FINANCIAL STATEMENT ANALYSIS OF CIPLA
FINANCIAL STATEMENT ANALYSIS OF CIPLA ( 2010-2014)
Cipla is one of the oldest pharmaceutical companies in India, incorporated in 1935. Cipla pioneered bulk production of generic drugs and export to many countries. Cipla research and development had breakthrough in slashing prices of critical generic drugs for treating HIV and Cancer patients.
We’ve picked the financial statements of year 2009-10, 2010-11, 2011-12, 2012-13, and 2013-14 for comparative analysis.
Condensed Balance Sheet:
Common Size Balance Sheet:
Income Statement and Cash Flows: 2013
2012
2011
2010
2009
Sales
9,380.29
8,202.42
6,977.50
6,331.09
5,359.52
Other incomes
280.28
229.13
148.3
91.64
353.72
Expenses
7,390.76
6,083.28
5,395.64
5,010.39
4,289.70
COGS
3,918.74
3,353.72
2,856.40
3,027.25
2,718.17
OPEX
2,014.70
1,488.96
1,087.03
821.87
520.36
Depreciation
323.61
303.03
282.07
248.03
165.25
Amortization
PBDITA
-280.28
-229.13
-148.3
-91.64
-353.72
PBIT
1,946.20
2,045.24
1,448.09
1,164.31
1,341.39
Interest
127.86
33.38
26.63
12.92
28.3
PAT
1388.34
1507.11
1123.96
960.39
1081.49
CFO
1,812.48
1,381.34
1,645.09
987.34
1,041.68
CFI
-1,467.21
-2,064.16
-1,046.78
-1,136.26
-562.23
CFF
-404.29
732.83
-627.23
172.06
-471.61
Summary of Balance Sheet and Income Statement :
When we observe the Solvency ratios, we see that the Debt Equity Ratio (DER) of Cipla is 1.34 at present for the year 2013-2014. This has steadily decreased from 4.34 in FY 2009-10. We see that the Debt/TA ratio is 12.15% in 2013-14 as compared to a very low value of 0.09% in 2009. It means that 12.15% of the total assets are financed by debts. This value has increased mainly because Cipla has taken a loan of 1395.62 Crores. In 2009 it was only 5.07 Crores. The Equity/TA ratio has decreased from 99.91% to 87.66%. So as of now, about 88% of the total assets are financed by Equity.
The Interest Coverage Ratio, (ICR) is 15.22 at present. The value was 47.40% in 2009 and rose to as high as 90.12% in 2010, mainly
Cipla is one of the oldest pharmaceutical companies in India, incorporated in 1935. Cipla pioneered bulk production of generic drugs and export to many countries. Cipla research and development had breakthrough in slashing prices of critical generic drugs for treating HIV and Cancer patients.
We’ve picked the financial statements of year 2009-10, 2010-11, 2011-12, 2012-13, and 2013-14 for comparative analysis.
Condensed Balance Sheet:
Common Size Balance Sheet:
Income Statement and Cash Flows: 2013
2012
2011
2010
2009
Sales
9,380.29
8,202.42
6,977.50
6,331.09
5,359.52
Other incomes
280.28
229.13
148.3
91.64
353.72
Expenses
7,390.76
6,083.28
5,395.64
5,010.39
4,289.70
COGS
3,918.74
3,353.72
2,856.40
3,027.25
2,718.17
OPEX
2,014.70
1,488.96
1,087.03
821.87
520.36
Depreciation
323.61
303.03
282.07
248.03
165.25
Amortization
PBDITA
-280.28
-229.13
-148.3
-91.64
-353.72
PBIT
1,946.20
2,045.24
1,448.09
1,164.31
1,341.39
Interest
127.86
33.38
26.63
12.92
28.3
PAT
1388.34
1507.11
1123.96
960.39
1081.49
CFO
1,812.48
1,381.34
1,645.09
987.34
1,041.68
CFI
-1,467.21
-2,064.16
-1,046.78
-1,136.26
-562.23
CFF
-404.29
732.83
-627.23
172.06
-471.61
Summary of Balance Sheet and Income Statement :
When we observe the Solvency ratios, we see that the Debt Equity Ratio (DER) of Cipla is 1.34 at present for the year 2013-2014. This has steadily decreased from 4.34 in FY 2009-10. We see that the Debt/TA ratio is 12.15% in 2013-14 as compared to a very low value of 0.09% in 2009. It means that 12.15% of the total assets are financed by debts. This value has increased mainly because Cipla has taken a loan of 1395.62 Crores. In 2009 it was only 5.07 Crores. The Equity/TA ratio has decreased from 99.91% to 87.66%. So as of now, about 88% of the total assets are financed by Equity.
The Interest Coverage Ratio, (ICR) is 15.22 at present. The value was 47.40% in 2009 and rose to as high as 90.12% in 2010, mainly