This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

The Impact of Financial Ratios on Firm Profitability

downloadDownload printPrint

Remember! This is just a sample.

You can get your custom paper by one of our expert writers.

Get custom essay

121 writers online


In any investment, investors are seeking to obtain return and trying to get information from the future amount of profitability of companies. One of the most common methods to examine financial information is to prepare financial ratios. This study aims to find the variable with the greatest perspective to explain profitability. The investor, whether personal stockholders or the firms, are in need of a model to assess the performance of the companies and determine their expected profitability. Financial ratios play an important part in the development of a company with an effective way, if a company is not maintaining financial ratio efficiently it will directly hit the performance of the company, different financial ratios like Profitability ratios, Liquidity ratios, Gearing ratios, and yield ratio have a major role in judgment of the progress of a company by the new investor and existing investors.

The pharmaceutical industry in Pakistan has grown during the last few decades. At the time of the independence of Pakistan in 1947, there were few production units in the country. Currently, Pakistan has more than 800 large volume pharmaceutical formulation units, including those operated by 25 multinationals present in the country. The Pakistan Pharmaceutical Industry meets around 90% of the country’s demand for finished dosage forms and 4% of Active ingredients. Specialized finished dosage forms such as soft gelatin capsules, parenteral fat emulsions, and Metered-dose inhalers continue to be imported. There are only a few bulk drug Active ingredient producers and Pakistan mainly depends on imports of bulk drugs for its formulation needs resulting in frequent drug shortages. Political disturbances and allegations of under-invoicing add to the uncertainty of imports and clashes with the customs and tax authorities are common. The National pharmacy industry has shown growth over the years, particularly over the last decade. The industry is trying to upgrade itself and today the majority industry is following local Good Manufacturing Practices laws, with a few in accordance with international guidance.

Remember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

experts 450+ experts on 30 subjects ready to help you just now

delivery Starting from 3 hours delivery

Find Free Essays

We provide you with original essay samples, perfect formatting and styling

Cite this Essay

To export a reference to this article please select a referencing style below:

The Impact of Financial Ratios on Firm Profitability. (2018, December 03). GradesFixer. Retrieved February 9, 2023, from
“The Impact of Financial Ratios on Firm Profitability.” GradesFixer, 03 Dec. 2018,
The Impact of Financial Ratios on Firm Profitability. [online]. Available at: <> [Accessed 9 Feb. 2023].
The Impact of Financial Ratios on Firm Profitability [Internet]. GradesFixer. 2018 Dec 03 [cited 2023 Feb 9]. Available from:
copy to clipboard

Where do you want us to send this sample?

    By clicking “Continue”, you agree to our terms of service and privacy policy.


    Be careful. This essay is not unique

    This essay was donated by a student and is likely to have been used and submitted before

    Download this Sample

    Free samples may contain mistakes and not unique parts


    Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.



    Please check your inbox.

    We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!


    Hi there!

    Are you interested in getting a customized paper?

    Check it out!
    Don't use plagiarized sources. Get your custom essay. Get custom paper

    We can help you get a better grade and deliver your task on time!

    • Instructions Followed To The Letter
    • Deadlines Met At Every Stage
    • Unique And Plagiarism Free
    Order your paper now