An Analysis On

Pharmaceuticals Industry
In Bangladesh
SUBMITTED TO
Ms. Jafrin Sultana
Assistant professor
Department f Business Administratin
Dha!a "ity "llege
SUBMITTED B#
Rossi Norman Dias
Bachelor of Business Administration
Major- Finance
SEC-A
Department f Business Administratin
1
INTRODUTION
TO


Beximco Pharmaceuticals Ltd.
BEXIMCO PHARMACEUTICALS LT .

!
!ame " BEXIMCO PHARMACEUTICALS LT #Beximco Pharma$
I%cor&oratio% " '()*
Comme%ced O&eratio%s " '(+,
Slo-a% o. Com&a%/ " 01e Are Buildi%- A Health/ Tomorro23
T/&e o. Com&a%/ " Listed Pu4lic Limited Com&a%/
Stoc5 Excha%-e Listi%- " ha5a stoc5 Excha%-e Ltd.6 Chitta-o%- Stoc5 Excha%-e
Ltd.6 AIM o. Lo%do% Stoc5 Excha%-e Plc #7Rs$
Mai% Busi%ess "Ma%u.acture a%d Mar5eti%- o. Huma% Pharmaceuticals
a%d A%imal Thera&eutics.
Authori8ed Ca&ital " T5. (',,,,,,,, "
Paid u& Ca&ital " T5. '9'':(;,,,
Total Asset " T5. '(+('(;;:<<
I%=estme%t " T5. )9<':*(<(9
E>uit/ " T5. ',++9),**':
Total %o. o. Securit/ " '9'':(<(*
!o. o. Em&lo/ees " <69,, em&lo/ees
?actor/ " To%-i a%d @alia5oir
O=erseas Mar5ets " Cam4odia6 Euro&ea% U%io%6 @e%/a6 M/a%mar6 !e&al6
Pa5ista%6 Si%-a&ore6 Sri La%5a6 USA6 Aeme%
Ba%5ers " Ba%ata Ba%56 HSBC6 The Ba%5 O. !e2 Aor5 Mello%.
Local O..ice " Beximco Pharmaceuticals Ltd.
'( ha%mo%di RCAD Road !o. )D ha5aE'<,9
Ba%-ladesh.
"
Beximco Pharmaceuticals Ltd." MISSIO!
Each o. our acti=ities must 4e%e.it a%d add =alue to the commo% 2ealth o. our
societ/. 1e .irml/ 4elie=e that6 i% the .i%al a%al/sis 2e are accou%ta4le to each o.
the co%stitue%ts 2ith 2hom 2e i%teract6 %amel/" our em&lo/ees6 our customers6
our 4usi%ess associates6 our .ello2 citi8e%s a%d our shareholders.


Beximco Pharmaceuticals Ltd." FISIO!
To 4e the most relia4le &harmaceutical com&a%/ i% Ba%-ladesh as 2ell as the
2orld 4/ re%deri%- ser=ices a%d &roducts.
#

A!ALASIS O?
BEXIMCO PHARMACEUTICALS LT.
$
Letter of Transmittal
'<
th
Ma/6 <,''
Ms. Ba.ri% Sulta%a
Assista%t &ro.essor
e&artme%t o. Busi%ess Admi%istratio%
ha5a Cit/ Colle-e
Road %o. <6 ha%mo%di RCA
ha5aE'<o96 Ba%-ladesh
Su4Gect" submission of industry analysis on Beximco Pharmaceuticals Industry.
ear Madam6
1e6 ha=e the ho%or to state that our i%dustr/ a%al/sis re&ort is su4mitted to /ou
.or /our 5i%d su&er=isio%.
U%der shade o. i%dustr/ a%al/sis o% 0BEXIMCO PHARMACEUTICAL3 2e ha=e
collected data .rom =arious sources 2hich 2ere u%5%o2% to us i% &ast 4ut %o2
2e ca% reali8e the im&orta%ce o. this stud/ a%d its im&licatio% i% the &rese%t a%d
.uture -ro2th o. o%eHs career. 1e 2ould li5e to dra2 /our atte%tio% that 2e ha=e
2or5ed 2ith our utmost si%cerit/ to &re&are this re&ort.
1ith res&ect6 2e ho&e that /ou 2ould 4e 5i%d e%ou-h to mull o=er our mista5es
as liste% a%d o4li-ed there 4/.
Si%cerel/ /ours6
Rossi !orma% ias
Sectio%" A6 (
th
4atch6
e&artme%t o. 4usi%ess admi%istratio%6
ha5a Cit/ Colle-e
%
ACKNOWL!"#NT
As a stude%t o. 4usi%ess admi%istratio%6 2e should ha=e the ex&erie%ce o.
2or5i%- i% the &articular &he%ome%o% I ha=e to 4e .amiliar 2ith the &articular
tech%i>ues that ste&s us .or2ard .rom our 4oo5ish 5%o2led-e6 a%d this &articular
term &a&er o% i%dustr/ a%al/sis o% 0BEXIMCO PHARMACEUTICAL.3 I%
&re&ari%- the re&ort6 2e .ace di..ere%t &ro4lems a%d .i%all/ 2e ha=e 4ee% a4le to
o=ercome the &ro4lems.
I% this re-ard6 2e are exter%all/ tha%5.ul to our teachers o. de&artme%t o. BBA o.
HA@A Cit/ Colle-e 2ho hel&ed us a lot. 1e also tha%5 those &eo&le 2ho hel&
us 4/ -i=i%- i%.ormatio% I &ro=idi%- us %ecessar/ i%.ormatio% .or ma5i%- the
re&ort come true.
?i%all/6 2e are &leased to com&lete the re&ort o% the -i=e% su4Gect &ro&erl/ a%d
authe%ticall/.
&
$C%TI& '%##A()
The term &a&er is to hi-hli-hts o% di..ere%t .i%a%cial acti=ities o. the com&a%/
such as .i%a%cial &er.orma%ce a%al/sis I securit/ a%al/sis o. &harmaceutical
i%dustries. The re&ort hel&s to 5%o2 the o=erall .i%a%cial acti=ities I &er.orma%ce
o. Beximco &harmaceutical. I% course o. stud/ o. the .irmsH .i%a%cial stateme%t
a%al/sis I its securit/ &ositio% i% 4oth local I .orei-% stoc5 &ro=ides o&&ortu%it/
to ha=e exte%si=e 5%o2led-e a4out details o. &harmaceutical i%dustries .i%a%cial
o&eratio%. It also e%ha%ce our u%dersta%di%- a4ilit/ re-ardi%- 5e/ .i%a%cial I
o&eratio% data6 mar5eti%- strate-ies o. di..ere%t &roductio%6 >ualit/ co%trol I
i%dustr/ a%al/sis. 1ith 2orld class ra%-e I su&erior >ualit/ o. &harmaceutical
i%dustr/ 2ill 4e the leadi%- medici%e ma%u.acturi%- 4ra%d i% Ba%-ladesh
'
CONTNT'
Contents Pa*e No.
A4out the stud/ ',
O4Gecti=es o. the stud/ ''
Sco&e o. the stud/ '<
Methodolo-/ o. the stud/ '<
Limitatio%s o. the stud/ ';
I%dustr/ A%al/sis ':
I%dustr/ at a 7la%ce" '9
CrossEsectio%al i%dustr/ &er.orma%ce '9
I%dustr/ &er.orma%ce o=er time '*
Per.orma%ce o. the com&a%/ 2ithi% a% I%dustr/ '*
Busi%ess C/cle a%d I%dustr/ C/cle" ')
I%.latio% ')
I%ter%atio%al eco%om/ '+
Eco%omic E..ect o. Pharmaceuticals I%dustries" '(
emo-ra&hics '(
Tech%olo-/ '(
7o=er%me%t Re-ulatio%s a%d Polices '(
E=aluati%- the I%dustr/ Li.e C/cle <,
Im&licatio% o. dis&ersio% 2ithi% I%dustries <'
I%dustr/ Com&etitio% A%al/sis <<
Estimates I%dustr/ Rates o. Retur%s <)
I%dustr/ A%al/sis usi%- RELETIFELA FALUATOI! APPORACH <+

?i%a%cial Stateme%t A%al/sis" ;,
Commo% Si8e I%come Stateme%t ;'
Commo% Si8e Bala%ce Sheet ;<
Cash ?lo2 Stateme%t ;:
A%al/sis o. ?i%a%cial Ratios ;9
Retur% o% E>uit/ :<
Ris5 A%al/sis ::
Busi%ess Ris5 :9
?i%a%cial Ris5 :*
Com&a%/ A%al/sis
(
ABO%T T+ 'T%!)
This re&ort is 4ased o% 0BEXIMCO PHARMACEUTICAL.3 1e are assi-%ed to do
this re&ort 4/ #s. ,afrin 'ultana- Assista%t &ro.essor6 e&artme%t o. Busi%ess
Admi%istratio%6 ha5a Cit/ Colle-e.
I% this re&ort 2e ha=e .ocused o% 0BEXIMCO PHARMACEUTICAL.3 Its .i%a%cial
&er.orma%ce I securit/ mar5et &ositio% i% local ca&ital mar5et o=er the /ear. The
re&ort .ocuses orie%tatio%s o=er ca&ital mar5et i% Ba%-ladesh s/%chro%i8e out
theoretical 5%o2led-e 2ith the realistic .acts. A%d the% tr/ to .i%di%- some
&ro4lems I su--est the 2a/ ho2 o=ercomi%- these &ro4lems. At the e%d o. the
re&ort it has a co%clusio% Ire.ere%ces.

