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Executive Summary
After growing at a robust twenty plus percentage in 2010 and 2011, Bangladesh Pharmaceutical
Industry experienced a slower growth in 2012. The market grew by 11.9% in value terms to
reach at Tk. 94 billion (IMS: Q4 2012 report). Despite a slower growth in the market, Beximco
Pharma managed to achieve desired growth and successfully improve its market share. The
country continued to maintain 6% plus GDP growth rate in 2012 as well. The alarming
depreciation of Taka against US Dollar that continued throughout 2011 till January 2012 has
finally been restrained. Thanks to higher inward remittances, lower payment for import
settlements, and moderate growth in export. The local currency appreciated by around 2.5%
against US Dollar in 2012. This was somewhat a relief to the predicted risk of significant
reduction of gross margin that started brewing in 2011 in the wake of deteriorating value of local
currency against US Dollar, high rate of domestic inflation and increase in the interest rates. The
liquidity shortage that prevailed throughout 2011 also eased up to some extent in 2012.
However, the political crisis that started by end of 2012 centering the upcoming election poses
some degree of uncertainty in the overall economic environment of the country and is seen as an
impediment to the growth of business. The first quarter of 2013 has already been affected for
such instability in the political environment and continues to remain as a risk factor.

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Introduction
Origin of the report
East West University promotes meaningfully blends of eastern culture and western thoughts and
innovations. To do this EWU provides many subjects like BUS, MKT and FIN etc. Managerial
finance FIN-201 is one of the courses for a student doing in BBA. Precisely it teaches how can
we analyze a financial statement and draw a recommendation for improve it.
To practically experience the implementation of all of those issues we have learned through the
course FIN-201 that is conduct by Farzana Akther, our respected course teacher of Managerial
finance has given us this assignment on BEXIMCO Pharmaceutical Ltd and manufacturing
companys financial ratio analysis.

Background of the study


The report is done as a part of the research of the course FIN-201.The report focuses on
BEXIMCO Pharmaceutical and manufacturing companys financial ratio analysis. The research
paper is prepared for Farzana Akther, Lecturer of business Administration Dept. at East West
University. She authorized the task of writing this report to a group of five members. This
research is prepared during the semester Summer- 2013.
A finance student must know about the analysis of a financial statement. As a finance student we
try our best to analyze the financial statement of BEXIMCO Pharmaceutical.

Objective of the study


The main objective of this assignment is to practice the real life financial statements analysis. It
will help us to know how we can analyze a financial statement and how we can recommend for
improvement and so on.

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Methodology:
At first we got the report design and structure from our academic supervisor and moved for the
next steps.
To prepare this report we had to collect data from both primary and secondary sourcesPrimary Data:
Primarily we collected data from annual report of the company. We also collect the information
by Discussing with our group members and also from our textbook.

Secondary Data:
We also collect data from secondary source. As
Different Journals
Through web searching
Annual report

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History of the Beximco Pharmaceutical Ltd


Beximco Pharmaceuticals Ltd. is a leading edge pharmaceutical company based in Dhaka,
Bangladesh and is acclaimed for its outstanding product quality, world-class manufacturing
facilities, product development capabilities and outstanding professional services. Beximco
Pharma is the pioneer in pharmaceutical export from Bangladesh and has received National
Export Trophy (Gold), the highest national accolade for export, for record three times.
Year of Establishment: 1976
Commercial Production: 1980
Status: Public Limited Company
Business Lines: Manufacturing and marketing of Pharmaceutical Finished Formulation
Products, Large Volume Parenterals, Small Volume Parenterals, Ophthalmic Preparations,
Nebulizer Solutions and Active Pharmaceutical Ingredients (APIs)
Overseas Offices & Associates: Australia, Bhutan, Cambodia, Chile, Ghana, Hong Kong,
Indonesia, Jordan, Kenya, Kuwait, Malaysia, Myanmar, Nepal, Pakistan, Philippines, Saudi
Arabia, Singapore, Sri Lanka, Vietnam and Yemen
Authorized Capital (Taka): 2,000 million
Paid-up Capital (Taka): 1,259.57 million
Number of Shareholders: Around 66,000
Stock Exchange Listings: Dhaka Stock Exchange, Chittagong Stock Exchange and AIM of
London Stock Exchange
Number of Employees: 2,310
Mission:
BEXIMCO Pharmaceutical are committed to enhancing human health and well being by
providing contemporary and affordable medicines, manufactured in full compliance with global

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quality standards. They continually strive to improve their core capabilities to address the unmet
medical needs of the patients and to deliver outstanding results for our shareholders.
Vision:
BEXIMCO Pharmaceutical will be one of the most trusted, admired and successful
pharmaceutical companies in the region with a focus on strengthening research and development
capabilities, creating partnerships and building presence across the globe.

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Ratio analysis
Liquidity Ratios of BEXIMCO Pharmaceutical Compare to IBN Sina Pharma. Ltd. (20082012):
Current ratio:

BEXIMCO Pharmaceutical
Liquidity Ratios

1 Current ratio(times)

2008

2009

2010

2011

2012

1.099868 2.979488 2.463701 2.699405 2.674574

IBN Sina Pharma. Ltd.


