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FINANCIAL PERFORMANCE ANALYSIS OF FOUR
SELECTED PHARMACEUTICALS COMPANY IN
BANGLADESH
CHAPTER 1: INTRODUCTION
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Origin of the report:
From education the theoretical knowledge is obtained from courses of study, which is only
the half way of the subject matter. Practical knowledge has no alternative. The perfect
coordination between theory and practice is of paramount importance in the context of the
modern business world in order to resolve the problem between these two areas.
This paper entitled “Financial Performance Analysis of Four Selected Pharmaceuticals
company in Bangladesh” is originated from the fulfillment of the MBA program.
Objective of the report:
The prime objective of the report is to gather practical exposure to the operations and the
financial statement analysis of different Pharmaceuticals Company. The specific objectives of
the study are as follows:
1. The is meant to relate the financial statement analysis theories learnt in class to the
context of a real world scenario to understand their practical implications,
2. To analyze the financial statements of Square Pharmaceuticals Ltd, Renata
Pharmaceuticals Ltd, Beximco Pharmaceuticals Ltd and Ibn Sina Pharmaceuticals
Ltd. To get an insight of the financial performance of the company from the different
perspectives. The analysis is done on the financial statements during the time period
of 2006 to 2010.
Scope of the report:
This report has been focused on the financial performance of Square Pharmaceuticals Ltd, Renata pharma Ltd, Beximco Pharma Ltd and Ibn Sina for the years ending 2006 through 2010 by means of analysis of Income Statements, Balance Sheets and Cash flow Statements. The Ratio, Benchmark, horizontal, Cash Flow Statement and growth analysis of the company’s Income Statement and Balance Sheet for the last five financial years has been portrayed in this report. And finally, it also includes an analysis of the following ratios: Leverage Ratios, Liquidity ratios, Profitability ratios, and Market Ratios.
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Limitation of the report:
There were financial terms that vary from the book and that are individual to each company. Best effort was made to reconcile and interpret them. But some ambiguity may still be left.
Methodology of the study:
A proper method is always necessary for any research work. It helps to organize the
experiences observation, analysis of data information their logical expression in a systematic
process to achieve the ultimate goals & the objectives of the research the methods adopted for
the current research work is presented in a sequential manner. The methodology of the study
is as follows:
Research design:
Descriptive research design has been used. My main target is to describe about something.
Collection of data:
The information required to prepare the report has been collected from secondary sources.
Secondary data has been collected from the related sources of the bank. Those are as follows:
Secondary Sources of data collection:
Book and web materials.
Publications, Magazines and Journal.
Annual reports, Different issues from Balance sheet and profit and loss a/c.
Dhaka Stock Exchange
Data processing:
Data has been processed through gathering, editing, sorting, coding of secondary data.
Collected data has been systematically processed and analyzed by using required tools and it
is be presented in terms of tables, charts, figures, and graphs with written scripts.
Final Report Preparation:
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The final report has been prepared on the basis of the above analysis and the interpretation of
data.
CHAPTER 2: AN OVERVIEW OF THE PHARMACEUTICALS
COMPANY IN BANGLADESH
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OVERVIEW OF SQUARE PHARMACEUTICALS LIMITED
SQUARE today symbolizes a name – a state of mind. But its journey to the growth and
prosperity has been no bed of roses. From the inception in 1958, it has flourished into one of the top line conglomerates in Bangladesh today. Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming a high performance global player.
Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has been continuously been the market leader since 1985. It was established in 1958 as a partnership and in 1964, Square was converted into a Private Limited Company. In 1991, it was listed in the Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) as a Public Limited Company. In 1994, Square commenced Initial Public Offering (IPO) of Square Pharmaceutical Limited shares with authorized capital of Tk 1,000 million.
The company has extended its range of services towards the highway of global market. SPL has pioneered exports of medicines from Bangladesh in 1987 and has been exporting antibiotics and other pharmaceutical products since then. This extension in business and services has manifested the credibility of Square Pharmaceuticals Limited.
In 1997, SPL had won the National Export Trophy for exporting pharmaceuticals overseas. Later in 1998, SPL had been awarded with the “ISO-9001 Certificate” for its high product standards. In 2007, SPL has been awarded with “UK-MHRA” Certificate.
Currently, SPL manufactures and markets its own ‘branded generics' for many diseases like AIDS, Cancer, Asthma, Hypertension, Diabetes, both nationally and globally. Many of Square’s products are brand leaders in their respective fields. The company produces pharmaceutical specialties of uncompromising quality. Its comprehensive range of about 120 formulations, cover all major therapeutic groups. Square's products come in tablet, capsule, powder, liquid, cream and suppository and inhaler forms.
In the recent past, the sales of SPL was more than Tk 5 Billion with about 15% market share having a growth rate of about 16%. It currently has 13,009 shareholders and 3001 staff.
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OVERVIEW OF BEXIMCO PHARMACEUTICALS LIMITED:
Beximco Pharma is a leading edge Pharmaceutical company based in Dhaka, Bangladesh and
is acclaimed for its outstanding product quality, world class manufacturing facilities, product
development capabilities and outstanding professional services. Beximco pharma is also the
largest exporter of pharmaceutical products from Bangladesh and received National Export
Trophy ( Gold), the highest National accolade for Export, for record three times. Beximco
pharma is a public limited company. It is established 1976. Its main target manufacturing and
marketing of pharmaceuticals finished formulation product, large volume parenterals and
active pharmaceutical ingredients. Its overseas offices and Associates UK, USA, Pakistan,
Myanmar, Singapore, Kenya, Yemen, Nepal, Vietnam, Combodia and Srilanka. Beximco
authorized capital 2,000 million and Paid up Capital 1,040.97 million. Its number of
shareholders around 49,000. Its number of employees is 2,500 people and is widely
acclaimed for its skilled and talented workforce. Today Beximco pharma is building its
presence across five continents and is the only Bangladeshi company to market
pharmaceutical products in the USA.
OVERVIEW OF RENATA PHARMACEUTICALS LIMITED:
Renate Pharmaceuticals limited main focus customer satisfaction. Renate pharma conform to
the highest ethical standards. It make active efforts to improve the welfare of our community.
Renate cannot grow without leadership in all spheres of our activities. Therefore creating
leaders is a key priority. Renate provide maximum value to our customers and communities
where we live and work. The endurance of a company’s reputation depends upon the quality
of work it does rather than the quantity. Hence, the appreciation of quality must be
instinctive, and our commitment to quality must be total.
OVERVIEW OF IBN SINA PHARMACEUTICALS LIMITED:
The IBN SINA Pharmaceuticals Ltd. was founded on 1983. The industry was established by
the trustee board as a limited company. Then it is converted into public limited company in
1989.Now IBN SINA Trust own 50% share of the industry and public shares the rest
50%.since the beginning IBN SINA was committed to provide high quality health care
services in Bangladesh and within a very short period of time it achieved the target and
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fulfilled the commitment. It has also occupied a very prestigious position in the
pharmaceutical field of Bangladesh for its quality and ethical standard. Now IBN SINA
expanding its business area internationally across the world and has already started exporting.
The is always devoted to ensure the high quality of medicines by implementing state of art
technologies and modern machineries. The IBN SINA Pharmaceutical Industry has become a
reputed Pharmaceutical company in Bangladesh with sufficient expertise and experiences.
Significant Recent Event of the Industry:
The Pharmaceutical Industry plays a vital role in Bangladesh by means of improving general health care standards, providing employment opportunities for thousands of people and having a positive impact on the Balance of Payments of the country by exporting.
The pharmaceutical industry of Bangladesh has made significant progress. Some of the industries are equipped with modern infrastructure facilities and producing pharmaceutical items of international standard. 164 enterprises, out of registered 232 have been manufacturing medicine mainly based on imported raw materials. Among the entrepreneurs a highly professional committed group is endeavoring to upscale the production and export of pharmaceutical items.
The inception of the pharmaceutical industry in Bangladesh dates back to the 1950s when a few multinationals and local entrepreneurs started with manufacturing facilities in the erstwhile East Pakistan. By two decades many top ranking Multi-National Companies (MNCs) established their manufacturing facilities in this part of the world. Pfizer, Glaxo, Fisons, Squibb, Hoechst, May and Baker and Organon were prominent among them.
Before liberation the pharmaceutical sector was largely dependent on import and very few local companies were involved in this sector. The local companies were only taking part in the distribution channel of MNCs. Immediately after liberation the war-torn economy; disrupted infrastructure and deficit in foreign currency aggravated the overall healthcare situation of the country. The pharmaceutical sector remained as an Import based sector during early 70s. In 1981, there were around 160 licensed pharmaceutical manufacturers, but local production was dominated by the 8 multinational companies, which manufactured about 75% of the products.
The pharmaceutical industry has mainly evolved in the last 25 years after the 1982 Drug Ordinance Act was passed, which limited the production of drugs to 150 essential drugs provided by WHO. After the introduction of the Drug (Control) Ordinance of 1982, local companies improved the range and quality of their products and began to emerge as key players in the industry. The Government also fixed the price ceiling for 117 necessary drugs as well as banned import of any medicaments, already being produced in Bangladesh.
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Since the time when pharmaceutical market was largely dominated by the MNCs the pharmaceutical industry has grown from strength to strength. Today nearly 25% of the market share in the pharmaceutical industry is owned by the two local companies- Beximco and Square, and most of the foreign companies are out of the country. At present the market leader is Square Pharmaceuticals which has a market share of around 15%.
In 2010 Bangladesh pharmaceutical market was worth US$ 504Mn. And it is growing at a steady average rate of 17.18%. The Pharmaceutical Sector is the second highest contributor to the National Ex-Chequer and the largest White Collar Labor intensive employment sector of the country. The finished formulation- manufacturing base of Bangladesh is very strong as most of the pharmaceutical companies have their own manufacturing facilities. Unlike most of the import-based countries of South Asia and Africa, 97% of the total demand of Bangladesh is being met by local manufacturing. The remaining 3% basically constitutes import of very specialized products like vaccines, anticancer products etc. Now, among the top 10 pharmaceutical companies of Bangladesh, 8 are local companies. The top two domestic manufacturers, namely Square and Beximco Pharma are having a combined market share of about 25% of the total pharmaceutical market of the country.
Bangladesh is exporting pharmaceutical items to 69 countries. At first, only 1/2 major
company took proactive efforts to initiate export of pharmaceuticals. They stated exporting
bulk drugs as well as finished formulations to some of the less regulated overseas markets
like Myanmar, Sri-Lanka and Nepal. In early 90s, few companies took initiative to explore
some of moderately regulated markets like Russia, Ukraine, Georgia and Singapore. Today,
Bangladesh Pharmaceutical Industry’s 69 export destinations compare favorably to only 17 in
2001.
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CHAPTER 3: RATIO ANALYSIS
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Financial analysis:
This section contains the financial analysis of the selected four Pharmaceuticals Company.
The comparison is made between financial data of the Pharmaceuticals Company for last five
years (i.e. from 2006–2010). This information can be used as a benchmark against which an
individual Pharmaceutical Company asset and liability structure and earnings may be
measured.
Ratio Analysis:
Ratio analysis is a type of analysis that helps to better understand and guide the financial
affairs of the business. A ratio is a mathematical expression and is computed using
information from the balance sheet or income statement. This will help to take quality
business management decision and measure performance of the business.
Financial ratios can be classified according to the information they provide. Each category tells us about different facets of a company's finances and operations. The following types of ratios frequently are used:
Liquidity Ratios: Liquidity ratios provide information about a firm's ability to meet its short-term financial obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. They are of particular interest to those extending short-term credit to the firm. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.
Leverage Ratios: These show the extent of debt used in a company's capital structure. Any ratio used to calculate the financial leverage of a company to get an idea of the company's methods of financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked at include debt, equity, assets and interest expenses.
Profitability Ratios: These use margin analysis and show the return on sales and capital employed. Profitability ratios are used to determine the performance of the companies. These ratios use two sources:
Company’s ability to recover costs and expenses using the income statement.
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The company’s ability to earn income on the assets employed using the balance sheet.
Market Ratios: Market ratios measure investor response to owning a company's stock and also the cost of issuing stock. These ratios relate the firm’s stock price to its earnings and book value per share & indicate what investors think of the company’s past performance and future prospects.
FINANCIAL RATIOS FOR SQUARE PHARMACEUTICALS:
LIQUIDITY RATIOS:
1. CURRENT RATIO
Current ratio = Current assets / Current liabilities
Year Current Asset Current LiabilitiesCurrent Ratio=
Current Asset/Current Liabilities2005-2006 4,031,684,955 2,260,755,481 1.782006-2007 3,682,510,712 2,555,566,286 1.442007-2008 4,411,836,436 3,500,845,103 1.262008-2009 3,843,512,855 2,640,868,554 1.452009-2010 4,774,311,194 2,216,744,401 2.15
Current Ratio
0
0.5
1
1.5
2
2.5
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Investors are interested in the current ratio because it indicates the ability of a company to pay its current liabilities form current assets and, in this way, shows the strength of the company’s working capital position. The current ratio of Square Pharmaceuticals is relatively in a stable position, which is encouraging for the investors. In the year 2005-2006 current ratio has been increased. From the years 2006-2007 to 2008-2009, current ratio has been
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more or less steadily increasing. But 2009-2010 current ratio more increased compare to above all the year.
2. QUICK RATIO
Quick ratio = (Current Asset - Inventory) / Current liabilities
YearCurrent Asset -
InventoryCurrent Liabilities
Quick Ratio=Quick Asset/Current Liabilities
2005-2006 2,689,320,477 2,260,755,481 1.192006-2007 2,138,318,914 2,555,566,286 0.842007-2008 2,385,100,114 3,500,845,103 0.682008-2009 1,744,757,624 2,640,868,554 0.662009-2010 2,567,233,112 2,216,744,401 1.16
Quick Ratio
0
0.2
0.4
0.6
0.8
1
1.2
1.4
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Quick ratio or the acid test measures the company’s immediate liquidity without relying on inventory. Inventories are the least liquid of a firm’s current assets. In 2006 & 2010, Quick ratio is more increasing but 2007, 2008 & 2009 Quick ratio is decreasing.
Its current and quick asset seems to insufficient to cover its short-term obligations. However, similar trends for current and quick ratios indicate that inventories are not too high- its other liquid assets are too low.