OB,CTI&' O. T+ 'T%!)
1)
The mai% o4Gecti=e o. the stud/ is to &rese%t our -reater &ractical 5%o2led-e o%
BEXIMCO PHARMACEUTICAL a%d its .i%a%cial &ositio% i% the local ca&ital
mar5et. This &ractical orie%tatio% o=er ca&ital mar5et -i=es us a cha%ce o. coE
ordi%ate out theoretical 5%o2led-e 2ith the &ractical 5%o2led-e. The o4Gecti=es
o. &harmaceutical i%dustries are .ollo2i%-E
To de=elo&ed &articular 5%o2led-e a4out ca&ital mar5et throu-h 4usi%ess
a%al/sis.
Per.orma%ce o. &harmaceutical i%dustr/ o. Ba%-ladesh.
To 5%o2 a4out the .uture o. ca&ital mar5et.
To 5%o2 the .uture &ros&ect o. the i%dustr/.
To 5%o2 a4out the %ature o. &harmaceutical i%dustries i% the mar5et.
To 5%o2 the &rese%t co%ditio% o. the i%dustr/.
Com&are the &harmaceutical i%dustries 2ith the other i%dustries.
11
'COP O. T+ 'T%!)
This &a&er exami%es a%d -oes o=er the i%dustr/ a%al/sis6 .i%a%cial a%al/sis6
com&a%/ a%al/sis6 curre%t acti=ities a%d its .uture strate-ies s&eci.icall/ o.
&harmaceutical i%dustries. To do this6 it exami%es ho2 &harmaceutical i%dustr/
mai%tai%s its .i%a%cial a%d o&eratio%al acti=ities a%d ho2 the/ ta5e decisio% a4out
&rici%- =arious &roducts I ser=ices6 es&eciall/ i% =arious eco%omic situatio%.
Ho2 much t/&e o. ma%u.acturi%- or-a%i8atio% e=aluates .i%a%cial &+er.orma%ce
o. =arious de&artme%t a%d em&lo/ees throu-h di..ere%t &olicies. 1e also stud/
a4out &harmaceutical i%dustries &ositio% i% stoc5 mar5et I there strate-/ i%
Ba%-ladesh.
#T+O!OLO") O. T+ 'T%!)
To &re&are this re&ort6 sta%dard method o. re&ort 2riti%- has 4ee% used. i..ere%t
t/&es o. data 2ere %eeded to com&lete6 a%d a%al/8ed. The re>uired data are
collected 4oth the &rimar/ a%d seco%dar/ sources. ?or collecti%- data .rom
&rimar/ sources6 i%ter=ie2s a%d >uestio%er method 2ere used. The collectio% o.
data .rom seco%dar/ sources6 2e used a%%ual re&ort o. di..ere%t BEXIMCO
PHARMACEUTICAL6 &u4lished 4oo5let o. the com&a%/6 2e4site o. the di..ere%t
BEXIMCO PHARMACEUTICAL6 =arious &u4lished docume%ts6 ha5a Stoc5
Excha%-e %e2s&a&er6 i%ter%et etc. A.ter com&letio% o. data these data 2ere sort
out i%to di..ere%t cate-or/. I% this re&ort all data are a%al/8ed 4/ usi%- sta%dard
statistical methods.
1!

LI#ITATION O. T+ 'T%!)
I% the .ull course or re&ort 2riti%-6 the researchers ha=e -o%e thou-h se=eral
limitatio%s. The/ are/
The i%su..icie%c/ o. i%.ormatio% is mai% co%strai%t o. the stud/.
1e -ot the i%.ormatio% a.ter a little 4it late tha% 2e ex&ected.
I% ma%/ cases6 u& to date i%.ormatio% 2as %ot &u4lished.
The stud/ limits o%l/ o% the a=aila4le &u4lished data a%d certai% de-ree o.
a=aila4ilit/ i% i%ter%et.
A=aila4ilit/ o. the re.ere%ce 4oo5 i% a%other limitatio%
1"
Industry Analysis

Beximco Pharmaceuticals Ltd.
1#
IN!%'T() AT A "LANC
Cross0sectional industry 1erformance

I% cross sectio%al i%dustr/ researchers com&ared the &er.orma%ce o.
alter%ati=e i%dustries duri%- a s&eci.ic time &eriod. Studies o. a%%ual &er.orma%ce 4/
%umerous i%dustries .ou%d that di..ere%t i%dustries ha=e co%siste%tl/ sho2% 2ide
dis&ersio% i% their rates o. retur%.
I%dustr/ !um4er o.
securities
EPS PER Tur%o=erJ
o. total
J o.
di=ide%d
securities
Ba%5 ;, :).(: +.(<9 <<.'9 ++
?uelI &o2er ', 9'.<; ').<) '*.+9 ',,
Pharmaceutical '+ *,.)'9 ;,.,,9 ';.(( *(
7e%eral
i%sura%ce
;; ;:.';9 <;.'( *.+* );
Textile <' ;'.;+ '+.9, ;.:: 9;
1$
Industry 1erformance o2er time
A%other -rou& o. researchers >uestio%ed 2hether i%di=idual i%dustries that
&er.orm 2ell i% o%e time &eriod 2ould co%ti%ue to &er.orm 2ell i% su4se>ue%t time
&eriod. These time series studies im&l/ that &ast &er.orma%ce alo%e does %ot hel&
&roGect .uture i%dustr/ &er.orma%ce.
The .i%a%cial &er.orma%ce o. a% i%dustr/ sho2% its stre%-th i% the mar5et .The .i%a%cial
&er.orma%ce o. &harmaceutical i% &rese%ted 4elo2
Pharmaceutical
I%dustr/
<,', <,,( <,,+
EPS *,.)'9 99.99 9,.9,
PER ;,.,,9 ;'.'9 ;9.,;
!AF 9+, 9<' 99,
ROE ;9.;;J <:.()J <,.':
i=ide%d *(J :,.*+J ;<.,)J
Total &ro.it +(,.': +*,.': *++.):
Performance of the com1any 3ithin an Industry
The &er.orma%ce o. the com&a%/ sho2% the co%siste%c/ i% the i%dustr/
&er.orma%ce al2a/s determi%es the .uture acti=ities -ro2th a%d &ositio% i% the i%dustr/.
The &er.orma%ce o. the com&a%/ 2ithi% the i%dustr/ ca% 4e measured 4/ the .ollo2i%-
2a/
Beximco
Pharmaceutical
4565 4557 4558 4559 455:
EPS 9.: :.'; ;.*' <.+, :.''
ROE *.,9 9.): 9.<; :.<+ 9.(<
PER '9 ;).)< :*.:9 <'.,: ';.,*
1%

B%'IN'' C)CL AN! IN!%'T() C)CL
Inflation
7e%erall/ hi-her i%.latio% is %e-ati=e .or the stoc5 mar5et6 4ecause it causes
hi-her mar5et i%terest rates .It i%creases u%certai%t/ a4out .uture &rices a%d cost.
Althou-h these ad=erse e..ects are true .or most i%dustries6 some i%dustries 4e%e.it .orm
i%.latio% suchE !atural resource i%dustries.
*articular !)1) !))( !))' !))& !))%
I%.latio% rate ',..9J +.(J (.'J ).<J ).,)J
I%crease i% &ro.it ;9J <9J ;*J ;;J ).+J
I%crease i%
sales
+,J :,J '+J ',J )J

1&
International conomy

I%ter%atio%al eco%om/ co%sists domestic a%d a4road a%d e=e%ts ma/ cause the
=alue o. the US dollar to .luctuate. The Beximco Pharmaceutical limited has a -lo4al
4usi%ess i% #:,$ .ort/ cou%tries. Asia I A.rica% cou%tries i% stro%-er. The total sales I
ex&ort sale alo%- 2ith their com&ariso% o. BEXIMCO Pharmaceutical is -i=e% 4elo2"
*articular !))( +Bill, !))' !))&
Total sales :.+) ;),<;') ;9(),<9
Ex&ort ',,, ''9,(( '<<)9<
Ratio% <.*)J ;.''J ;.:'J
conomic ffect of Pharmaceuticals Industries
1'
I%.lue%ce other tha% the eco%om/ is &art o. the 4usi%ess e%=iro%me%t. emo-ra&hics6
cha%-es i% tech%olo-/ a%d &olitical a%d re-ulator/ e%=iro%me%ts also ha=e a si-%i.ica%t
e..ect o% the cash .lo2 a%d ris5 &ros&ects o. &harmaceuticals i%dustr/.
A. !emo*ra1hics/

Ba%-ladesh has thri=i%- &harmaceuticals ma%u.acturi%- sector6 throu-h it is -e%erall/
limited to small molecules. Po&ulatio% a-ei%- o..ers treme%dous o&&ortu%ities to
&harmaceuticals com&a%ies. It &redicted that 4/ <,9,6 the -lo4al &o&ulatio% a-ed
*,K/ears 2ill ex&a%d 4/ more tha% three times to reach %earl/ < 4illio%. ?urthermore6 i%
most cou%tries the +,Ka-e -rou& has 4ee% -ro2i%- .aster tha% a%/ /ou%-er se-me%t o.
the older &o&ulatio%. B/ <,9,6 six cou%tries alo%e #Bra8il6 Chi%a6 I%dia6 I%do%esia6 Ba&a%
a%d the US$ 2ill accou%t .or 9)J o. all those +,K/ears i% the 2orld. emo-ra&hic
cha%-e a..ected &ro.its a%d retur%s across &harmaceuticals I%dustries o=er the last <,
/ears.
B. Technolo*y:

