EFFICIENCY OF WORKING CAPITAL MANAGEMENT IN PHARMACEUTICAL INDUSTRY

The study attempt to analyze the working capital efficiency of the domestic and multinational pharmaceutical companies during the boom, recession and recovery period. The study also explored the impact of working capital financing policies on the working capital efficiency of the domestic and multinational pharma companies during the boom, recession and recovery periods. Financial tools like utilization index, performance index, efficiency index, ratios and statistical tools like mean, grand mean, t-test, ANOVA and regression analysis has been deployed to draw inferences. The study found that the working capital efficiency index of the boom, recession and recovery period of the domestic pharmaceutical companies do not depict statistically significant difference and similar results are revealed by the study for the multinational pharma companies. Even the analysis shows that statistically the working capital management practices of the domestic pharmaceutical companies are at par with their counterparts i.e. multinational pharmaceutical companies as there is no significant difference in the working capital efficiency index.