Premium Essay

Financial Statement Analysis of Square Pharma

In:

Submitted By newtamjid
Words 1445
Pages 6
INTRODUCTION: Objectives of the Report:
1. To know the current financial performance of the two companies.
2. To know the future prospect of the companies.
3. To compare the financial position of the two companies. Scope of the report:
1. Studying the pros and cons of the financial statements of a company, it is possible to predict the probable future growth of a company Methodology: Data were collected from Annual Reports of Square Pharmaceuticals Ltd. and Renata Pharmaceuticals Ltd. from the year 2003 to 2008. Three types of financial tools were used to analyze the data which are:
1. Horizontal Analysis
2. Vertical Analysis and
3. Ratio Analysis. LITERATURE REVIEW: Financial Analysis: The art of transforming data from financial statements into information that is useful for informed decision making is financial analysis. Financial analysis involves the use of various financial statements. These statements do several things. First the balance sheet summarizes the assets, liabilities and owners’ equity of a business at a moment in time usually the end of a year or a quarter. Next the income statement summarizes the revenue and expenses of the firm over a particular period of time, again usually a year or a quarter. Need for Comparative Analysis: Every item reported in a financial statement has significance. We know a company had a certain amount of cash on the balance sheet but we do not know whether the amount represents an increase over prior year or whether it is adequate in relation to the company’s need for cash. To obtain such information, we need to compare the amount of cash with other financial statements data. Comparison can be made on a number of different bases:
1. Intracompany Basis: This basis compares an item or financial relationship within a company in the current year with the same item or relationship in one or more

Similar Documents

Premium Essay

Final Ratio Analysis

...are to fulfill the partial obligation for the course of “Corporate Finance”. Since, it‟s compulsory for all the groups of students of 2nd batch of Department of Finance & Banking, Jahangirnagar University to understand the current practice of Corporate Finance theories to explore real life business situation. Here we have worked on the analysis of seven different business organizations which are listed in stock market. This analysis helps us to have better understand about the companies and about their financial condition which as well as gives us better knowledge about the course Corporate Finance. 1.2. Background and relevance of the research: Here we have worked one the seven different top business organization and make a comparative financial analysis of those business firms as a course work of “Corporate Finance”. Through the research we have found a better knowledge of the course and have a better understanding the condition of those firms. 1.3. Objectives of the research The primary objective of writing the report is fulfilling the partial requirements of the BBA program. In this report, I‟ve attempted to give an overview of financial condition of the seven different business organizations in general. Some following objectives of the report are as shown: Page | 1  To...

Words: 15612 - Pages: 63

Premium Essay

Term Paper on Square Pharmaceutical Bd

...oriented. Strategies have multifunctional and multidivisional consequences and required consideration of both the external and internal factors facing the firm. Most Strategic Management Model There are several Strategic Models are available and used in different organizations but following are the most used strategic models: 1. PEST analysis 2. STEER Analysis 3. Five Forces Model 4. Strategic Group Map 5. SWOT analysis 6. Blue Ocean Strategies 7. Open innovation 8. McKinsey seven S model Company Detailed Profile including mission & vision and Organogram Company Detail Profile Square pharmaceutical is now the most leading company in Bangladesh since 1985 and is now on its way to becoming a high performance global player. Today it has achieved a state of mind among consumers. This company has founded in 1958 and since then with hard work and dedication among employees and top management, it has reached the position where every pharmaceutical company wants to reach.  Square went public in 1991 and is currently listed on the Dhaka Stock Exchange and Chittagong Stock Exchange. Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership...

