Introduction 1.1 Background of the Study:
Financial performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. This term is also used as a general measure of a firm's overall financial health over a given period of time, and can be used to compare similar firms across the same industry or to compare industries or sectors in aggregation. There are many different ways to measure financial performance, but all measures should be taken in aggregation. Line items such as revenue from operations, operating income or cash flow from operations can be used, as well as total unit sales. Furthermore, the analyst or investor may wish to look deeper into financial statements and seek out margin growth rates or any declining debt. The main objective of financial analysis is to know company or industry’s financial status, its debt, revenue, expenditure, equity, share price, segmental revenue expenditures etc. With Financial analysis we can know the present company or industry sector status and we can expect its future. Financial performance analysis is the process of identifying the financial strengths and weaknesses of the firm by properly establishing the relationship between the items of balance sheet and profit and loss account. It also helps in short-term and long term forecasting and growth can be identified with the help of financial performance analysis. Financial analysis determines a company's health and stability. The data gives you an intuitive understanding of how the company conducts business. Stockholders can find out how management employs resources and whether they use them properly. Governments and regulatory authorities use financial statements to determine the legality of a company's fiscal decisions and whether the firm is following correct accounting procedures. Finally, government agencies, such as the Internal Revenue Service, use financial statement analysis to decide the correct taxation for the company.
1.2 Problem Statement:
The competition in pharmaceutical industry is increasing rapidly; firms of the industry are constantly looking for scope to extend their operations and performance appraisal to the market. Therefore every firm requires finding out untapped market space for growth .in addition in these liquidity crunch times it is crucial for pharmaceutical industry to be able to perform in an efficient and effective manner. Besides the management pursues available information about financial position of the company to make further investment decision, in absence of proper and accurate information regarding company’s financial position, the management focus acute problem to make investment decision. Hence more attention to be given to the analysis and evaluation of the company’s financial performance. With the help of financial analysis it will be possible to recognize the positive attributes that may facilitate the company to bring about necessary change to enhance financial growth. Therefore the evaluation of financial performance of Beximco Pharmaceutical limited and the comparison of the firm with others in pharmaceutical industry are the main issues of this study. To identify the position of the firm by comparing with others will also be covered in this study. 1.3 Objectives of the study:
Objectives of this report will be as to the following:
To analyze financial performance of Beximco Pharmaceutical limited (BPL). To interpret financial statements & other techniques to measure its competitive position within the industry’s. 1.4 Methodology:
This study will be based on the secondary data of Beximco Pharmaceutical limited. Financial performance of Beximco Pharmaceutical limited (BPL) will be analyzed using financial ratios associating Horizontal and vertical analysis.. Sources of data:
Annual Report of Beximco Pharmaceutical limited...
References: Gitman, L. J. (2009), Principles of Managerial Finance, 12th Edition, Pearson, Singapore.
Foster,G (2011), Financial performance Analysis, 11th Edition, Pearson , Singapore
Annual Report of Beximco Pharmaceuticals limited (2009-13)
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