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PROFITABILITY RATIOS:
4. NET PROFIT MARGIN RATIO
Net Profit Margin Ratio =Net Income/ SalesYear Net Income Sales
Net Profit Margin=Net Income/ Sales
2005-2006 1165864616 6089905396 19.14%2006-2007 1303242840 7500811349 17.37%2007-2008 1,381,863,093 8,257,843,739 16.73%2008-2009 1,890,052,929 9,820,796,568 19.24%2009-2010 2,087,871791 11,462,578,410 18.21%
Net Profit Margin Ratio
15.00%
15.50%
16.00%
16.50%
17.00%
17.50%
18.00%
18.50%
19.00%
19.50%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Net profit margin ratio measures the proportion of revenue that finds its way into profit. This ratio measures how much net profit remains out of each dollar of sales after all are expenses covered. We can see that, In the year 2006 it is increasing, 2007-2008 it is decreasing & 2009-2010 it is again increasing.
But the encouraging part for the investors is that the increase or decrease of percentage has been minimal over the years; as result we can say the NPM has been steady for the last 5 years. This is a very positive sign for the company, although the reason for decline should be investigated.
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4. PAYOUT RATIO
Payout Ratio = Dividend per Share/ Earnings per Share
Pay out Ratio
0
0.2
0.4
0.6
0.8
1
1.2
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Pay out ratio continuously decreasing. In 2006 pay out ratio is highest among the years and after that it is continuously decreasing, lowest payout ratio is in 2010. Pay out ratio has shown the above graph.
LEVERAGE RATIOS
6. TOTAL DEBT RATIOTotal Debt Ratio=Total Liabilities/Total Assets
Year Total Liabilities Total Assets Ratio2005-2006 2896972540 9,298,987,000 0.3122006-2007 3153682392 10,486,940,000 0.3012007-2008 4,286,086,715 12,703,127,420 0.3372008-2009 3,301,845,222 13,251,242,856 0.2502009-2010 3,475,120,453 15,029,500278 0.231
YearCash
DividendEarnings Per
SharePayout Ratio=
Dividend per Share/ Earnings per Share2005-2006 75 77.26 0.802006-2007 50 86.36 0.582007-2008 40 91.57 0.442008-2009 40 125.25 0.322009-2010 35 138.36 0.25
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Total Debt Ratio
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 Total debt ratio is increasing, 2007 it is decreasing, 2008 it is again increasing & it is high among the year. In the year 2009 & 2010 it is decreasing. The Debt Asset ratio shows the proportion of company assets, which are financed through debt capital. It indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load. A debt ratio of greater than 1 indicates that a company has more debt than assets, meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.
7. ASSET TO EQUITY RATIO
Asset To Equity Ratio=Total Asset/Owners' EquityYear Total Asset Owners Equity Ratio
2005-2006 9,298,987,000 6,402,015,000 1.4532006-2007 10,486,940,000 7,333,258,000 1.4302007-2008 12,703,127,420 8,417,040,705 1.5122008-2009 13,251,242,856 9,949,397,634 1.3312009-2010 15,029,500,278 11,554,379,825 1.300
Asset To Equity Ratio
1.15
1.2
1.25
1.3
1.35
1.4
1.45
1.5
1.55
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
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In the year 2006, 2007 Asset to equity ratio is increasing, In the year 2008 it is increasing high among 5 years. In the year 2009 & 2010 it is also decreasing among the last 5 years. The asset/equity ratio shows the relationship of the total assets of the firm to the portion owned by shareholders. It depends on the industry in which it operates its size, economic conditions, and other factors. There is no ideal asset/equity ratio. A ratio may indicate the company has taken on substantial debt merely to remain in business. But it can also point to a company that is wisely "trading on the equity." By the same token, a low asset/equity ratio can indicate a strong firm that needs no debt, or an overly conservative company, foolishly foregoing business opportunities.
MARKET RATIOS
7. PRICE EARNING RATIO (PER)
Price Earnings ratio = Market Price per share / Earnings per share
YearMarket price per
shareEarnings per share
Price earnings ratio=
Market Price per share / Earnings per share
2005-2006 2276 195.56 11.64
2006-2007 2447 218.61 11.19
2007-2008 4110 154.53 26.60
2008-2009 2935 156.56 18.75
2009-2010 3581 138.36 25.88
Price Earning Ratio
0
5
10
15
20
25
30
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006, 2007 & 2009 Price earning ratio is decreasing. In the year 2007 it is fall down among the 5 years. In the year 2008 & 2010 it is increasing but In the year 2008 it is increasing high among the 5 years. Price-earnings ratio helps investors to judge whether the
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stock is under priced or overprice. A high price earnings ratio means that investors are willing to pay a premium for the company’s stock because is expected to have higher than average future earnings growth. Companies with high P/E ratios are more likely to be considered "risky" investments than those with low P/E ratios, since a high P/E ratio signifies high expectations.
8. Dividend Yield
Dividend yield on common stock = Dividend per share/ Market price per share
YearDividend per
shareMarket price per
share
Dividend yield on common stock=
Dividend per share/ Market price per share
2005-2006 75 2276 3.30%
2006-2007 50 2447 2.04%
2007-2008 40 3300 1.21%
2008-2009 40 2935 1.36%
2009-2010 35 3581 0.98%
In the year 2006 to 2010 Dividend yield on common stock continuously decreasing. In 2006 it is highest among the years and then it is continuously fall down and lowest dividend yield in 2010.
FINANCIAL RATIOS FOR BEXIMCO PHARMA:
LIQUIDITY RATIOS:1. CURRENT RATIO
Current ratio = Current assets / Current liabilities
Year Current Asset Current LiabilitiesCurrent Ratio=
Current Asset/Current Liabilities2005-2006 3,357,393,266 2,527,420,798 1.332006-2007 2,923,775,458 1,627,972,936 1.802007-2008 2,861,891,654 2,602,032,267 1.092008-2009 6,916,737,893 2,321,451,642 2.982009-2010 6,191,667,831 2,513,157,232 2.46
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Current Ratio
0
0.5
1
1.5
2
2.5
3
3.5
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006-2008 current ratios is decreasing & 2008 is the low ratio among the 5 years. In the year 2009 & 2010 current ratio is increasing & 2009 current ratio is high among the five years. Investors are interested in the current ratio because it indicates the ability of a company to pay its current liabilities form current assets and, in this way, shows the strength of the company’s working capital position.
2. QUICK RATIO
Quick ratio = (Current Asset - Inventory) / Current liabilities
YearCurrent Asset -
InventoryCurrent Liabilities
Quick Ratio=Quick Asset/Current Liabilities
2005-2006 1,602,952,978 2,527,420,798 0.6342006-2007 1,271,295,167 1,627,972,936 0.7802007-2008 1,356,603,561 2,602,032,267 0.5212008-2009 5,193,784,609 2,321,451,642 2.242009-2010 4,207,858,387 2,513,157,232 1.67
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Quick Ratio
0
0.5
1
1.5
2
2.5
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2008 Quick ratio is decreasing & 2008 quick ratio is more decreasing among the 5 years. In the years 2009 & 2010 Quick ratio is increasing but 2009 Quick ratio is more increasing among the 5 years. Quick ratio or the acid test measures the company’s immediate liquidity without relying on inventory. Inventories are the least liquid of a firm’s current assets.
PROFITABILITY RATIOS3. NET PROFIT MARGIN RATIO
Net Profit Margin Ratio =Net Income/ SalesYear Net Income Sales
Net Profit Margin=Net Income/ Sales
2005-2006 470,658,563 3,702,317,159 12.71%2006-2007 353,067,878 3,597,024,812 9.81%2007-2008 545,341,273 4,010,167,059 13.60%2008-2009 624,740,307 4,868,254,915 12.83%2009-2010 1,051,648,808 6,490,847,353 16.20%
Net Profit Margin Ratio
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
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Net Profit Margin ratio is increasing all the 5 years except on in the year 2007 & it is the lowest net profit margin ratio among the 5 years & 2010 is the highest net profit margin ratio among the 5 years. Net profit margin ratio measures the proportion of revenue that finds its way into profit. This ratio measures how much net profit remains out of each dollar of sales after all are expenses covered.
4. PAYOUT RATIO
Payout Ratio = Dividend per Share/ Earnings per Share
In the year 2006 to 2010 pay out ratio increasing and decreasing. Highest pay out ratio among the years in 2008 and lowest pay out ratio in 2006. Five years pay out ratio above shown the graph.
LEVERAGE RATIOS
5. TOTAL DEBT RATIO
Total Debt Ratio=Total Liabilities/Total AssetsYear Total Liabilities Total Assets Ratio
2005-2006 3,962,592,062 11,912,512,487 0.3322006-2007 3,702,479,293 11,953,418,940 0.3092007-2008 4,369,463,296 14,819,665,441 0.2942008-2009 9,006,226,808 19,891,933,422 0.4522009-2010 5,398,313,058 21,372,399,509 0.252
Total Debt Ratio
0
0.1
0.2
0.3
0.4
0.5
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
YearCash
DividendEarnings Per
SharePayout Ratio=
Dividend per Share/ Earnings per Share2005-2006 15 4.11 3.652006-2007 15 2.8 5.352007-2008 30 3.61 8.312008-2009 15 3.5 4.292009-2010 20 5.17 3.88
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In the year 2006, 2007, 2009Total Debt ratio is increasing but 2008 & 2010 it is decreasing. Among the 5 years lowest Total Debt ratio is 2010 & highest Total Debt ratio is 2009. The Debt Asset ratio shows the proportion of company assets, which are financed through debt capital. It indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load. A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.
6. ASSET TO EQUITY RATIO
Asset To Equity Ratio=Total Asset/Owners' Equity
Year Total Asset Owners Equity Ratio2005-2006 11,912,512,487 7,949,920,425 1.502006-2007 11,953,418,940 8,250,939,647 1.452007-2008 14,819,665,441 10,450,202,145 1.422008-2009 19,891,933,422 10,885,706,614 1.832009-2010 21,372,399,509 15,974,086,451 1.34
Asset To Equity Ratio
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
2
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Asset To Equity ratio increasing and also decreasing. Among the 5 years lowest Asset to Equity ratio is 2010 & highest Asset to equity ratio is 2009. The asset/equity ratio shows the relationship of the total assets of the firm to the portion owned by shareholders. It depends on the industry in which it operates its size, economic conditions,
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and other factors. There is no ideal asset/equity ratio. A ratio may indicate the company has taken on substantial debt merely to remain in business. But it can also point to a company that is wisely "trading on the equity." By the same token, a low asset/equity ratio can indicate a strong firm that needs no debt, or an overly conservative company, foolishly foregoing business opportunities
MARKET RATIOS7. PRICE EARNING RATIO (PER)
Price Earnings ratio = Market Price per share / Earnings per share
YearMarket price per
shareEarnings per share
Price earnings ratio=
Market Price per share / Earnings per share
2005-2006 53.7 4.11 13.06
2006-2007 58.9 2.8 21.03
2007-2008 167.7 3.61 46.45
2008-2009 155.8 3.5 44.51
2009-2010 135.1 5.17 26.13
Price Earning Ratio
0
5
10
15
20
25
30
35
40
45
50
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Price Earning ratio is increasing and also decreasing. Among the 5 years lowest price earning ratio is 2006 and highest price earning ratio is 2008. Price-earnings ratio helps investors to judge whether the stock is under priced or overprice. A high price earnings ratio means that investors are willing to pay a premium for the company’s stock because is expected to have higher than average future earnings growth. Companies with high P/E ratios are more likely to be considered "risky" investments than those with low P/E ratios, since a high P/E ratio signifies high expectations.
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8. Dividend Yield
Dividend yield on common stock = Dividend per share/ Market price per share
YearDividend per
shareMarket price per
share
Dividend yield on common stock=
Dividend per share/ Market price per share
2005-2006 15 53.7 27.93%
2006-2007 15 58.9 25.46%
2007-2008 30 167.7 17.88%
2008-2009 15 155.8 9.62%
2009-2010 20 135.1 14.80%
Dividend Yield
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Dividend Yield of Common Stock increasing and also decreasing. Among the 5 years in 2006 Dividend Yield of Common Stock is high and in 2009 Dividend Yield of Common Stock is low. Dividend Yield is the rate of return investors get from holding the share. For dividend investors, one of the telling metrics is Dividend Yield. Not all companies pay out dividends, but this ratio can be used for those that do. Older, well-established companies tend to payout a higher percentage and their dividend history can be more consistent.
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FINANCIAL RATIOS FOR RENATA PHARMA
LIQUIDITY RATIOS1. CURRENT RATIO
Current ratio = Current assets / Current liabilities
Year Current Asset Current LiabilitiesCurrent Ratio=
Current Asset/Current Liabilities2005-2006 979,254,859 658,881,691 1.492006-2007 988,092,820 717,068,650 1.382007-2008 1,506,070,972 1,313,392,836 1.152008-2009 1,643,106,431 1,409,726,600 1.172009-2010 2,063,325,826 1,851,204,608 1.11
Current Ratio
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Current ratio is increasing and decreasing. Among the 5 years in 2006 Current ratio is high and in 2010 Current ratio is low. Five years Current ratio have shown the above graph. Investors are interested in the current ratio because it indicates the ability of a company to pay its current liabilities form current assets and, in this way, shows the strength of the company’s working capital position.
2. QUICK RATIO
Quick ratio = (Current Asset - Inventory) / Current liabilities
YearCurrent Asset -
InventoryCurrent Liabilities
Quick Ratio=Quick Asset/Current Liabilities
2005-2006 340,469,907 658,881,691 0.522006-2007 326,080,675 717,068,650 0.452007-2008 546,656,382 1,313,392,836 0.422008-2009 567,795,850 1,409,726,600 0.402009-2010 767,470,662 1,851,204,608 0.41
24
Quick Ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Quick ratio is increasing and decreasing. Among the 5 years in 2006 Quick ratio is high and in 2009 Quick ratio is low. Five years Quick ratios have shown the above graph. Quick ratio or the acid test measures the company’s immediate liquidity without relying on inventory. Inventories are the least liquid of a firm’s current assets.
PROFITABILITY RATIOS
3. NET PROFIT MARGIN RATIO
Net Profit Margin Ratio =Net Income/ SalesYear Net Income Sales
Net Profit Margin=Net Income/ Sales
2005-2006 242,131,637 1,927,731,885 12.56%2006-2007 335,923,107 2,534,174,981 13.25%2007-2008 443,145,804 3,089,746,417 14.34%2008-2009 603,524,452 3,900,732,314 15.47%2009-2010 851,428,532 5,090,318,113 16.73%
25
Net Profit Margin Ratio
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Net Profit Margin ratio is increasing and decreasing. Among the 5 years in 2006 Net Profit Margin ratio is low and in 2010 Net Profit Margin ratio is high. Five years Net Profit Margin ratios have shown the above graph.