Words: 5122 - Pages: 21

Premium Essay

Valuation of Ambee Pharmaceuticals Limited, Bangladesh

...601 Course - TERM PAPER Financial Statement Analysis & Valuation AMBEE PharmaceuticalsLtd. ENTERPRISE VALUATION & ANALYSIS OF BUSINESS AMBEE Pharmaceuticals Limited T able of Contents Chapter - 01 Chapter - 02 Chapter - 03 Chapter - 04 Chapter - 05 About the Company Strategy Analysis Valuation Conclusion Annexure ………………………… ………………………… ………………………… ………………………… 01 03 11 21 A M B E E P H A R M A : V A L U A T I O N 1 Chapter About the Company The company’s operation & historical performances were moderate and they were not leading the market from their inception A MBEE PHARMACEUTICALS LTD., was established in 1976 in Bangladesh. This public limited company was registered under the companies Act, 1913 and was incorporated in Bangladesh on 4th February 1976. Ambee has a joint venture with a famous multinational company Medimpex of Hungary. Ambee started its operation with modest 17 joint ventured products and is now running in full swing with 76 products. They have Tablets, Capsules, Liquids, and Gel in tubes and Injectables. Its operational area covers all over Bangladesh with a large number of field forces who strive hard to establish the demand of products of the company in every corner of the country. The company maintains four outside Depots located at Khulna, Bogra, Chittagong and Sylhet besides its National Distribution Cell in Dhaka. When Ambee Pharmaceutical Ltd.(APL) was launched back in Feb’ 1976, Ambee had only 30 field forces...

Words: 5420 - Pages: 22

Premium Essay

A Study on Pharmaceutical Industry of Bangladesh from the Perspective of Corporate Finance ( Company Under Research: Beximco Pharmaceuticals Ltd & Square Pharmaceuticals Ltd)

...FINANCE ( Company under research: Beximco Pharmaceuticals Ltd & Square Pharmaceuticals Ltd) Course Title : Corporate Finance (PF 604) Submitted to Professor Shabbir Ahamad Department of Finance University of Dhaka Prepared by- Haroon Islam (ID: Fin -01- 15-001) Md. Syedur Rahman( ID: Fin-01-15-027) Md. Abdur Rahman Babu(ID: Fin -01- 15-036) Farzina Sulvia (ID: Fin -01- 15-054) MPF Program, Department of Finance University of Dhaka Date: 03 June 2016 Table of Contents Chapter 01: Introduction 5 1.1 Introduction 5 1.2 Objective 5 1.3 Methodology 5 1.4 Limitation 5 Chapter 02: Brief Company Overview 6 2.1. Beximco Pharmaceuticals Ltd 6 2.2. Square Pharmaceuticals Ltd 7 Chapter 03: Capital Structure 8 3.1. What is a 'Capital Structure' 8 3.2. BREAKING DOWN 'Capital Structure' 8 3.3. Corporate Finance - Factors that Influence a Company's Capital-Structure Decision 8 3.4. Study on the Debt Equity Ratio Analysis 10 3.5. Observation: 11 Chapter 04: Dividend Policy & Dividend Payout 13 4.1. Dividend theories 13 4.2. Dividend Policy: 14 4.3. Dividend Policy of Beximco & Squar Pharma 15 4.4. Dividend Payout Ratio: 16 4.5. Analysis on Dividend Payout Ratio and its impact on average share price in the long run 19 Chapter 05: Effect of Dividend Declaration & Dividend Payment on Share price 20 5.1. Beximco Pharmaceuticals Ltd 20 5.2. Square Pharmaceuticals Ltd 22 Chapter 06: Merger 24 6.1. The Main...

Words: 7998 - Pages: 32

Premium Essay

Beximco Ltd

...PREPARED FOR: MS. JAFRIN SULTANA ASSISTANT PROFESSOR DEPARTMENT F BUSINESS ADMINISTRATION DHAKA CITY COLLEGE PREPARED BY: Group members: CODE NO | NAME | 206 | Nur Tamanna | 210 | Shahana Akter | 214 | Mohsana Ankhi | 220 | Farzana Arshi | 238 | | BACHELOR OF BUSINESS ADMINISTRATION BATCH-9, SECTION-D SESSION: 2006-07 7TH SEMESTER DHAKA CITY COLLEGE DATE OF SUBMISSION: August, 23, 2011 LETTER OF TRANSMITTAL August 23, 2011 Ms.Jafrin Sultana Assistant professor Department Of Business Administration Dhaka City College Dhaka-1205 Subject: Submission of Report on “Beximco Pharmaceutical Limited”. Dear Sir, We have been recommended to prepare a report on “Beximco Pharmaceutical Limited” that was assigned by the Department of Business Administration of Dhaka city College on June,2011.we are highly grateful for providing us such an opportunity to study & submit the report. This report helps us to know about the service sector in Bangladesh and the various problems and potentiality of this sector. Through this process we have tried to obtain a clear knowledge and accurate information about the pharmaceutical industry. We hope that it will help us to build up Business Leader in future and proper knowledge in our academic life. We are thanking you for your kind consideration & proper guidance to prepare this report. Sincerely, Group: Batch-9; Section-D Department of Business Administration Dhaka City College Dhaka. Nur Tamanna ...