Liquidity Ratios
1 Current ratio(times)

2008

2009

2010

2011

2012

1.153831

1.031433

0.945958

0.729667

1.078789

In 2008 BEXIMCO Pharmaceutical ltd. has approximately same current ratio as it compotator
IBN Sina Pharma. Ltd. But with the time BEXIMCO Pharmaceutical ltd earn a great
sophistication level to meet up its current liabilities with current assets. That means in 2012
BEXIMCO Pharmaceutical ltd company has 2.674574 unit current assets to cover 1 unit of short
term liabilities.

Quick ratio:

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BEXIMCO Pharmaceutical
Liquidity Ratios

2008
0.521363

2009

2010

2011

2012

2.2373 1.674332 1.833958 1.880436

1 Quick Ratio (Times)

IBN Sina Pharma. Ltd.


Liquidity Ratios
Quick Ratio (Times)

2008

2009

2010

2011

2012

0.784575

0.527903

0.687176

0.739646

0.780398

In 2008 BEXIMCO Pharmaceutical ltd. has slightly lower quickt ratio as it compotator IBN Sina
Pharma. Ltd. But with the time BEXIMCO Pharmaceutical ltd earn a great sophistication level to
meet up its current liabilities with current assets without inventories. That means in 2012
BEXIMCO Pharmaceutical ltd company has 1.880436unit current assets to cover 1 unit of short
term liabilities where the IBN Sina Pharma. Ltd. has bellow 1 unit. That means BEXIMCO
Pharmaceutical ltd has strong financial strength.

Profitability Ratios of of BEXIMCO Pharmaceutical Compare to IBN Sina Pharma. Ltd.


(2008-2012)

Net Profit margin on sales:

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BEXIMCO Pharmaceutical
Profitability Ratios

2008

2009

2010

2011

2012

Net Profit Margin

14%

13%

16%

15%

14%

Profitability Ratios

2008

2009

2010

2011

2012

Net Profit Margin

3.85%

5.64%

3.13%

3.33%

0.41%

IBN Sina Pharma. Ltd.

In 2012 BEXIMCO Pharmaceutical ltd. has higher percentage 14% than its compotator IBN Sina
Pharma. Ltd. But in 2008 it also had 14% in profit, which means BEXIMCO Pharmaceutical ltd
Company cannot increase its sophistication level to generate its net profit from sales. On the
other hand the compotator is going down to generate its profit. So comparatively BEXIMCO
Pharmaceutical ltd has good profitability rather than its competitor.

Gross Profit margin on sales:

BEXIMCO Pharmaceutical
Profitability Ratios

Gross Profit Margin

2008
50%

2009
47%

2010
49%

2011
48%

2012
47%

IBN Sina Pharma. Ltd.


Profitability Ratios

Gross Profit Margin

2008
3.80%

2009
38.53%

2010
58.18%

2011
38.72%

2012
38.78%

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In 2012 BEXIMCO Pharmaceutical ltd. has higher percentage 47% than its compotator IBN Sina
Pharma. Ltd. But in 2008 it also had 50% in profit, which means BEXIMCO Pharmaceutical ltd
Company cannot increase its sophistication level to generate its gross profit from sales. On the
other hand the compotator is going up (3.08% to 38.78%) to generate its profit. Though our
competitor increase its gross profit margin, it still lower than our gross profit margin. So
comparatively BEXIMCO Pharmaceutical ltd has good profitability rather than its competitor

Return on asset:

BEXIMCO Pharmaceutical
1

Profitability Ratios

2008

2009

2010

2011

2012

ROA

3.68%

3.14%

4.92%

5.20%

5.37%

IBN Sina Pharma. Ltd.


1

Profitability Ratios

2008

2009

2010

2011

2012

ROA

8.43%

8.15%

9.60%

5.61%

6.37%

Return on asset is an indicator of how a profitable a company is before leverage. Over the year
the ROA is increasing as 2008 it was 3.68% and at 2012 5.37% of BEXIMCO Pharmaceutical
LTD. now the company is generation 5.37% net income from its total assets. So the profitability
is better. On the other hand the ROA of IBN Sina Pharma LTD. is in better position than
BEXIMCO Pharmaceutical LTD. in 2012 it had 6.37% ROA and in 2008 it was 8.43%. That
means over the year the ROA is going down. So the profitability position is going down.

Return on equity:

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BEXIMCO Pharmaceutical
Profitability Ratios
1 ROE

2008

2009

2010

2011

2012

5.22%

5.74%

6.58%

7.00%

7.17%

IBN Sina Pharma. Ltd.


Profitability Ratios
1 ROE

2008

2009

2010

2011

2012

22.94%

22.86%

22.35%

8.95%

10.11%

In 2012 BEXIMCO Pharmaceutical LTD is generating 7.17% net income by its total equity.
Over the year the ROE is increasing as in 2008 it was 5.22% and in 2012 it was 7.17%. So the
profitability is better. On the other hand IBN Sina Pharma LTD. is generating 10.11% net
income by its total equity. Over the year the ROE is increasing as in 2008 it was 22.97% and in
2012 it was 10.11%. So the profitability is not better.

Asset Management Ratio of BEXIMCO Pharmaceutical Compare to IBN Sina Pharma.


Ltd. (2008-2012)

Account Receivable turnover ratio:

BEXIMCO Pharmaceutical
Profitability Ratios
1 Accounts Receivable Turnover (Times)

2008

2009

7.958001 7.013647

2010

2011

2012

7.902595 8.065882 7.991291

IBN Sina Pharma. Ltd.


