Financial Statement Analysis for Glaxosmithkline Bangladesh Limited

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List of Graphs [pic]

Figure 1: Analysis of Sales Revenue 20109

Figure 2: Analysis of Sales Revenue 201110

Figure 3: Analysis of Sales Revenue 201210

Figure 4: Current ratio16

Figure 5: Acid/Test Quick Ratio17

Figure 6: Profit margin Ratio18

Figure 7: Asset turnover19

Figure 8: return on asset19

Figure 9: Return on shareholders equity20

Figure 10: Earning per share (EPS)21

Figure 11: Price/Earning (P/E) ratio22

Figure 12: Price/Equity ratio22

Figure 13: Dividend per share (DPS)23

Figure 14: Debt to total asset ratio24

Figure 15: Net assets value per share25

Figure 16: Market price per share27

List of Tables[pic]

Table 1: Analysis of Sales Revenue10

Table 2: Shareholding Information11

Table 3: Shareholders equity17

Table 4: Financial Performance25

Table 5: Appropriation of Profit26

Executive Review[pic]

In the era of competition, to achieve the economic strength, a firm must run smoothly, effectively and efficiently. Adaptation of proper performance evolution criteria is an essential precondition for that. Proper performance measurement criteria can detect the strength and weakness of the firm. Moreover, with proper design of a plan, it is possible to reduce the weakness and to utilize the strength of the firm whose ultimate result is to achieve the economic goal. The financial analysis is the proper way to measure the actual performance and to detect the cause & effect of relationship related to performance measurement as well as to detect strength and weakness of the firm.

The main objective of this research project is to understand all four financial statements and see how they are used for practical purposes by different types of users. To achieve that objective we studied a world renowned corporation, annual report of GlaxoSmithKline Bangladesh Limited from 2010 to 2012.

Introduction[pic]

Every business organization goes through a complicated process to maintain records of their expenditure, revenues and other financial activities. This whole system of identifying, recording and communicating these economic events to the interested user are called Accounting. The most effective part of the Accounting system is the communication, depending on which managers can make their decision.

There are four basic types of documents which are used to communicate financial data to appropriate user, like managers, internal revenue and shareholders. That is why all joint-stock corporations publish a yearly report which provides all the relevant data to the investors.

The main objective of this project is to closely study the annual report of a world renowned corporation, identify the different financial statements and analyze those statements to decide as an investor should someone invest in that corporation or not. For this project we have decided to study GlaxoSmithKline Bangladesh Limited.

Company Profile[pic]

GlaxoSmithKline Bangladesh Limited is a subsidiary of GlaxoSmithKline plc, world’s leading research-based pharmaceutical company with a powerful combination of skills and resources that provides a platform for delivery strong growth in today’s rapidly changing healthcare environment. The principal activities of the Company are manufacturing and marketing of pharmaceutical, vaccines and healthcare products.

GlaxoSmithKline conducts the operational activities of Bangladesh as a principal with its own set-up of manufacturing, marketing and distribution. The company has started business in Bangladesh in 1949 at Chittagong by importing products Group companies. In 1999 it has completed 50 years of its operational activities providing various healthcare products in the pharmaceutical market in...
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