Words: 10833 - Pages: 44

Premium Essay

Integrated Reporting

...Abstract Businesses today face heightened expectations around their role in society and the world, with turning a profit only one of many criteria by which performance is measured. Rising in importance is the impact a company has on its stakeholders, society, and even the planet. Integrated reporting, which encompasses elements of traditional financial reporting, sustainability reporting, and governance reporting within a single presentation, represents a growing trend that reflects these new expectations. The core concept underlying the term “integrated reporting” is providing one report that fully integrates a company’s financial and non-financial (including environmental, social, governance and intangibles) information. Integrated reporting offers the opportunity to centre business reporting on strategy and value creation, to demonstrate how the business uses capital and the extent to which they should continue to be invested in business. Integrated reporting is a journey. Organizations are unlikely to achieve perfection in the first year. In the absence of a generally accepted framework, companies that wish to move toward integrated reporting may encounter several dilemmas around relevance, scope, assurance and other issues. However, as reporting processes for the production of the supporting information are designed and improved and as the executive team begins to benefit from a more informed implementation of the governing structures’ decision, reporting will improve...

Words: 14827 - Pages: 60

Premium Essay

Employee Turnover and Organization Productivity in the Context of Pharmaceuticals Industry

...EAST WEST UNIVERSITY Employee Turnover and organization Productivity in the context of Pharmaceuticals industry Organization Behavior (MGT 251) 7/20/2014 The document is on Employee turnover and organizational productivity of Square Pharmaceuticals, discussing various condition of employee turnover rate and the effect of that on the productivity level.   An Assignment on Employee turnover and organizational productivity in the context of pharmaceutical industry. Course Code: MGT-251 Course Title: Organizational Behavior Section: 3 Submitted by Glen Archan Karmakar 2012-2-10-061 Asif Zubair 2012-2-10-066 Sazzad Ahmed 2011-3-10-048 Clinton Peter Gomes 2012-2-10-062 Abdul Momen Noman 2012-1-10-112 Sabbir Newaz 2010-1-10-267 Submitted to Rumana Afroz (RUA) Senior Lecturer Department of Business Administration Date of submission July 20, 2014 Rumana Afroz (RUA) Senior Lecturer Department of Business Administration Subject: Submission of the Report on “Employee turnover and organizational productivityin the context of pharmaceutical industry”. Dear Madam, Here is the report on the observational study of employee turnover in the context of pharmaceutical industry that you asked us to conduct in July, 2014. While preparing the term paper, we have tried our best to privide all the necessary information that will give a vivid scenario of our work on the topic mentioned above. We have gathered all...

Words: 5071 - Pages: 21

Premium Essay

Financial Performance Evaluation

...Financial Performance Evolution on “Square Pharmaceuticals Ltd” At first we want to express our great gratitude to our honorable Teacher to give us such a good topic for making a assignment. He gave us his helpful hand to do this assignment. His class lecture & advice help us to prepare our assignment very much which was very fruitful to us. So we are grateful to him. At the very beginning, a special note of acknowledgement is due to our course teacher, Mr. X, for giving us the permission to prepare the report on this topic. He was very generous and friendly toward us while conducting the course and was the person who has guided us throughout preparing the report. His teaching method was really effective and interesting. We would like to thank all mighty Allah for keeping everything on right track. Finally, we would like to thank our parents and friends without whose support it was impossible for us to complete the project. Executive Summary As escalating pharmaceutical expenditures draw increased scrutiny from policy makers, the media, and consumer advocacy groups, the debate over pharmaceutical price controls is emerging as a key political issue. Notably absent is the consideration and investigation of the impact of market-based pricing patterns in the Bangladesh on bio-pharmaceutical innovation and related economic contributions. The report is designed to bridge the gulf between the theoretical knowledge & real life. It is designed to have a practical experience...