Profitability Ratios
1 Accounts Receivable Turnover (Times)

2008

2009

2010

2011

2012

17603.58

1478.599

760.8392

1087.762

972.8941

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In 2012 BEXIMCO Pharmaceutical LTDs account receivable turnover is 7.991291 times. Over
the year ART is increasing as in 2008 it was 7.958001 times and 2012 it was 7.991291 times. So the
efficiency is good. On the other hand IBN Sina Pharma LTDs account receivable is 972.8941
times. Over the year ART is decreasing as in 2008 it was 17603.58 times and 2012 it was 972.8941
times. So the efficiency is not good.

Days sales outstanding:

BEXIMCO Pharmaceutical
Profitability Ratios
2 Average collection period (Days)

2008

2009

45.23749

51.3285

2008

2009

2010

2011

2012

45.55466 44.63244 45.04904

IBN Sina Pharma. Ltd.


Profitability Ratios
2 Average collection period (Days)

0.02045 0.243474

2010

2011

2012

0.473162 0.330955

0.37003

In 2012 BEXIMCO Pharmaceutical LTD collect their account receivables within 45.04904 days.
Over the year collection period is decreasing 45.23749 days to 45.04904 days (2008-2012). So
the efficiency is good. On the other hand IBN Sina Pharma LTD collect their account receivables
within 0.37003 days. Over the year collection period is increasing 0.02045 to 0.37003 (20082012). So the efficiency is not good.

Inventory turnover ratio:

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BEXIMCO Pharmaceutical
Profitability Ratios
3 Inventory turnover (Times)

2008

2009

2.664053 2.825529

2010

2011

2012

3.271911 3.442747 3.816418

IBN Sina Pharma. Ltd.


Profitability Ratios
3 Inventory turnover (Times)

2008

2009

175.2682 20.53405

2010

2011

2012

16.04073 21.04678 19.13292

In 2012 BEXIMCO Pharmaceutical LTDs inventory turnover is 3.816418 times on sales. Over
the year inventory turnover is increasing as in 2008 it was 2.664053 times and 2012 it was 3.816418
times .So the efficiency is better. On the other hand IBN Sina Pharma LTDs inventory turnover is
19.13292 times. Over the year inventory turnover is decreasing as in 2008 it was 175.2682 times and
2012 it was19.13292.So the efficiency is not better.

Inventory Processing Period

BEXIMCO Pharmaceutical
Profitability Ratios
4 Inventory processing period (Days)

2008

2009

135.1325 127.4098

2010

2011

2012

110.0275 104.5677 94.32929

IBN Sina Pharma. Ltd.


Profitability Ratios
4 Inventory processing period (Days)

2008

2009

2.053995 17.53186

2010

2011

2012

22.44286 17.10475 18.81573

In 2012 BEXIMCO Pharmaceutical LTD collect their inventories within 94.32929 days. Over
the year collection period is decreasing 135.1325 to 94.32925 (2008-2012). So the efficiency is

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better. On the other hand IBN Sina Pharma LTD collect their inventories within 18.81573days.
Over the year collection period is increasing 2.053995 to 18.81573 (2008-2012). So the
efficiency is not better .

Account Payable turnover ratio:

BEXIMCO Pharmaceutical
Profitability Ratios
5 Accounts payable turnover (Times)

2008

2009

10.42276 7.834524

2010

2011

2012

7.674115 6.260596 7.610363

IBN Sina Pharma. Ltd.


Profitability Ratios
5 Accounts payable turnover (Times)

2008

2009

38.45702 34.24383

2010

2011

2012

18.14762 17.72228 18.27419

In 2012 BEXIMCO Pharmaceutical LTDs account payable is 7.610363 times. Over the year APT is
decreasing as in 2008 it was 10.42276 times and 2012 it was 7.610363 times. So the efficiency is good.

On the other hand IBN Sina Pharma LTDs account payable is 18.27419 times. Over the year APT
is increasing as in 2008 it was 38.45702 times and 2012 it was 18.27419.So the efficiency is not good.

Average Payment Period

BEXIMCO Pharmaceutical
Profitability Ratios
6 Average payment period (Days)

2008

2009

34.53981 45.95046

2010

2011

2012

46.91094 57.50251 47.30392

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IBN Sina Pharma. Ltd.


Profitability Ratios
6 Average payment period (Days)

2008
2009
9.3611 10.51284

2010
2011
2012
19.83731 20.31341 19.69991

In 2012 BEXIMCO Pharmaceutical LTD collect their account payables within 47.30392 days.
Over the year collection period is increasing 34.53981 days to 47.30392 (2008-2012). So the
efficiency is good. On the other hand IBN Sina Pharma LTD collect their account payables
within 19.69991 days. Over the year collection period is increasing 9.3611 days to 19.69991
days (2008-2012). So the efficiency is good.

Fixed asset turnover ratio:

BEXIMCO Pharmaceutical
Profitability Ratios
7 Fixed Asset turnover (Times)

2008

2009

0.335361 0.375197

2010

2011

2012

0.427571 0.496714 0.566672

IBN Sina Pharma. Ltd.


