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Symbiotic Relationship between a Healthy Population and a Sustainable Economy: Financial Performance of Julphar Gulf Pharmaceutical Industries

Author

Listed:
  • Lukman Ayinde Olorogun

    (Department of Economics and Finance, Faculty of Economics, Administration and Social Sciences, Istanbul Gelisim University, Istanbul, Turkey,)

  • Kursat Yalciner

    (Department of Economics and Finance, Faculty of Economics, Administration and Social Sciences, Istanbul Gelisim University, Istanbul, Turkey,)

  • Abdulla Sultan Al Jaberi

    (Business Division, ADMC, Higher Colleges of Technology, Abu Dhabi, United Arab Emirates.)

Abstract

Redefining the variables of macroeconomics requires the evaluation of the vital role the healthcare industry plays as an economic agent. The pharmaceutical industry constitutes a vital part of the healthcare industry. In this study, the evaluation of the performance of Julphar examined viability of such an agent. A 5-year financial ratio analysis was conducted based on the company's 5-year annual reports. The analyzed ratios were assets utilization, net profit margin, debt utilization, and the profitability ratios ROA and ROE. The overall findings showed that Julphar assets were underutilized meaning that their productivity is not optimal. ROA and ROE dropped-down consecutively, which means that the company's profitability was in question given its high debt-financing and a continuous increase in total operating expenses. This performance can affect the national and regional economic stability. It is recommended that Julphar scales down financing, debt acquisitions, and reduces its operating expenses while increasing its productivity by way of optimal assets utilization and redefined market segmentation. Market-driven projects are seen as the solution to most of its problems. Due to its position, Julphar plays important role in the national and regional economy. Future research should include other microeconomic agents such as micro-foundations in order to determine the far-reaching effects of financial performance on the economy.

Suggested Citation

  • Lukman Ayinde Olorogun & Kursat Yalciner & Abdulla Sultan Al Jaberi, 2020. "Symbiotic Relationship between a Healthy Population and a Sustainable Economy: Financial Performance of Julphar Gulf Pharmaceutical Industries," International Journal of Economics and Financial Issues, Econjournals, vol. 10(2), pages 148-155.
    • Handle: RePEc:eco:journ1:2020-02-16
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    References listed on IDEAS

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    1. Zouaghi, Ferdaous & Hirsch, Stefan & Garcia, Mercedes Sanchez, 2016. "What Drives Firm Profitability? A Multilevel Approach To The Spanish Agri-Food Sector," 56th Annual Conference, Bonn, Germany, September 28-30, 2016 244762, German Association of Agricultural Economists (GEWISOLA).
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    Cited by:

    1. Lukman Ayinde Olorogun, 2022. "Revisiting the Nexus of FDI-Led Growth Hypothesis and Economic Development in Rwanda: a Johansen-ARDL Approach to Cointegration," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(4), pages 2695-2717, December.

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    More about this item

    Keywords

    Financial Performance; Healthcare; Economy; Pharmaceutical Industry; Macroeconomics;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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