Words: 3464 - Pages: 14

Premium Essay

Financial Ratio Analysis of Square Pharma & Beximco Pharma

...|Financial Ratio Analysis | | | |Performing Year: 2008 & 2009 | | | | Beximco Pharmaceuticals ltd. & Square Pharmaceuticals ltd. Submitted by Group Name: Peace Messengers • Islam Mohammad Samiul (09-14649-3) • Hamid Faisal (09- 15037 -3) Course Name: Financial Management Section: H AIUB Letter of Transmittal 01/03/2011 Mrs. Farzana Islam Honorable Faculty A.I.U.B. Dear Madam, It gives us immense pleasure to submit a report on “Financial Ratio Analysis”. This report is submitted as a partial fulfillment/ as a part of our course “Financial Management ”. We have choose two renowned pharmaceuticals companies of the country who are “Beximco Pharmaceuticals Ltd.” and “Square Pharmaceuticals Ltd.”The preparation of the report has given us in-depth knowledge on “Financial Ratio Analysis”. We have given our best effort to make it a worthy one and each aspect of the problem is considered and studied as required. If any confusion arises or further explanation is needed, we shall be available to explain the matter to you as and when required despite having limitations. Your compassionate and authoritative...

Words: 2113 - Pages: 9

Premium Essay

Report

...Performance analysis of working capital management of “pharmaceuticals industry” 1. 1. Performance Analysis of Working Capital Management of “Pharmaceuticals Industry” Page 1 of 166 2. 2. A Term Paper on Performance Analysis of Working Capital Management of “Pharmaceuticals Industry” Submitted To: Khairul Alom Course Teacher School of Business Studies Southeast University Submitted By: Name Md. Fayshal Hossan Miazy ID No 2009110000038 Mubashir Hossain 2009010000050 (21st) Md. Ahadul Islam 2009110000049 Md. Robiul Islam 2009110000066 Md. Shaheen 2009110000069 BBA.22nd. Batch. Major: Finance-A Southeast University Date of Submission: 27 August, 2012 Page 2 of 166 3. 3. Acknowledgement At first, we thank to almighty Allah who made us capable to prepare this proposal. Secondly would like to thank my honorable advisor Khairul Alom and course teacher of Southeast University, School of Business for providing proper guidance and help to complete the term paper. We are also grateful to the DSE library that’s helped me to collect the information. At last we want to thank my group members for their co- operation and making this possible to submit this term paper on time. Page 3 of 166 4. 4. Dedication Dedicate to our respected “Parents” And Our honorable course teacher “Khairul Alom” Page 4 of 166 5. 5. Letter of Transmittal 27 August, 2012 To, Khairul Alom Course Teacher School Of Business Studies Southeast University Subject: Submission of term paper on Performance...

Words: 17631 - Pages: 71

Premium Essay

Ratio Analysis

...Beximco Pharmaceuticals Ltd. (Ratio Analysis) 2009-2010 The overall purpose of financial statement analysis is to known a company’s performance to that of other in its industry. Financial ratio should be examined relative to the economy the companies industry, the companies’ main competitor and the companies past relative ratios. The specific ratios can be divided into 4 categories, depending on the purpose of the analysis: A. Profitability Ratios. B. Asset Utilization Ratios. C. Liquidity Ratios. D. Debt Utilization Ratios. E. Market Value Ratios. A. Profitability Ratios Net Income (i) Profit Margin = ------------------- X 100 Sales 1051648808 In the year 2010, The Profit Margin = ------------------- X 100 = 16.20% 6490847353 624740307 In the year 2009, The Profit Margin = ------------------ X 100 = 12.83% 4868254915 Analysis : Here, 2010 Annual year profit margin is higher than 2009 Annual year indicating that 2009 Annual year sales are too low. According to debt ratio 2009 year has a great proportion of debt than the 2010 year & the times interest earned ratio shows the 2009 year interest payments on its debt are not covered as well as the rest of 2010 Annual year. This is one of the reason that 2009 annual year profit margin...

Words: 1277 - Pages: 6

Premium Essay

Ratio Analysis

...Introduction 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.Ratio analysis expresses the relationship among selected items of financial statement data. A ratio expresses the mathematical relationship between one quantity and another. Objectives of the study The study is designed to achieve the following objectives: (i) To test the financial strengths and weaknesses of company. (ii) To pinpoint the causes of poor financial performance and suggest some measures to overcome the problems. Methodology of the study Here we are using Ratio analysis method. For analysis of the primary financial statements, ratios can be used to evaluate liquidity, profitability and solvency. Company Profile Square Pharmaceuticals Ltd. is a renowned company in Bangladesh. It is a flagship company in the pharmaceutical industry which has reached this mountain of success by fighting many potential competitors like BEXIMCO Pharma, INCEPTA, ACME, RENETA, OPSONIN, SK+F, SANOFI-AVENTIS etc. It initially started as a Partnership in 1958. It was incorporated as a Private Ltd. Company in 1964 and converted into Public Limited Company in 1991. Its initial public offering started in Dhaka and Chittagong stock exchange simultaneously in 1995. Their mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently...

