FINANCIAL RATIO ANALYSIS Introduction

This report is a summary of performance of Pfizer India based on financial statements and

Accounting policies and principles in industry Influence of parents and conglomerate companies Changes in accounting principles Ratio Analysis What can be expected in future
Pfizer has been able to grow and establish itself in industry as a big player among fluctuations in financial ratios. In the context that it is looking forward to expand and capture new markets in near future investment and caution are the key aspects in which it should focus. With rapidly changing economic variables and positive government policies it has all the incentives to go ahead with its motive to expand swiftly. However it also means that caution should be taken against unfavorable circumstances. With FDI legislations being considered seriously it should take advance notice of upcoming challenges and gear up to accommodate new changes. With advent of stiffer competition it will need to stand out as a forerunner in capturing new markets to have a first mover advantage. With this cautions taken Pfizer stand a great chance of expansion and growth in newer segments and the ratios suggest that it would continue to grow given neutral circumstances.

Recommendation
Pfizer, India is trying to become an independent company in new divisions like animal health and segments like diabetic segment. As we aware that, Pfizer, India have just transferred the assets to a subsidiary company so that it becomes a standalone animal health company in the market as a part of the Pfizer subsidiary. It has been able to capture good market share in new markets and is seriously concerned about its expansion in the market. The zero debt of the company is indicative of the fact that there is always a scope to increase liquidity and investment to capture newer markets efficiently and seamlessly and then strive for higher targets.

It will help Pfizer to widen its horizons and have a large portfolio profile. As far as the revenues are concerned, it should be targeting double digit growth, above the market growth and in terms of cost, it should target taking various measures to cut costs as indicated by ratios. But on the other hand, if has to be vary of the government policy, if it comes and hits the pharmaceutical industry, for say if the laws on FDI hits the industry or the compulsory licensing hits the industry, then it may have a negative impact on the sector, which cannot be ignored. So its important for Pfizer to emerge as a sturdy player and be ready to compete in unfavorable scenario by means of more investment and utilizing it in expanding in new markets quickly .