Profitability Ratios
7 Fixed Asset turnover (Times)

2008

2009

35.84826 3.371361

2010

2011

2.782027 2.565796 2.775162

In 2012 BEXIMCO Pharmaceutical LTDs fixed asset turnovr is 7.991291 times. Over the year
FAT is increasing as in 2008 it was 0.335361 times and 2012 it was 0.566672 times. So the efficiency is
good. On the other hand IBN Sina Pharma LTDs FAT is 2.775162 times. Over the year FAT is
decreasing as in 2008 it was 35.84826 times and 2012 it was 2.775162 times. So the efficiency is not
good.

2012

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Total asset turnover ratio:

BEXIMCO Pharmaceutical
Profitability Ratios
8 Total asset Turnover (Times)

2008

2009

0.270598 0.244735

2010

2011

2012

0.303702 0.342557 0.377763

IBN Sina Pharma. Ltd.


Profitability Ratios

2008

2009

8 Total asset Turnover (Times)

20.4852

2.11535

2010

2011

2012

1.702607 1.793091 1.916332

In 2012 BEXIMCO Pharmaceutical LTDs Total asset turnover is 0.377763 times. Over the year
FAT is increasing as in 2008 it was 0.270598 times and 2012 it was 0.377763 times. So the efficiency is
good. On the other hand IBN Sina Pharma LTDs TAT is 1.916332 times. Over the year TAT is
decreasing as in 2008 it was 20.4852 times and 2012 it was 1.916332 times. So the efficiency is not
good.

Debt Management ratio of BEXIMCO Pharmaceutical Compare to IBN Sina Pharma. Ltd.
(2008-2012)

Debt ratio:

BEXIMCO Pharmaceutical
Debt Management ratio
2 Debt to total asset ratio

2008

2009

2010

2011

2012

29%

45%

25%

26%

25%

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IBN Sina Pharma. Ltd.


Debt Management ratio
2 Debt to total asset ratio

2008
51%

2009
64%

2010
57%

2011
37%

2012
37%

From 2008 to 2012 Beximco Pharmaceutical LTD. has lower debt ratio compare to IBN Sina
Pharma LTD. So over the year Beximco Pharmaceutical LTD. has lower leverage and this firm
is les riskier compare to IBN Sina Pharma LTD.

Time interest earn Earned ratio:

BEXIMCO Pharmaceutical
Debt Management ratio
1 Time Interest Earned Ratio (TIME)

2008

2009

3.420913 3.503029

2010

2011

2012

2.470286 3.459522 4.000712

IBN Sina Pharma. Ltd.


Debt Management ratio
1 Time Interest Earned Ratio (TIME)

2008

2009

11.09802 10.89417

2010

2011

2012

8.901569 11.45903

18.7439

From 2008 to 2012 the TIE ratio of Beximco Pharmaceutical LTD. is approximately stable. In
2012 the firm has 4.000712 times TIE ratio. That means the firm had 4.000712 times EBIT to
cover 1 unit interest. On the other hand IBN SinaPharma LTD. had 18.7439 times EBIT to cover
1 unit interest. Over the years (2008 to 2012) IBN Sina Pharma LTD. had higher TIE ratio. That
means IBN Sina Pharma LTD. had lower operating risk than Beximco Pharmaceutical LTD.

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Market ratio of BEXIMCO Pharmaceutical Compare to IBN Sina Pharma. Ltd. (20082012)

Price to Earnings ratio:

BEXIMCO Pharmaceutical
Debt Management ratio
1 P/E ratio

2008
46.45

2009
44.51

2010
32.32

2011
23.82

2012
12.91

IBN Sina Pharma. Ltd.


Debt Management ratio
1 P/E ratio

2008
20.70

2009
28.38

2010
29.05

2011
24.78

2012
20.39

In 2012 Beximco Pharmaceutical LTD. had 12.91 P/E ratio and the market price per share was 55.9 tk.
That means share holders were willing to pay 55.9 tk to earn 12.91 tk and to get this investment they
need 12.91 years time. On the other hand the P/E ratio of IBN Sina Pharma was 20.39 and market price
per share was 85.49. that means share holder were willing to pay 85.49 tk to get 20.39 tk profit. And it
will take 20.39 years time to get the investment back. Over the year the P/E ratio of Beximco
Pharmaceutical LTD. was decreasing. And this is lower than IBN Sina Pharma LTD. so the firm had lower
risk, lower growth and lower in future return.

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Trend Analysis
Return on equity:

BEXIMCO Pharmaceutical
Profitability Ratios
1 ROE

2008

2009

2010

2011

2012

5.22%

5.74%

6.58%

7.00%

7.17%

IBN Sina Pharma. Ltd.


Profitability Ratios
1 ROE

2008

2009

2010

2011

2012

22.94%

22.86%

22.35%

8.95%

10.11%

0.25
0.2
0.15

BEXIMCO

0.1

IBN SINA

0.05
0
2008

2009

2010

2011

2012

In 2012 BEXIMCO Pharmaceutical LTD is generating 7.17% net income by its total equity.
Over the year the ROE is increasing as in 2008 it was 5.22% and in 2012 it was 7.17%. So the
profitability is better. On the other hand IBN Sina Pharma LTD. is generating 10.11% net
income by its total equity. Over the year the ROE is increasing as in 2008 it was 22.97% and in
2012 it was 10.11%. So the profitability is not better.