Com&etiti=e a%d tech%olo-ical cha%-es i% the &harmaceuticals i%dustr/ .rom &o2er.ul
%e2 dru- chemistries to i%%o=ate R I &art%ershi&s a%d mar5eti%- la%es are resha&i%-
the 4usi%ess strate-ies o. ma%/ &harmaceuticals a%d 4iotech%olo-/ com&a%ies.
Ba%-ladesh is %o2 &roduci%- a 2ide ra%-e o. &harmaceuticals &roducts co=eri%- all
maGor thera&eutic classes a%d dosa-e .orms li5e ta4lets6 ca&sules a%d s/ru&s .All
&harmaceuticals Ltd. Produci%- li5eEH?A I!HALERS6 !EBULILER SOLUTIO!S6
SUPPOSITORS6 a%d HORMO!ES.
C. "O&(N#NT ("%LATION' AN! POLICI'/
The i%dustr/ is -ro2i%- the &rotectio% o. %atio%al ru- Polic/ '(+<.But a.ter the
7ATT re-ulatio%D cha%-es are 4ou%d to ta5e &lace. ?urthermore6 the tre%d I -ro2th o.
this i%dustr/ te%ds to 4e &ositi=e as the dema%d o. Ba%-ladesh &harmaceuticals &olic/ i%
the '(+,s sho2s ho2 si-%i.ica%t health &olic/ re.orms i% de=elo&i%- cou%tries de&e%d
o% &olitical co%ditio%s 4oth i%side a%d outside the cou%tr/. Ba%-ladesh dru- &olic/ o.
'(+< illustrates that -o=er%me%ts ca% sometimes cha%-e &u4lic &olic/ i% 2a/s
u%.a=ora4le to multi%atio%al cor&oratio%s6 2hile the .ailed health &olic/ re.orm o. '((,s
sho2s that re.orms u%.a=ora4le to multi%atio%al cor&oratio%s6 2hile the .ailed health
&olic/ re.orm to achie=e 6e=e% co%tri4uti%- to a -o=er%me%ts do2%.all.
&AL%ATIN" T+ IN!%'T() LI. C)CL
1(
I% Ba%-ladesh the &harmaceutical sector is o%e o. the most de=elo&ed hiEtech sectors
2hich are co%tri4uti%- i% the cou%tr/Hs eco%om/. A.ter the s&read o. ru- Co%trol
Ordi%a%ceE '(+<6 the de=elo&me%t o. this sector 2as s&eed u&. The &ro.essio%al
5%o2led-e6 thou-hts a%d i%%o=ati=e ideas o. the &harmaceutical &ro.essio%als 2or5i%-
i% this sector are the 5e/ .actors .or this de=elo&me%t. ue to rece%t de=elo&me%t o. this
sector it is ex&orti%- medici%es to -lo4al mar5et i%cludi%- Euro&ea% mar5et. This sector
is also &ro=idi%- ()J o. the total medici%e re>uireme%t o. the local mar5et. Leadi%-
&harmaceutical com&a%ies are ex&a%di%- their 4usi%ess 2ith the aim to ex&a%d ex&ort
mar5et. Rece%tl/ .e2 %e2 i%dustries ha=e 4ee% esta4lished 2ith hi-h tech e>ui&me%ts
a%d &ro.essio%als 2hich 2ill e%ha%ce the stre%-th o. this sector.
Net -ales
.on/ -cale

)
-ta/e1 -ta/e! -ta/e" -ta/e# Time
*ioneerin/ Rapid -ta0ili1ation Deceleration
De2elopment Acceleratin/ and Mar3et of 4ro5th
4ro5th Maturit6 and Decline
The .ollo2i%- .i-ures sho2 the li.e c/cle sta-es o. &harmaceuticals i%dustr/E
6. Pioneerin* !e2elo1ments/ I% Ba%-ladesh the &harmaceuticals i%dustr/ .irst
i%troduce i% '()*.I% this sta-e &harmaceuticals i%dustr/ ex&erie%ce modest -ro2th
a%d =er/ small &ro.it mar-i% a%d &ro.it i% eco%omic .Mar5et .or the i%dustr/ &roduct or
ser=ice duri%- this time &eriod 2as small. Multi%atio%als i%dustr/ a%d =er/ .e2 local
&harmaceuticals i%dustries 2ere i%troduced i% that time.
4. (a1id Acceleratin* "ro3th: ?rom '(+< this sta-e 2as de=elo&ed i%
Ba%-ladesh .A.ter the s&read o. ru- Co%trol Ordi%a%ce '(+<6 the de=elo&me%t o.
this sector 2as s&eed u&. The &ro.essio%al @%o2led-e6 thou-hts a%d i%%o=ati=e
ideas o. the &harmaceuticals &ro.essio%als 2or5i%- i% this sector are the 5e/ .actors
.or these de=elo&me%ts.
;. #ature "ro3th/ Pharmaceuticals i%dustr/ has a -lo4al .oot&ri%t i% a4out :,
cou%tries across a4out : cou%tries. Our &ositio%s i% ma%/ Asia% a%d A.rica%
!)
*harmaceutical Industr6
cou%tries are stro%-er tha% e=er. !o2 our &harmaceuticals i%dustr/ is i% the -ro2th
sta-e a%d =er/ soo% it 2ill 4e i% maturit/ sta-e 4ecause ur4a% &o&ulatio% is
i%creasi%- a%d &eo&le are -etti%- educated.
Im1lication of dis1ersion 3ithin Industries
All .irms i% a% i%dustr/ do %ot mo=e to-ether. Co%siste%t .irms li5e oil6 -old. Steel
a%d railroads %eed %ot to do com&a%/ a%al/sis a%d itHs less critical tha% i%dustr/
a%al/sis. At the e%d 4/ selecti%- the 4est stoc5s 2ithi% stro%- i%dustries 2e ca% a=oid
the ris5
!ifferences in industry ris<
i..ere%t i%dustries sho2ed su4sta%tial dis&ersio% duri%- a &eriod o. time. I%di=idual
i%dustries ris5 measures are sta4le o=ertime. That mea%s the i%dustries a%al/sis is
%ecessar/ 4ut this a%al/sis o. ris5 i% use.ul 2he% estimati%- the .uture ris5 .or a%
i%dustr/.
Interest rates
?i%a%cial i%stitutio%s such Ba%5s are t/&icall/ im&acted 4/ hi-her rates.
Hi-h i%terest rates clearl/ harm the housi%- a%d the co%structio% i%dustr/. It also
4e%e.its retirees 2hose i%come is de&e%de%t o% i%terest i%come. !o2 the i%terest rate is
#'9J$ .i.tee% &erce%t.
Consumer sentiment
I% the co%text o. mar5et di..ere%t co%sumers are sho2%. ?rom the% o&timistic co%sumers
are more 2illi%- to s&e%d a%d 4orro2 mo%e/ .or ex&e%si=e -oods such Mhouse6 cars6
%e2 clothes a%d .ur%iture etc. Because this cha%-es i%dustries 2ill 4e a..ected 4/
!1
co%sumerHs se%time%t a%d 4/ co%sumerHs 2illi%-%ess a%d a4ilit/ to 4orro2 a%d s&e%d
mo%e/.
IN!%'T() CO#PTITION ANAL)'I'
There is ma%/ .actor 2hich directl/ or i%directl/ a..ect our &harmaceuticals i%dustr/ li5e
-o=er%me%t &olicies6 re-ulatio%s6 la2s6 huma% ri-hts6 com&etitio%s6 tech%olo-/6
i%ter%atio%al or-a%i8atio%s6 2orld trade 4odies6 child la4or6 mi%imum 2a-e6 &ollutio%6
accide%ts6 ris5s6 =iole%ce6 securit/ la4or6 su&&lies etc. there.ore it 4ecomes im&orta%t to
determi%e these =arious .actors a%d &la% their strate-ies accordi%-l/ to sur=i=e a-ai%st
all such odds. But &racticall/ it is =irtuall/ im&ossi4le to co%sider all such i%di=idual
.actors a%d there.ore s&eci.ic models exists li5e &orter .i=e .orces 2hich are a&&lied to
determi%e the exter%al a%d i%ter%al e%=iro%me%ts .actors a..ecti%- the &harmaceutical
i%dustr/ i% Ba%-ladesh.
?i=e #9$ .actors are as .ollo2s M

'. Ri=alr/ amo%- the existi%- com&etitors
<. Threat o. %e2 e%tra%ts
;. Threat o. su4stitute &roducts.
:. Bar-ai%i%- &o2er o. 4u/ers.
9. Bar-ai%i%- &o2er o. su&&liers.
!!
POTNTIAL
NT(ANT'
=Threat of Ne3 ntrants>

