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Financial Statement Analysis of Square Pharmaceuticals Ltd.

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|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 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,...

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