Performance Analysis of Financial Soundness and Determinants of Profitability of Pharmaceutical Industry in Bangladesh

Abstract

The pharmaceutical industry, registering an amazing double-digit growth rate in
sales over the last decade, has emerged as one of the largest sectors in the economy of
Bangladesh. The financial performance of this sector is, in recent times, receiving much
attention among the stakeholders. This research, attempted to analyze the financial
consistency of pharmaceutical companies and evaluate the profitability determinants of this
sector. In this effort, the study aimed at measuring the financial soundness of pharmaceutical
industry by using Altman's Z-score model. It also examined the determinants of profitability
of the industry by testing a number of hypotheses using statistical techniques. Based on the
outcomes, the study explained the industry's contribution and recommended policies for the
stakeholders. Finally, the study concluded with discussing the possible avenues for further
research in this sector.