Trends in Production, Sales and Cost Structure of Select Pharmaceutical Industries in India-An Empirical Study

Abstract

The trend Analysis is a useful tool to project financial health and performance standard of the company. This method helps management to find appropriate point of intervention for better performance. In this article, trends in production, sales, the cost of sales and other costs have been analysed in detail. Trend analysis is effective only when relevant and related items are studied in conjunction with each other and their interactions. Also, trend results of each above factors have to be viewed in perspective of the resources employed. This paper analyses the trend values of all performancs and cost) viz. Porduction, sales and other element old costs) of selected Pharma companies . The study selected time series data for ten years from 2005-06 to 2014-15. Taking 2005-06 as the base year. Indices have been calculated for the remaining years with reference to the base year. 9 Hypotheses have been tested on the basis of Chi-square tests and concluded that there are significant difference between actual and trend values of production, sales and respective expenses.