Profitability and Leverage Analysis: A Study on Lupin Pharmaceuticals Ltd.

Vol-4 | Issue-6 | June 2019 | Published Online: 10 June 2019    PDF ( 315 KB )
Author(s)
Dr. E Rajesh 1; Mr. I Enock 2

1Assistant Professor in Commerce, Faculty of Science & Humanities, SRM Institute of Science and Technology, Ramapuram, Chennai – 89 (India)

2Assistant Professor in Commerce, Faculty of Science & Humanities, SRM Institute of Science and Technology, Ramapuram, Chennai – 89 (India)

Abstract

This study analyzes the operating leverage, financial leverage and combined leverage for Lupin, the Leading multinational pharmaceutical company. For the purpose of analysis, the researchers have collected the data from the moneycontrol.com. This study covers the period from 1st April 2013 to 31st March 2018 which consists of a five year period. The empirical findings of the study expose that, the company has very high operating risk (1.21 times) during the year 2016-2017 and has least operating risk (1.08 times) during the year 2014-2015. The EBIT of the company was maximum (4208.48) during the period of 2015-2016 and it was minimum (1827.17) in the period 2016-2017. Moreover, Lupin Pharmaceuticals has stagnant financial risk during the study period.

Keywords
Operating leverage, Financial Leverage, Combined leverage and EBIT.
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