NET INCOMES
Time

BEXIMCO

IBN SINA

2008

545341273

66826417

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2009

624740307

54916571

2010

1051648808

60070895

2011

1198525342

49233664

2012

1319389328

43285209

1.4E+09
1.2E+09
1E+09
800000000
600000000
400000000
200000000
0

BEXIMCO
IBN SINA

2008

2009

2010

2011

2012

In this graph we can see Baximco Pharmaceutical LTD. had a great level of efficiency to to
generate its net income by using its assets, debt, and equity. But IBN Sina Pharma LTD. cannot
generate its net income as Baximco Pharmaceutical LTD. can. So the pharm is in much more
better position than IBN Sina Pharma LTD.

Total Asset:
Time

BEXIMCO
2008
2009
2010
2011
2012

IBN SINA
14819665441
19891933422
21372399509
23033340533
24589810592

1048577023
978902427
625613527
604093394
513654097

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3E+10
2.5E+10
2E+10
1.5E+10

BEXIMCO

1E+10

IBN SINA

5E+09
0
2008

2009

2010

2011

2012

In 2008 Beximco Pharmaceutical LTD. had more current and total assets than IBN Sina Pharma
LTD. This graph shows over the time the firm increasing its total assets on the other hand IBN
Sina Pharma LTD. had no efficiency to increase its total assets. So Beximco Pharmaceutical
LTD. is in batter position.

Time interest earn Earned ratio:

BEXIMCO Pharmaceutical
Debt Management ratio
1 Time Interest Earned Ratio (TIME)

2008

2009

3.420913 3.503029

2010

2011

2012

2.470286 3.459522 4.000712

IBN Sina Pharma. Ltd.


Debt Management ratio
1 Time Interest Earned Ratio (TIME)

2008

2009

11.09802 10.89417

2010

2011

2012

8.901569 11.45903

18.7439

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25
20
15

IBN SINA

10

BEXIMCO

5
0
2008

2009

2010

2011

2012

From 2008 to 2012 the TIE ratio of Beximco Pharmaceutical LTD. is approximately stable. In
2012 the firm has 4.000712 times TIE ratio. That means the firm had 4.000712 times EBIT to
cover 1 unit interest. On the other hand IBN SinaPharma LTD. had 18.7439 times EBIT to cover
1 unit interest. Over the years (2008 to 2012) IBN Sina Pharma LTD. had higher TIE ratio. That
means IBN Sina Pharma LTD. had lower operating risk than Beximco Pharmaceutical LTD.

Debt Ratio

BEXIMCO Pharmaceutical
Debt Management ratio

2008

2009

2010

2011

2012

29%

45%

25%

26%

25%

2008
51%

2009
64%

2010
57%

2011
37%

2012
37%

2 Debt to total asset ratio

IBN Sina Pharma. Ltd.


Debt Management ratio
2 Debt to total asset ratio

1.2
1
0.8
0.6

IBN SINA

0.4

BEXIMCO

0.2
0
1

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From 2008 to 2012 Beximco Pharmaceutical LTD. has lower debt ratio compare to IBN Sina
Pharma LTD. So over the year Beximco Pharmaceutical LTD. has lower leverage and this firm
is les riskier compare to IBN Sina Pharma LTD.

Total Equity:
Time

BEXIMCO

IBN SINA

2008

10450202145

661316493

2009

10885706614

613915103

2010

15974086451

268731129

2011

17128128177

215410234

2012

18408161859

188676570

2E+10
1.5E+10
BEXIMCO

1E+10

IBN SINA
5E+09
0
1

From the point of total equity the firm is much better position than IBN Sina Pharma LTD. and
gradually the firm s increasing its total equity. On the other hand IBN Sina Pharma LTD cannot
handle its equity properly. So this trend shows the equity of IBN Sina Pharma is decreasing.

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DuPont Analysis
BEXIMCO Pharmaceutical LTD.
Year
ROE

Total Equity

NPM

TAT

EM

2010

6.58%

15974086451

16.20%

30.4%

134%

2011

7.00%

17128128177

15.19%

34.3%

134%

2012

7.17%

18408161859

14.20%

37.8%

134%

Over the year the ROE is increasing because total asset turnover is increasing. So we can
interpret the the performance of the firm is good.

IBN Sina Pharma. Ltd.


Year

ROE

Total Equity

NPM

TAT

EM

2010

22.35%

268731129

5.64%

170.3%

233%

2011

8.95%

215410234

3.13%

179.3%

160%

2012

10.11%

188676570

3.33%

191.6%

171%

In 2010, 2011, 2012 ROE ware respectively 22.35%, 8.95% and 10.11% so ROE was decreasing
and the reason ware net profit margin, total asset turnover and equity multipliers. From the basis
of equity multipliers we can see that the firm was riskier and net profit margin and total asset
turnover was decreasing. So we can interpret that the performance of this firm was not so good.

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Findings
Last few years the world economy was in recession situation. Thats why it is hard to draw a
financial situation of a company based on last 5 years information. According to last 5 years data
the liquidity ratio of Beximco Pharmaceutical was much better than IBN Sina Pharma LTD.

Pre-tax profit of Beximco Pharmaceutical increased by 13.8% to reach at Tk. 1,909.8 million as
against Tk. 1,677.8 million. In 2012 the Company earned a Post -tax profit of Tk. 1,319.4 million
which is an appreciable 10.1% higher than that of the previous year. The Company managed to
maintain its gross profit rate at 47.3% (2011: 48.0%), despite high rate of domestic inflation.
Improved product mix and effective cost-management and profit optimization strategies
significantly contributed in minimizing the negative impact on gross margin. On the other hand
IBN Sina Pharmaceutical Industry Ltd. has been able to maintain the continual sales growth and
achieve 0.41% NPM, 6.37% ROA and 7.17% ROE which is compare low in this industry. That
means Beximco Pharmaceutical LTD. was very much efficient in generating their profit.