Net profit margin ratio measures the proportion of revenue that finds its way into profit. This ratio measures how much net profit remains out of each dollar of sales after all are expenses covered.
4. PAYOUT RATIO
Payout Ratio = Dividend per Share/ Earnings per Share
YearCash
DividendEarnings Per
SharePayout Ratio=
Dividend per Share/ Earnings per Share2005-2006 70 133.96 0.5222006-2007 70 185.85 0.3762007-2008 75 239.64 0.3122008-2009 85 333.90 0.2542009-2010 85 471.06 0.180
26
Payout Ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Payout ratio is increasing and decreasing. Among the 5 years in 2006 Payout ratio is high and in 2010 Payout ratio is low. Five years Payout ratios have shown the above graph.
LEVERAGE RATIO5. TOTAL DEBT RATIO
Total Debt Ratio=Total Liabilities/Total AssetsYear Total Liabilities Total Assets Ratio
2005-2006 794,199,946 1,776,512,741 0.452006-2007 877,387,885 2,154,993,391 0.412007-2008 1,500,159,577 3,162,232,934 0.472008-2009 1,644,089,330 3,851,369,286 0.432009-2010 2,142,461,081 5,113,932,025 0.42
Total Debt Ratio
0.38
0.39
0.4
0.41
0.42
0.43
0.44
0.45
0.46
0.47
0.48
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
27
In the year 2006 to 2010 Total Debt ratio is increasing and decreasing. Among the 5 years in 2008 Total Debt ratio is highest and in 2007 Total Debt ratio is lowest. Five years Total Debt
ratios have shown the above graph. The Debt Asset ratio shows the proportion of company assets, which are financed through debt capital. It indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load. A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.
6. ASSET TO EQUITY RATIO
Asset To Equity Ratio=Total Asset/Owners' Equity
Year Total Asset Owners Equity Ratio2005-2006 1,776,512,741 982,312,795 1.802006-2007 2,154,993,391 1,277,605,506 1.692007-2008 3,162,232,934 1,662,073,557 1.902008-2009 3,851,369,286 2,207,279,956 1.742009-2010 5,113,932,025 2,971,470,944 1.72
Asset To Equity Ratio
1.55
1.6
1.65
1.7
1.75
1.8
1.85
1.9
1.95
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Asset To Equity ratio is increasing and decreasing. Among the 5
years in 2008 Asset To Equity ratio is highest and in 2007 Asset To Equity ratio is lowest. Five years asset To Equity ratios have shown the above graph.
The asset/equity ratio shows the relationship of the total assets of the firm to the portion owned by shareholders. It depends on the industry in which it operates its size, economic conditions, and other factors. There is no ideal asset/equity ratio. A ratio may indicate the company has taken on substantial debt merely to remain in business. But it can also point to a
28
company that is wisely "trading on the equity." By the same token, a low asset/equity ratio can indicate a strong firm that needs no debt, or an overly conservative company, foolishly foregoing business opportunities.
MARKET RATIOS7. PRICE EARNING RATIO (PER)
Price Earnings ratio = Market Price per share / Earnings per share
YearMarket price per
shareEarnings per share
Price earnings ratio=
Market Price per share / Earnings per share
2005-2006 3,099.25 133.96 23.13
2006-2007 7,491.25 185.85 40.30
2007-2008 7,789.25 239.64 32.50
2008-2009 12,051.50 333.90 36.09
2009-2010 12,942.75 471.06 27.47
Price Earning Ratio
0
5
10
15
20
25
30
35
40
45
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Price Earning ratio is increasing and decreasing. Among the 5 years
in 2006 Price Earning ratio is lowest and in 2007 Price Earning ratio is highest. Five years Price Earning ratios have shown the above graph.
Price-earnings ratio helps investors to judge whether the stock is under priced or overprice. A high price earnings ratio means that investors are willing to pay a premium for the company’s stock because is expected to have higher than average future earnings growth. Companies
29
with high P/E ratios are more likely to be considered "risky" investments than those with low P/E ratios, since a high P/E ratio signifies high expectations.
8. Dividend Yield
Dividend yield on common stock = Dividend per share/ Market price per share
YearDividend per
shareMarket price per
share
Dividend yield on common stock=
Dividend per share/ Market price per share
2005-2006 70 3,099.25 0.023
2006-2007 70 7,491.25 9.34
2007-2008 75 7,789.25 9.63
2008-2009 85 12,051.50 7.05
2009-2010 85 12,942.75 6.57
Dividend Yield
0
2
4
6
8
10
12
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Dividend Yield is increasing and decreasing. Among the 5 years in 2006 Dividend Yield on common stock is lowest and in 2008 Dividend Yield on common stock is highest. Five years Dividend Yield has shown the above graph. Dividend Yield is the rate of return investors get from holding the share. For dividend investors, one of the telling metrics is Dividend Yield. Not all companies pay out dividends, but this ratio can be used for those that do. Older, well-established companies tend to payout a higher percentage and their dividend history can be more consistent.
FINANCIAL RATIOS FOR IBN SINA PHARMA
30
LIQUIDITY RATIOS1. CURRENT RATIO
Current ratio = Current assets / Current liabilities
Year Current Asset Current LiabilitiesCurrent Ratio=
Current Asset/Current Liabilities
2005-2006 112,487,404 130,741,1190.86
2006-2007 127,775,501 167,004,222 0.772007-2008 149,908,877 191,629,863 0.782008-2009 220,130,579 264,653,403 0.832009-2010 225,056,867 308,437,653 0.73
Current Ratio
0.65
0.7
0.75
0.8
0.85
0.9
2005-2006 2006-2007 2007-2008 2008-2009 2009-1010
In the year 2006 to 2010 Current ratio is increasing and decreasing. Among the 5 years in
2009 Current ratio is lowest and in 2010 Current ratio is highest. Five years Current ratio has shown the above graph.
Investors are interested in the current ratio because it indicates the ability of a company to pay its current liabilities form current assets and, in this way, shows the strength of the company’s working capital position.
31
2. QUICK RATIO
Quick ratio = (Current Asset - Inventory) / Current liabilities
YearCurrent Asset -
InventoryCurrent Liabilities
Quick Ratio=Quick Asset/Current Liabilities
2005-2006 60,938,187 130,741,119 0.4662006-2007 75,632,803 167,004,222 0.4532007-2008 91,435,547 191,629,863 0.4772008-2009 160,095,107 264,653,403 0.6052009-2010 162,825,166 308,437,653 0.528
Quick Ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Quick ratio is increasing and decreasing. Among the 5 years in 2006 Quick ratio is lowest and in 2010 Quick ratio is highest. Five years Quick ratios have shown the above graph. Quick ratio or the acid test measures the company’s immediate liquidity without relying on inventory. Inventories are the least liquid of a firm’s current assets. Its current and quick asset seems to insufficient to cover its short-term obligations. However, similar trends for current and quick ratios indicate that inventories are not too high- its other liquid assets are too low.
32
PROFITABILITY RATIOS3. NET PROFIT MARGIN RATIO
Net Profit Margin Ratio =Net Income/ SalesYear Net Income Sales
Net Profit Margin=Net Income/ Sales
2005-2006 32,761,931
534,738,092 6.12%
2006-2007 20,539,597 577,427,115 3.55%2007-2008 26,111,294 791,683,415 2.30%2008-2009 43,285,209 1,052,308,721 4.11%2009-2010 49,233,664 1,277,868,846 3.85%
Net Profit Margin Ratio
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Net Profit Margin ratio is increasing and decreasing. Among the 5 years in 2007 Net Profit Margin ratio is lowest and in 2010 Net Profit Margin ratio is highest. Five years Net Profit Margin ratios have shown the above graph.
Net profit margin ratio measures the proportion of revenue that finds its way into profit. This ratio measures how much net profit remains out of each dollar of sales after all are expenses covered.
33
4. PAYOUT RATIO
Payout Ratio = Dividend per Share/ Earnings per Share
Payout Ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Payout ratio is increasing and decreasing. Among the 5 years in 2009 Payout ratio is lowest and in 2006 Payout ratio is highest. Five years Net Payout ratios have shown the above graph.
The payout ratio measures the proportion of earnings that is paid out as dividends. In the above table, we haven’t considered the Stock dividend in our calculation
LEVERAGE RATIOS5. TOTAL DEBT RATIO
Total Debt Ratio=Total Liabilities/Total AssetsYear Total Liabilities Total Assets Ratio
2005-2006 130,741,119 159,972,192 0.822006-2007 167,004,222 169,212,064 0.98
2007-2008 231,900,136 397,991,497 0.58
2008-2009 324,977,527 513,654,097 0.75
YearCash
DividendEarnings Per
SharePayout Ratio=
Dividend per Share/ Earnings per Share2005-2006 21 22.82 0.922006-2007 23 31.14 0.742007-2008 25 48.09 0.522008-2009 7.5 54.70 0.142009-2010 21 36.40 0.58
34
2009-2010 388,683,160 604,093,394 0.64
Total Debt Ratio
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Total Debt ratio is increasing and decreasing. Among the 5 years in 2008 Total Debt ratio is highest and in 2010 Total Debt ratio is lowest. Five years Net Total Debt ratios have shown the above graph.
The Debt Asset ratio shows the proportion of company assets, which are financed through debt capital. It indicates what proportion of debt a company has relative to its assets. The measure gives an idea to the leverage of the company along with the potential risks the company faces in terms of its debt-load. A debt ratio of greater than 1 indicates that a company has more debt than assets; meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt.
6. ASSET TO EQUITY RATIO
Asset To Equity Ratio=Total Asset/Owners' Equity
Year Total Asset Owners Equity Ratio2005-2006 159,972,192 159,972,192 1.002006-2007 169,212,064 161,611,789 1.052007-2008 397,991,497 166,091,361 2.402008-2009 513,654,097 188,676,570 2.722009-2010 604,093,394 215,410,234 2.80
35
Asset to Equity Ratio
0
0.5
1
1.5
2
2.5
3
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Asset To Equity ratio is increasing and decreasing. Among the 5 years in 2006 Asset To Equity ratio is lowest and in 2010 Asset To Equity ratio is highest. Five years Asset To Equity ratios have shown the above graph.
The asset/equity ratio shows the relationship of the total assets of the firm to the portion owned by shareholders. It depends on the industry in which it operates its size, economic conditions, and other factors. There is no ideal asset/equity ratio. A ratio may indicate the company has taken on substantial debt merely to remain in business. But it can also point to a company that is wisely "trading on the equity." By the same token, a low asset/equity ratio can indicate a strong firm that needs no debt, or an overly conservative company, foolishly foregoing business opportunities.
MARKET RATIOS
7. PRICE EARNING RATIO (PER)
Price Earnings ratio = Market Price per share / Earnings per share
YearMarket price per
shareEarnings per share
Price earnings ratio=
Market Price per share / Earnings per share
2005-2006 639.50 22.82 28.02
2006-2007 786.75 31.14 25.26
2007-2008 995.75 48.09 20.70
2008-2009 1552.50 54.70 28.38
2009-2010 1652.50 57.80 28.58
36
Price Earning Ratio
0
5
10
15
20
25
30
35
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Price Earning ratio is increasing and decreasing. Among the 5 years in 2008 Price Earning ratio is lowest and in 2010 Price Earning ratio is highest. Five years Price Earning ratios have shown the above graph.
8. Dividend Yield
Dividend yield on common stock = Dividend per share/ Market price per share
YearDividend per
shareMarket price per
share
Dividend yield on common stock=
Dividend per share/ Market price per share
2005-2006 21 639.50 0.033
2006-2007 22 786.75 0.028
2007-2008 25 995.75 0.025
2008-2009 20 1552.50 0.013
2009-2010 23 1652.50 0.014
37
Dividend Yield
0
0.005
0.01
0.015
0.02
0.025
0.03
0.035
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
In the year 2006 to 2010 Price Dividend Yield on Common Stock is increasing and decreasing. Among the 5 years in 2009 Dividend Yield on Common Stock is lowest and in 2006 Dividend Yield on Common Stock is highest. Five years Dividend Yield has shown the above graph.
Dividend Yield is the rate of return investors get from holding the share. For dividend investors, one of the telling metrics is Dividend Yield. Not all companies pay out dividends, but this ratio can be used for those that do. Older, well-established companies tend to payout a higher percentage and their dividend history can be more consistent.
BENCHMARK ANALYSIS:
From the Current ratio of four Pharmaceuticals company at a glance, it can be said
that, in 2006 & 2008 Square is the best, in 2007, 2009 & 2010 Beximco is the best.
Name of the Pharma
Year
2006 2007 2008 2009 2010
Square 178% 144% 126% 145% 215%
Beximco 133% 180% 109% 298% 246%
Renata 149% 138% 115% 117% 111%
IBN SINA 86% 77% 78% 83% 73%
Best Pharma Square Beximco Square Beximco Beximco
38
From the Quick ratio of four Pharmaceuticals company, it can be said that, in 2006 to
2008 Square is the best among four Pharma company and in 2009, 2010 Beximco is best.
Name of the Pharma
Year
2006 2007 2008 2009 2010
Square 119% 84% 68% 66% 116%
Beximco 63% 78% 52% 224% 167%
Renata 52% 45% 42% 40% 41%
IBN SINA 46.3% 45.7% 47.4% 60.5% 52.8%
Best Pharma
Square Square Square Beximco BeximcoFrom the Net Profit Margin ratio of four Pharmaceuticals company at a glance, it can
be said that, in 2006 to 2010 Square is the best Pharma all the year among four Pharma
company.
Name of the pharma
Year
2006 2007 2008 2009 2010
Square 19.14% 17.37% 16.73% 19.24% 18.21%
Beximco 12.78% 9.81% 13.60% 12.83% 16.20%
Renata 12.56% 13.25% 14.34% 15.47% 16.73%
IBN SINA 6.12% 3.56% 2.30% 4.11% 3.85%
Best Pharma
Square Square Square Square SquareFrom the Pay out ratio of four Pharmaceuticals company at a glance, it can be said that,
in 2006 to 2010 Beximco is the best Pharma in terms of Pay out ratio among four
Pharma company.
