Financial Statement Analysis of Square Pharmaceuticals Ltd

Topics: Balance sheet, Generally Accepted Accounting Principles, Financial ratio Pages: 17 (1824 words) Published: December 5, 2013

University of Dhaka
Faculty of Business Studies
Department of Finance

Course Title: Financial Accounting and Reporting
Course Code: F – 504

Submitted By:
Sifat Monjur Shamrat
Roll: 24040

Submitted To:
Samia Sultana Tani
Assistant Professor
Department of Finance
Faculty of Business Studies
University of Dhaka

Date of Submission:
Sunday, August 18, 2013

August 18, 2013
Samia Sultana Tani
Assistant Professor
Department of Finance
Faculty of Business Studies
University of Dhaka

Sub: Financial ration analysis from financial statement of a company.

Dear Madam,
I am pleased to submit the Term paper that you have assigned. My assignment was on “Ratio Analysis from financial statement of a reputed company”. I hope and believe that you will be kind enough to consider any types of mistakes that occurred at the time of preparing this proposal. Thank you.

Yours sincerely,
Sifat Monjur Shamrat
Roll : 24040

Executive Summary
A few comments on the organization and content of the report may be helpful to reader. In doing so, we realize that some topics may be more important to some reader then to other. For that reason we some advanced material (e.g. questionnaires) appears in appendices. Our goal is to help the reader who must compare financial position of these two companies.

First we focused on the essential element of this report. We have included here the introduction of this report, objectives of the report, findings, methodology, so that the reader can get ideas easily.

The second part is very important from the sense of this report. Here we have given our recommendation of the report. We have tried out level best to give the commendation neutrally. It also contains the conclusion of this report.

Objective of the Report
Limitation of the Study
Summary and Conclusion

Financial Statement includes the Balance Sheet, Income statement and other statement which determine the company’s performance. Financial ratio analysis is the calculation and comparison of ratios which are derived from information in company’s financial statements. Financial ratios are the analyst’s microscope. It allowed them to get a better view of the firm’s financial health than just looking at the raw financial statements. Objective of the Report

This term paper is prepared under submitted as a major requirement of the Financial Accounting Course. Financial Accounting provides the facts needed to make informed economic as well as operational control.

Limitation of the Study
 Limitation of the study is about:
a)      Based on only secondary source of data
b)      Time bound restrict me for further research on the topic c)      There is not possible to analyze every ratio of the financial statement

Financial Ratio: Financial ratios are useful indicators of a firm’s performance and financial situation. Financial ratios can be used to analyze trends and to compare the firm’s financials to those of other firms. Current Ratio

Current ratio is the ratio of current assets of a business to its current liabilities. It is the most widely used test of liquidity of a business and measures the ability of a business to repay its debts over the period of next 12 months. Current ratio is calculated using the following formula:

Current Ratio =
Current Assets

Current Liabilities
Receivables Turnover Ratio
An accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets. Receivables turnover ratio = Net receivable sales/ Average accounts receivables Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a...

References: 1. Essentials of financial accounting By Kermit D. Larson
2. Square Pharmaceuticals Ltd.
a. Annual Report 2008-2009
b. Annual Report 2008-2009
c. Annual Report 2008-2009
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