.i*ure/ Porter?s .i2e .orces #odel
(i2alry Amon* the existin* Com1etitors"
This ri=alr/ amo%- .irms usuall/ ta5es the .orm o. Goc5e/i%- .or &ositio% usi%- tactics li5e
&rice com&etitio%6 ad=ertisi%- 4attles a%d &roduct i%troductio%s. It ca% 4e i%te%se i.
com&a%ies are scram4li%- .or mar5et share 6 4ut i. the o=erall mar5et is i% -ro2th or the
&ositio% o. the com&a%/ is &rotected throu-h &ate%ts 6 the% the ri=alr/ are li5el/ to 4e
less i%te%se. Ri=alr/ 4et2ee% com&eti%- de&artme%ts .rom di..ere%t com&a%ies ma/ also
!"
IN!%'T()
CO#PTITO('
(I&AL() A#ON"
$I'TIN" .I(#'
B%)('
=Bar*ainin* Po3er Of
Buyers>
'%PPLI('
=Bar*ainin* Po3er of
'u11liers>
'%B'TIT%T'
=Threat of 'ubstitute
Products or 'er2ices>
4e &o2er.ul due to limited &atie%ts %um4ers a%d 2he% the 4u/er is head o..ice6 the/ ma/
4e see5i%- the lo2est &rice &er &atie%t. I% our &harmaceutical I%dustr/6 here are hi-h
e%tr/ 4arriers due to costs associated 2ith research I de=elo&me%t o. %e2 dru-s
&harmaceutical i%dustr/. A%d the threat o. e%tr/ &osed 4/ %e2 or &ote%tial com&etitor is
a LO1 com&etiti=e .orce due to the a4o=e 4arriers I re-ulator/ co%strai%ts.
Threat of ne3 ntrants/
The &harmaceuticals i%dustr/ is a hi-hl/ attracti=e i%dustr/ .or &ote%tial %e2comers.
!e2 e%tra%ts i%to the i%dustr/ a..ect the com&etiti=e d/%amics a%d %eed to 4e ta5e% i%to
co%sideratio% 2he% a%al/8i%- the com&etitio%. !e2 e%tra%ts see the mar5et as
attracti=e6 the/ 4ri%- %e2 ca&acit/ a%d resources6 %e2 ideas alo%- 2ith a desire to -ai%
mar5et share. Their im&act de&e%ds o% the 4arriers to e%tr/ alread/ &rese%t6 to-ether
2ith the a%tici&ated reactio% o. existi%- com&etitors. There are ma%/ 4arriers that ca% 4e
created to &re=e%t %e2 e%tra%ts or to slo2 do2% their arri=al i% the &harmaceutical
I%dustr/D a %e2 e%tra%t ma/ 4e .aced 2ith =arious hurdles erected 4/ esta4lished
4usi%esses6 such as"
Eco%omies o. scale M ma%u.acturi%-6 RI6 mar5eti%-6 sales6 distri4utio%.
Product di..ere%tiatio% M esta4lished &roducts6 4ra%ds a%d relatio%shi&s
Ca&ital re>uireme%ts a%d .i%a%cial resources
Access to distri4utio% cha%%els" &re.erred arra%-eme%ts
Re-ulator/ &olic/" &ate%ts6 re-ulator/ sta%dards
S2itchi%- costs M em&lo/ee retrai%i%-6 %e2 e>ui&me%t6 tech%ical assista%ce.
Threat of 'ubstitute Products/
Su4stitute &roduct &er.orm the same .u%ctio% as the &roduct6 a%d are a com&etiti=e .orce
as the/ ca% ta5e a2a/ dema%d or tie u& those customers 2ho choose to use the
su4stitute i%stead o. /our &roduct. The ema%d .or -e%eric =ersus 4ra%d %ame dru-s
has i%creased 4ecause o. the costs o. dru-s has i%creased 4ecause o. the costs o.
dru-s is decreases a%d -e%eral &eo&le ca% easil/ 4u/ the dru-s. I% mar5et there are
some su4stitute &roducts6 li5eEher4al medici%e I homeo&athic medici%e6 are a=aila4le.
As a result the dema%d decreases. So the &harmaceuticals i%dustr/ %eeds to i%troduce
her4al medici%e. 7e%eric dru- com&a%ies do %ot ha=e the hi-h cost associated 2ith the
research I de=elo&me%t o. %e2 dru-s a%d that to sell at chea&er &rices.
Bar*ainin* Po3er of Buyers/
I% the &harmaceuticals i%dustr/6 the 4u/ers are the &atie%ts6 the .amil/ mem4ers6 the
PBAC6 the PBPA6 the .i%a%ce de&artme%ts6 the hos&ital 4oards6 the te%der 4oards6 the
!#
chie. &harmacist alo%- 2ith a ra%-e o. other 4u/ers6 de&e%di%- o% the s&eci.ic 4usi%ess.
Their i%.lue%ce %eeds to 4e co%sidered. I% =arious 2a/s6 4u/ers ca% a..ect a 4usi%ess 4/
see5i%- &rice reductio%s6 dema%di%- hi-her >ualit/ a%d dema%di%- 4etter ser=ice. I%
short6 4u/ers ca% exercise &o2er 4/ see5i%- &rice reductio% a%d threate%i%- to -o to
other su&&liers to -et their &roducts. Po2er.ul 4u/ers dema%d costl/ ser=ice. The
-o=er%me%t re>uires a% i% M de&th a%al/st that cost s mo%e/6 a%d customers re>uire u&E
toEdate a%d rele=a%t medical i%.ormatio%E a%other costl/ ser=ice. Hos&itals I other
health care or-a%i8atio% 4u/ i% 4ul5 >ua%tities a%d exert &ressure o% &harmaceutical
com&a%ies to 5ee& &rices i% chec5. Re-ular &atie%ts ha=e lost 4ar-ai%i%- &o2er due to
&rice i%creases i% -e%eric dru-s.
Bar*ainin* Po3er of 'u11liers/
The 4ar-ai%i%- &o2er o. su&&liers is a rather mar-i%al .orce i% the &harmaceutical
i%dustr/. The lar-e &harmaceuticals com&a%ies are usuall/ =erticall/ i%te-rated
4ac52ards a%d as such do %ot .ace stro%- threats .rom su&&liers. ?or the maGorit/ o.
&harmaceutical &roducts ra2 materials su&&l/ is %ot a 4ottle%ec5. The exce&tio% is 4ioE
tech%olo-/ a%d -e%ome tech%olo-/6 2here su&&l/ is o.te% more o. a &ro4lem 4ecause o.
the hi-hl/ s&eciali8ed %ature o. the i%&uts. A%other area 2here the su&&l/ mi-ht 4e a%
im&orta%t co%strai%t is6 .or exam&le6 the scarcit/ o. do%or or-a%s 2hich se=erel/ limits
the -ro2th o. immu%it/ dru-s. I. la4or is i%cludes as a su&&l/ .orce6 si-%i.ica%t 4ar-ai%i%-
&o2er mi-ht exist s&eciali8ed RI &erso%%el i% attracti=e research areas. U%io%s ma/
also &la/ a role as 4ar-ai%i%- i% the &harmaceutical i%dustr/6 %ot so much to &rotect
salaries6 4ut more so to e%.orce stro%- a%d ex&e%si=e sa.et/ measures .or the 2or5
e%=iro%me%t.
CO#PITITO( CO#PANI' O. P+A(#AC%TICAL IN!%'T(I' O.
BAN"LA!'+/
Re%ata Ltd. #.ormer P.i8er La4oratories Ba%-ladesh Ltd.$C 222.re%ataEltd.com
Ad=a%ced Chemical I%dustries #ACI$ Limited
The ACME La4oratories Ltd
Amico La4oratories
Aristo&harma Ltd
Beaco% Pharmaceuticals Ltd.
Beximco Pharmaceuticals Ltd
Bristol Pharma Ltd
elta Pharma Limited.
Es5a/e. Ba%-ladesh Limited
7aco Pharmaceutical Limited
!$
U%iMed I U%iHealth Pharma Limited
7laxoSmith@li%e Ba%-ladesh Ltd.
7lo4e Pharmaceutical Limited
Healthcare &harmaceuticals Limited
IB! Si%a
I%ce&ta Pharmaceuticals Limited
Mo%icoPharma Ltd. Ba%-ladesh
!o=o Healthcare I Pharma Limited
O&so%i% Pharma Limited
Paradise Chemical I%dustries
Po&ular Pharmaceuticals Limited
Re%ata Limited
S/%tho La4oratories Limited
Sil=a Pharmaceutical Limited
S>uare Pharmaceuticals Ltd. Ba%-ladesh
Su&reme Pharmaceuticals Limited
Ba/so% Pharmaceutical Limited
So%ear La4oratories Limited
'TI#AT' IN!%'T() (AT' O. (T%(N'
To demo%strate i%dustr/ a%al/sis6 2e used #i=ide%d iscou%t$ model i%
estimati%- the rates o. retur%s o. &harmaceuticals i%dustr/.
A di=ide%d discou%t model is a .i%a%cial model that =alues shares at the
discou%ted =alue o. .uture di=ide%d &a/me%ts. A share is 2orth the &rese%t =alue
o. all .uture di=ide%ds. As it =alues shares o% the actual cash .lo2s recei=ed 4/
i%=estors6 it is theoreticall/ the most correct =aluatio% model.
Rate of Return (Ks):
Price o. the com&a%/6 Po N 'C #@sE-$
Or6 Rate o. Retur%6 @s N #'CPo$ K-
C!PA"#
"A!E
$R%&'
RA&E
()*)(E"(
(&K)
PR)CE +
S'ARE(&K)
RA&E +
RE&,R"
B$I#CO
P+A(#AC%TICAL'
5.5@9;7 O(
@.9AB
6.76 6@@.85 5.5:7: O(
:.7:B
SOUARE
PHARMACEUTICALS
,.'+(( OR
'(.,,J
)).;9 ;:'<.<9 ,.<'<) OR
<'.<)J
RE!ETA LT ,.<:)' OR
<:.)'J
',+.*9 '<,9'.9, ,.<9* OR
<9.*'J
!%
7LAXCO SMITH
@LA!E B LT
,.<)+< OR
<).+<J
<,:.9, (9* ,.:(<' OR
:(.<'J
Industry A2era*e 5.4@9: O(
4@.9:B
IN!%'T() ANAL)'I' %'IN" (LTI&L) &AL%ATOIN APPO(AC+
I% the i%dustr/ a%al/sis a&&roach there are t2o tech%i>ues are used6 such as/