Name of the Pharma
Year
2006 2007 2008 2009 2010
Square 80% 58% 44% 32% 25%
Beximco 369% 536% 831% 429% 388%
Renata 52.2 % 37.6% 31.2% 25.4% 18%
IBN SINA 92% 74% 52% 14% 58%
Best Pharma
Beximco Beximco Beximco Beximco Beximco
39
From the Total Debt ratio of four Pharmaceuticals company at a glance, it can be said
that, in 2006 to 2010 IBN SINA is the best Pharma in terms of Total Debt ratio among
four Pharma company only except in 2008.
Name of the Pharma
Year
2006 2007 2008 2009 2010
Square 31.2% 30.1% 33.7% 25% 23.1%
Beximco 33.2% 30.9% 29.4% 45.2% 25.2%
Renata 45% 41% 47% 43% 42%
IBN SINA 53% 98% 45% 75% 64%
Best Pharma
IBN SINA IBN SINA RENATA IBN SINA IBN SINA From the Asset to Equity ratio of four Pharmaceuticals company at a glance, it can be said
that, in 2008 to 2010 Ibn Sina is the best Pharma, in 2006 to 2007 Renata is the best Pharma
in terms of Asset to Equity ratio.
Name of the Pharma
Year
2006 2007 2008 2009 2010
Square 145% 143% 151% 133% 130%
Beximco 150% 145% 142% 183% 134%
Renata 180% 169% 190% 174% 172%
Ibn Sina 100% 105% 240% 272% 280%
Best Pharma
Reneta Renata Ibn Sina Ibn Sina Ibn SinaFrom the Price Earning ratio of four Pharmaceuticals company at a glance, it can be
said that in 2006 & 2010 Ibn Sina is the best, in 2007 Renata, in 2008 & 2009 Beximco is
best among other Pharmaceuticals company.
Name of the Pharma
Year
2006 2007 2008 2009 2010
Square 11.64 11.19 26.60 18.75 25.88
Beximco 13.06 21.03 46.45 44.51 26.13
Renata 23.13 40.30 32.50 36.09 27.47
Ibn Sina 28.02 25.26 20.70 28.38 28.58
Best Pharma
Ibn Sina Renata Beximco Beximco Ibn Sina
40
From the Dividend Yield of common stock ratio of four Pharmaceuticals company at a
glance, it can be said that in 2006 to 2010 Beximco Pharma is the best Pharma among
four Pharmaceuticals company.
Name of the Pharma
Year
2006 2007 2008 2009 2010
Square 3.30% 2.63% 1.21% 1.36% 0.98%
Beximco 27.93% 25.46% 17.88% 9.46% 14.80%
Renata 2.35% 0.93% 0.96% 0.70% 0.65%
Ibn Sina 3.2% 2.8% 2.5% 1.3% 1.4%
Best Pharma
Beximco Beximco Beximco Beximco Beximco
SQUARE PHARMACEUTICALS LIMITED:
HORIZONTAL ANALYSIS OF INCOME STATEMENTS
2006%change
2007%change
2008%change
2009%change
2010%change
NET TURNOVER
COSTS OF GOODS SOLD
GROSS PROFIT
Operating Expenses:
Selling&DistributionExp
Administrative Expenses
Total Operating Exp.
Profit From Operations
Other income
Financial Expenses
NET PROFIT BEFORE WPPF
Allocation for WPPF
NET PROFIT BEFORE TAX
Provision for income tax
14.21
11.58
18.04
18.20
16.63
18.13
17.90
18.13
-52.61
1.32
1.32
1.32
29.61
23.31
21.07
26.04
25.31
118.34
42.90
15.54
29.30
69.34
12.38
12.38
12.38
4.40
10.09
13.77
5.24
22.08
16.01
20.32
-6.38
174.65
48.56
8.46
8.46
8.46
17.72
18.93
16.81
21.94
8.05
-2.35
5.16
38.56
10.07
12.86
34.39
34.39
34.39
44.66
9.68
4.84
16.72
24.91
12.02
21.66
13.55
-37.01
-29.55
13.18
14.44
13.11
14.48
41
NET PROFIT AFTER TAX
-7.17 11.78 6.03 36.78 10.47
From the above table it can be seen that the percentage change in net turnover has been fluctuating over the period. The most significant change occurred in the 2007 with a 23.31% rise & in 2010 with a 9.68% decline. The cost of goods sold has also been fluctuating, with a
sharp decline in 2010 & in 2007 sharp rise. The Gross Profit has also been fluctuating, with a sharp rise in 2007 with 21.94% & decline in 2008 with 5.24%.
The total operating expenses saw a sharp increase in 2007 & decline in 2009. Profit from operations was highest in the following period in 2009 and decline in the most recent previous year. The net profit after tax has been decreasing particularly in 2006 & 2008. There has been negative growth in 2006 and increasing in 2009 with 36.78%.
BEXIMCO PHARMACEUTICALS LIMITED:
HORIZONTAL ANALYSIS OF INCOME STATEMENTS
2006%change
2007%change
2008%change
2009%change
2010%change
NET TURNOVER
COSTS OF GOODS SOLD
GROSS PROFIT
Operating Expenses:
Selling&DistributionExp
Administrative Expenses
Profit From Operations
Other income
Finance cost
NET PROFIT BEFORE WPPF
Contribution to workers Profit contribution
PROFIT BEFORE TAX
Income tax expense
Current Tax
11.28
11.46
11.07
18.03
16.66
26.28
3.06
677.05
14.13
7.80
7.80
7.80
1250.03
-23.33
-2.84
-0.189
-5.87
-0.99
-0.61
-3.15
-12.29
-65.07
0.56
-23.61
-23.61
-23.61
-11.36
62.87
11.48
1.80
23.18
3.46
3.11
5.44
52.54
-96.50
-2.00
78.67
78.67
78.67
262.11
201.28
21.40
28.12
14.68
28.98
26.96
40.22
0.25
28852.21
15.93
21.47
21.47
21.47
43.82
-
33.33
29.28
37.84
18.19
20.12
8.47
63.37
129.16
128.79
56.95
56.95
56.95
27.66
-
42
NET PROFIT AFTER TAX
-3.80 -24.98 54.46 14.56 68.33
From the above table it can be seen that the percentage change in net turnover has been fluctuating over the period. The most significant change occurred in the 2010 with a 33.33% rise & in 2007 with a -2.84% decline. The cost of goods sold has also been fluctuating, with a sharp decline in 2007 & sharp rise 2010. The Gross Profit has also been fluctuating, with a sharp rise in 2010 with 37.84% & decline in 2007 with -5.87%.
The total operating expenses saw a sharp increase in 2009 & decline in 2007. Profit from operations was highest in the following period in 2010 and decline in 2007. The net profit after tax has been decreasing particularly in 2006 & 2007 there has been negative growth and increasing in 2010 with 68.33%.
IBN SINA PHARMACEUTICALS LIMITED
HORIZONTAL ANALYSIS OF INCOME STATEMENTS
2006%change
2007%change
2008%change
2009%change
2010%change
SALES
Cost of Goods Sold
GROSS PROFIT
Operating Expenses
OPERATING PROFIT
Financial Charges
Non Operating income
Workers P.P Fund
NET PROFIT BEFORE TAX
Provision Income Tax
12.53
10.78
22.13
27.56
16.32
107.52
32.54
39.09
30.72
6.76
7.98
6.50
10.69
26.25
-41.17
120.53
26.56
-37.31
-37.31
-37.31
37.11
37.66
36.13
37.72
24.78
94.11
60.22
31.82
21.87
7.66
32.90
28.90
36.56
36.98
64.35
109.52
40.64
46.06
58.01
33.13
21.43
20.31
23.27
26.01
5.34
7.30
54.22
12.83
12.83
9.19
43
NET PROFIT AFTER TAX
21.73 -37.31 27.13 65.77 13.74
From the above table it can be seen that the percentage change in net turnover has been fluctuating over the period. The most significant change occurred in the 2008 with a 37.11% rise & decline in 2007 with 7.98%. The cost of goods sold has also been fluctuating, with a sharp decline in 2007 & sharp rise 2008. The Gross Profit has also been fluctuating, with a sharp rise in 2009 with 36.56% & decline in 2007 with 10.69%.
The total operating expenses saw a sharp increase in 2008 & decline in 2010. Profit from operations was highest in the following period in 2009 with 64.35% and decline in 2007. The Net profit after tax has been decreasing particularly in 2007. There has been negative growth and increasing in 2009 with 65.77%
RENATA PHARMACEUTICALS LIMITED
HORIZONTAL ANALYSIS OF INCOME STATEMENTS
2006%change
2007%change
2008%change
2009%change
2010%change
TURNOVER
Cost of Sales
GROSS PROFIT
Other income
Operating Expenses:
Admin. Selling Exp.
OPERATING PROFIT
Other expenses
Contribution to WPPF
NET PROFIT BEFORE TAX
Current Tax
NET PROFIT AFTER TAX
34.88
3.57
101.58
171.63
17.03
127.23
-65.27
202.25
202.25
44.08
25.74
31.46
32.76
30.12
-64.30
20.60
36.04
24.21
39.51
34.39
24.02
38.73
21.92
17.52
26.55
31.41
21.30
33.30
80.70
30.65
30.71
36.64
28.94
26.25
19.26
33.58
-47.79
32.37
32.16
14.19
34.94
34.94
14.58
39.34
30.50
32.13
29.06
-25.57
23.23
35.36
38.53
37.25
37.25
23.47
41.07
From the above table it can be seen that the percentage change in net turnover has been fluctuating over the period. The most significant change occurred in the 2006 with a 34.88% rise & in 2008 decline with 21.92% . The cost of goods sold has also been fluctuating, with a sharp decline in 2006 & sharp rise 2007. The Gross Profit has also been fluctuating, with a
44
sharp rise in 2006 with 101.58% & decline in 2008 with 26.55%. Profit from operations was highest in the following period in 2006 with 127.23% and decline in 2009 with 32.16%. The Net Profit after tax has been increasing all the five years. The Net profit after tax highest in the following period in 2010 with 41.07% and lowest in 2006 with 25.74%.
SQUARE PHARMACEUTICALS LIMITED:
HORIZONTAL ANALYSIS OF BALANCE SHEET & SHAREHOLDER’S EQUITY STATEMENTS
2006%change
2007%change
2008%change
2009%change
2010%change
ASSETS:
Non-current Assets:
Property, Plant carrying value
Capital work in progress
Investment long term
CURRENT ASSETS
Inventories
Trade debtors
Advances, Deposits
Investment in marketable securities
Short term loan
Cash and cash equivalents
TOTAL ASSETS
LIABILITIES &SHAREHOLDERS EQUITY:
Share Capital
Share Premium
General Reserve
Tax Holiday Reserve
Retained Earnings
NON-CURRENT LIABILITIES:
Long term loans
12.90-1.88
56.82
15.3524.34
17.257.93
14.00
-48.01
-17.10
17.59
14.9615--
3.05-
35.6663.47
54.77-
29.18
107.11
-55.34
45.74
-8.66
15.03
11.82
42.02
-
-25.20
-55.84
12.77
14.54
20
-
16.28
24.06
-5.98
-18.22
211.64
21.85
15.79
22.83
29.35
19.80
31.25
11.58
22.14
-
6.45
46.79
21.13
14.78
50
-
-
22.48
31.28
22.33
73.05
13.47
19.84
-
24.82
-12.88
3.55
32.56
-9.86
-
-54.11
42.94
4.31
18.20
35
-
-
-
28.49
-15.83
-25.36
9.00
14.92
-
11.49
24.22
5.16
6.43
37.61
979.36
76.11
-11.83
13.42
16.13
25
-
-
-
23.70
90.38
129.60
45
Deferred tax liability
CURRENT LIABILITIES:
Short term Bank loan
Long term loans
Trade creditors
Liabilities for expenses
Liabilities for other finance
TOTAL SHAREHOLDERS EQUITY AND LIABILITY
15.94
7.3682.97-5.31
-51.39
59.24
17.59
13.04
23.63
-13.86
-23.66
-50.64
6.87
12.77
36.99
31.90
66.58
31.45
-5.98
11.39
-
21.13
15.64
-24.56
-42.53
-0.47
23.04
115.46
53.94
4.31
6.88
-16.06
-52.00
56.33
217.74
-18.84
-8.11
13.42
BEXIMCO PHARMACEUTICALS LIMITED:
HORIZONTAL ANALYSIS OF BALANCE SHEET & SHAREHOLDER’S EQUITY STATEMENTS
2006%change
2007%change
2008%change
2009%change
2010%change
ASSETS
Non current Asset
Property, plant
Investment in shares
Current Assets
Inventories
Spares & supplier
Accounts receivable
Loans, advances
Cash equivalents
TOTAL
32.43
32.56
-
-2.11
2.39
4.20
-44.82
-2.01
35.60
8.83
5.55
5.64
-12.58
-12.92
-58.12
-
16.14
15.94
-85.25
0.343
32.43
32.43
-
-2.12
2.39
28.63
0.848
-20.62
-14.06
23.98
8.50
8.77
-92.15
141.68
14.46
3.20
37.74
28.41
1337.15
34.23
17.00
16.63
118.56
-10.48
15.14
14.25
18.33
11.43
39.02
7.44
46
ASSSETS
Shareholders Equity
Issued share capital
Share premium
Excess of issue price
Capital Reserve on Merger
Revaluation surplus
Tax holiday reserve
Retained Earnings
Non Current Liability:
Long term borrowings
Liability for gratuity & WPPF
Deferred tax liability
Current liabilities &
Provisions:
Short term borrowing
Creditors and other payable
Accrued Expenses
Dividend Payable
Income tax payable
Total Liabilities & Shareholders equity:
16.55
8.52
-
38.36
-
-
-4.75
12.86
-11.55
-16.43
12.26
37.99
1.02
22.67
-33.19
68.56
1466.89
-70.09
8.83
3.79
10.00
-
-
-
-
12.03
4.92
44.55
53.22
15.63
-17.71
-35.59
-30.34
-25.58
-49.08
-74.75
155.80
0.343
26.65
10.00
-
-
-
-
-1.00
25.58
-14.80
-18.56
11.23
-9.62
59.83
61.05
-3.18
36.17
-3.52
246.06
23.98
4.17
20.00
-
-
-
-5.48
-
6.93
278.22
33.06
12.02
659.33
-10.78
-0.707
55.75
-3.28
-45.49
-51.00
