Corporate Finance

Exhibit 7.7

Select financial ratios and data

Glaxo

Ranbaxy

Cipla

Sun

DRL

2001

2000

2001

2000

2001

2000

2001

2000

2001

2000

Inventory managementRaw mat. turnover

5.85

6.46

4.44

4.97

3.68

3.68

5.68

5.82

11.26

7.24

Finished goods turnover

8.81

9.38

11.36

11

5.86

5.33

8.44

11.84

14.96

10.2

Debtors turnover

9.57

8.52

4.66

3.99

9.24

11.02

6.8

6.25

4.8

3.65

Creditors turnover

6.64

7.02

5.46

5.76

7.45

8.27

10.62

8.12

8.36

5.76

Holding period (days)Raw material

65

57

83

75

96

95

65

65

46

66

Debtors

38

43

78

91

40

33

54

58

76

100

Creditors

55

52

67

63

49

44

34

45

44

63

Net working capital

112

108

142

153

169

177

151

123

127

163

cycle (days)

Asset turnoverNet sales/total assets

1.3

1.44

0.89

0.78

0.93

0.84

0.92

0.89

0.86

0.64

Net sales/net fixed assets

8.17

9.95

3.9

2.91

5.24

4.35

3.4

3.05

2.79

2.3

LiquidityCurrent ratio

2.02

2

1.87

1.74

2.02

1.9

2.73

1.74

1.44

1.28

Quick ratio

0.78

0.68

0.72

0.49

0.47

0.31

0.77

0.65

0.71

0.6

Operating cash flow to

30.6

9.44

11.12

13.73

16.97

22.58

9.51

19.88

18.61

15.18

total assets (percent)

LeverageDebt to equity

0.02

0.09

0.09

0.18

0.03

0.03

0.08

0.13

0.84

0.46

Interest coverage

11.96

7.84

5.29

4.07

90.65

64.01

19.74

9.5

5.07

5.1

(EBIT/int)

EBDIT/int

14.14

9.19

6.33

4.86

94.23

68.29

21.85

10.82

6.05

5.9

Total debt/total assets

1.24

5.81

5.43

11.54

2.66

2.84

6.11

10.14

39.44

28.41

(percent)

Margin ratiosEBDIT/net sales (percent)

14.73

12.88

13.25

16.41

25.45

26.55

30.86

26.17

28.6

22.12

EBIT/net sales (percent)

12.23

10.99

11.08

13.74

23.86

24.66

27.89

22.97

23.97

19.12

PAT/net sales (percent)

6.77

5.83

7.85

9.71

17.63

18.65

24.73

19.01

15.85

13.88

Exhibit 7.7 contd.