Proceedings of the 12th International Conference on Opportunities and Challenges in Management, Economics and Accounting
Year: 2024
DOI:
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A Comparative Study of Two Financial Companies Listed In S&P 500 For Their Evaluation & Ratio for Three Financial Years
Abah Zita Anyi
ABSTRACT:
The project applies performance and Ratio Analysis of Pharmaceutical companies listed in S&P 500. It means evaluating how well the company performs. The main aim is achieved through ratio analysis of two pharmaceutical companies (Pharmacie De Douala Sarl and Tridem Pharma Cameroun) in Cameroon. Different financial ratios have been evaluated like liquidity ratio, asset management ratios, profitability ratios, market ratios, debt management ratio and finally to measure the best performance between the two companies. The mathematical calculation has been established for ratio analysis between the two companies from 2021 – 2023. It is the most important factor for performance evaluation. The graphic analysis and comparison are applied between two companies for measurement of all types of financial ratio analysis. Liquidity ratio is conveying the ability to repay short-term creditors. It determines performance of short term creditors of both pharmaceutical companies under the three categories such as current ratio, quick ratio and cash ratio. Asset management ratio is measurement how effectively a company uses and controls its assets. It’s also qualified into seven categories for both pharmaceutical companies such as account receivable turnover, average collection period, inventory turnover, account payable turnover, account payable turnover in days, fixed asset turnover and total asset turnover. Profitability ratio evaluates how well a company is performing by analyzing and how profit was earned relative to sales, total asset and net worth for both pharmaceutical companies. Debt coverage ratio is used for performing the property insufficient to collect their mortgage for both companies and market value is performed to analyze their future market value of the stock market. Overall analyses are measured between Pharmacie De Douala Sarl and Tridem Pharma Cameroun.
keywords: Financial analysis, ratio analysis, Pharmacie De Douala Sarl Company financial analysis, Tridem Pharma Cameroun financial analysis