34.23
46.74
38.80
253.71
-
-
-5.11
-
18.79
-56.84
-1.18
9.26
83.62
8.26
13.00
5.47
14.43
-12.72
-
7.44
47
IBN SINA PHARMACEUTICALS LIMITED
HORIZONTAL ANALYSIS OF BALANCE SHEET & SHAREHOLDER’S EQUITY STATEMENTS
2006%change
2007%change
2008%change
2009%change
2010%change
ASSTS:
NON CURRENT ASSETS
Property, plant & equipment
Investment
Deferred Tax Asset
CURRENT ASSETS:
Inventories
Sundry Debtors
Advances, Deposits & prepayments
Cash & cash equivalents
TOTAL ASSETS
Shareholders Equity:
Share capital
Tax holiday reserve
Retained Earning
NON CURRENT LIABILITIES:
Long term Finance
Deferred Liability
Deferred tax Liability
CURRENT LIABIITIES:
Short term Finance
Long term Finance
Deposits
Creditors
15.50
-
29.64
-
13.591.15
655.53
17.57
31.21
12.23
1.02-
2.34
-
--
-
27.74
-2.87
-7.52
-4.56
34.31
-
24.45
-
17.32
12.14
-87.66
20.46
27.50
5.78
2.77
-
-
-
-
-
-
-
14.74
67.94
24.186.90
-1.43
58.90
-
50.08
-
31.81
15.14
-58.38
65.06
115.56
135.20
16.74
-
-
-
57.60
90.17
35.16
-58.47
78.83
-9.31
12.76
-5.47
-
18.32
18.00
20.60
-
46.84
2.67
237.35
37.02
138.23
29.06
13.60
-
-
31.50
49.80
115.10
31.19
-71.00
38.11
84.28
-5.78
23.06
-4.10
29.13
29.05
25.62
-
2.24
3.66
9.02
-5.68
17.60
14.17
-
-
28.35
33.02
43.52
27.79
-
16.54
10.03
186.92
5.43
34.97
48
Accrued Expenses
Other Finance
Income tax Liability
TOTAL SHAREHOLDER
EQUITY & LIABILITIES
34.755.06
-17.01
12.23
-29.7614.10
-17.68
5.78
-25.34
15.96
20.60
135.20
6.29
10.40
24.66
29.11
35.11
-1.57
12.87
17.60
RENATA PHARMACEUTICALS LIMITED
HORIZONTAL ANALYSIS OF BALANCE SHEET & SHAREHOLDER’S EQUITY STATEMENTS
2006%change
2007%change
2008%change
2009%change
2010%change
ASSETS:
Non-current Assets:
Property, plant & equipment
Capital work in progress
Investment in subsidiary
Other investment
Total non-current Assets
CURRENT ASSETS:
Inventories
Trade & other receivables
Advances,
72.59
-68.46
-
-
32.39
64.47
22.44
85.20
15.64
593.51
-
-
46.36
3.64
-1.96
38.94
27.31
86.38
-
737.78
41.93
44.92
76.77
-4.59
37.64
29.23
-
42.41
33.34
12.08
-0.10
1.76
83.67
-50.60
-
394.21
38.15
20.51
39.11
37.24
49
Deposits & Prepayments
Cash & Cash equivalents
Total Current Assets
Total Assets
EQUITY & LIABILITIES:
Share Capital
Revaluation Surplus
Tax holiday Reserve
Retained earnings
Total equity attributable to equity holders
Non-Current Liabilities:
Deferred Liability
Deferred tax liabilities
Total Non-current liabilities
Current Liabilities:
Bank overdraft
Creditors goods
Accrued expenses
Other liabilities
Provision for taxation
Total current liabilities
Total equity & Liabilities
-8.29
45.65
39.38
20.00
-0.30
1.26
40.55
26.89
20.44
11.95
16.35
93.24
210.04
7.73
151.75
17.07
71.52
39.38
-41.18
0.90
21.30
20.00
-0.30
-1.24
40.13
30.06
22.42
13.90
18.48
-2.79
-26.50
38.01
80.16
-0.28
8.83
21.30
155.19
52.42
46.74
20.00
-0.31
12.80
36.75
30.09
18.30
14.25
16.50
127.72
235.11
35.64
-35.12
56.49
83.16
46.74
16.32
9.09
21.79
25.00
-0.31
57.66
36.33
32.80
18.01
35.12
25.48
-3.49
-78.05
29.26
197.00
18.48
7.33
21.79
24.53
25.57
32.78
25.00
-0.31
48.98
37.69
34.62
11.56
38.60
24.28
42.17
13.82
28.46
17.54
6.24
31.32
32.78
50
SQUARE PHARMACEUTICALS Ltd.
CASH FLOW STATEMENT
2006 2007 2008 2009 2010
Cash Flows from
Operating Activities
RECEIPTS:
Collection from sales
Others
PAYMENTS:
Purchase of raw & Packaging materials
Manufacturing Exp.
Bank interest
Income tax
Workers profit fund
Others
Net cash provided by Operating Expenses
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase Fixed Asset
Disposal Fixed Asset
Pre-operating cost
Investment in Square Textiles Ltd
Investment in Square
Hospitals Ltd.
Investment in Square Informatix Ltd.
Investment in Square Knit Fabrics Ltd
Investment in Square Fashions Ltd
Investment in Square Biotech Ltd
6,075,711,742
10,517,860
6,086,229,602
3,093,893,074
1,333,348,859
139,863,636
284,812,892
43,530024
1,625902
4,897,074,387
(253,126,399)
5,362,331
(280,000,000)
(100,000,000)
400,000,000
220,000,000
7,455,061,355
95,827,359
7,550,888,714
3,688,812,470,
1,777,607,737,
236,845,084
343,650,860
52,779,178
1,325,262
6,101,020,591
1,449,868,123
(782,151,851)
3,972,492
(500,000,000)
100,000,000
(392,000,000)
(198,000,000)
(18,100,000)
8,231,097,525
449,727,661
8,,680,825,186
4,434,614,344
2,075,086,488
351,868,423
458,227,366
58,051,027
2,148,834
7,379,996,482
1,300,828,704
(1,106,201,471)
8,985,055
(500,000,000)
(3,157,800)
(316,400,000)
(109,875,230)
9,706,402,257
466,326,850
10,172,729,107
4,595,248,761
2,152,581,352
397,135,963
475,997,448
60,192,28
3,666,917
7,684,822,669
2,487,906,428
(877,960,724)
8,806250
(500,000,000)
(150,000,000)
(249,000,000)
11,401,786,553
448,178,202
11,849,964,755
4,993,049,492
2,942,764,932
308,861,107
855,888,639
82,353,560
3,529,132
9,186,446,862
2,663,517,893
(1,464,938,454)
12,475,331
92,000,000
48,000,000
418,000,000
(634,347,093)
51
Capital work in-
progress
Interest received
Dividend received
Net Cash used in Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Long term loan received
Long term loan repaid
Short term loan decrease/(increase)
Short term Bank loan increase
Dividend paid
Net Cash Provided by Financing Activities
Decrease in cash and cash Equivalent
Cash and Cash Equivalent at the opening
Cash and Cash Equivalent at the closing
(1,229,428,470)
123,100,425
351,075,545
(1,089,091,048)
787,604,783
(323,915,587)
100,895,979
(397,361,793)
(332,640,000)
(165,416,618)
(65,353351)
382,074,333
316,720,982
(233,668,370)
88,000,686
36,425,250
1,895,521,793
150,000,000
(334,462,773)
347,619,691
478,230,949
(372,000,000)
268,787,867
(176,865,803)
316,720,982
139,855,179
-
-
112,595,980
(1,873,856,298)
414,288,000
(237,046,566)
850,915,306
(91,608,631)
(298,080,000
638,468,109
65,440,515
139,855,179
205,295,694
-
89,551,011
-
(1,569,806,551)
151,162,607
(305,401,660)
(1,135,347,402)
817,344,614
(357,696,000)
(829,337,841)
88,162,046
205,295,694
293,457,740
-
69,421,514
-
(1,639,252,295)
1,091,897,800
(342,522,688)
(797,901,934)
(527,579,221)
(482,489,600)
(1,058,995,643)
(34,730,045)
293,457,740
258,727,695
From the above table it can be seen that, cash position of Square Pharmaceuticals 2006 to 2010 is very good. In the year 2006-2010 cash and cash equivalent at the closing is rise sharp
in 2006 and lowest cash and cash equivalent at the closing in 2007. In the year 2008 cash position has improved, In the year 2009 & 2010 cash position again increasing.
52
RENATA PHARMACEUTICALS Ltd.
CASH FLOW STATEMENT
2006 2007 2008 2009 2010
Cash flows from operating Activities:
Collection from customer and other income
Payment of VAT
Payment suppliers
Cash generated from operation
Financing cost
Payment of Tax
Net Cash from operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property
Plant & equipment
Investment in shares
Sale proceed of property & plant
Net Cash used in Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES:
Medium term loan
Dividend paid
Net Cash From Financing Activities
Net Cash increase for the year
Opening cash and cash equivalents
2,185,812,587
(264,905,916)
(1,727,456,964)
193,449,707
(39,765,188)
(84,493,229)
69,191,290
(224,799,510)
-
1,928,200
(222,871,310)
179,423,238
(33,160,404)
146,262,834
(7,417,186)
89,452,557
2,885,087,954
(349,947,277)
(1,922,429,087)
612,711,590
(57,480,494)
(122,081,499)
433,149597
(417,615,371)
-
534,000
(417,081,371)
(10,373,668)
(39,472,951)
(49,846,619)
(33,778,393)
82,035,371
3,464,026,571
(446,920,865)
(2,598,987,823)
418,117,883
(87,270,665)
(113,669,101)
217,478,117
(5,49,504,472)
(7,377,754)
118,000
(556,764,226)
461,688,600
(47,511,431)
414,177,169
74,891,060
48,256,978
4,524,734,599
(576,244,068)
(2,934,353,785)
1,014,136,746
(99,513,638)
(163,539,3720
751,083,736
(642,570,569)
(3,553,225)
930,500
(645,193,394)
(28,738,995)
(57,051,213)
(85,790,208)
20,100,134
123,148,038
5,752,180,900
(726,458,705)
(3,897,580,701)
1,128,141,494
(117,473,675)
(224,608,092)
786,059,727
953,649,098
(48,034,005)
1,325,050
(1,000,358,053)
334,990,264
(85,555,885)
249,434,379
35,136,053
143,248,172
53
Closing cash & cash equivalent
82,035,371 48,256,978 123,148,038 143,248,172 178,384,225
From the above table it can be seen that, cash position of Renata Pharmaceuticals 2006 to 2010 has increasing. Among five years in 2007 closing cash and cash equivalent is lowest and rest of the year’s cash position is continuously increasing and In the year 2010 closing cash and cash equivalent is highest.
IBN SINA PHARMACEUTICALS Ltd.
CASH FLOW STATEMENT
2006 2007 2008 2009 2010
CASH FLOW FROM OPERATING ACTIVITIES:
Collection from customer & other
Payment for cost, expenses
Income Tax paid
Financial charges
Net Cash for operating activitiy
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Fixed assets
Profit from Bank deposits
Net Cash used in Investing activity
CASH FLOW FROM FINANCING
ACTIVITIES:
576,180,783
(540,147,137)
(12,132,926)
(1,168,103)
22,737,467
(38,481,137)
(5,424,000)
(38,906,917)
792,942,685
(759,880,586)
(12,930,838)
(2,267,457)
18,085,626
(49,834,248)
(4,590,000)
(50,323,499)
1,051,888,172
(990,664,427)
(15,373,495)
(4,750,860)
41,161,523
(57,687,625)
2,762,444
(54,925,181)
1,277,602,341
(1,186,331,780)
(17,515,888)
(5,098,143)
69,262,092
(96,977,569)
4,006,827
(92,970,742)
534,746,999
(471,572,986)
(12,087,212)
(529,664)
50,562,537
(26,010,8290)
2,949,000
(25,012,797)
54
Payment Dividend
Long term Finance received from Bank
Short term Finance received from Bank
Net Cash Flow From financing
Cash equivalents at the opening
Increase in cash
Cash equivalents at the closing
(19,581,834)
7,600,275
34,223,705
22,520,075
20,349,544
6,350,625
26,700,169
(15,444,615)
5,335,786
51,062,677
38,580,249
26,700,169
6,342,376
34,042,545
(20,021,662)
14,890,661
64,161,050
60,821,435
34,042,545
47,057,777
81,100,322
(22,710,459)
12,110,795
29,900,627
19,099,344
81,100,322
(4,609,306)
76,491,016
(16,493,943)(7,742,983)
(120,696)
(24,116,230)
76,491,016
(2,484,489)
74,006,527
From the above table it can be seen that cash position of Ibn Sina in the 2006 to 2010 has been continuously increasing. Among five years cash equivalent is fall down in 2006 and rise sharp in 2008. In the year 2006 Ibn Sina Pharma cash position is not good, in 2007 it is increasing, in 2008 it is again increasing rise sharp, in 2009 it is again fall down and in 2010 also fall down.
BEXIMCO PHARMACEUTICALS Ltd.
CASH FLOW STATEMENT
2006 2007 2008 2009 2010
Cash flows from operating activities:
Cash receipts from customer
Cash paid to suppliers
Cash generated from operation
Interest paid
Income tax paid
Net cash generated from operating
4,097,579,564
(2,714,775,105)
1,382,804,459
(229,719,450)
(73,557,767)
1,079,527,242
3,542,690,128
(2,947,335,836)
595,354,292
(222,581,780)
(32,303,532)
340,468,980
4,006,684717
(2,840,612,734)
1,166,071,983
(214,066,707)
(71,277,001)
880,728,275
4,710,870,128
(3,668,077,506)
842,792,622
(248,370,850)
(73,492,878)
520,928,894
6,810,510,631
(4,770,465,029)
2,040,045,602
(508,432,384)
(179,406,569)
1,352,206,649
55
activity
Cash Flow From Investing Activities:
Acquisition of property, plant
Investment in shares
Sales of shares in Bextex ltd.