a$ The &rice to 4oo5 =alue ratio I
4$ The &rice to sales ratio.
a> The 1rice to boo< 2alue ratio : The &rice to 4oo5 =alue ratio is calculated the
mar5et &rice &er share di=ided 4/ shareholders e>uit/ &er share.
The &rice to 4oo5 =alue ratioNmarket price per share /shareholders equity per share.
Com&a%/ %ame &rice to 4oo5 =alue ratio
BEXIMCO PHARMACEUTICALS LT '**.(9C)<.,<N<.;'+
SOUARE PHARMACEUTICALS LT ;:'<.<9C+<:.'*N:.':,
7LAXCO SMITH @LAI!E BA!7LAESH
LT
(9*C(*.*,N(.+(*
IB! SIBA PHARMACEUTICALS LT '*<'.';C<;(.;:N*.));
RE!ETA PHARMACEUTICALS LT ',;**.++C'*++.9)N*.';(
TOTAL I!USTRA AFARA7E <(.<**C9N9.+9;
!&
?rom the a4o=e ratio 2e ca% sa/ that the Beximco &harma has the lo2est &rice to 4oo5
=alue ratio <.;'+ the% the i%dustr/ 9.+9;.So itHs a% attracti=e o&&ortu%it/ .or the i%=estor
to -ai% .rom the Bexi%co &harma stoc5. O% the other ha%d S>uare &harma hold as the
same co%ditio%.
But i% other three com&a%/ 2e ca% see that6 the &rice o. 4oo5 =alue ratio is hi-her li5e
7laxco (.+(*6 IB! SI!A *.));6 Re%eta *.';( the% the I%dustr/ ratio is 9.+9;6 2hich is
lo2er tha% the 4oo5 =alue ratio. So itHs %ot a% attracti=e o&&ortu%it/ .or the i%=estor to
-ai% .rom this stoc5. 1e 5%o2 that the &harmaceutical i%dustr/ i% Ba%-ladesh is -ro2i%-
sta-e6 so there is less &ossi4ilities i% mar5et .ailure o. &harmaceutical i%dustr/.
b> The 1rice to sales ratio/ The &rice to sales ratio ca% 4e calculated as a
com&a%/Hs total mar5et =alue #&rice time %um4er o. share$ di=ided 4/ its sales.
The &rice to sales ratioN (price*number of share)/total sales.
Com&a%/ %ame The &rice to sales ratio
BEXIMCO PHARMACEUTICALS LT '**.(9P'9'':(<(*C:+*+<99,,,N9.'+;
SOUARE PHARMACEUTICALS LT ;:'<.<9P'<,)<<:,C(),*:,<<9)N:.<::
7LAXCO SMITH @LAI!E
BA!7LAESH LT
(9*P'<,:*:;+C;,<;*)<,,,N',':<
IB! SIBA PHARMACEUTICALS LT '*<'.';P(,,,,,C'<))+*++:*N'.':<
RE!ETA PHARMACEUTICALS LT ',;**.++P'::9(:+C:9<:);:9((N;.;';
TOTAL I!USTRA AFARA7E ').*('C9N;.9;+
I. the com&a%ies RSP is less tha% ' is the ideal .irm i% the i%dustr/. A lo2er RPS mea%s
that a .irm is a4le to &urchase a &articular amou%t o. its sales chea&l/. Si%ce Beximco
&harma has a RSP 9.'+; 2hich is hi-her tha% the i%dustr/ a=era-e ;.9;+. So the
i%=estors 2ill %ot 4e i%terested to i%=est i% Beximco &harma due to the RSP o. the
com&a%/ 2hich is si-%i.ica%tl/ hi-her tha% its i%dustr/.
The a%%ual i%dustr/ &er.orma%ce ha=e .ou%d that di..ere%t i%dustr/ ha=e co%siste%tl/
sho2% 2ide dis&ersio% i% their rate o. retur%. I% <,', the rate o. retur% o.
&harmaceutical i%dustr/ 2as <9.9)J 2hich is hi-her tha% the textile i%dustr/6 4ut lo2er
tha% the Ba%56 ?uel or Po2er sectors. ?rom the a4o=e stud/ 2e .u%d that6 4a%5i%-
sector &ro=ided more retur% tha% other i%dustries I the &harmaceuticals &ro=ided a%
a=era-e retur% i% <,',.
!'
.inancial 'tatement Analysis


!(
Be7imco *harmaceuticals .td.


CO##ON 'IC INCO# 'TAT#NT
A% i%come stateme%t i% 2hich each accou%t is ex&ressed as a &erce%ta-e o. the =alue
sales. This t/&e o. .i%a%cial stateme%t ca% 4e used to allo2 .oe a%al/sis 4et2ee%
com&a%ies or 4et2ee% time &eriods o. a com&a%/. Commo% si8e I%come stateme%t
a%al/sis allo2s a% a%al/st to determi%e ho2 the =arious com&o%e%ts o. the i%come
stateme%t a..ect a com&a%/Hs &ro.it. I%come stateme%t o. Beximco &harmaceuticals
limited .or <,,+6 <,,( a%d <,', are -i=e% .or2ard.
Beximco Pharmaceuticals Ltd8
Profit and Loss Account
For the ended 6ear of "1Decem0er !)1)
Amount in Taka


