Comparative Analysis

We have considered two close competitors, Fulford and Aurobindo, to compare against Glenmark. The following section shows a brief
comparison of Glenmark against its competitors.
2009-10
Glenm
ark

Fulfo
rd

0.89
0.63

2.25
1.96

99.19

2010-11
Aurobi
ndo

Glenm
ark

Fulfo
rd

1.05
0.68

0.44
0.29

3.12
2.39

78.9
9

93.56

94.91

12.48
4.70

6.12
4.70

16.09
10.97

9.91

12.9
5

0.23

0.00

0.56

0.76

131.2
9
46.92

24.7
1
62.1

2011-12
Aurobi
ndo

Glenm
ark

Fulfor
d

1.22
0.75

1.17
0.89

3.34
2.48

25.7
6

92.08

79.61

18.24
6.27

0.86
0.85

14.37
10.16

27.93

9.30

1.18

0.38

0.13

0.00

0.71

0.44

77.99
38.71

17.5
8
75.8

2012-13
Aurobi
ndo

Glenm
ark

Fulfor
d

1.14
0.67

0.83
0.68

3.19
2.53

107.
81

179.06

85.97

16.95
8.37

-2.32
-2.48

-0.99
-0.71

27.01

10.43

-3.34

0.18

0.11

0.00

0.45

0.39

61.76
32.13

13.3
2
75.8

2013-14
Aurobi
ndo

Glenm
ark

Fulfor
d

Aurobin
do

1.31
0.70

1.30
1.13

4.16
2.60

1.53
1.02

82.5
4

86.49

87.50

74.7
0

94.88

19.80
9.93

1.65
2.15

9.14
7.26

18.85
10.20

1.06
1.21

16.48
13.66

3.90

14.64

2.91

20.03

14.48

1.49

34.37

0.33

0.00

0.00

0.35

0.00

0.00

0.26

0.54

0.40

0.46

0.27

79.00
35.61

6.53
48.4

128.5
2
33.39

19.6
7
94.0

Liquidity
Current ratio
Quick ratio
Earning
Retention Ratio
(%)
Profitability
ratios
NPM (%)
ROA
Return on
Capital
Employed
Leverage
ratios
Debt to equity
Liability to
equity

1.50

1.27

1.40

1.32

1.14

Turnover
ratio
Days of
receivable
Days of

126.74
93.83

116.24
98.38

123.73
89.24

106.10
96.31

120.46
85.88

inventory
Asset Turnover
Ratio (%)
Inventory
Turnover
Receivables
Turnover
Operating
cycle

37.08
7.78
2.78
178.2
1

8
73.1
3
5.87
14.7
7
86.8
9

67.16

34.46

3.89

9.43

2.88

4.68
116.7
0

220.57

8
99.0
8
4.81
20.7
6
93.4
7

70.75

49.37

3.71

11.36

3.14

5.91

214.62

93.89

8
107.
05
4.81
27.4
1
89.2
0

71.46

50.16

4.09

10.25

2.95

4.62
114.6
1

212.97

7
129.
84
7.53
55.9
2
55.0
0

79.49

54.41

3.79

10.93

3.44

2.84
161.9
2

202.41

7
113.
69
3.88
18.5
6
113.
74

82.91
4.25
3.03
206.34

Liquidity Ratios
To learn about the liquidity of the Glenmark, we look into the Current ratio and Quick ratio of all
the three companies (Glenmark, Fulford and Aurobindo). From the above table we can point out
that Glenmark has the lowest Current Ratios across the years and invariably the lowest quick
ratio as well compared to its competitors. The current ratio was less than one implying the
company was not in a position to meet its current liabilities. The current ratio has been growing
considerably across the years and it is 1.3 in the current year against 1.53 and 3.4 suggesting
that the company was able to meet all its current liabilities. Aurobindo seem to be maintaining a
healthy rate while Fulford has very high current ratio. The quick ratio shows a very similar trend
to Current ratio for all the companies across the years.

Profitability
To compare and learn about the profitability of the company we use the following KPIs, Net
Profit Margin, Return on Assets and Return on Capital Employed. Glenmark scores highest Net
Profit margin amongst the three across the years indicating that it generates the highest profit
on the revenue earned, Aurobindo has a similar trend but Fulford constantly scores very low in
this indicator. Glenmark also scores high on ROA on most of the years similar to NPM suggesting
that it brings back a better returns on its investment. Considering ROCE, Glenmark again shows
healthy rate, which Aurobindo shows exceptionally high long-term returns and Fulford shows
similar trend of low return.

Turnover Ratios
Glenmark has the highest Inventory Turnover Ratio compared to its competitors suggesting high
inventory. It also has the highest days of receivables compared to its competitors, which is a bad
sign. Days of inventory also show a very similar trend to Inventory turnover ratio suggesting the
same. It also shows a comparatively high operating cycle but lesser than Aurobindo suggesting
faster cycle but marginally higher than the operating cycle of Fulford.