Ratio Analysis on Different Pharmaceuticals in Bangladesh Essays

Proportion Analysis on Different Pharmaceuticals in Bangladesh Essays Proportion Analysis on Different Pharmaceuticals in Bangladesh Paper Proportion Analysis on Different Pharmaceuticals in Bangladesh Paper List of chapters 1. Letter of transmittal†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦03 2. Presentation †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦04 3. Proportion Analysis†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 06 4. Liquidity†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦07 I. Current ratio†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦08 ii. Snappy Ratio†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 09 5. Resource management†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 10 iii. Stock turnover†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦11 iv. Days deals exceptional (DSO)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦12 v. Fixed resource turnover†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦13 vi. Absolute resources turnover†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦14 6. Obligation management†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 15 vii. Absolute obligation to add up to assets†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦16 viii. Times-premium earned (TIE)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦17 ix. EBITDA coverage†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦18 7. Profitability†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 19 x. Net revenue on sales†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦20 xi. Fundamental winning force (BEP)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦21 xii. Profit for all out resources (ROA)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦22 xiii. Profit for regular value (ROE)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦23 8. Market value†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 24 xiv. Cost/winning (P/E)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã ¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦25 xv. Value/money flow†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦26 xvi. Market/book (M/B)†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦27 9. In general Financial Summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 28 10. Monetary record, money follow and pay articulation of BEXIMCO LTD 11. Asset report, money follow and salary explanation of SQUARE LTD 12. Asset report, money follow and salary proclamation of Renata LTD Acknowledgments At first our much gratitude goes to Mr. S. M. Abdus Shakur, Lecturer, School of Business, Presidency University, for giving us the obligation to set up this report which we saw as a somewhat intriguing point to deal with, and for the assistance to set up the report also. We found support from numerous individuals with regards to setting up this report and a portion of the people have been useful and agreeable with data and recommendations. What's more, in conclusion, we might want to say thanks to one another, implies the gathering individuals for helping each other at whatever point we need to find support. Presentation: Financial Ratio Analysis is an apparatus utilized by people to lead a quantitative examination of informationâ in a companys budget summaries. Proportions areâ calculated from current year numbers and are then contrasted with earlier years, different organizations, the business, or even the economy to pass judgment on the presentation of the organization. Proportion examination is predominately utilized by defenders of major investigation. Money related proportions are intended to assist one with assessing fiscal report and by contrasting the outcomes it must compensation with the pay it has accessible for installment such examinations are made by proportion investigation. Here we take three organizations from a similar industry to examine their budget report and we likewise contrast the discoveries and the all out pharmaceuticals industry normal. The organizations name we took are-1. BEXIMCO PHARMACEUTICALS LIMITED. 2. SQUARE PHARMACUTICALS LTD. 3. RENATA LIMITED. 4. AMBEE PHARMACEUTICALS LTD. Proportion Analysis Financial proportions are valuable markers of an organizations execution and budgetary circumstance. Money related proportions can be utilized to investigate patterns and to contrast the organizations financials with those of different firms. Monetary proportions can be ordered by the data they give. The accompanying sorts of proportions as often as possible are utilized: 1. Liquidity proportions 2. Resource the board proportions 3. Obligation the executives proportions 4. Productivity proportions 5. Market esteem proportions LIQUIDITY RATIOS Liquidity proportions are the initial ones to come in the image. These proportions really show the relationship of a firm’s money and other current resources for its present liabilities. Two proportions are talked about under Liquidity proportions. They are: 1. Current proportion 2. Snappy/Acid Test proportion. 