Particulars

Pro.it a%d Loss Accou%t
Commo%
Si8e Pro.it
a%d Loss
Accou%t
<,', <,,( <,,+ <,',
Net 'ales (e2enue :-A75-8A9-;@; A-8:8-4@A-76@ A-565-6:9-5@7 655
Cost o. 7oods Sold #;6;')6*:,6<9:
$
#<69**6<,*6*<*$ #<6,,<6+)'6'+'$ #9'.''$
"ross Profit ;-69;-459-577 4-;54-5A8-487 4-559-47@-898 A8.87
O1eratin* x1enses =6-@;9-A4:-759
>
=6-;55-9:@-898> =6-558-@56-5;5> =4;.:7>
Admi%istrati=e Ex&e%ses #<;;6:';6(+,$ #<'96'(<69:)$ #'9;6:*:6<:;$ #;.*,$
Selli%-6 Mar5eti%- I
istri4utio% Ex&e%ses
#'6;,:6,'<6(<)
$
#'6,+969);6;;'$ #+996,;*6)+)$ #<,.,($
Profit from O1erations 6-:;@-985-674 6-556-484-A66 778-97A-8A8 4@.45
Other I%come :9*6,''6';: '(+6(+*6;)( *+*69', ).,<
")
?i%a%ce Cost #**<6'+<6;+:$ #<+(6:<)6((<$ #<:(6*9:6<(+$ #',.<,$
Profit Before Contribution
to WPP.
6-A47-:58-7A4 765-8A5-978 9A7-849-5:5 44.54
Co%tri4utio% to 1or5erHs
Pro.it Partici&ator/C1el.are
?u%ds
#*+6,)*6*'*$ #:;6;);6;)'$ #;96),*6,9,$ '.,9
Profit Before Tax 6-;:6-@;4-;4: 8:9-A:9-A49 96A-646-565 45.79
I%come Tax Ex&e%se #;,(6++;69'+$ #<:<6)<)6'<,$ #'*+6))(6);)$ #:.))$
Curre%t Tax #)'6,+96+;9$ E #');6)<,6:;,$ #'.,($
e.erred
Tax#Ex&e%se$CI%come
#<;+6)()6*+;$ #<:<6)<)6'<,$ :6(:,6*(; #;.*+$
Profit After Tax
Transferred to Statement
of Changes in Equity
1,051,64,0 6!4,"40,#0" 545,#41,!"# 16$!0
CO##ON 'IC BALANC '+T
A com&a%/ 4ala%ce sheet that dis&la/s all the items as &erce%ta-e o. a commo% 4ase
.i-ure. This t/&e o. .i%a%cial stateme%t ca% 4e used to allo2 .oe eas/ a%al/st 4et2ee%
com&a%ies or 4et2ee% time &eriods o. a com&a%/. The ima-e a4o=e is di..ere%ce
4et2ee% a re-ular 4ala%ce sheet a%d a commo% si8e 4ala%ce sheet. I% the %ormal
4ala%ce sheet6 accou%t =alues are ex&ressed i% dollar items6 2hile i% the commo% si8e
o%e6 each =alue is listed as a &erce%ta-e o. total assets. This is also do%e .or lia4ilities6
2here each lia4ilit/ accou%t is a &erce%ta-e o. total lia4ilities.
Beximco Pharmaceuticals Ltd.
Balance Sheet
As at "1 Decem0er !)1)
Amount in Taka
Particulars !ormal Bala%ce Sheet
Common
'iDe Balance
'heet
<,', <,,( <,,+ <,',
Assets/
%on&Current Assets 15,10,"#1,6" 1!,'"5,1'5,5!' 11,'5",""#,"" "1$0#
Pro&ert/6 Pla%t a%d
E>ui&me%t Carr/i%-
Falue
'96'<;6;,*6<(+ '<6(**69+)6')+ ''6(<'6,)<6*() ),.)*
I%ta%-i4le Assets 9'6'<*6+9: 96)<*69<9 E ,.<:
I%=estme%t i% Share *6<(+69<* <6++'6+<* ;*6),'6,(, ,.,;
Current Assets 6,1'1,66",#1 6,'16,"#",'# !,61,'1,654 !$'"
"1
I%=e%tories '6(+;6+,(6::: '6)<<6(9;6<+: '69,96<++6,(; (.<+
S&ares a%d Su&&lies <)*69<,6'++ <:<6,;:6+99 <;:69;,6;<* '.<(
Accou%t Recei=a4le +<'6;9*6:;( *(:6'''6);, 9,;6('*6:,' ;.+:
Loa%s6 Ad=a%ces6 a%d
e&osits
))(6'<(6*<, *((6<,:6:9, 9::69,(6',* ;.*:
ShortEterm I%=estme%ts +9(6:,;6),: <69,,6,,,6,,, E :.,<
Cash a%d Cash
E>ui=ale%ts
'6:)'6::+6:;* '6,9+6:;;69): );6*:)6)<+ *,++
Tota( Assets !1,#"!,#'',50' 1','1,'##,4!! 14,1',665,441 100
'+A(+OL!(?'
E%IT) AN!
LIABILITI'/
Shareho(der)s Equity: 15,'"4,06,451 10,5,"06,614 10,450,!0!,145 "4$"4
Issued Share Ca&ital <6,(+6,*96,(, '69''6:(<6(*, '6<9(69))6:), (.<+
Share Premium 96<*(6:):6*(, '6:+(6)9,6,,, '6:+(6)9,6,,, <:.**
Excess i. Issue &rice
o=er ?ace =alue o.
7Rs
'6*+(6*;*6(9+ '6*+(6*;*6(9+ '6*+(6*;*6(9+ ).('
Ca&ital Reser=es O%
Mer-er
<(:6(9,6(9, <(:6(9,6(9, <(:6(9,6(9, '.;+
Re=aluatio% Sur&lus '9;6*:96+<, '6*')6;*'6)': '6)''6'):6):) ).'+
Retai%ed Ear%i%-s 96,+)6;'<6(:; :6<+<69':6,;< :6,,96''<6,<, <;.+,
%on&Current *ia+i(ities !,5,155,!6 6,64,""5,166 1,"6",4#1,0!' 1#$50
Lo%- Term Borro2i%-
!et o. Curre%t Maturit/
'6(,<6'9,6);; '6(<:6(;;6,*9 '6::*6*,,69,, +.(,
?ull/
Co%=erti4le69Ji=ide%d6
Pre.ere%ce Share
E :6',,6,,,6,,, E
Lia4ilit/ .or 7ratuit/ I
1PP?
;;96++9)(< ;,)6:<96*': <):6:'(6<9; '.9)
e.erred Tax Lia4ilit/ *:)6''(6;,' ;9<6:'*6:+) :*6:''6<)* ;.,;
Current *ia+i(ities And
Pro,isions:
!,51#,15",!#! !,#!1,451,64! !,60!,0#!,!6" 11$"6
Short Term Borro2i%-s '6*;(6(*'6,9< '6:9'6;<*6;9: '6:*'6***6<<) ).*)
Lo%- Term Borro2i%-sE
Curre%t Maturit/
;:+6+*,6::; ;,+6+<,6,9* *:+6'*96+:' '.*;
Creditor A%d other
Pa/a4le
:;<6;'96**, :,(6+(+6'<< <*;6')*6+<< <.,<
Accrued Ex&e%ses (,69'<6')+ )(6,(:6(,9 +'6))*6:9, ,.:<
i=ide%d Pa/a4le '69,)6+(( '6)<)6)<: ;6'*(69*+ ,.,,)
I%come Tax Pa/a4le E ),69+:6:+' '::6,))6;9(
Total Liabilities And
'hareholder?s Fuity
46-;94-;77-@57 67-876-7;;-A44 6A-867-::@-AA6 655
The &erce%ta-e o. e>uit/ is less tha% the &erce%ta-e o. lia4ilities. Beximco used less
e>uit/ tha% lia4ilit/ to ru% the 4usi%ess. I% the -ra&h 2e see that their lia4ilit/ are
i%creasi%- 2here their e>uit/ are decreasi%-. The com&a%/ has more %o%Ecurre%t asset
tha% the curre%t asset as a result the/ are ca&a4le to ca&ture more de4t .rom the
mar5et. I% the asset there exists a =ariatio%. Both assets are mo=i%- /ear to /ear.
"!
CA'+ .LOW 'TAT#NT
The Cash ?lo2 Stateme%t o. Beximco Pharmaceuticals Ltd .or <,,+6 <,,( I <,', -i=e%
4elo29
Beximco Pharmaceuticals Ltd.
Cash +lo- Statement
For The :ear ;nded "1 Decem0er !)1)
Amount in Taka
Particulars 4565 4557 4558
Cash .lo3s .rom Acti2ities/
Cash Recei&ts ?rom Customers a%d Others *6+',69',6*;' :6)',6+),6'<+ :6,,*6*+:6)')
Cash Paid To Su&&liers a%d Em&lo/ees #:6)),6:*96,<($ #;6+*+6,))69,*$ #<6+:,6*'<6);:$
Cash -enerated .rom /0erations !,040,045,60! 4,"'!,6!! 1,166,0"1,'#
I%terest Paid #9,+6:;<6;+:$ #<:+6;),6+9,$ #<':6,**6),)$
I%come Tax Paid #')(6:,*69*($ #);6:(<6+)+$ #)'6<))6,,'$
%et Cash -enerated .rom /0erating
A1ti,ities
1,#5!,!06,64' 5!0,'!,'4 0,"!,!"5
Cash .lo3s .rom In2estin* Acti2ities/
Ac>uisitio% o. Pro&ert/6 Pla%t a%d E>ui&me%t #<69(96,(+6):($ #'6':+6'(+6(',$ #'6'+,6::96<:'$
I%ta%-i4le Assets #:*69:96*;:$ #96)<*69<*$ E
Sales o. Shares I% Bextex Ltd. E '()69,,6,,, E
I%=estme%t i% Share #;6:'*6),,$ E E
is&osal O. Pro&ert/6 Pla%t a%d E>ui&me%t ';6;9,6,); ;699;6*,, *'6*,,
Short Term I%=estme%t '6*:,69(*6<(* #<69,,6,,,6,,,$ E
%et Cash 2sed in 3n,esting A1ti,ities 4''1,114,"145 4#,45!,"1,#55 41,10,##,641
5
Cash .lo3s .rom .inancin* Acti2ities/
!et I%creaseC#ecrease$ I% Lo%- Term
Borro2i%-s
')6<9+6,9: #:969;'6):($ #<,(6'',6:;+$
""
Issua%ce o. Pre.ere%ce Share E :6',,6,,,6,,, E
!et I%creaseC#ecrease$ i% Short Term
Borro2i%-s
'++6*;:6*(+ #',6;;(6+);$ 99:6,+;6(,,
Pre.ere%ce Share i=ide%d #'9;6)9,6,,,$ E E
i=ide%d Paid #<'(6+<9$ #'<)6;((69('$ #9)6;*(6<)+$
!et Cash 7e%erated ?rom ?i%a%ci%- Acti=ities 9'6(<<6(<) ;6('*6)<+6)+) <+)6*,:6'+:
ecreaseCI%crease I% Cash a%d Cash
E>ui&me%ts
:';6,':6+*< (+:6)+96+:* #'<6,9'6'+<$
Cash a%d Cash E>ui=ale%ts at Be-i%%i%- o.
Aear
'6,9+6:;;69): );6*:)6)<+ +96*(+6(',
Cash and Cash Equi,a(ents at End of 6ear 1,4"1,44,4#6 1,05,4##,5"4 "#,64","!
I% the cash .lo2 stateme%t -i=e% a4o=e it is see% that i% the /ear <,',the cash 2as
more -e%erated tha% the &re=ious /ear <,,( I <,,+. Beximco i%creasi%- their acti=ities
2here their o&erati%- acti=ities are more di..ers .rom o%e /ear to a%other. I% .i%a%ci%-
acti=ities 2e ca% also see the u& I do2% situatio%. Their o&erati%- acti=ities are sho2i%-
the &ositi=e =alue that mea%s the/ are i% a -ood &ositio% i% order to o&erate their
4usi%ess

A%al/sis o. ?i%a%cial Ratios

"#
Beximco Pharmaceuticals Ltd.
Ratio% a%al/sis is the starti%- &oi%t i% de=elo&i%- the i%.ormatio% desired 4/ the
a%al/st. Ratio a%al/st &ro=ides o%l/ a si%-le s%a&shot6 the a%al/st 4ei%- .or o%e
-i=e% &oi%t or &eriod i% time. I% the ratio a%al/sis it is &ossi4le to de.i%e the com&a%/
ratio% 2ith a sta%dard o%e. Ratio a%al/sis ca% 4e classi.ied as .ollo2s"
A. Li>uidit/ Ratio"
Li>uidit/ ratio measures the a4ilit/ o. the .irm to meets its .uture short term o4li-atio%s.
These ratios esta4lishes 4et2ee% cash a%d other curre%t assets a%d curre%t lia4ilities.
Creditors to e=aluate the credit2orthi%ess o. the .irm use these ratios. These ratios also
&ro=ide re=els ma%a-eme%tHs &olic/ i% ma%a-i%- li>uidit/ &ositio% o. the .irm. The
Li>uidit/ ratio 2e ca% satis./ o% the three ratios6 those are"

'. Curre%t Ratio%.
<. Ouic5 Ratio or Acid test.
;. Cash Ratio.
6. Current (atio" Curre%t Ratio i%dicates the a4ilit/ o. a com&a%/ to achie=e its
shortEterm o4li-atio%s6 2here shortEterm o4li-atio%s i%dicate those o4li-atio%s
that are due 2ithi% a /ear or 2ithi% the o&erati%- c/cle. Curre%t ratios are exte%t
to 2hich the assets that are ex&ected to cash co=er the claims o. shortEterm
creditors.

Current Assets
Curre%t Ratio N Current *ia+i(ity
Here6
Curre%t Assets N I%=e%tories6 S&ares I Su&&lies6 Accou%t Recei=a4les6 Loa%s6
Ad=a%ces a%d e&osits6 ShortEterm I%=estme%t6 Cash a%d Cash E>ui=ale%ts.
"$
Curre%t Lia4ilities N ShortEterm Borro2i%-6 Lo%-Eterm Borro2i%-6 Creditors a%d other
Pa/a4les6 Accrued Ex&e%ses6 i=ide%d Pa/a4le6 a%d I%come Tax Pa/a4le.
Particulars <,', <,,( <,,+
Beximco
Pharmaceuticals
Ltd.
<.:*"' <.(+"' '.,("'
#See A&&e%dix '$

A%al/sis"
As a co%=e%tio% rule6 a curre%t ratio o. a <"' or more is co%sidered
satis.actor/. Our com&a%/ has a curre%t ratio o. '.,("' i% <,,+ it ma/ 4e i%ter&reted
to 4e i%su..icie%t li>uid6 4ut i% <,,( a%d <,', its curre%t ratio is <.(+"' a%d <.:*"'
2hich i%dicates more satis.actor/.
4. Euic< (atio or Acid Test/ Ouic5 ratio is most im&orta%t measure o. li>uidit/
tha% curre%t ratio. Because i%=e%tories 2hich are the least li>uid o. the curre%t
assets .rom the ratio. It is esse%tial .or a com&a%/ to reali8e its a4ilit/ to &a/ the
shortEterm o4li-atio%6 2ithout 5%o2i%- o% the sales &. the i%=e%tor/ 4ecause the/
are the assets o% 2hich losses are mostl/ i% the e=e%t o. li>uidatio%.