Disposal of property, plant
Short term investment
Net cash used in Investing activities
Cash flows from financing activities:
Net increase/decrease long term borrow
Issuance of preference share
Net increase/decrease short term borrow
Dividend paid
Net cash generated from financing activitiy
Decrease/increase in cash & cash equivalent
Cash & cash equivalent at the opening
Cash & cash equivalent at the closing
(1,083,478,873)
(10,000,000)
15,294,792
450,467
(1,077,733,614)
(760,582,2170
81,757,500
240,805,788
(131,700,637)
150,742,087
152,535,715
428,563,230
581,098,945
(460,904,187)
-
9,730,325
1,928,598
(449,245,2640)
70,386,381
-
(395,234,653)
(61,775,479)
(386,623,751)
(495,400,0350
581,098,945
85,698,910
(1,180,445,241)
-
-
61,600
(1,180,383,641)
(209,110,438)
-
554,083,900
(57,369,278)
287,604,184
(12,051,182)
85,698,910
73,647,728
(1,148,198,910)
-
197,500,000
3,553,600
(2500,000,000)
(3,452,871,835)
(45,531,749)
4,100,000,000
(10,339,873)
(127,399,591)
3,916,728,787
984,785,846
73,647,728
1,058,433,574
(2,595,098,749)
(46,545,634)
-
13,350,073
1,640,596,296
(991,114,714)
17,258,054
-
188,634,698
(153,750,000)
51,922,927
413,014,862
1,058,433,574
1,471,448,436
56
From the above table it can seen that, cash position of Beximco Pharmaceuticals in the year 2006 to 2010 has been continuously increasing and decreasing. Among five years Cash and cash equivalent at the end of the year has fall down in 2008 and highest rise sharp in 2009. In the year 2006 Beximco Pharma cash position is very good, in 2007 it is fall down, in 2008 it is again fall down, in 2009 it is rise sharp and in 2010 it is again fall down.
Growth Percentage Analysis: Growth percentage is the amount of increase that a specific variable has gained within a
specific period and context. For investors, this typically represents the compounded
annualized rate of growth of a company's revenues, earnings, dividends and even macro
concepts - such as the economy as a whole.
Annualized growth rate of revenue expressed as a percentage, used in measuring performance
of a new firm with a little or no record of earnings. In a word growth is a percentage increase
or decrease in a particular subject between two time periods. (Investopedia.com 2010)
In this part three types of growth percentage have been discussed. They are the growth
percentage analysis of Number of employees, Net income and Earnings per share.
Growth of Net Income of Selected Pharma:
Growth pattern of Net Income of Selected Pharma have been shown below. The growth percentage of net income is calculated by the formula .i.e. (Chowdhury & Ahmed 2009)
(Total Amount of Current Net Income –Total Amount of previous Net Income) *100 Total Amount of previous Net IncomeTable shows that the net income of selected Pharma has increased from the previous year during 2006 to 2010. The highest growth rate is Beximco Pharma which is 68.33%. The lowest growth rate is observed in Beximco Pharma which is -3.80%. It is also observed that growth rate of different Pharma are not highly stable.Name of the Pharma
Net Income (Thousand Taka)
2006 2007 2008 2009 2010
Square Pharma 1,165,865 1,303,243 1,381,863 1,890,053 2,087,872 Growth -7.17% 11.78% 6.03% 36.78% 10.47%Beximco Pharma
470,659 353,068 545,341 624,740 1,051,649
Growth -3.80% -24.98% 54.46% 14.56% 68.33%Renata Pharma 242,132 335,923 433,146 603,524 851,428 Growth 25.74% 38.73% 28.94% 39.34% 41.07%IBN SINA 32,761,931 20,539,597 26,111,294 43,285,209 49,233,664
Growth 21.13% -37.31% 27.13% 65.77% 13.74%
57
Graphical Presentation of Growth of Net Income:
Growth of Net Income
-10.00%
-5.00%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Growth of net income of Square Pharma Ltd. has been shown in the above figure. The growth
of net income is increases in 2007 from 2006. But it shows decreasing growth in the year
2008 and it increases again in 2009. Though the year 2006 it shows a negative growth rather
the growth is satisfactory in 2009 i.e. 36.78 %. So management of the Square Pharma
Company should try to keep this increasing growth.
Growth of Net Income
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Growth of net income of Beximco Pharma Ltd. has been shown in the above figure. The growth of net income is increases in 2008 from 2006. But it shows decreasing growth in the year 2006&2007 and it increases again in 2009 & 2010. Though the year 2006 & 2007 it shows a negative growth rather the growth is satisfactory in 2010 i.e. 68.33 %. So management of the Beximco Pharma Company should try to keep this increasing growth.
58
Grow th of Net Income
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Growth of net income of Renata Pharma Ltd. has been shown in the above figure. The growth of net income is increases in 2007 from 2006. But it shows decreasing growth in the year 2008 and it increases again in 2009 & 2010. The growth is satisfactory in 2010 i.e. 41.07 %. So management of the Renata Pharma Company should try to keep this increasing growth.
Grow th of Net Income
-60.00%
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Growth of net income of Ibn Sina Pharma Ltd. has been shown in the above figure. The growth of net income is increases in 2008 from 2009. But it shows decreasing growth in the year 2007, 2010. It shows negative growth in 2007 and it increases in 2009. The growth is satisfactory in 2009 i.e. 65.77 %. So management of the Ibn Sina Pharma Company should try to keep this increasing growth.
Growth of EPS of Selected Pharma:
Growth pattern of Earning per share of Selected Pharma have been shown below. The growth percentage of EPS calculated by the formula i.e. (Chowdhury & Ahmed 2009) (Current Year EPS –Previous Year EPS) *100 Previous Year EPS
It is observed from the table that the EPS of selected Pharma has increased from the previous year during 2006 to 2010. The EPS growth rate is highest in Beximco Pharma in 2010 with
59
47.71%. The lowest growth rate is observed in Beximco Pharma in 2009 which is -3.05%.It is also observed that growth rate of different Pharma are not highly stable.
Name of the Pharma
Net Income (Thousand Taka)
2006 2007 2008 2009 2010
Square Pharma 77.26 86.36 91.57 125.25 138.36 Growth -63.32% 11.78% 6.03% 36.78% 10.47%Beximco Pharma
4.11 2.8 3.61 3.5 5.17
Growth -35.37% -31.87% 28.93% -3.05% 47.71%Renata Pharma 133.96 185.85 239.64 333.90 471.06 Growth -44.12% 38.74% 28.94% 39.33% 41.07%IBN SINA 22.82 31.14 36.40 48.09 54.70
Growth -37.31% 36.46% 16.89% 32.12% 13.75%
Graphical Presentation of Growth of EPS:
Growth of EPS
-80.00%
-60.00%
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Growth of EPS of Square Pharma Ltd. has been shown in the above figure. The growth of
EPS is increases in 2007 from 2006. But it shows decreasing growth in the year 2008 and it
increases again in 2009. Though the year 2006 it shows a negative growth rather the growth
is satisfactory in 2009 i.e. 36.78%. So management of the Square Pharma Company should
try to keep this increasing growth.
60
Growth of EPS
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Growth of EPS of Beximco Pharma Ltd. has been shown in the above figure. The growth of
EPS is increases in 2008 from 2006. But it shows decreasing growth in the year 2006, 2007
& 2009 and it increases again in 2010. Though the year 2006, 2007 & 2009 it shows a
negative growth rather the growth is satisfactory in 2010 i.e. 47.71% so management of the
Beximco Pharma company should try to keep this increasing growth.
Grow th of EPS
-50.00%
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Growth of EPS of Renata Pharma Ltd. has been shown in the above figure. The growth of
EPS is increases in 2007 from 2006. But it shows decreasing growth in the year 2008 and it
increases again in 2009& 2010. Though the year 2006 it shows a negative growth rather the
growth is satisfactory in 2010 i.e. 41.07% so management of the Renata Pharma company
should try to keep this increasing growth.
61
Growth of EPS
-50.00%
-40.00%
-30.00%
-20.00%
-10.00%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
2005-2006 2006-2007 2007-2008 2008-2009 2009-2010
Growth of EPS of Ibn Sina Pharma Ltd. has been shown in the above figure. The growth of
EPS is increases in 2007 from 2006. But it shows decreasing growth in the year 2008 and it
increases again in 2009& 2010. Though the year 2006 it shows a negative growth rather the
growth is satisfactory in 2010 i.e. 54.70% so management of the Ibn Sina Pharma company
should try to keep this increasing growth.
62
CHAPTER 4: REPORT ENDING
63
Conclusion:
This analysis consisted of four mentioned pharmaceuticals company from an investor’s point of view. The report concentrates on the financial aspects of the company that are of most importance to the investors. Although many factors determine an investor’s preference to invest in a company, most often than not they prefer to invest in companies that have an overall high standard performance.
After analyzing all the ratios, we have found out the following information:
Liquidity Ratios: In the liquidity ratio we can see that both current ratio and quick ratio improved over time marginally. The situation was almost stable.
Profitability Ratios : Net profit has steadily increased over the years and along with consistent level of operating profit shows impressive reading for an investor. But these advantages have been balanced by a slump in the return on assets and equity figures. Although the decrease rate is very minimal still it is a problem for all four Pharmaceuticals company and they need to try to improve these ratios.
Leverage Ratios: Debt ratio has improved over time and has remained pretty much stable. SPL is mainly finance by equity, although proportion of debt is rising.
Market Value Ratios : The whole market was not so friendly for investment during that year. Enhanced performance in subsequent year belies the faith of the market’s high valuation of SPL’s stocks. But a sharp fall in the dividends and consequently dividend yield columns is indeed alarming. This along with a decreasing trend of earnings per share should occupy the management’s time and resources in the ensuing periods
Financial figures from the past five years show that at present Square Pharmaceuticals have impressive financial records. Square Pharmaceuticals is one of the most sought after company by investors due to their constantly improving financial figures which they have been able to maintain over the years. It is true in the financial year of 2007 their return did decline but they bounced back strongly in subsequent period and maintained a satisfactory level of financial performance. Therefore, we can conclude that Square Pharmaceuticals Ltd. is a good enough company compare to other selected Pharmaceuticals company.
64
Recommendation:
Four mentioned Pharmaceuticals Company should be conscious about proper utilization of assets. They should be conscious about profitability.
Four mentioned Pharmaceuticals Company should care about Net Profit margin which is not good enough, which means that management would try to achieve close control over the Pharmaceuticals company earnings at the cheapest sources of funding.
Four mentioned Pharmaceuticals Company should also give attention to ensure proper utilization of assets which is the indicator of efficiency of the management.
Square Pharmaceuticals Limited should increase its product variety. Product variety
represents different types of items of medicines. At present, Square offers around 180
different types of medicine. Some other companies are offering more than this. SPL can
diversify itself from others by operating in highly specialized segments such as anti cancer
segments.
Introduction of new products to doctors is vital because it can enhance the image of the
company. It is always a good idea to find a gap to introduce a new item. Square can locate the
products areas where there are less number of alternatives and also higher amounts of
requirements.
Four mentioned Pharmaceuticals Company should provide more product samples gifts to the
doctors to increase their image among them.
Doctors should be informed previously that new medicines are coming up and will be offered
within two or three months. Thus the doctors can perceive an insight about the new medicines
as an alternative of competitor's existing items and Square pharma can gain good rapport with
the doctors.
SPL’s distribution is quite weak. Steps must be taken to strengthen the distribution network.
This will require more effort on the part of the medical representatives.
Pharmaceutical direct-to-physician marketing efforts have typically been isolated from other
customer-centric activities, including those conducted by field sales forces. A dis-jointed
relationship exists between pharmaceutical sales teams and direct-to-physician marketing.
65
While the pharmaceutical industry has made significant investments in direct-to-physician
promotions, the sales force is generally uninformed about their timing or end results. SPL
should enhance their ability to link home office conducted marketing campaigns with field
force activities through information, software, and service solutions to make these efforts
more coordinated and therefore more effective.
Direct to consumer (DTC) essentially means any campaign or communication programme
intended for and targeted to consumers - the primary end users of a product. In relation to
pharmaceutical products, the consumers may be patients, friends or family members,
caregivers or the general public.
The strict regulations that have governed the communication of information about
prescription medicines in Bangladesh meant that the primary marketing focus has been on the
people who actually make prescribing decisions; the doctors.
These include the impact of communication to consumers via the internet, patient education,
word of mouth or use of editorial space or air time in print and broadcast media.
More than ever before patients are getting involved in making their own healthcare decisions.
The growth in over-the-counter drugs and the dissemination of information on the World
Wide Web and in consumer magazines have all contributed to a thirst for information. Four
mentioned Pharmaceutical Company can make an advantage of this and bring about some
changes to fulfill these needs and as result it will enhance the image of the company.
Direct to consumer (DTC) advertising is thought to enhance competition between brands,
which can lead to improved quality and lower prices for consumers but, most importantly, it
can improve public health.
66
APPENDIX
67
INCOME STATEMENT OF BEXIMCO PHARMACEUTICALS LTD:
2006 2007 2008 2009 2010
Net Sales Revenue
COSTS OF GOODS SOLD
GROSS PROFIT
Operating Expenses:
Selling&DistributionExp
Administrative Expenses
Profit From Operations
Other income
Finance cost
Net Profit Before Contribution to WPPF
Contribution to workers Profit Participation
PROFIT BEFORE TAX
Income tax Income
Current Tax
Deferred tax Income
NET PROFIT AFTER TAX
3,702,317,159
(1,971,231,333)
1,731,085,826
(984,562,332)
(834,276,355)
(150,285,977)
746,523,494
56,201,142
(253,318,784)
549,405,852
(26,162,183)
523,243,669
(52,585,106)
(35,402,549)
(17,182,557)
470,658,563
3,597,024,812
(1,967,509,975)
1,629,514,837
(974,736,690)
(829,191,989)
(145,544,701)
654,778,147
19,625,795
(254,742,392)
(419,661,550)
(19,983,883)
399,677,667
(46,609,789)
(57,661,278)
11,051,489
353,067,878
4,010,167,059
(2,002,871,181)
2,007,295,878
(1,008,501,030)
(855,036,787)
(153,464,243)
998,794,848
686,510
(249,654,298)
749,827,060
(35,706,050)
714,121,010
(168,779,737)
(173,720,430)
4,940,693
545,341,273
4,868,254,915
(2,566,206,626)
2,302,048,289
(1,300,765,878)
(1,085,573,331)
(215,192,547)
1,001,282,411
198,986,379
(289,427,992)
910,840,798
(43,373,371)
867,467,427
(242,727,120)
-
(242,727,120)
624,740,307
6,490,847,353
(3,317,640,254)
3,173,207,099
(1,537,426,907)
(1,304,012,927)
(233,413,980)
1,635,780,192
456,011,134
(662,182,384)
1,429,608,942
(68,076,616)
1,361,532,326
(309,883,518)
(71,085,835)
(238,797,683)
1,051,648,808
68
INCOME STATEMENT OF SQUARE PHARMACEUTICALS LTD:
2006 2007 2008 2009 2010
Gross Turnover
Less: Value Added Tax
NET TURNOVER
COSTS OF GOODS SOLD
GROSS PROFIT
Operating Expenses:
Selling&DistributionExp
Administrative Expenses
Total Operating Exp.
