The Effect of Leverage on Profitability of Pharmaceutical Companies
Résumé
The capital structure problem is important and because of the influence of leverage effect
on return on equity. This paper aims to study the influence of financial leverage effect on
company profitability, using financial data of three large companies from Romania, acting in
pharmaceutical sector, in entire production-distribution chain. To carry out this study have
been completed three stages: analyses of the profitability of the companies, analyses of the
indebtedness and then the effect of leverage on return on equity, using data from 2008-
2012 period. The conclusion that emerges in this study is that leverage effect is an
important factor that influences the return on equity in function of degree of debts, but not
entirely.
Collections
- 2013 fascicula1 nr1 [15]