4Cash 78ar9eta+(e se1urities 7:e1ei,a+(es55
Ouic5 ratio N Current *ia+i(ities
Here6 Curre%t assets N I%=e%tories6 S&ares I Su&&lies6 Accou%t Recei=a4les6 Loa%s6
Ad=a%ces a%d e&osits6 ShortEterm I%=estme%ts6 Cash a%d Cash E>ui=ale%ts.
Curre%t Lia4ilities N ShortEterm Borro2i%-6 Lo%-Eterm Borro2i%-6 Creditors a%d other
Pa/a4les6 Accrued Ex&e%ses6 i=ide%d Pa/a4le6 a%d I%come Tax Pa/a4le.


#See A&&e%dix <$

A%al/sis"
A%al/sis o. this ratio6 it is the same &ositio% o. curre%t ratio. I% <,',6 the
>uic5 ratio is ,.(' times 4ut i% <,,( a%d i% <,,+ Beximco Pharmaceutical com&a%/
2hich decrease >uietl/6 the >uic5 ratio 2as ,.)9 a%d ,.<< times i% <,,( I <,,+. The
Beximco Pharmaceutical too lo%- .or this reaso% is %ot -ood li>uidit/ &ositio%. So
their &ro.it mar-i% ma/ %ot so hi-h.
Particulars 4565 4557 4558
Beximco
Pharmaceutical
s Ltd.
,.('"' ,.)9"' ,.<<"'
"%
;. Cash (atio/ The cash ratio is estimated to curre%t lia4ilities i%to cash. It
4eto5e% the com&a%/ ca% &a/ o.. it curre%t lia4ilities -i=e% /ear .rom its
o&eratio%. It is the most .amous ratio .or reali8e the li>uidit/ &ositio% o. a%/
com&a%/. 7e%erall/ 2e 5%o2 that curre%t ratio a%d >uic5 ratio is %ot -ood 2a/ to
a%al/sis the li>uidit/ &ositio% .or a com&a%/ 4ecause it corres&o%d o. accou%t
recei=a4les a%d i%=e%tor/6 2hich ta5e time to co%=ert to cash. ?i%all/ 2e ca%
ex&ress that the cash ratio -i=es a 4etter result. The .ormula o. Cash Ratio is
-i=e% 4elo2 asD

Cash ratio N Cash ; Current *ia+i(ity

Particulars 4565 4557 4558
Beximco Pharmaceuticals Ltd ,.9+9; ,.:* ,.<+
#See A&&e%dix ;$

A%al/sis"
I% this ratio6 2e ca% see that the ratio has i%crease throu-h times i%
Beximco Pharmaceutical Com&a%/ i% /ear <,,+ to <,,( a%d /ear .rom <,,( to <,',
=er/ little. Com&a%ies are holdi%- its cash6 2hich is %ot -ood .rom i%=estor &oi%t o.
=ie2. Curre%t lia4ilities ha=e i%crease .or 4oth com&a%ies. So those com&a%ies %eed
to i%crease i%=est6 thatHs 2a/ 4oth com&a%/ ca% -et mo%e/ .or -ood retur%.
B. O&erati%- E..icie%c/ Ratio"
O&eratio% E..icie%c/ ratio measures ho2 e..icie%c/ the ma%a-eme%t are utili8ed the
com&a%/ assets a%d tur% i%to re=e%ue6 i%=e%tor/ ma%a-eme%t a%d accou%t recei=a4les
a%d accou%ts &a/a4le &rocess a%d s/stem. The o&erati%- ratio 2e ca% satis./ o% the ;
ratios6 those are"
'. Total asset tur%o=er
<. ?ixed asset tur%o=er
;. E>uit/ tur%o=er
6. Total Asset Turno2er/ This ratio measures a com&a%/Hs a4ilit/ to -e%erate sales
-i=e% its i%=estme%t i% total assets. Ca&italEi%te%si=e 4usi%ess 2ill ha=e a lo2er
total asset tur%o=er tha% %o%Eca&italEi%te%si=e 4usi%ess.
%et Sa(es
Total asset tur%o=erN A,erage Assets
Here6 !et SalesN sales re=e%ue I
A=era-e Assets N #Be-i%%i%- assets K E%di%- assets$ C<
Particulars 4557 4558
Beximco Pharmaceuticals Ltd ,.:* ,.*,
"&
4. .ixed Asset Turno2er/ ?ixed asset tur%o=er ratio is the sales to the =alue o.
.ixed assets o. the com&a%/. It determi%es the e..ecti=e%ess i% -e%erati%- %et
sales re=e%ue .rom i%=estme%ts i% %et &ro&ert/6 &la%t6 a%d e>ui&me%t 4ac5 i%to
the com&a%/ e=aluates o%l/ the i%=estme%ts.
?ixedEasset tur%o=erN %et sa(es ; a,erage net fixed assets
;. Fuity Turno2er/ This ratio measures a com&a%/Hs a4ilit/ to -e%erate sales
-i=e% its i%=estme%t i% total e>uit/ #commo% shareholders I &re.erred
stoc5holders$.
E>uit/ tur%o=erN %et sa(es ; a,erage tota( equity
Particulars 4557 4558
Beximco Pharmaceuticals Ltd ,.:* ,.:;
C. Pro.ita4ilit/ Ratio"
Pro.ita4ilit/ ratios desi-%ate a com&a%/Hs o=erall e..icie%c/ a%d &er.orma%ce. It
measures the com&a%/ ho2 to use o. its assets a%d co%trol o. its ex&e%ses to -e%erate
a% acce&ta4le rate o. retur%. It also used to exami%e ho2 2ell the com&a%/ is o&erati%-
or ho2 2ell curre%t &er.orma%ce com&ares to &ast records o. 4oth &harmaceutical
com&a%ies. There are ; im&orta%t &ro.ita4ilit/ ratios that 2e are -oi%- to a%al/8e"
'. !et Pro.it Mar-i%
<. 7ross Pro.it Mar-i%
;. O&erati%- Pro.it Mar-i%
6. Net Profit #ar*in/ The %et &ro.it mar-i% is determi%ed o. %et &ro.it a.ter tax to
%et sales. It ar-ues that ho2 much o. sales are cha%-ea4le a.ter al ex&e%se. The
Hi-her %et &ro.it mar-i%s are the 4etter .or a%/ &harmaceutical com&a%/.
!et Pro.it Mar-i%N %et 0rofit after tax ; sa(es < 100
Particulars 4565 4557 4558
Beximco Pharmaceuticals Ltd '*.<,J '<.+;J ';.9(J
#See A&&e%dix :$
4. "ross Profit #ar*in/ 7ross &ro.it mar-i% ex&ress o. the com&a%/ e..icie%c/ o.
ra2 material a%d la4or duri%- the 2or5i%- &rocess. I. a%/ com&a%/ hi-her -ross
&ro.it mar-i% the% the com&a%/ has more e..icie%c/ to co%trol their ra2 material
a%d la4ors. So it is most im&orta%t .or &er.orma%ce e=aluatio% &harmaceutical
com&a%/. It ca% 4e assi-%ed to si%-le &roducts or a% e%tire com&a%/. It
determi%es the -ross &ro.it to di=ide 4/ %et sales. The -ross &ro.it mar-i% ratio
.ormula as sho2% 4elo2"
Particulars 4557 4558
Beximco Pharmaceuticals Ltd ,.;( ,;+
"'
7ross &ro.it mar-i% ratioN -ross Profit ; sa(es < 100
Particulars 4557 4558
Beximco Pharmaceuticals Ltd :).;J 9,J
;. O1eratin* Profit #ar*in (atio/ The o&erati%- &ro.it mar-i% ratio reco-%i8e o.
the &erce%ta-e o. sales to excha%-e i%to all cost a%d ex&e%ses a.ter remai%i%-
sales. A hi-h o&erati%- &ro.it mar-i% is &re.erred. O&erati%- &ro.it mar-i% is called
as .ollo2s"
O&erati%- Pro.it Mar-i%N /0erating 0rofits ; sa(es
Particulars 4565 4557 4558
Beximco Pharmaceuticals Ltd <9.<J <,.9)J <9J
#See A&&e%dix 9$
. Recei=a4le Tur%o=er"
I% additio% to exami%i%- total li>uid assets6 it is use.ul to a%al/8e the >ualit/ #li>uidit/$ o.
the accou%ts recei=a4les 4/ calculati%- ho2 o.te% the .irmHs recei=a4les tur% o=er6 2hich
im&lies a% a=era-e collectio% &eriod. The .aster these accou%ts are &aid6 the soo%er the
.irmHs -ets the .u%ds to &a/ o.. itHs o2% curre%t lia4ilities. Recei=a4le tur%o=er is
com&ou%ded as .ollo2s"
%et Annua( Sa(es
Recei=a4le tur%o=erN A,erage :e1ei,a+(es
Particulars 4565 4557
Beximco Pharmaceuticals Ltd +.9) times +.<; times
#See A&&e%dix *$
E. A=era-e Recei=a4les Collectio% Period"
The a=era-e recei=a4les collectio% &eriod is com&ou%ded throu-h the -i=e% .ormula"
A=era-e Recei=a4les Collectio% PeriodN #65 days ; Annua( :e1ei,a+(es Turno,er
Particulars 4565 4557
Beximco Pharmaceuticals Ltd :<.9( a/s ::.;9 a/s
#See A&&e%dix )$
?. I%=e%tor/ Tur%o=er"
"(
1e should also exami%e the li>uidit/ o. i%=e%tor/ 4ased o% the .irmHs i%=e%tor/ tur%o=er
a%d the im&lied &rocessi%- time. I%=e%tor/ tur%o=er ca% 4e calculated relati=e to sales or
cost o. -oods sold. The i%=e%tor/ tur%o=er com&utatio% a%d BeximcoHs i%=e%tor/
tur%o=er .or<,,+6 <,,( I <,', are sho2% 4elo2D

