Financial Indicators for Growth Performance: Comparison of Pharmaceutical Firms In Pakistan

Financial analysis is useful for every business entity to enhance their performance, competitive strength and access their financial stability and profitability of the firm. This paper investigates the financial analysis of the two Multinational companies, GlaxoSmithKline (GSK) and SanofiAventis (SA) and an attempt to compare their financial performance by using ratio analysis. Data is drawn from pharmaceutical industry in Pakistan from financial year 2005 to 2009. Analysis of variance (ANOVA) and statistical hypothesis test (t-Test) with independent sample characteristics was analyzed through Statistical Package for the Social Sciences (SPSS). The results comparison with this method between two pharmaceutical companies is presented. It is revealed that the performance of both companies in the observed period has improved. The current method reflects that GlaxoSmithKline is leading SanofiAventis.