1. Current proportion: This proportion shows the degree to which current liabilities are secured by those benefits expected to be changed over to trade out the not so distant future. Current resources typically incorporate money, attractive protections, accounts receivables, and inventories. Current liabilities comprise of records payable, transient notes payable, current developments of long haul obligation, collected duties, and other accumulated costs (basically compensation). Current Ratio = Current Assets/Current Liabilities BEXIMCO =28618916542602032267 1. multiple times Square=44118364363500845103 =1. multiple times Renata=988092820717068650 =1. multiple times Ambee=218724505222145758 =0. multiple times Industry average=1. multiple times 2. Fast/Acid Test proportion: This proportion demonstrates the firm’s liquidity position too. It really alludes to the degree to which current liabilities are secured by those advantage s aside from inventories. Snappy Ratio = (Current Assets-Inventories)/Current Liabilities BEXIMCO =2861891654-15052880932602032267 =1. multiple times Square=4411836436-20267363223500845103 =1. multiple times Renata=988092820-959414590717068650 =0. multiple times Ambee=218724505-135899190222145758 =0. multiple times Industry Average=0. multiple times ASSET MANAGEMENT RATIOS Asset the board proportions are the budget report proportions that measure how successfully a business uses and controls its advantages. The following are talked about five sorts of advantage the board proportions: 1. Stock turnover proportion 2. The day’s deals exceptional 3. Fixed resource turnover proportion 4. Complete resource turnover proportion 1. Stock turnover proportion: The proportion is viewed as a trial of proficiency and shows the rate with which the organization can move its product. Stock turnover proportion = Gross Turnover/Inventories BEXIMCO = 40101670591505288093 =2. multiple times Square= 82310975252026736322 =4. multiple times Renata=3089746417959414590 =3. multiple times Ambee=240726296135899190 =1. multiple times Industry Average=2. multiple times 2. The Days Sales Outstanding: The Days Sales Outstanding proportion shows both the normal time it takes to transform the receivables into money and the age, regarding days, of a companys records of sales. This proportion is of specific significance to credit and assortment partners. Days Sales Outstanding (DSO) = Trade Debtors/(Annual gross turnover/365) BEXIMCO =5039164014010167059/365 =19. 23 Days Square=3602456469565715902/365 =13. 75 Days Renata=3442269333089746417/365 =40. 66 Days Ambee= 38179778240726296/365 =57. 89 days Industry Average=32. 88 days 3. Fixed resource turnover proportion: The Fixed Asset Turnover proportion gauges the adequacy in creating Net Sales income from interests in Net Property, Plant, and Equipment once again into the organization assesses just the ventures. Fixed resources turnover proportion (FATO) = Gross Turnover/Net fixed resources Beximco=401016705911957773787 =0. multiple times Square=82310975258291290984 =0. multiple times Renata=30897464771656161962 =1. multiple times Ambee=24072629660695282 =3. multiple times Industry Average=1. multiple times 4. Absolute resource turnover proportion: The Total Asset Turnover is like fixed resource turnover since the two estimates a companys adequacy in creating deals income from ventures over into the organization. All out Asset Turnover assesses the effectiveness of dealing with the entirety of the companys resources. Absolute resources turnover proportion (TATO) = Gross Turnover/Total Assets Beximco=401016705914819665441 0. multiple times Square=825784373912703127420 =0. multiple times Renata=30897464173162232934 =0. multiple times Ambee=24072629657247033 =4. multiple times Industry Average=1. multiple times DEBT MANAGEMENT RATIOS Debt the board proportions uncover 1) the degree to which the firm is financed with obligation and 2) its probability of defaulting on its ob ligation commitments. These proportions include: 1. Obligation proportion, 2. Times-Interest-Earned (TIE) proportion, 3. EBITDA Coverage. 1. Obligation proportion: The proportion of absolute obligation to add up to resources, by and large called the obligation proportion, gauges the level of assets gave by the banks. Obligation proportion = Total Debt/Total Assets Beximco=436946329614819665441 =29 % Square=428608671512703127420 =34 % Renata=15001595773162232934 =47 % Ambee= 4800990157247033 =83% Industry Average=48. 25% 2. Times-Interest-Earned (TIE) proportion: This proportion gauges the degree to which working pay can decay before the firm can't meet its yearly premium expense. EBIT = Earnings before Interest and Tax TIE proportion = EBIT/Interest Charges Beximco=963775308249654298 =3. 86 tim