Financial Performance Analysis of Bexmico Phamaceuticals Bangladesh Limited

Topics: Financial ratios, Balance sheet, Financial ratio Pages: 27 (6829 words) Published: July 21, 2011

Background Information of Research Proposal on the Financial performance analysis of BEXIMCO Pharmaceuticals Limited

1.1 Introduction

It is important to evaluate the financial performance of a company. The purpose of financial performance analysis is to determine weather a company is performing well (information essential for investors) and if it is not then it is required to identify areas that require improvement (information required by managers). By evaluating a company's performance, it is possible to keep the company on track. If there are problems with performance, it is possible to make adjustments accordingly. Financial performance analysis can determine the future growth prospect.

This has the effect of building a stronger business over time. In order to ensure that a company is continuously performing well, it is important to conduct a company performance analysis. A company performance analysis will let you know if a company's performance is adequate or if there are opportunities for improvement.

There are several different types of company performance analysis tools. One of the common methods of analysis is gap analysis, which measures gaps between expected performance and actual performance. Here gap analysis will be used between actual performance (Performance of BEXIMCO Pharmaceuticals Limited) and expected performance (Performance of Pharmaceutical Industry).

1.2Objectives of the study

The main objectives of these studies are

To analyze the financial performance of BEXIMCO Pharmaceuticals Limited. To measure future growth and forecast the future prospect of the company. To analyze Regression of the company.
Other objectives are

To analyze the financial reports of peer group (other Pharmaceutical industries) to determine the industry standard. To compare between BPL and other Pharmaceutical industries. To analyze the industry of BEXIMCO Pharmaceuticals Limited. To evaluate the company by SWOT analysis.

1.3Scope of Work

The study will give us an insight about following aspect of BEXIMCO Pharmaceuticals Limited and its industry.

Financial ratios and other parameter of BEXIMCO Pharmaceuticals Limited. Financial ratios and other parameter of peer group (other Pharmaceutical industries). Comparison of between BPL and other Pharmaceutical industries. Estimating future growth or prospect of the company.

Regression analysis.
Industry analysis.
SWOT analysis.



2.1Methodology and Approach

The method of obtaining information is mainly secondary. Annual reports, published articles, prospectus, websites and journals will be used to find the required theoretical knowledge and to access the analysis.

2.1.1Variables to be Covered

Variables covered in the study will be selected based on the objectives of the study and the components of the Pharmaceutical industries. The variables will cover in the study along with the operational definitions of some key variables.

Internal Liquidity Ratios

Current Ratio, Quick Ratio, Cash Ratio, Inventory Turnover, Average Age of Inventory, Accounts Receivable Turnover, Average Collection Period.

Operating Efficiency Ratios

Fixed Asset Turnover, Current Asset Turnover, Total Asset Turnover.

Operating Profitability Ratios

Gross Profit Margin, Operating Profit Margin, Net Profit Margin, Return on Total Assets (ROA), Return on (Common) Equity (ROE).

Financial Risk/Leverage Ratios

Debt Ratio, Debt-Equity Ratio, Interest Coverage Ratio, Cash Flow Coverage Ratio, Earnings per Share (EPS).

2.1.2Source of Data

Major source of data is annual reports. Published articles, annual reports, prospectus, websites and journals can be used as other source of data.

2.1.3Quality Control

Most of the data is collected from annual report which is audited M. J. Abedin & Co. So, there is valid reason to consider the quality of this data. Moreover it...
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