Ratio Analysis of Pharmacy Financial Performance: An Evaluation Using the DuPont Analysis and the Financial Viability Index: The Case of Batman

Abstract

This study is retrospective and descriptive. It evaluates the financial structure of Pharmacy X, operating in Batman, Turkey, by analyzing financial statements. The study measures financial performance and assesses the current status. Ratio analysis, DuPont analysis, and the Financial Viability Index (FVI) method were applied to financial statements from 2020 to 2024. The pharmacy’s performance was compared to industry averages from previous years. Findings show the asset structure consists mainly of current assets, with an increase in short-term debt to finance operations. Liquidity, operating, and profitability ratios have generally declined over the years. Pharmacy X’s reliance on external funding has decreased, but there is still dependence on short-term funding. DuPont analysis shows return on equity has decreased. The Financial Viability Index (FVE) shows that Pharmacy X’s financial viability has also weakened over the years.