Beximco Pharmaceutical LTD. had a higher rate of assets equity and stable risk and thats why
because they can manage their inventories, equities, account payable and account receivable in a
significant level. And they can handle the firms assets in the recessionary period. In order to
control all matters involving risks, the Company has a vigorous risk management process. But
IBN Sina Pharma LTD. cannot manage their assets in the recessionary period because their
credit policy was risky.

In the overall analysis of those two firms we can conclude that, Beximco Pharmaceutical LTD.
had high level of assets, equity, sales ratio, and stable risk in this industry. But IBN Sina Pharma
LTD had high risk policy, low assets, low equity. And those are the reason for the better
performance of Beximco Pharmaceutical LTD. in this industry.

25 | P a g e

Bibliography

1. leading edge pharmaceutical company, based in Dhaka, Bangladesh.


2013.leading edge pharmaceutical company, based in Dhaka, Bangladesh.
[ONLINE] Available at: http://www.beximco-pharma.com/. [Accessed 21 July 2013].

2. THE IBN SINA. 2013. THE IBN SINA. [ONLINE] Available


at:http://www.ibnsinapharma.com/. [Accessed 23 July 2013].

3. BEXIMCO PHARMACEUTICALS LIMITED 2008 to 2012. Annual Report 2008 to


2012. Bangladesh:BEXIMCO PHARMACEUTICALS LIMITED

4. The IBN SINA Pharmaceutical LTD. 2008 to 2012. Annual Report 2008 to
2012. Bangladesh:The IBN SINA Pharmaceutical LTD. .

26 | P a g e

Appendix
Beximco Pharmaceutical Ltd
Balance Sheet of Beximco Pharma Ltd.
2008

2009

Amount in Taka
2010

Non current asset


Property, Plant and
Equipment- Carrying
Value
Intangible Assets
Investment in
Shares

11957773787

12975195529

15180731678

15884877780

16392388639

11921072697

12966587178
5726525

15123306298
51126854

15745492625
135933879

16201858216
187079147

36701090

2881826

6298526

3451276

3451276

Current Assets
Inventories
Spares & Supplies
Accounts Receivable
Loans, Advances
and Deposits
Short Term
Investment
Cash and Cash
Equivalents

2861891654
1505288093
234530326
503916401

6916737893
1722953284
242034855
694111730

6191667831
1983809444
276520188
821356439

7148462753
2291844631
325881244
978224317

8197421953
2433987981
396175790
1162404807

544509106

699204450

779129620

840320705

965276373

2500000000

859403704

2193423560

2686598326

73647728

1058433574

1471448436

518768296

552978676

14819665441

19891933422

21372399509

23033340533

24589810592

10450202145
1259577470
1489750000

10885706614
1511492960
1489750000

15974086451
2098065090
5269474690

17128128177
2517678100
5269474690

18408161859
3046390500
5269474690

1689636958

1689636958

1689636958

1689636958

1689636958

294950950
1711174747
4005112020

294950950
1617361714
4282514032

294950950
1534645820
5087312943

294950950
1466602600
5889784879

294950950
1406527880
6701180881

2011

2012

Assets

TOTAL ASSETS
EQUITY AND
LIABILITIES
Shareholders
Equity
Issued Share Capital
Share Premium
Excess of Issue Price
over Face Value of
GDRs
Capital Reserve on
Merger
Revaluation Surplus
Retained Earnings

27 | P a g e
Non-Current
Liabilities
Long Term
Borrowings-Net off
Current Maturity
(Secured)
Fully Convertible,
5%Dividend,
Preference Share
Liability for Gratuity
& WPPF
Deferred Tax
Liability

1767431029

6684775166

2885155826

3257050368

3116703964

1446600500

1924933065

1902150733

1890074651

1469621611

4100000000
274419253

307425614

335885792

403598795

499622784

46411276

352416487

647119301

963376922

1147459569

2602032267

2321451642

2513157232

2648161988

3064944769

1461666227

1451326354

1639961052

1642216008

1526449918

648165841

308820056

348860443

363744181

664712728

263176822
81776450
3169568
144077359

409898122
79094905
1727724
70584481

432315660
90512178
1507899

523798136
101559917
1361452
15482294

470097685
128598961
1020948
274064529

TOTAL EQUITY
AND LIABILITIES

14819665441 19891933422 21372399509 23033340533

24589810592

Net Sales Revenue


Cost of Goods Sold
Gross Profit

Income Statement
Amount in Taka
2008
2009
2010
2011
4010167059
4868254915
6490847353
7890241843
(2002871181) (2566206626) (3317640254) (4103709021)
2007295878
2302048289
3173207099 3786532822

2012
9289115284
(4899713857)
4389401427

(1008501030) (1300765878) (1537426907) (1798053124)

(2181521867)

Current Liabilities
and Provisions
Short Term
Borrowings
Long Term
Borrowings-Current
Maturity
Creditors and Other
Payables
Accrued Expenses
Dividend Payable
Income Tax Payable

Operating
Expenses
Administrative
Expenses
Selling, Marketing
and Distribution
Expenses

