ratio anlysis on beximco
Ratio Analysis
&
Time Series Analysis
Of
2.1 Ratio and time series analysis of Beximco Pharmaceutical
1. Inventory turnover:
A ratio showing how many times a company's inventory is sold and replaced over a period.
Formula:
Inventory Turnover =Cost of goods sold/Average Inventory.
The ratio and time series analysis of Inventory Turnover of Beximco Pharmaceutical from 2008-2012 is given below-
Interpretation:
The companies ratio increases from 2008 to 2010, then decreases in 2011 and then again increases from 2012.
2. TIE ratio:
Time interest earned ratio (TIE) also known as Interest coverage ratio, indicates how well a company can cover its interest payment on a pretext basis. The larger the time interest earned, the more capable the company is paying the interest on its debt.
Formula:
Earnings before interest and tax / Total interest
]
The ratio and time series analysis of TIE Ratio from 2008-2012 given below-
Interpretation:
The Ratio Increases from 2008 to 2012 to its highest level of 4.90 and then decreases in 2009 & 2010.Again ratio increase 2011. The ratio fluctuation is very high.
3. Gross Profit Margin:
A financial metric used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold.
Formula:
Gross Profit Margin=Gross Profit/Sales
Gross profit margin of Beximco Pharmaceutical from 2008-2012 is given below-
Interpretation:
The gross margin highest in2008 and decreases in 2009 but increase 2010 and then gradually decreases from 2011 to 2012.
4. Operating Profit Margin:
A ratio used to measure a company's pricing strategy and operating efficiency.
Formula:
Operating Profit Margin=Operating Profits/Net sales
Operating margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. A healthy
&
Time Series Analysis
Of
2.1 Ratio and time series analysis of Beximco Pharmaceutical
1. Inventory turnover:
A ratio showing how many times a company's inventory is sold and replaced over a period.
Formula:
Inventory Turnover =Cost of goods sold/Average Inventory.
The ratio and time series analysis of Inventory Turnover of Beximco Pharmaceutical from 2008-2012 is given below-
Interpretation:
The companies ratio increases from 2008 to 2010, then decreases in 2011 and then again increases from 2012.
2. TIE ratio:
Time interest earned ratio (TIE) also known as Interest coverage ratio, indicates how well a company can cover its interest payment on a pretext basis. The larger the time interest earned, the more capable the company is paying the interest on its debt.
Formula:
Earnings before interest and tax / Total interest
]
The ratio and time series analysis of TIE Ratio from 2008-2012 given below-
Interpretation:
The Ratio Increases from 2008 to 2012 to its highest level of 4.90 and then decreases in 2009 & 2010.Again ratio increase 2011. The ratio fluctuation is very high.
3. Gross Profit Margin:
A financial metric used to assess a firm's financial health by revealing the proportion of money left over from revenues after accounting for the cost of goods sold.
Formula:
Gross Profit Margin=Gross Profit/Sales
Gross profit margin of Beximco Pharmaceutical from 2008-2012 is given below-
Interpretation:
The gross margin highest in2008 and decreases in 2009 but increase 2010 and then gradually decreases from 2011 to 2012.
4. Operating Profit Margin:
A ratio used to measure a company's pricing strategy and operating efficiency.
Formula:
Operating Profit Margin=Operating Profits/Net sales
Operating margin is a measurement of what proportion of a company's revenue is left over after paying for variable costs of production such as wages, raw materials, etc. A healthy