term liabilities in ordinary business activities. Profitability and liquidity are the bi-polar concepts in the business organization. There is an optimum balance between liquidity and profitability is expected for the growth and development of the business organization. Ratio analysis is to be used to analyze the SCP, profitability, and liquidity while Karl Pearson’s correlation and Spearman’s rank correlation applied to get the correlation between SCP, profitability, and liquidity of the companies, and relative relationship between a correlation of profitability and profitability to liquidity ratio of all selected companies. It is observed that there is moderate relationship gross profitability, profitability on the owner’s fund, and liquidity. But there is a negligible relationship between liquidity and return on total resources or profitability on total assets. The Indian pharmaceutical companies with higher profitability are much sensitive about the co-movement of profitability and liquidity. The SCP of the Indian pharmaceutical companies negatively and positively but negligibly affects the profitability and liquidity of the Indian pharmaceutical companies.
KW - Cash Conversion Cycle (CCC)
KW - Indian pharmaceutical
KW - Liquidity
KW - Profitability
KW - Supply chain performance (SCP)
UR - http://www.scopus.com/inward/record.url?scp=85104541794&partnerID=8YFLogxK
U2 - 10.5267/j.ac.2021.3.016
DO - 10.5267/j.ac.2021.3.016
M3 - Article
AN - SCOPUS:85104541794
SN - 2369-7393
VL - 7
SP - 1479
EP - 1490
JO - Accounting
JF - Accounting
IS - 6
ER -