Words: 1729 - Pages: 7

Premium Essay

Square Group

...Summary SQUARE today symbolizes a name – a state of mind. But its journey to the growth and prosperity has been no bed of roses. From the inception in 1958, it has today burgeoned into one of the top line conglomerates in Bangladesh. Square Pharmaceuticals Ltd., the flagship company, is holding the strong leadership position in the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming a high performance global player. SQUARE today is more than just an organization, it is an institute. In a career spanning across four and half decades it has pioneered the development of the local business in fields as diverse as Pharmaceuticals, Toiletries, Garments, Textile, Information Technology, Health Products, Food Products, Hospital, etc. With an average Annual turnover of over US$ 200 million and a workforce of about 3500 the SQUARE Group is a true icon of the Bangladesh business sector. Vision satement We view business as a means to the material and social wellbeing of the investors, employees and the society at large, leading to accretion of wealth through financial and moral gains as a part of the process of the human civilization. Mission statement Our Mission is to produce and provide quality & innovative healthcare relief for people, maintain stringently ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large. Chapter B: Company Profile History of Square Group ...

Words: 5298 - Pages: 22

Premium Essay

A Report on Working Capital Management

...Educarnival PediaAssignment, Internship Report, Term Paper • Home • Popular Post • Rules and Regulations • Educarnival Home Top of Form [pic][pic] Bottom of Form INVENTORY MANAGEMENT OF BEXIMCO PHARMACEUTICALS LIMITED August 14, 2012 | Author: shuktara | Posted in Technology and Operations Management • 0.00 / 5 5 • 1 / 5 • 2 / 5 • 3 / 5 • 4 / 5 • 5 / 5 0 votes, 0.00 avg. rating (0% score) |Table of Contents | |1 Chapter 1 | |1.1 Origin of the Report | |1.2 Background of the Report | |1.3 Scope of the Study | |1.4 Objectives of the Study | |1.5 Methodology of the Study | |1...

Words: 10543 - Pages: 43

Premium Essay

Financial Ratio Analysis of Square Pharmaceuticals Limited

...Electronic copy available at: http://ssrn.com/abstract=2065057 Financial Ratio Analysis of Square Pharmaceuticals Limited Asif Ahmed ACA Trainee Accountants KPMG in Bangladesh Rahman Rahman Huq Chartered Accountants 9 Mohakhali C/A Dhaka – 1212. ACA Student The Institute of Chartered Accountants (ICAB) CA Bhaban, Kazi Nazrul Islam Avenue Dhaka, Bangladesh Contact E-mail: asif.ahmed0001@yahoo.com Electronic copy available at: http://ssrn.com/abstract=2065057 Financial Ratio Analysis of Square Pharmaceuticals Limited 2 of 24 TABLE OF CONTENTS Page No. Executive Summary 3 Chapter 1 Introduction 4 - 6 1. Introduction 4 2. Objectives of Study 4 3. Scope of Study 5 4. Methodology of Analysis 5 5. Limitations or Problem Statement 6 Chapter 2 Key Financial Highlights 7 - 11 2.1. Overview of the Organization 7 2.2. Key Financial Highlights 7 Chapter 3 Ratio Analysis 12 - 19 3.1. Liquidity Ratio Analysis; 12 3.2. Asset Management Ratio Analysis; 13 3.3. Debt Management Ratio Analysis; 15 3.4. Profitability Ratio Analysis; and 16 3.5. Market Value Ratio Analysis. 17 Conclusion 20 Recommendations 21 Bibliography 22 Annexure 23 Financial Ratio Analysis of Square Pharmaceuticals Limited 3 of 24 EXECUTIVE SUMMARY This paper is mainly an analytical outcome of financial ratio analysis of Square Pharmaceuticals Limited and pharmaceuticals industry. Eleven (11) ratios are selected to judged the various aspects of efficiency of the company, including –...

Words: 4143 - Pages: 17