Analyzing financial statements involves evaluating three characteristics: a company’s liquidity, profitability and solvency. A short-term creditor such as a bank is primarily interested in liquidity – the borrower to pay obligations when they come due. A long-term creditor, such as a bondholder, looks to profitability and solvency measures that indicate the company’s ability to survive over a long period of time. Similarly, stockholders look at the profitability and solvency of the company and want to assess the likelihood of dividends and the growth potential of the stock.
Three commonly used tools for financial statement analysis are: * Horizontal analysis evaluates a series of financial statement data over a period of time. * Vertical analysis evaluates financial statement data by expressing such item in a financial statement as a percentage of a base amount. * Ratio analysis expresses the relationship among selected items of financial statement data.
Operating Result analysis:
| 2011| 2010| Change in amount| Change in %|
Net Sale| 7,890,241,843| 6,490,847,353| 1,399,394,490| 22%| Cost of Goods Sold| 4,103,709,021| 3,317,640,254| 786,068,767| 24%| Gross Profit| 3,786,532,822| 3,173,207,099| 613,325,723| 19%| Operating Expenses :| 1,798,053,124| 1,537,426,907| 260,626,217| 17%| Administrative Expenses| 275,201,846| 233,413,980| 41,787,866| 18%| Selling, Marketing and Distribution Expenses| 1,522,851,278| 1,304,012,927| 218,838,351| 17%| Operating Income| 1,988,479,698| 1,635,780,192| 352,699,506| 22%| Other Income| 340,907,774| 456,011,134| -115,103,360| -25%| Finance Cost| 567,645,757| 662,182,384| -94,536,627| -14%| Profit Before Contribution to WPPF| 1,761,741,715| 1,429,608,942| 332,132,773| 23%| Contribution to Workers' Profit Participation/Welfare Funds| 83,892,463| 68,076,616| 15,815,847| 23%| Profit Before Tax| 1,677,849,252| 1,361,532,326| 316,316,926| 23%| Income Tax Expenses| 479,323,910| 309,883,518| 169,440,392| 55%| Current Tax| 207,549,905| 71,085,835| 136,464,070| 192%| Deferred Tax Expense| 271,774,005| 238,797,683| 32,976,322| 14%| Net Income| 1,198,525,342| 1,051,648,808| 146,876,534| 14%|
Beximco Pharmaceuticals Limited (BPL) net sale increases at 22% from 2010 to 2011.In 2011 the net sale is tk 7890241843 which is higher than the previous year. Here their gross profit increase at 19% and for that their cost of goods sold increases at 24% in 2011.BPL increases their operating expenses at 17%,the expense more in administrative expense here that is 18%. BPL operating income increases at 22% in 2011. Other income decrease at 25% as well as they decreases their finance cost also that is 14% from the previous year so their Profit before Contribution to WPPF increases at 23%. Net income increases 14% in 2011. It indicates that company is at growing position. According to post balance sheet highlights,
* launched 10 new products during the first quarter of 2012 * Sterile ophthalmic facility was accredited by Therapeutic Goods Administration (TGA) Australia * Received approval from MCC, South Africa for metered dose inhalers * Formal shut down of the chlorofluorocarbon (CFC) based MDI plant in the presence of Health Minister of Bangladesh and high profile representatives from UNDP and UNEP * Director General of World Trade Organization (WTO) Pascal Lamy visited our state-of-the-art manufacturing facilities and expressed high satisfaction over the operations * Launched 9 new products in overseas markets
Research & Development (R&D) and New Product
In formulation R&D, it focuses principally on developing new formulations, predominantly through reverse...