THE EVOLUTION OF THE SUSTAINABLE GROWTH OF COMPANIES WITHIN THE PHARMACEUTICAL INDUSTRY

(PIKO) Georgiana Daniela Minculete, Lilia Grigoroi and (COZMA) Maria Daciana Rodean
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(PIKO) Georgiana Daniela Minculete: Lucian Blaga University, Sibiu
Lilia Grigoroi: ASEM, Chisinau, Republica Moldova
(COZMA) Maria Daciana Rodean: Lucian Blaga University, Sibiu

Revista Economica, 2016, vol. 68, issue 3, 94-102

Abstract: This study aims to examine the companies within the pharmaceutical industry in terms of the PRAT model (i.e. the rate of sustainable growth of these companies). The period considered in the study is limited to six financial years, i.e. from 2009 to 2014. Following the application of this model, we found that most of the companies that were part of the research sample were not able to sustain their activities solely from their own resources. Thus, they were forced to resort to attracting external funding sources. It was found that the inflation rate and the growth rate of the gross domestic product have a significant influence on sustainable growth. Upon completion of the forecast on the future evolution of sustainable growth for the time interval 2015-2020, we noticed a decrease in the PRAT indicator. This evolution is due not only to increased borrowing but also to the declining profitability of the examined entities, indicating the impossibility of companies to use their assets efficiently so as to make a profit.

Keywords: sustainable growth; inflation rate; the growth rate of the gross domestic product; forecast (search for similar items in EconPapers)
JEL-codes: G10 G30 (search for similar items in EconPapers)
Date: 2016
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