This study examines the solvency position and financial stability of selected Indian pharmaceutical companies, namely Torrent Pharmaceuticals Ltd., Aurobindo Pharma Ltd., and Alkem Laboratories Ltd., over the period 2019–20 to 2023–24. The research is based on secondary data collected from annual reports and published sources. Traditional solvency ratios, including Debt-Equity Ratio, Proprietary Ratio, Interest Coverage Ratio, and Debt to Total Assets Ratio, were used to assess long-term financial sustainability. Statistical measures such as Mean, Standard Deviation, Coefficient of Variation (CV), CAGR, and One-Way ANOVA were employed for analysis. The findings indicate that Alkem Pharma Ltd. maintained the strongest solvency position due to lower leverage and greater financial stability, while Aurobindo Pharma Ltd. demonstrated strong proprietary strength and interest servicing capability. Torrent Pharma Ltd. exhibited relatively higher dependence on debt financing. The study further reveals a declining trend in debt reliance across all selected companies, indicating improved financial sustainability. ANOVA results show significant differences among the companies in Debt-Equity Ratio, Proprietary Ratio, and Debt to Total Assets Ratio, whereas no significant difference was observed in Interest Coverage Ratio. Overall, the selected pharmaceutical companies maintained satisfactory solvency positions and sound long-term financial stability during the study period.
Solvency, Financial Stability, Pharmaceutical Companies, Debt Management, Solvency Ratios, Financial Sustainability, ANOVA.
International Journal of Trend in Scientific Research and Development - IJTSRD having
online ISSN 2456-6470. IJTSRD is a leading Open Access, Peer-Reviewed International
Journal which provides rapid publication of your research articles and aims to promote
the theory and practice along with knowledge sharing between researchers, developers,
engineers, students, and practitioners working in and around the world in many areas
like Sciences, Technology, Innovation, Engineering, Agriculture, Management and
many more and it is recommended by all Universities, review articles and short communications
in all subjects. IJTSRD running an International Journal who are proving quality
publication of peer reviewed and refereed international journals from diverse fields
that emphasizes new research, development and their applications. IJTSRD provides
an online access to exchange your research work, technical notes & surveying results
among professionals throughout the world in e-journals. IJTSRD is a fastest growing
and dynamic professional organization. The aim of this organization is to provide
access not only to world class research resources, but through its professionals
aim to bring in a significant transformation in the real of open access journals
and online publishing.