Fin Term Paper

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WELCOME TO THE PRESENTATION

Accounting or accounting process of a person or of an organization has become very complex as it is being used more. But everything in this world is going on maintaining some rules, regulations or principles or guidelines. Accounting is not beyond this. Accounting has some specific principles Followed all over the world for preparing a financial statement & providing disclosures related to the financial statement. Ratio analysis is the important part of Financial Statement to provide relative measurement of different element or event related to investment and for various types of ratio analysis and some other activities. It helps investors to summarize the overall information about a particular company. Here, this paper is about Ratio Analysis based on the annual report of 2007, 2008, 2009, 2010 and 2011 of BEXIMCO PHARMACEUTICALS LTD.

The presentation is about the Analysis of the collected annual report of BEXIMCO PHARMACEUTICALS LTD. The contents of the term paper is the best possible information available thus preserving the confidentiality of the company’s policies and procedures. Only the factors affecting the interested parties and the problems faced by them are presented here.

BEXIMCO PHARMACEUTICALS
BEXIMCO PHARMACEUTICALS LTD is a leading edge pharmaceutical company based in Bangladesh and is acclaimed for its outstanding product quality, worldclass manufacturing facilities, product development capabilities and outstanding professional services. Beximco Pharma is the pioneer in pharmaceutical industry. Overseas Offices & Associates: Australia, Bhutan, Cambodia, Chile, Ghana, Hong Kong, Indonesia, Jordan, Kenya, Kuwait, Malaysia, Myanmar, Nepal, Pakistan, Philippines, Saudi Arabia, Singapore, Sri Lanka, Vietnam and Yemen Details Year of Establishment Commercial Production Status Years 1976 1980 Public Limited Company

ANALYSIS OF THE RATIOS

LIQUIDITY RATIOS

Type of Ratio Current Ratio

2011 2.699406

2010 2.463702

2009 2.979489

2008 1.099868

2007 1.795961

Quick Ratio
Cash Ratio Receivables turnover

1.833958
0.195897 8

1.674332
0.585498 8

2.237301
0.455936 7

0.521363
0.028304 7

0.892904
0.052641 14

Liquidity ratios provide information about a company’s ability to meet its short term, immediate obligations. From the above data we can see that the liquidity ratios of the company are quite different from the previous three years’ liquidity ratios. So, The present ratio is satisfactory.

PROFITABILITY RATIOS

Type of Ratio
Gross Profit Ratio

2011
0.479900

2010

2009

2008

2007

0.488874 0.472869 0.500551 0.453017

Net Profit Ratio

0.212648

0.209762 0.178189 0.178078 0.111113

Return on asset Return on Common Stockholder’s Equity Earnings Per Share (EPS)

0.0728443 0.0637052 0.043609 0.048187 0.033436 0.1013738 0.1013807 0.081315 0.076372 0.09688 4.76 4.18 4.13 3.69 3.08

Profitability ratio provides information about how the company is profitable in terms of its sales revenues. In the above table and diagram we can see the profitability of the company has increased in terms of the previous years’ profitability. The net profit ratio of the company is about 42% of its gross profit ratio. That means, about 58% of the company’s gross profit is its operating expenses. It represents a huge portion of its gross profit.

ACTIVITY RATIOS

Type of Ratio

2011

2010

2009

2008

2007

Inventory Turnover

1.790570

1.672359

1.489423

1.330557

1.338303

Total Asset Turnover

0.342557

0.303702

0.244735

0.270598

0.30092

Fixed Asset Turnover

0.496714

0.429195

0.375446

0.336393

0.399983

Activity ratios are the measure of how well a company uses its assets. In the above chart we can see that inventory and fixed asset turnover have a consistent increase over the last few years. The total asset turnover has turned up dramatically in 2010 & 2011....
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