...|FINANCIAL STATEMENT ANALYSIS | Analyzing financial statements involves evaluating three characteristics: a company’s liquidity, profitability and solvency. A short-term creditor such as a bank is primarily interested in liquidity – the borrower to pay obligations when they come due. A long-term creditor, such as a bondholder, looks to profitability and solvency measures that indicate the company’s ability to survive over a long period of time. Similarly, stockholders look at the profitability and solvency of the company and want to assess the likelihood of dividends and the growth potential of the stock. Three commonly used tools for financial statement analysis are: i. Horizontal analysis evaluates a series of financial statement data over a period of time. ii. Vertical analysis evaluates financial statement data by expressing such item in a financial statement as a percentage of a base amount. iii. Ratio analysis expresses the relationship among selected items of financial statement data. BRIEF HISTORY OF SQUARE PHARMACEUTICALS LTD. 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...
Words: 3064 - Pages: 13
...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...
Words: 1445 - Pages: 6
...Performance evaluation and ratio analysis of Pharmaceutical Company in Bangladesh Faruk Hossan Md Ahsan Habib Supervisor: José Ferraz Nunes Examiner: Bengt Kjellén Master‟s thesis in international Business 15 ECTS Department of Economic and Informatics University West Spring term 2010 0 ABSTRACT The thesis applies performance evaluation of pharmaceutical company in Bangladesh. It means evaluate how well the company performs. The main aim is achieved through ratio analysis of two pharmaceutical (Beximco and Square pharmaceutical) companies in Bangladesh. The main data collection from the annual financial reports on Beximco and square pharmaceutical companies in 2007 to 2008.Different financial ratio are evaluated such liquidity ratios, asset management ratios, profitability ratios, market value ratios, debt management ratios and finally measure the best performance between two companies. The mathematical calculation was establish for ratio analysis between two companies from 2007-2008.It is most important factors for performance evaluation. The graphical analysis and comparisons are applies between two companies for measurement of all types of financial ratio analysis. Liquidity ratio is conveying the ability to repay short-term creditors and it total cash. It determines perform of short term creditor of both pharmaceutical companies under the three categories such as current ratio, quick ratio and cash ratio. Asset management ratio is measurement how to effectively...
Words: 12872 - Pages: 52
...Performance evaluation and ratio analysis of Pharmaceutical Company in Bangladesh Faruk Hossan Md Ahsan Habib Supervisor: José Ferraz Nunes Examiner: Bengt Kjellén Master‟s thesis in international Business 15 ECTS Department of Economic and Informatics University West Spring term 2010 0 ABSTRACT The thesis applies performance evaluation of pharmaceutical company in Bangladesh. It means evaluate how well the company performs. The main aim is achieved through ratio analysis of two pharmaceutical (Beximco and Square pharmaceutical) companies in Bangladesh. The main data collection from the annual financial reports on Beximco and square pharmaceutical companies in 2007 to 2008.Different financial ratio are evaluated such liquidity ratios, asset management ratios, profitability ratios, market value ratios, debt management ratios and finally measure the best performance between two companies. The mathematical calculation was establish for ratio analysis between two companies from 2007-2008.It is most important factors for performance evaluation. The graphical analysis and comparisons are applies between two companies for measurement of all types of financial ratio analysis. Liquidity ratio is conveying the ability to repay short-term creditors and it total cash. It determines perform of short term creditor of both pharmaceutical companies under the three categories such as current ratio, quick ratio and cash ratio. Asset management ratio is measurement how to effectively...
Words: 12881 - Pages: 52
...Performance evaluation and ratio analysis of Pharmaceutical Company in Bangladesh Faruk Hossan Md Ahsan Habib Supervisor: José Ferraz Nunes Examiner: Bengt Kjellén Master‟s thesis in international Business 15 ECTS Department of Economic and Informatics University West Spring term 2010 0 ABSTRACT The thesis applies performance evaluation of pharmaceutical company in Bangladesh. It means evaluate how well the company performs. The main aim is achieved through ratio analysis of two pharmaceutical (Beximco and Square pharmaceutical) companies in Bangladesh. The main data collection from the annual financial reports on Beximco and square pharmaceutical companies in 2007 to 2008.Different financial ratio are evaluated such liquidity ratios, asset management ratios, profitability ratios, market value ratios, debt management ratios and finally measure the best performance between two companies. The mathematical calculation was establish for ratio analysis between two companies from 2007-2008.It is most important factors for performance evaluation. The graphical analysis and comparisons are applies between two companies for measurement of all types of financial ratio analysis. Liquidity ratio is conveying the ability to repay short-term creditors and it total cash. It determines perform of short term creditor of both pharmaceutical companies under the three categories such as current ratio, quick ratio and cash ratio. Asset management ratio is measurement how to effectively...
Words: 12872 - Pages: 52
...ORGANIZATIONAL DESIGN OF SQUARE PHARMACEUTICALS LTD. BASED ON 2006 - 2007 COMPANY ACTIVITIES April 20, 2008 ORGANIZATIONAL DESIGN OF SQUARE PHARMACEUTICALS LTD. BASED ON 2006 - 2007 COMPANY ACTIVITIES April 20, 2008 Members of the Group Acknowledgment A single individual can achieve no noble objective. We are indebted to a number of persons for their kind advice, suggestions, directions, & co-operations which have enable us to prepare this report. First of all I would like to thank Utpual for his contribution into this report. We would like to thank Kazal Pharmacy for their suggestion and ideas. Riaheen Farzana Senior Lecturer ULAB School of Business University of Liberal Arts Bangladesh Dhanmondi, Road- 4/A Satmosjid Road, Dhaka-1209 Subject: Submission...
