BACKGROUND OF THE COMPANY
GSK is the world’s largest pharmaceutical company. It has a 7% share of the global pharmaceutical market, 26% of all vaccine sales, and 17% of all anti-invectives. It was formed with the merger of two top pharmaceutical companies, Glaxo Wellcome Plc and SmithKline Beecham Plc in December 2000. “GSK’s history dates back to 1715, when Plough Court pharmacy, a predecessor to SmithKline Beecham, was opened in London. Glaxo Laboratories Limited (the predecessor to Glaxo Wellcome) was set up in 1929, with director Alec Nathan”. (www.referenceforbusiness.com/history2/.../GlaxoSmithKline-plc.htm). Glaxo’s Motto is ‘committed to improving the quality of life.’
GSK is in the industry area of prescription medicines, vaccines and other consumer health products. Amongst their popular products are Antibiotics, Antidepressants, gastrointestinal, dermatological, respiratory, cancer drugs, dermatological medications, Health drinks (Lucozade, Ribena, and Horlicks), toothpaste (Aqua Fresh), etc. The company is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
CALCULATION OF KEY RATIOS
TABLE OF FINANCIAL INDICES FOR CALCULATION OF KEY RATIOS
2 Current Assets17,57017,269
6Long term liabilities20,00221,058
10Gross profit before tax8,4257,141
11Net profit before tax7,8916,659
12Profit after tax5,6694,712
13Equity share capital1,4161,415
17Earnings per share1.93dollars2.01dollars
18Market share price43dollars48dollars
Source: Based on data from GSK Annual Reports and Accounts Return on Sales...