Working Capital Management on Different LCO

The pharmaceutical industry is one of the most high-tech sectors of the economy with a rapidly changing product line. Maintain of the the competitiveness of the industry requires permanent financial investments and development of innovative procedures, investments in the pharmaceutical sector can provide a high rate of return, and the industry itself can become one of the drivers of the Russian economy. The research analyzes the characteristics of working capital in the pharmaceutical industry in Russia and determines the value of the determinants of working capital management efficiency with the example of total selection of companies and the companies in the pharmaceutical sector as well. The results of the research proved the existence of a quadratic function that describes the relationship between the financial cycle of the company and the profitability of its assets. It was empirically proved that there was the existence of a turning point in which working capital reached the optimum level, and the efficiency of the company would grow exactly to this point. After reaching the optimal level of working capital and its further growth, the relationship with the efficiency of the company becomes negative.