Abstract

Cipla Limited is a leading Indian pharmaceutical company operating in India and across the world either directly or through subsidiaries or joint ventures. From being a domestically focussed company in the early 1990s, Cipla has transformed itself into a multinational company with its share of revenues from international operations increasing from10% in the early 1990s to 60% during the fiscal year 2017-18. The management of the company initiated several measures to transform its business operations to meet the ever changing market dynamics in India and across the globe. Of the major objectives Cipla planned to achieve during the fiscal year 2018-19, improving its operational performance was one key short-term motive. The present case study helps in assessing the trend in the operational performance of Cipla using profitability ratios.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The process of analyzing and interpreting the profitability position of a company.
• The difference between various profitability ratios.
• The profitability position of Cipla Limited.

Keywords

Profitability of Cipla Limited; Current Ratio; Quick Ratio; Cash Ratio; Overall Liquidity; Current Assets; Current Liabilities; Quick Assets