(153464243)

(215192547)

(233413980)

(275201846)

(332225347)

(855036787) (1085573331) (1304012927) (1522851278)

(1849296520)

28 | P a g e
Profit from
Operations

998794848

1001282411

1635780192

1988479698

2207879560

686510
(249654298)

198986379
(289427992)

456011134
(662182384)

340907774
(567645757)

442847713
(645406575)

749827060

910840798

1429608942

1761741715

2005320698

Contribution to W
P P & Welfare
Funds

(35706050)

(43373371)

(68076616)

(83892463)

(95491462)

Profit Before Tax

714121010

867467427

1361532326

1677849252

1909829236

(168779737)
(173720430)
4940693

(242727120)
(242727120)

(309883518)
(71085835)
(238797683)

(479323910)
(207549905)
(271774005)

(590439908)
(445712907)
(144727001)

545341273

624740307

1051648808

1198525342

1319389328

545341273

624740307

1051648808

1198525342

1319389328

3.61

3.50

4.18

3.93

4.33

151149296

151149296

203420202

304639050

304639050

167.70

155.80

135.10

93.60

55.90

Other Income
Finance Cost
Profit before
Contribution to W
P P & Welfare
Funds

Income Tax
Expenses
Current Tax
Deferred Tax
Profit after Tax for
the Year
Other
Comprehensive
Income
Total
Comprehensive
Income for the
Year

Earnings Per Share


(EPS) / Adjusted
EPS
Number of Shares
used to compute
EPS
Market Price per
Share

29 | P a g e

Ratio of Beximco Pharmaceutical LTD.


Liquidity Ratios

2008

2009

2010

2011

2012

1 Current ratio(times)

1.099868 2.979488 2.463701 2.699405 2.674574

2 Quick Ratio (Times)

0.521363

Profit Ratios

2.2373 1.674332 1.833958 1.880436

2008

2009

2010

2011

2012

1 ROE

5.22%

5.74%

6.58%

7.00%

7.17%

2 ROA

3.68%

3.14%

4.92%

5.20%

5.37%

3 Gross Profit Margin

50.06%

47.29%

48.89%

47.99%

47.25%

4 Net Profit Margin

13.60%

12.83%

16.20%

15.19%

14.20%

2008

2009

2010

2011

2012

Efficiency Ratios
1 Accounts Receivable Turnover (Times)

7.958001 7.013647 7.902595 8.065882 7.991291

2 Average collection period (Days)

45.23749

3 Accounts payable turnover (Times)

10.42276 7.834524 7.674115 6.260596 7.610363

4 Average payment period (Days)

34.53981 45.95046 46.91094 57.50251 47.30392

5 Inventory turnover (Times)

2.664053 2.825529 3.271911 3.442747 3.816418

6 Inventory processing period (Days)

135.1325 127.4098 110.0275 104.5677 94.32929

7 Fixed Asset turnover (Times)

0.335361 0.375197 0.427571 0.496714 0.566672

8 Total asset Turnover (Times)

0.270598 0.244735 0.303702 0.342557 0.377763

Debt Management Ratio


1 Time Interest Earned Ratio (TIME)

2008

51.3285 45.55466 44.63244 45.04904

2009

2010

2011

2012

3.420913 3.503029 2.470286 3.459522 4.000712

30 | P a g e
2 Debt to total asset ratio
Market Ratios

1 P/E ratio

29%

45%

25%

26%

25%

2008

2009

2010

2011

2012

46.45

44.51

32.32

23.82

12.91

IBN Sina Pharma LTD.

Balance Sheet(IBN Sina Pharma. Ltd.)


2012
ASSETS
Non-Current Assets :
Property,Planatn d Equipment
Investmenitn MarketableS
ecurities(FairV alue)
Deferred Tax Asset
Current Assets :
Inventories
Sundry Debtors
Advances, Deposits & Prepayments
Cash & Cash Equivalents
TOTAL ASSETS
SHAREHOLDERSE' QUITYA ND
LIABILITIES:
Shareholders' Equity
Share Capital
Tax Holiday Reserve
Gaino n MarketableS ecurities(U
nrealized)
RetainedE arnings
Non-Current Liabilities :
LongT ermF inance-Neot ff currentm

Amount in taka
2011
2010

2009

2008

724,073,627 684100009 382876945 379036527 293523518


372,063,184 329163404 330214386 332846136 257913228
347245066 353710093
4765377
1226512

52642690
19872

44734790
1455601

35610290

324503396 294802418 242736579 225056867 220130579


105024268 83398069 66404326 62231701 60035472
2065406
1613644
1399999
864243
597737
110234856 108897414 95826901 85469907 78397028
107178866 100893291 79105353 76491016 81100322
1,048,577,023 978902427 625613527 604093394 513654097

661316493 613915103 268731129 215410234 188676570


162000000 129600000 108000000 90000000 90000000
4392110
4392110
4392110
4392110
4392110
329744761 336209788
165179622 143713205 156339019 121018124

94284460

106020558
27550613

60324124
27826722

79168901 100278336
14613771 48733411

80245507
39937517

31 | P a g e
aturity
DeferredL iability
DeferredL Tax iability

78469945 645551130

51544925

40307990

31542490
954912

Current Liabilities :
Short Term Finance
Long Term Finance-current maturity
Deoosits
Creditors
Accrued Exoenses
Other Finance
Income Tax Liabilitv

281239972 285818423 256604062 308437653 204053403


22083628 41174320 55390859 186608862 169591739
23458900 21598086 106942137 19776124
6892620
17624872 17255417 11490417
8478381
8041381
54908751 56005021 51462325 19209329 14232048
67313140 60693123 54302216 22937534 16976210
39463320 38644820 36941204 25811246 26223324
56387361 50447636 30074904 25616177 22696081

TOTALS HAREHOLDERSE' QUITYA ND


LIABILITIES

1048577023 978902427 625613527 604093394 513654097

Income Statement of IBN SINA Pharma. Ltd.