Words: 4202 - Pages: 17
...Background 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. BRIEF HISTORY 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 ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large. Vision They 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 Their Mission is to...
Words: 7080 - Pages: 29
...Background 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. BRIEF HISTORY 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 ethical standard in business operation also ensuring benefit to the shareholders, stakeholders and the society at large. Vision They 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 Their Mission...
Words: 7079 - Pages: 29
...[pic] [pic] [pic] EXECUTIVE SUMMARY Square Pharmaceutical Limited Bangladesh is one of the leading pharmaceuticals in Bangladesh. 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. Their Future Focus are- • Strengthen its position in the present markets. • Work is in progress to enter into regulated markets in Europe and United States. In this report, we have tried to show you the actual business environment of Square Pharmaceutical Limited Bangladesh. In details we have included company’s basic profile, its annual business report and the background of the organization. CONTENT • Company Profile 5 • Square Pharmaceuticals Ltd. 6-23 • Management 7 • Square Quality Policy 9 • Financial Report 10-17 • Their Products ...
Words: 2256 - Pages: 10
...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
...Literature review The essence of financial management is the creation of shareholder value. According to Ehrhard and Bringham (2003), the value of a business based on the going concern expectation is the present value of all the expected future cash flows to be generated by the assets, discounted at the company’s weighted average cost of capital (WACC). From this it can be seen that the WACC has a direct impact on the value of a business. (Johannes and Dhanraj, 2007). The choice between debt and equity aims to find the right capital structure that will maximize stockholder wealth. Debt policy and equity ownership structure “matter” and the way in which they matter differs between firms with many and firms with few positive net present value project (McConnel and Servaes, 1995). Leland and Pyle (1977) propose that managers will take debt equity ratio as a signal, by the fact that high leverage implies higher bankruptcy risk (and costs) for low quality firms. Since managers always have information advantage over the outsiders, the debt structure may be considered as a signal to the market. Ross’s (1977) model suggests that the values of firms will rise with leverage, since increasing the market’s perception of value. Under some conditions capital structure does not affect the value of the firm. Splitting a fund into some mix of shares relating to debt, dividend and capital directly adds value to the company (Gemmille, 2001).Firms has increased their level of debt relative to...
Words: 4881 - Pages: 20
...|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
...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 while passing through the theoretical Understanding. As a matter of fact, In Bangladesh , now-a-days many pharmaceutical Company are conducting their operations, but they differ from one another in many ways regarding their services & product . Square pharmaceutical LTD. is registered company in Bangladesh. This report covers mainly Square pharmaceutical and his product development to declination an analysis . In the age of...
Words: 2024 - Pages: 9
...[pic] [pic] Assignment On “A Business Analysis of Square Pharmaceutical Ltd.” Course Title: Financial Statement Analysis Course code: ACT-513 Assignment on “Business Analysis of” (Square Pharmaceutical Ltd) Submitted to: Mr. Mohammed Sakhawat Hossain Assistant Professor Faculty of Business and Economics Daffodil International University Submitted by: Mujahed Hossin 113-14-588 Mortazur Rahman 113--14-587 S. M. Mahedi Hasan 121-14-688 Raihanul Haque 121-14-689 Submission date: August 23th, 2009 DAFFODIL INTERNATIONAL UNIVERSITY Letter of Transmittal August 13, 2012 Mr. Mohammed Sakhawat Hossain Assistant Professor Faculty of Business and Economics Daffodil International University 102, Sukrabad, Mirpur Road, Dhanmondi Dhaka-1207. RE: Submission of assignment on “A Business Analysis of Square Pharmaceutical Ltd. Dear Sir, With due earnest honor, we are the students of MBA, have the pleasure to completing and submitting the assignment on “Submission of assignment on “A Business Analysis of Square Pharmaceutical Ltd.”Here, we have analyzed how Square Pharmaceutical Ltd. Manage it’s working capital and use it by observing the low years annual reports. This exercise was interesting as well as source of huge practical knowledge for us. We got the great opportunity to contributing...
Words: 4066 - Pages: 17
...Company Overview Square Pharmaceuticals is a renowned Pharmaceutical Company of our country. It is currently the leading corporation in its field of expertise. Square Pharmaceuticals began its operations in the year 1958 as a Partnership Firm. It converted into a Private Limited Company in 1964. The company became Public & became listed in the DSE in the year 1991, since then there was no looking back. The supremacy of Square is such that the closest competitor Beximco Pharmaceuticals is not even close in comparison to the market share; the latter has only about half the market share.Square Pharmaceuticals Limited has extended its range of services towards the highway of global market. The company pioneered exports of medicines from Bangladesh in the year 1987 and has been exporting antibiotics and other pharmaceutical products since then. This extension in business and services has increased the credibility of Square Pharmaceuticals Limited ten folds. Introduction Capital Asset Pricing model concentrates on the analysis of risk in relation to investment return which has long been the problems of classical economic approaches to investment decisions. The market model, which is a complement of the CAPM is considered as a useful theoretical tool to analyze the systematic relationship between the return from a particular security and the overall market return. Such an information provides a general idea on the average fluctuation of return from a security relative to the overall...
Words: 5676 - Pages: 23