Profit From Operations
Other income
Financial Expenses
NET PROFIT BEFORE WPPF
Allocation for WPPF
NET PROFIT BEFORE TAX
Provision for income tax
NET PROFIT AFTER TAX
7,085,553,149
995,647,7536,089,905,396
(3,525,402,669)
2,564,502,727
(798,131,173)
(186,167,019)(984,298,192)
1,580,204,535169,353,845
(139,863,636)
1,609,694,744
(76,652,130)
1,533,042,614
(333,310,560)
1,165,864,616
8,711,034,758
1,210,223,4097,500,811,349
(4,268,447,662)
3,232,363,687
(1,000,132,914)
(406,478,534)(1,406,611,448)
1,825,752,239220,144,368
(236,845,084)
1,809,051,523
(86,145,311)
1,722,906,212
(347,984,083)
1,303,242,840
9,565,715,902
1,307,872,163
8,257,843,739
(4,856,061,933)
3,401,781,806
(1,220,979,268)
(471,496,720)
(1,692,475,988)
1,709,305,818
604,628,504
(351,868,423)
1,962,065,899
(93,431,709)
1,868,634,190
(409,660,827)
1,381,863,093
11,366,597,928
1,545,801,360
9,820,796,568
(5,672,565,973)
4,148,230,595
(1,319,362,317)
(460,431,051)
(1,779,793,368)
2,368,437,227
665,520,915
(397,135,963)
2,636,822,179
(125,562,961)
2,511,259,218
(592,644,226)
1,890,052,929
13,279,141,757
1,816,563,347
11,462,578,410
(6,561,288,485)
4,901,289,925
(1,687,210,447)
(524,460,492)
(2,211,670,939)
2,689,618,986
585,564,826
(308,861,107)
2,966,322,705
(141,253,462)
2,825,069,243
(688,499,602)
2,087,871,791
69
INCOME STATEMENT OF IBN SINA PHARMACEUTICALS LTD:
2006 2007 2008 2009 2010
SALES
Less: Cost of Goods Sold
GROSS PROFIT
Less: Operating Expenses
OPERATING PROFIT
Less: Financial Charges
Add: Non Operating income
Less: Workers P.P Fund & welfare fund
NET PROFIT BEFORE TAX
Less: Provision for Income Tax
NET PROFIT AFTER TAX
534,738,092
345,464,844
189,273,248
145,573,190
43,700,058
529,664
43,170,394
3,952,932
2,243,968
44,879,358
12,117,427
32,761,931
577,427,115
367,925,503
209,501,612
183,793,323
25,708,289
1,168,103
24,540,186
5,003,070
1,406,822
28,136,434
7,596,837
20,539,597
791,683,415
506,490,350
285,193,065
263,115,026
32,078,039
2,267,457
29,810,582
6,333,671
1,854,483
34,289,670
8,178,376
26,111,294
1,052,301,721
652,854,439
399,454,282
346,729,133
52,725,149
4,750,860
47,974,289
8,907,577
2,708,660
54,173,206
10,887,997
43,285,209
1,277,868,846
785,469,076
492,399,770
436,859,745
55,540,025
5,098,143
50,441,882
13,736,889
3,056,132
61,122,639
11,888,975
49,233,664
70
INCOME STATEMENT OF RENATA PHARMACEUTICALS LTD:
2006 2007 2008 2009 2010
TURNOVER
Cost of Sales
GROSS PROFIT
Other income
Operating Exp.
Admin Selling
Expenses:
OPERATING PROFIT
Gain on disposal of Property, equipment
Interest on overdraft
Other Expenses
Contribution to WPPF
NET PROFIT BEFORE TAX
Current Tax
Deferred Tax
NET PROFIT AFTER TAX
1,927,731,885
(978,390,209)
949,341,676
32,868,293
982,209,969
(577,785,557)
404,424,412
1,928,200
(39,765,188)
(2,634,492)
(16,731,165)
347,221,767
(98,232,128)
(6,858,002)
242,131,637
2,534,174,981
(1,298,911,334)
1,235,263,647
11,734,434
1,246,998,081
(696,781,6730
550,216,408
496,800
(57,480,494)
(3,272,447)
(23,341,441)
466,618,826
(121,815,058)
(8,880,661)
335,923,107
3,089,746,417
(1,526,514,685)
1,563,231,732
15,420,344
1,578,652,076
(845,169,923)
733,382,153
118,000
(87,270,665)
(5,913,520)
(30,496,000)
609,919,968
(166,444,936)
(10,329,228)
433,145,804
3,900,732,314
(1,820,496,777)
2,080,235,537
8,050,515
2,088,286,052
(1,118,768,795)
969,517,257
930,500
(99,513,638)
(6,752,520)
(41,151,504)
823,030,095
(190,711,707)
(28,793,936)
603,524,452
5,090,318,113
(2,405,361,976)
2,684,956,137
5,992,117
2,690,948,254
(1,378,630,620)
1,312,317,634
593,908
(117,473,675)
(9,354,136)
(56,480,177)
1,129,603,554
(235,480,759)
(42,694,263)
851,428,532
71
SQUARE PHARMACEUTICALS LIMITED:
BALANCE SHEET & SHAREHOLDER’S EQUITY STATEMENTS
2006 2007 2008 2009 2010
ASSETS:
Non-current Assets:
Property, Plant carrying value
Capital work in progress
Investment long term
CURRENT ASSETS
Inventories
Trade debtors
Advances, Deposits
Investment in marketable securities
Short term loan
Cash and cash equivalents
TOTAL ASSETS
LIABILITIES &SHAREHOLDERS EQUITY:
Shareholder’s Equity
Share Capital
Share Premium
General Reserve
Tax Holiday Reserve
Retained Earnings
NON-CURRENT LIABILITIES:
Long term loans
Deferred tax liability
CURRENT LIABILITIES:
Short term Bank loan
Long term loans
5,267,302,357
2,273,761,161
1,077,707,832
1,915,833,364
4,031,684,955
1,342,364,478288,732,137166,492,706
20,250,000
1,897,124,652
316,720,982
9,298,987,312
6,402,014,772496,800,000
2,035,465,000105,878,200
947,678,6902,816,192,882
636,217,059
602,349,621
33,867,438
2,260,755,481
1,471,158,187
261,416,941
6,804,429,292
3,531,003,509
481,239,419
2,792,186,364
3,682,510,712
1,544,191,798
322,864,637236,455,395
20,250,000
1,418,893,703
139,855,179
10,486,940,004
7,333,257,612
596,160,000
2,035,465,000105,878,200
1,101,935,2373,493,819,175
598,116,106
492,569,379
105,546,727
2,555,566,286
1,818,777,878
225,176,449
8,291,290,984
4,088,432,171
591,114,649
3,611,744,164
4,411,836,4362,026,736,322
360,245,646288,806,440
20,250,000
1,510,502,334
205,295,694
12,703,127,420
8,417,040,705894,240,000
2,035,465,000105,878,200
1,101,935,2374,279,522,268
785,241,612
602,584,615
182,656,997
3,500,845,103
2,699,693,184
9,407,730,001
4,899,679,832
-
4,508,050,169
3,843,512,8552,098,755,231
477,562,002260,330,162
20,250,000
693,157,720
293,457,740
13,251,242,856
9,949,397,6341,207,224,000
2,035,465,000105,878,200
1,101,935,2375,498,895,197
660,976,668
449,757,608
211,219,060
2,640,868,554
1,534,345,782
295,590,601
10,255,189,084
5,630,791,822
634,347,093
3,990,050,169
4,774,311,1942,207,078,082
508,249,174358,250,076
221,269,226
1,220,736,941
258,727,695
15,029,500,278
11,554,379,8251,509,030,000
2,035,465,000105,878,200
1,101,935,2376,802,071,388
1,258,376,052
1,032,633,110
225,742,942
2,216,744,401
736,443,848
462,090,211
72
Trade creditors
Liabilities for expenses
Liabilities for other finance
TOTAL SHAREHOLDERS EQUITY AND LIABILITY
79,390,166
49,771,374
399,018,813
9,298,987,312
60,601,743
24,565,248
426,444,968
10,486,940,004
297,002,646100,953,258
32,290,235
400,905,780
12,730,127,420
124,222,699
69,573,702
617,135,770
13,251,242,856
394,715,915
56,463,570
567,030,857
15,029,500,278
BEXIMCO PHARMACEUTICALS LIMITED:
BALANCE SHEET & SHAREHOLDER’S EQUITY STATEMENTS
2006 2007 2008 2009 2010
ASSETS:
Non current Asset
Property, plant
Investment in shares
Current Assets
Inventories
Accounts receivable
Loans, advances and Deposits
Cash&Cash equivalents
TOTAL ASSSETS
Shareholders Equity
Issued share capital
Share
8,555,119,221
8,513,136,381
41,982,840
3,357,393,266
1,754,440,288
430,240,095
591,613,938
581,098,945
11,912,512,487
7,949,920,425
1,040,973,120
1,489,750,000
9,029,643,482
8,992,942,392
36,701,090
2,923,775,458
1,652,480,291
499,680,792
685,915,465
85,698,910
11,953,418,940
8,250,939,647
1,145,070,430
1,489,750,000
11,957,773,787
11,921,072,697
36,701,090
2,861,891,654
1,505,288,093
503,916,401
544,509,106
73,647,728
14,819,665,441
10,450,202,145
1,259,577,470
1,489,750,000
12,975,195,529
12,966,587,178
2881,826
6,916,737,893
1,722,953,284
694,111,730
699,204,450
1,058,433,574
19,891,933,422
10,885,706,614
1,511,492,960
1,489,750,000
15,180,731,678
15,123,306,298
6,298,526
6,191,667,831
1,983,809,444
821,356,439
779,129,620
1,471,448,436
21,372,399,509
15,974,086,451
2,098,065,090
5,269,474,690
73
premium
Excess of issue price
Capital Reserve
Tax holiday reserve
Retained Earnings
Non Current Liability:
Long term borrowings
Liability for gratuity & WPPF
Deferred tax liability
Current liabilities &
Provisions:
Short term borrowing
Creditors and other payable
Accrued Expenses
Dividend Payable
Income tax payable
Total Liabilities & Shareholders equity:
1,689,636,958
294,950,950
394,834,828
3,039,774,569
1,435,171,264
1,159,409,947
213,357,859
62,403,458
2,527,420,798
1,302,816,980
365,255,938
117,936,620
13,012,146
16,276,184
11,912,512,487
1,689,636,958
294,950,950
442,354,953
3,189,176,356
2,074,506,357
1,776,449,778
246,704,610
51,351,969
1,627,972,936
907,582,327
271,814,118
60,052,739
3,285,324
41,633,930
11,953,418,940
1,689,636,958
294,950,950
-
4,005,112,020
1,767,431,029
1,446,600,500
274,419,253
46,411,276
2,602,032,267
1,461,666,227
263,176,822
81,776,450
3,169,568
144,077,359
14,819,665,441
1,689,636,958
294,950,950
-
4,282,514,032
6,684,775,166
1,924,933,065
307,425,614
352,416,487
2,321,451,642
1,451,326,354
409,898,122
79,094,905
1,727,724
70,584,481
19,891,933,422
1,689,636,958
294.950,950
-
5,087,312,943
2,885,155,826
1,902,150,733
335,885,792
647,119,301
2,513,157,232
1,639,961,052
432,315,660
90,512,178
1,507,899
-
21,372,399,509
74
IBN SINA PHARMACEUTICALS LIMITED
BALANCE SHEET & SHAREHOLDER’S EQUITY STATEMENTS
2006 2007 2008 2009 2010
ASSTS:
NON CURRENT ASSETS
Property, plant & equipment
Investment
Deferred Tax Asset
CURRENT ASSETS:
Inventories
Sundry Debtors
Advances, Deposits & prepayments
Cash & cash equivalents
TOTAL ASSETS
Shareholders Equity:
Share capital
Tax holiday reserve
Retained Earning
NON CURRENT LIABILITIES:
Long term Finance
Deferred Liability
Deferred tax Liability
CURRENT LIABIITIES:
Short term Finance
Deposits
Creditors
159,923,617
18,302,290
-
112,487,404
51,549,217
190,126
40,398,517
20,349,544
159,972,192159,972,192
90,000,000
69,972,192
-
-
-
-
130,741,119
27,036,927
5,685,06615,774,554
184,714,495
23,726,290
-
127,775,501
52,142,698
1,436,458
47,496,176
26,700,169
169,212,064161,611,789
90,000,000
71,611,789
-
7600,275-
-167,004,222
61,260,632
6,112,68115,055,704
22,738,848
248,082,520
218,555,330
29,527,290
-
149,908,877
58,473,330
177,188
57,215,814
34,042,545
397,991,497
166,091,361
90,000,000
4,392,110
71,899,251
40,270,273
12,936,061
24,042,490
3,291,722
191,629,863
102,884,973
6,534,281
14,840,930
293,523,518
257,913,228
35,610,290
-
220,130,579
60,035,472
597,737
78,397,048
81,100,322
513,654,097
188,676,570
90,000,000
4,392,110
94,284,460
60,324,124
27,826,722
31,542,490
954,912
264,653,403
169,591,739
8,041,381
14,232,048
379,036,527
332,846,136
44,734,790
1,455,601
225,056,867
62,231,701
864,243
85,469,907
76,491,016
604,093,394215,410,234
90,000,000
4,392,110
121,018,12480,245,507
39,937,51740,307,990
-308,437,653
186,608,862
8,478,381
19,209,29
75
Accrued Expenses
Other Finance
Provision for Income Tax
Income tax Liability
TOTAL SHAREHOLDER
EQUITY & LIABILITIES
16,875,043
19,814,414
26,655,115
-
159,972,192
20,817,331
22,119,026
-
169,212,064
15,971,179
23,753,600
-
18,206,564
397,991,497
16,976,210
26,223,324
-
22,696,081
513,654,097
22,937,534
25,811,246
-
25,616,177
604,093,394
RENATA PHARMACEUTICALS LIMITED
BALANCE SHEET & SHAREHOLDER’S EQUITY STATEMENTS
2006 2007 2008 2009 2010
ASSETS:
Non-current Assets:
Property, plant & equipment
Capital work in progress
Investment in subsidiary
Other investment
Total non-current Assets
CURRENT ASSETS:
Inventories
Trade & other receivables
Advances, Deposits & Prepayments
Cash & Cash equivalents
689,066,469
44,121,037
63,070,376
1,000,000
797,257,882
638,784,952
198,626,085
59,808,451
82,035,371
796,846,754
305,983,441
63,070,376
1,000,000
1,166,900,571
662,012,145
194,727,875
83,095,822
48,256,978
1,014,435,834
570,277,998
63,070,376
8,377,754
1,656,161,962
959,414,590
344,226,933
79,281,411
123,148,038
1,396,300,867
736,960,533
63,070,376
11,931,079
2,208,262,855
1,075,310,581
343,870,341
80,677,337
143,248,172
2,564,572,288
363,998,451
63,070,376
58,965,084
3,050,606,199
1,295,855,164
478,364,475
110,721,962
178,384,225
76
Total Current Assets
Total Assets
EQUITY & LIABILITIES:
Share Capital
Revaluation Surplus
Tax holiday Reserve
Retained earnings
Total equity attributable to equity holders
Non-Current Liabilities:
Deferred Liability
Deferred tax liabilities
Total Non-current liabilities
Current Liabilities:
Bank overdraft
Creditors goods
Accrued expenses
Other payables
Provision for taxation
Total current liabilities
Total equity & Liabilities
979,254,859
1,776,512,741
80,332,400
156,018,160
47,451,353
698,510,882
982,312,795
72,656,492
62,661,763
135,318,255
371,848,683
51,607,325
71,050,788
68,360,467
94,222,229
658,881,691
1,776,512,741
988,092,820
2,154,993,391
96,398,900
155,553,964
46,862,514
978,790,128
1,277,505,506
88,948,500
71,370,735
160,319,235
361,475,015
37,929,106
98,063,196
123,160,097
93,955,788
717,068,650
2,154,993,391
1,506,070,972
3,162,232,934
115,678,700
155,075,461
52,862,514
1,338,456,682
1,662,073,357
105,224,160
81,542,581
186,766,741
823,163,615
127,107,689
133,013,604
79,902,838
147,031,623
1,313,392,836
3,162,232,934
1,643,106,431
3,851,369,286
144,598,400
154,596,958
83,346,636
1,824,737,962
2,207,279,956
124,183,595
110,179,135
234,362,730
794,424,620
27,896,925
171,928,847
237,310,646
174,203,958
1,409,726,600
3,851,369,286
2,063,325,826
5,113,932,025
180,748,000
154,118,455
124,166,310
2,512,438,179
2,971,470,944
138,540,457
152,716,016
291,256,473
1,129,414,884
31,752,362
220,862,988
278,932,990
185,076,625
1,851,204,608
5,113,932,025
77
SQUARE PHARMACEUTICALS Ltd.
