A Study on Impact of Cost Structure on Financial Performance of Selected Pharmaceutical Companies in India

Abstract

In a competitive business world cost plays an important part in the profits. The Manufacturing companies should concentrate on cutting cost to improve profitability. Since the financial performance of a company is directly measured by Profitability of a firm, financial analysis is an important for every business organisation to enhance their performance, competitive strength, to reduce the cost and to access their financial stability and profitability of the firm. The firm can have high profits by increasing their sales and having economical cost of production or minimize the cost of production. The Indian Pharmaceutical industries are developing drastically. Hence, an attempt is made to identify several costs that influence the financial performance of the selected pharmaceutical industries by applying descriptive statistics i.e. mean, standard deviation, co-effficient of variation, minimum and maximum value.

Keywords: Cost Components, Financial Performance, Pharmaceutical Industry