2012
SALES
Less : Cost of goods sold
GROSS PROFIT
Less: Operatinge xpenses
OPERATINGP ROFIT
Less: Financiacl Charges
Add : Other income
Less : Workers' P.P. fund & welfare
fund
PROFIT BEFORE TAX
Less: Incomet ax exoenses:
Current Tax
Deferred Tax
NET PROFIT AFTER TAX
OtherC omprehensivlen come:
Gaino n MarketableS ecurities(U
nrealized)

2009

2008

2009421297 1755260815 1065174086 1277868846


1230093156 1075620508 985455871 785469076
779328141 679640307 619718215 492399770
691,743,272 600677497 541294206 436859745
87584869
78962810
78424009
55540025
4672712
6890878
8810133
5098143
8,745,677.00
654189
16315157
13736889

1.0522E+10
652854439
399454282
346729133
52725149
4750860
8907577

2010

4364659
87,293,175

4534458
74082663

4091859
81837174

3056132
61122639

2708660
54173206

24005623
-3538865
66826417
-6465027

20372732
-1206640
54916571
-30506514

20330550
1435729
60070895

14299488
-2410513
49233664

13224807
-2336810
43285209

60361390

24410057

4.13

5.46

4.64

45.59

48.09

Earnings Per Share (EPS)


Market Price Per Share

2011

85.49

154.95

134.79 1,129.72

980.56

32 | P a g e

Income Statement of IBN SINA Pharma. Ltd.


2012
SALES
Less : Cost of goods sold
GROSS PROFIT
Less: Operatinge xpenses
OPERATINGP ROFIT
Less: Financiacl Charges
Add : Other income
Less : Workers' P.P. fund
& welfare fund
PROFIT BEFORE TAX
Less: Incomet ax
exoenses:
Current Tax
Deferred Tax
NET PROFIT AFTER TAX
OtherC omprehensivlen
come:
Gaino n MarketableS
ecurities(U nrealized)
Earnings Per Share (EPS)
Market Price Per Share

2011

2010

2009

2008

2009421297 1755260815 1065174086 1277868846


1230093156 1075620508 985455871 785469076
779328141 679640307 619718215 492399770
691,743,272 600677497 541294206 436859745
87584869
78962810
78424009
55540025
4672712
6890878
8810133
5098143
8,745,677.00
654189
16315157
13736889

10522308721
652854439
399454282
346729133
52725149
4750860
8907577

4364659
87,293,175

4534458
74082663

4091859
81837174

3056132
61122639

2708660
54173206

24005623
-3538865
66826417

20372732
-1206640
54916571

20330550
1435729
60070895

14299488
-2410513
49233664

13224807
-2336810
43285209

-6465027

-30506514

60361390

24410057

4.13

5.46

4.64

45.59

48.09

85.49

154.95

134.79 1,129.72

980.56

Ratio Analysis:
Liquidity Ratios

2008

2009

2010

2011

2012

1 Current ratio(times)

1.078789 0.729667 0.945958 1.031433 1.153831

2 Quick Ratio (Times)

0.784575 0.527903 0.687176 0.739646 0.780398

Profit Ratios
1 ROE

2008

2009

2010

2011

2012

22.94%

22.86%

22.35%

8.95%

10.11%

33 | P a g e
2 ROA

8.43%

8.15%

9.60%

5.61%

6.37%

3 Gross Profit Margin

3.80%

38.53%

58.18%

38.72%

38.78%

4 Net Profit Margin

0.41%

3.85%

5.64%

3.13%

3.33%

2008

2009

2010

2011

2012

Efficiency Ratios
Accounts Receivable Turnover
1 (Times)
2 Average collection period (Days)
3 Accounts payable turnover (Times)
4 Average payment period (Days)

17603.58 1478.599 760.8392 1087.762 972.8941


0.02045 0.243474 0.473162 0.330955

0.37003

38.45702 34.24383 18.14762 17.72228 18.27419


9.3611 10.51284 19.83731 20.31341 19.69991

5 Inventory turnover (Times)

175.2682 20.53405 16.04073 21.04678 19.13292

6 Inventory processing period (Days)

2.053995 17.53186 22.44286 17.10475 18.81573

7 Fixed Asset turnover (Times)

35.84826 3.371361 2.782027 2.565796 2.775162

8 Total asset Turnover (Times)


Debt Management Ratio
1 Time Interest Earned Ratio (TIME)
2 Debt to total asset ratio
Market Ratios

1 P/E ratio

20.4852
2008

2.11535 1.702607 1.793091 1.916332


2009

2010

2011

2012

11.09802 10.89417 8.901569 11.45903

18.7439

51%

64%

57%

37%

37%

2008

2009

2010

2011

2012

20.70

28.38

29.05

24.78

20.39

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