Factors Contributing to the Categorization of Worst Performing Companies The Case of Protein Design Labs, Inc. (PDLI)
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| Natura: | Artículo científico |
| Lingua: | es |
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Universidad Nacional Autónoma de México
2005
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| _version_ | 1876460371495092224 |
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| author | Chiaku Chukwuogor-Ndu |
| author_facet | Chiaku Chukwuogor-Ndu |
| contents | Factors Contributing to the Categorization of Worst Performing Companies The Case of Protein Design Labs, Inc. (PDLI) Chiaku Chukwuogor-Ndu Administración y Contabilidad solvency liquidity Cash flow expenditure profitability This paper examines the financial performance of one of the 2002 worst performingcompany, Protein Design Labs Inc. for the period 1993 to 2002. Findings indicate thatthe profitability ratios such as return on equity, return on assets and net profit marginwere negative for most of the years between 1993 and 2004. The Pearson´s correlationcoefficient between Protein Design´s net sales and R & D expenditure for the period 1993to 2004 is .85 and is significant at 1 percent level. Between 1996 and 2004, annualexpenditures on Research and Development exceeded the annual net sales. The currentratio of Protein Design ranges between 10:1 and 58:1 in 1998 and 2000 respectively.Protein Design is by far more liquid than its competitors. The Cash flow adequacy andCash interest coverage ratios indicate that Protein Design was extremely liquid for mostof the period. Cash flows from financing were responsible for healthy cash flow situation.The efficiency ratios were poor. They show that during the period, Protein Design had thelowest total asset turnover when compared to its immediate competitors such as Corixaand Medummune. Despite poor earnings generating performance, Protein Design isamong the top emerging pharmaceutical companies attracting high corporate alliancesand investors confidence. With a new Chief Executive, a new President of Research andDevelopment, and a strong balance sheet, Protein Design Labs Inc is expecting greaterprofitability in the future. 2005 artículo científico 0186-1042 https://www.redalyc.org/articulo.oa?id=39521703 es http://www.redalyc.org/revista.oa?id=395 Contaduría y Administración application/pdf Universidad Nacional Autónoma de México Contaduría y Administración (México) Num.217 |
| format | Artículo científico |
| id | redalyc_39521703 |
| institution | Redalyc |
| language | es |
| publishDate | 2005 |
| publisher | Universidad Nacional Autónoma de México |
| spellingShingle | Factors Contributing to the Categorization of Worst Performing Companies The Case of Protein Design Labs, Inc. (PDLI) Chiaku Chukwuogor-Ndu Administración y Contabilidad solvency liquidity Cash flow expenditure profitability Factors Contributing to the Categorization of Worst Performing Companies The Case of Protein Design Labs, Inc. (PDLI) Chiaku Chukwuogor-Ndu Administración y Contabilidad solvency liquidity Cash flow expenditure profitability This paper examines the financial performance of one of the 2002 worst performingcompany, Protein Design Labs Inc. for the period 1993 to 2002. Findings indicate thatthe profitability ratios such as return on equity, return on assets and net profit marginwere negative for most of the years between 1993 and 2004. The Pearson´s correlationcoefficient between Protein Design´s net sales and R & D expenditure for the period 1993to 2004 is .85 and is significant at 1 percent level. Between 1996 and 2004, annualexpenditures on Research and Development exceeded the annual net sales. The currentratio of Protein Design ranges between 10:1 and 58:1 in 1998 and 2000 respectively.Protein Design is by far more liquid than its competitors. The Cash flow adequacy andCash interest coverage ratios indicate that Protein Design was extremely liquid for mostof the period. Cash flows from financing were responsible for healthy cash flow situation.The efficiency ratios were poor. They show that during the period, Protein Design had thelowest total asset turnover when compared to its immediate competitors such as Corixaand Medummune. Despite poor earnings generating performance, Protein Design isamong the top emerging pharmaceutical companies attracting high corporate alliancesand investors confidence. With a new Chief Executive, a new President of Research andDevelopment, and a strong balance sheet, Protein Design Labs Inc is expecting greaterprofitability in the future. 2005 artículo científico 0186-1042 https://www.redalyc.org/articulo.oa?id=39521703 es http://www.redalyc.org/revista.oa?id=395 Contaduría y Administración application/pdf Universidad Nacional Autónoma de México Contaduría y Administración (México) Num.217 |
| title | Factors Contributing to the Categorization of Worst Performing Companies The Case of Protein Design Labs, Inc. (PDLI) |
| topic | Administración y Contabilidad solvency liquidity Cash flow expenditure profitability |
| url | https://www.redalyc.org/articulo.oa?id=39521703 |