CASH FLOW STATEMENT
2006 2007 2008 2009 2010
Cash Flows from
Operating Activities
RECEIPTS:
Collection from sales
Others
PAYMENTS:
Purchase of raw & Packaging materials
Manufacturing Exp.
Bank interest
Income tax
Workers profit fund
Others
Net cash provided by Operating Expenses
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase Fixed Asset
Disposal Fixed Asset
Pre-operating cost
Investment in Square Textiles Ltd
Investment in Square
Hospitals Ltd.
Investment in Square Informatix Ltd.
Investment in Square Knit Fabrics Ltd
Investment in Square Fashions Ltd
Capital work in-
progress
6,075,711,742
10,517,860
6,086,229,602
3,093,893,074
1,333,348,859
139,863,636
284,812,892
43,530024
1,625902
4,897,074,387
4,897,074,387
-
(253,126,399)
5,362,331
(280,000,000)
(100,000,000)
400,000,000
220,000,000
(1,229,428,470)
7,455,061,355
95,827,359
7,550,888,714
3,688,812,470,
1,777,607,737,
236,845,084
343,650,860
52,779,178
1,325,262
6,101,020,591
1,449,868,123
(782,151,851)
3,972,492
(500,000,000)
100,000,000
(392,000,000)
(198,000,000)
(18,100,000)
-
(233,668,370)
8,231,097,525
449,727,661
8,,680,825,186
4,434,614,344
2,075,086,488
351,868,423
458,227,366
58,051,027
2,148,834
7,379,996,482
1,300,828,704
(1,106,201,471)
8,985,055
(500,000,000)
(3,157,800)
(316,400,000)
-
(109,875,230)
-
-
9,706,402,257
466,326,850
10,172,729,107
4,595,248,761
2,152,581,352
397,135,963
475,997,448
60,192,28
3,666,917
7,684,822,669
2,487,906,428
(877,960,724)
-
8,806250
(500,000,000)
-
(150,000,000)
(249,000,000)
-
-
11,401,786,553
448,178,202
11,849,964,755
4,993,049,492
2,942,764,932
308,861,107
855,888,639
82,353,560
3,529,132
9,186,446,862
2,663,517,893
(1,464,938,454)
-
12,475,331
-
92,000,000
48,000,000
418,000,000
-
-
78
Interest received
Dividend received
Net Cash used in Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Long term loan received
Long term loan repaid
Short term loan decrease/(increase)
Short term Bank loan increase
Dividend paid
Net Cash Provided by Financing Activities
Decrease in cash and cash Equivalent
Cash and Cash Equivalent at the opening
Cash and Cash Equivalent at the closing
123,100,425
35,000,165
(1,089,091,048)
787,604,783
(323,915,587)
100,895,979
(397,361,793)
(332,640,000)
(165,416,618)
(65,353351)
382,074,333
316,720,982
88,000,686
36,425,250
1,895,521,793
150,000,000
(334,462,773)
347,619,691
478,230,949
(372,000,000)
268,787,867
(176,865,803)
316,720,982
139,855,179
-
112,595,980
(1,873,856,298)
414,288,000
(237,046,566)
850,915,306
(91,608,631)
(298,080,000
638,468,109
65,440,515
139,855,179
205,295,694
-
89,551,011
(1,569,806,551)
151,162,607
(305,401,660)
(1,135,347,402)
817,344,614
(357,696,000)
(829,337,841)
88,162,046
205,295,694
293,457,740
(634,347,093)
69,421,514
(1,639,252,295)
1,091,897,800
(342,522,688)
(797,901,934)
(527,579,221)
(482,489,600)
(1,058,995,643)
(34,730,045)
293,457,740
258,727,695
RENATA PHARMACEUTICALS Ltd.
CASH FLOW STATEMENT
2006 2007 2008 2009 2010
Cash flows from operating Activities:
Collection from customer and other income
Payment of VAT
Payment suppliers
Cash generated from operation
Financing cost
2,185,812,587
(264,905,916)
(1,727,456,964)
193,449,707
(39,765,188)
2,885,087,954
(349,947,277)
(1,922,429,087)
612,711,590
(57,480,494)
3,464,026,571
(446,920,865)
(2,598,987,823)
418,117,883
(87,270,665)
4,524,734,599
(576,244,068)
(2,934,353,785)
1,014,136,746
(99,513,638)
5,752,180,900
(726,458,705)
(3,897,580,701)
1,128,141,494
(117,473,675)
79
Payment of Tax
Net Cash from operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property
Plant & equipment
Investment in shares
Sale proceed of property & plant
Net Cash used in Investing Activities
CASH FLOW FROM FINANCING ACTIVITIES:
Medium term loan
Dividend paid
Net Cash From Financing Activities
Net Cash increase for the year
Opening cash and cash equivalents
Closing cash & cash equivalent
(84,493,229)
69,191,290
(224,799,510)
-
1,928,200
(222,871,310)
179,423,238
(33,160,404)
146,262,834
(7,417,186)
89,452,557
82,035,371
(122,081,499)
433,149597
(417,615,371)
-
534,000
(417,081,371)
(10,373,668)
(39,472,951)
(49,846,619)
(33,778,393)
82,035,371
48,256,978
(113,669,101)
217,478,117
(5,49,504,472)
(7,377,754)
118,000
(556,764,226)
461,688,600
(47,511,431)
414,177,169
74,891,060
48,256,978
123,148,038
(163,539,3720
751,083,736
(642,570,569)
(3,553,225)
930,500
(645,193,394)
(28,738,995)
(57,051,213)
(85,790,208)
20,100,134
123,148,038
143,248,172
(224,608,092)
786,059,727
953,649,098
(48,034,005)
1,325,050
(1,000,358,053)
334,990,264
(85,555,885)
249,434,379
35,136,053
143,248,172
178,384,225
IBN SINA PHARMACEUTICALS Ltd.
CASH FLOW STATEMENT
2006 2007 2008 2009 2010
CASH FLOW FROM OPERATING ACTIVITIES:
Collection from customer & other
Payment for cost, expenses
Income Tax paid
Financial charges
576,180,783
(540,147,137)
(12,132,926)
(1,168,103)
792,942,685
(759,880,586)
(12,930,838)
(2,267,457)
1,051,888,172
(990,664,427)
(15,373,495)
(4,750,860)
1,277,602,341
(1,186,331,780)
(17,515,888)
(5,098,143)
534,746,999
(471,572,986)
(12,087,212)
(529,664)
80
Net Cash for operating activitiy
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of Fixed assets
Profit from Bank deposits
Net Cash used in Investing activity
CASH FLOW FROM FINANCING
ACTIVITIES:
Payment Dividend
Long term Finance received from Bank
Short term Finance received from Bank
Net Cash Flow From financing
Cash equivalents at the opening
Increase in cash
Cash equivalents at the closing
22,737,467
(38,481,137)
(5,424,000)
(38,906,917)
(19,581,834)
7,600,275
34,223,705
22,520,075
20,349,544
6,350,625
26,700,169
18,085,626
(49,834,248)
(4,590,000)
(50,323,499)
(15,444,615)
5,335,786
51,062,677
38,580,249
26,700,169
6,342,376
34,042,545
41,161,523
(57,687,625)
2,762,444
(54,925,181)
(20,021,662)
14,890,661
64,161,050
60,821,435
34,042,545
47,057,777
81,100,322
69,262,092
(96,977,569)
4,006,827
(92,970,742)
(22,710,459)
12,110,795
29,900,627
19,099,344
81,100,322
(4,609,306)
76,491,016
50,562,537
(26,010,8290)
2,949,000
(25,012,797)
(16,493,943)
(7,742,983)
(120,696)
(24,116,230)
76,491,016
(2,484,489)
74,006,527
81
BEXIMCO PHARMACEUTICALS Ltd.
CASH FLOW STATEMENT
2006 2007 2008 2009 2010
Cash flows from operating activities:
Cash receipts from customer
Cash paid to suppliers
Cash generated from operation
Interest paid
Income tax paid
Net cash generated from operating activity
Cash Flow From Investing Activities:
Acquisition of property, plant
Investment in shares
Sales of shares in Bextex ltd.
Disposal of property, plant
Short term investment
Net cash used in Investing activities
Cash flows from financing activities:
Net increase/decrease long term borrow
Issuance of
preference share
4,097,579,564
(2,714,775,105)
1,382,804,459
(229,719,450)
(73,557,767)
1,079,527,242
(1,083,478,873)
(10,000,000)
15,294,792
450,467
(1,077,733,614)
(760,582,2170
81,757,500
3,542,690,128
(2,947,335,836)
595,354,292(222,581,780)
(32,303,532)
340,468,980
(460,904,187)
-
9,730,325
1,928,598
(449,245,2640)
70,386,381
4,006,684717
(2,840,612,734)
1,166,071,983
(214,066,707)
(71,277,001)
880,728,275
(1,180,445,241)
-
-
61,600
(1,180,383,641)
(209,110,438)
4,710,870,128
(3,668,077,506)
842,792,622
(248,370,850)
(73,492,878)
520,928,894
(1,148,198,910)
-
197,500,000
3,553,600
(2500,000,000)
(3,452,871,835)
(45,531,749)
4,100,000,000
6,810,510,631
(4,770,465,029)
2,040,045,602
(508,432,384)
(179,406,569)
1,352,206,649
(2,595,098,749)
(46,545,634)
13,350,073
1,640,596,296
(991,114,714)
17,258,054
82
Net increase/decrease
short term borrow
Net cash generated from financing activitiy
Decrease/increase in cash & cash equivalent
Cash & cash equivalent at the opening
Cash & cash equivalent at the closing
240,805,788
(131,700,637)
150,742,087
152,535,715
428,563,230
581,098,945
(395,234,653)
(61,775,479)
(386,623,751)
(495,400,0350
581,098,945
85,698,910
554,083,900
(57,369,278)
287,604,184
(12,051,182)
85,698,910
73,647,728
(10,339,873)
(127,399,591)
3,916,728,787
984,785,846
73,647,728
1,058,433,574
188,634,698
(153,750,000)
51,922,927
413,014,862
1,058,433,574
1,471,448,436
83
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Edition, Thomson South Western, pp.75-98.
Chowdhury, T A and Ahmed, K (2009). “Performance Evaluation of Selected
Pharmaceuticals company in Bangladesh”, International Journal of Business and
Management, Vol.4 No-4, April, pp.86-97
Mansur, I., Zangeneh, H., & Zitz, M. S. H. (1993). “The Association of Pharmaceuticals
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Vol. 25, pp. 1503-1510.
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Ray H. Garrison, Eric W. Nooren, Peter C. Brewer (2002). Managerial accounting 9th Edition,
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www.square pharma.com.bd
www.renata pharma.com.bd
www.beximco pharma.com.bd
www.ibn sina pharma.com.bd
http://www.google.com/
http://www.answers.com/
Investopedia.com
Annual report of Square Pharma (2006-2007)
Annual report of Square Pharma (2007-2008)
Annual report of Square Pharma (2008-2009)
Annual report of Square Pharma (2009-2010)
Annual report of Beximco Pharma(2006-2007)
Annual report of Beximco Pharma (2007-2008)
Annual report of Beximco Pharma (2008-2009)
Annual report of Beximco Pharma (2009-2010)
84
Annual report of Renata pharma (2006-2007)
Annual report of Renata Pharma (2007-2008)
Annual report of Renata Pharma (2008-2009)
Annual report of Renata Pharama (2009-2010)
Annual report of Ibn Sina Pharma (2006-2007)
Annual report of Ibn Sina Pharma (2007-2008)
Annual report of Ibn Sina Pharma (2008-2009)
Annual report of Ibn Sina Pharma (2009-2010)
85