Cost of -oods So(d
I%=e%tor/ Tur%o=erN A,erage 3n,entory
Particulars 4565 4557 4558
Beximco Pharmaceuticals Ltd ;.,+ '.9( '.<:

A11endix/
'$ Curre%t Ratio #<,',$ N *'('**)+;'C <9';'9)<;< N<.:*
?or #<,,($ N *('*);)+(;C <;<':9'*:< N<.(+
?or #<,,+$ N <+*'+('*9:C <*,<,;<<*) N'.,(
<$ Ouic5 Ratio #<,',$ N #':)'::+:;*K+<';9*:;($C <9';'9)<;< N,.(' or ('J
?or #<,,($ N #',9+:;;9):K*(:''');,$C <;<':9'*:< N,.)9 or )9J
?or #<,,+$ N #);*:))<+K9,;('*:,'$C <*,<,;<<*) N,.<< or <<J
;$ Cash Ratio #<,',$ N ':)'::+:;*C <9';'9)<;< N,.9+9; or 9+.9;J
?or #<,,($ N ',9+:;;9),C <;<':9'*:< N,.:* or :*J
?or #<,,+$ N );*:))<+,C <*,<,;<<*) N,.<+ or <+J
:$ !et Pro.it Mar-i% #<,',$ N',9'*:++,+C *:(,+:);9; N,.'*<, or '*.<,J
?or #<,,($ N*<:):,;,)C :+*+<9:('9 N,.'<+; or '<.+;J
?or #<,,+$ N9:9;:'<);C :,','*),9( N,.';9( or ';.9(J
9$ O&erati%- Pro.it Mar-i% #<,',$ N'*;9)+,'(<C *:(,+:);9; N,.<9< or <9.<J
?or #<,,($ N',,'<+<:''C :+*+<9:('9 N,.<' or <'J
?or #<,,+$ N((+)(:+:+C :,','*),9( N,.<9 or <9J
*$ Recei=a4le Tur%o=er #<,',$ N *:(,+:);9; N+.) times
#+<';9*:;(K*(:''');,$C<
#)
?or #<,,($ N :+*+<9:('9 N+.<; times
#*(:''');,K9,;('*:,'$C<
)$ A=era-e Recei=a4les collectio% Period #<,',$ N;*9C +.9) N:<.9( da/s
?or #<,,($ N;*9C +.<; N::.;9 da/s
RETUR! O! EOUITA
#UPO!T SASTEM$

#1

Beximco Pharmaceuticals Ltd.
UPO!T SASTEM
A .i%a%ce executi=e at E.I. du Po%t de !emours a%d Co.6 o. 1ilmi%-to%6 ela2are6
created the uPo%t s/stem o. .i%a%cial a%al/sis i% '('(. Retur% o% E>uit/ #ROE$ is o%e
o. the most im&orta%t i%dicators o. a .irmHs &ro.ita4ilit/ a%d &ote%tial -ro2th. Com&a%ies
that 4oast a hi-h retur% o% e>uit/ 2ith little or %o de4t are a4le to -ro2 2ithout lar-e
ca&ital ex&e%ditures6 allo2i%- the o2%ers o. the 4usi%ess to 2ithdra2al cash a%d
rei%=est it else2here. There are ; com&o%e%ts i% the calculatio% o. the retur% o% e>uit/
usi%- the traditio%al uPo%t modelD The !et Pro.it Mar-i%6 Asset Tur%o=er6 a%d The
e>uit/ Multi&lier or The .i%a%cial le=era-e. B/ exami%i%- each i%&ut i%di=iduall/6 2e ca%
disco=er the sources o. a com&a%/Hs retur% o% e>uit/.
%et in1ome P %et sa(es P Tota( asset
Retur% o% E>uit/ #ROE$ N %et sa(es Tota( asset Common equity
6!4"40$#0" P 46!54'15 P 1''1'##4!!
ROE !00' = 46!54'15 1''1'##4!! 105"06614
#!
= 0$1! < 0$!45 < 1$!"

= 0$5" or 5">
Beximco Pharmaceutical has a much 4etter ROE so the .irmHs use o. assets is more
e..icie%t a%d it uses more de4t .i%a%ci%-. Beximco Pharmaceutical &rici%- or ex&e%se
co%trol are i%.erior to the i%dustr/6 ho2e=er6 a%d the use o. de4t co%stitutes a -reater ris5
.or Beximco Pharma 4ecause it ma/ %ot 4e a4le to ha%dle the ris5.
A!ALASIS O? RIS@
#"

Beximco Pharmaceuticals Ltd.
RIS@ A!ALASIS
Ris5 a%al/sis exami%es the u%certai%t/ o. i%come .lo2s .or the total .irm a%d
.or the i%di=idual source o. ca&ital. This i%=ol=es exami%i%- the maGor .actor that causes
a .irms i%come .lo2s to =ar/ .More =olatile i%come .lo2s mea% -reater ris5 .aci%-
i%=estor. The total ris5 o. .irms has < i%ter%al com&o%e%ts. The/ areE
A. Busi%ess ris5 a%d
B. ?i%a%cial ris5.
C. Total de4t ratio.
A. Business ris<
##

Busi%ess ris5 is -e%erall/ measured 4/ the =aria4ilit/ o. the .irms o&eratio%s
i%come o=er time. I% tur%6 the ear%i%- =aria4ilit/ is measured 4/ the sta%dard de=iatio%
o. the historical o&erati%- ear%i%-s series. The 2a/ .or measuri%- 4usi%ess ris5 is"


Busi%ess ris5N f 4Coeffi1ient of ,ariation of o0erating earnings5


N Standard de,iation of o0erating earnings
8ean o0erating earnings
? 4/E& /E5 @
= /E;%
The Busi%ess Ris5 ?or <,,( is N ,.,')9


The Busi%ess Ris5 ?or <,', is N ,.<):
B ?i%a%cial Ris5"
?i%a%cial ris5 is the additio%al u%certai%t/ o. retur%s to e>uit/ holders due to a
.irmHs use o. .ixed o4li-atio% de4t securit/. The .i%a%cial u%certai%t/ is i% additio%al to
the .irmHs 4usi%ess ris5 .I% a%al/8i%- .i%a%cial ris56 2e em&lo/ t2o set o. .i%a%cial
ratios. The/ are as .ollo2s"

a. e4t M e>uit/ ratio
4. I%terest co=era-e ratio
c. Total de4t Ratio
a. e4t Me>uit/ ratio"

#$
The &ro&ortio% o. de4t ratios i%dicates 2hat &ortio% o. the .irmHs ca&ital is
deri=ed .rom de4t com&are to other source o. ca&ital6 such as &re.erred stoc56
commo% stoc56 a%d retai%ed ear%i%-s. A hi-her &ro&ortio% o. de4t ca&ital com&ared
to e>uit/ ca&ital ma5es ear%i%-s more =olatile 4ecause o. lar-er o. .ixed .i%a%cial
char-es a%d i%creases the &ro4a4ilit/ that a .irm 2ill 4e u%a4le to &a/ the i%terest
char-ed o% de4t ca&ital. The de4tEe>uit/ ratio ca% measure 4/ the .ollo2i%- 2a/"
Tota( (ong term de+t
e4t e>uit/ ratioN
Tota( equity
e4t e>uit/ .or <,,(
Particular (atio
e4t e>uit/ )'.;:J
e4t e>uit/ .or <,,+
Particular (atio
e4t e>uit/ <;.)<J
4. I%terest Co=era-e Ratio"
I%terest co=era-e ratio is o%e o. the ear%i%- .lo2 ratios that i%dicates the
&ro&ortio% o. de4t o% 4ala%ce sheet6 i%=estors are -i=i%- -reater atte%tio% to the
ratios that relate to .lo2 o. ear%i%-s that is a=aila4le to meet the re>uired i%terest a%d
lease &a/me%ts .A hi-her ratio o. a=aila4le ear%i%-s is relati=e to .ixed .i%a%cial
char-es i%dicates lo2er .i%a%cial ris5. The i%terest co=era-e ratio ca% 4e descri4ed
4/ the .ollo2i%- method.
3n1ome +efore interest and tax 4EA3T5
I%terest Co=era-e ratioN
3nterest ex0enses
I%terest co=era-e Ratio .or <,,(
Particular (atio
I%terest co=era-e ratio ;.((
#%
I%terest co=era-e Ratio .or <,,+
Particular (atio
I%terest co=era-e ratio ;.+*
c. Total de4t Ratio/
It is the sum o. curre%t lia4ilit/ a%d lo%- term de4t .The sum is di=ided 4/ the sum o.
total de4t a%d total e>uit/.
Total de4t ratio N Current (ia+i(ity 7 (ong term de+t
Tota( de+t 7 tota( equity
Total de4t ratio .or <,,(
Particular (atio
Total de4t ratio .<,)(
Total de4t ratio .or <,,+
Particular (atio
Total de4t ratio .<9+)
A11endix/
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Com&a%/ A%al/sis
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Beximco Pharmaceuticals Ltd.
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