Independent University, Bangladesh

A Report
On
Analysis of capital structure and dividend policy of Pharmaceutical
Industry of Bangladesh
Prepared For:

G.M. Wali Ullah

Lecturer, School of Business
Independent University, Bangladesh (IUB)

Prepared By:
Group Name: Think Tank
Group Member:

Name ID
Mohaimenul Islam Anik 1430327
Md. Naimur Rahman 1430440
Rahat Kaiser Bijoy 1430398
Sourav Nandi 1430420
Joy Saha 1431153
Sariful Islam 1220579

Course Title: Business Finance II

Course ID: FIN-302
Section: 02

Date of Report Submission: March 05, 2017

 Letter of Transmittal
5th March, 2017
G.M. Wali Ullah
Lecturer, School of Business

Independent University, Bangladesh (IUB)

: SubjectAnalysis of Capital Structure and Dividend Policy of Pharmaceutical Industry of

Bangladesh .

,Dear Sir
We would like to thank you for giving us an opportunity of doing this assingment on this
subject to prepare the report. This task has been given us the opportunity to explore one of
.the most important aspect of Pharmaceuitical Industry Analysis
The report contains a comprehensive study on financila aspects of Pharmaceunity Industry.
It was an immense pleasure for us to have the opportunity to work on the above mentioned
subject. We have dilivered our best to come out with a good one. Please feel fress to
.contract us if you have any queries
.Would you please kindly accept our report and oblige thereby

Thank you
,Sincerely yours
............................
Mohaimenul Islam Anik (On behalf of Group Members)
Independent University, Bangladesh(IUB)

2|Page
 ACKNOWLEDGEMENT

The success of this financial report depends on the contribution of a number of people, especially those
who take the time to share their thoughtful guidance and suggestion to improve this financial report. First
of all we would like to pay our gratitude to almighty Allah, who has given us patience to complete this
financial report. Because working on this financial report for a month and then preparing a report regarding
our experience is quite tedious job.

We would like to thank Independent University, Bangladesh (IUB) for planning such a course that gave
us the chance to gather practical knowledge about what we learnt in 02 months. The knowledge we
gathered throughout the course would help us to develop our future career.

Then we would like to express our gratefulness to our honorable faculty of Business School G.M. Wali
Ullah in Independent University (IUB) who supported us sharing his knowledge according on this
Marketing report and showing the right way to put our effort in right place.

.We are also grateful to our parents and other seniors for being our mental support.

Lastly, we must be thankful to our friends for their endless inspiration not to be hopeless and keep
working harder.

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 TABLES OF CONTENTS

Details Page Number

ACI Pharmaceuticals 5-13

BEXMICO Pharmaceuticals 14-20

21-27
GLAXOSMITH Pharmaceuticals
RECKITTBEN Pharmaceuticals 28-36

Square Pharmaceuticals 37-44

Beacon Pharma 45-50

51-54
6 Pharmaceutical industry analysis

Reference 55

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 ACI Pharmacy
ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the
then East Pakistan in 1968. After independence the company has been incorporated
in Bangladesh on the 24th of January 1973 as ICI Bangladesh Manufacturers Limited
and also as Public Limited Company. This Company also obtained listing with Dhaka
Stock Exchange on 28 December, 1976 and its first trading of shares took place on 9
March, 1994. Later on 5 May, 1992, ICI plc divested 70% of its shareholding to local
management. Subsequently the company was registered in the name of Advanced
Chemical Industries Limited. Listing with Chittagong Stock Exchange was made on
22 October 1995.

ACI's mission is to achieve business excellence through quality by understanding,

accepting, meeting and exceeding customer expectations. ACI follows International
Standards on Quality Management System to ensure consistent quality of products
and services to achieve customer satisfaction. ACI also meets all national regulatory
requirements relating to its current businesses and ensures that current Good
Manufacturing Practices (cGMP) as recommended by World Health Organization is
followed properly. ACI has been accepted as a Founding Member of the Community
of Global Growth Companies by the World Economic Forum which is the most
prestigious business networking organization.

Debt to Equity Ratio

The debt to equity ratio is a financial, liquidity ratio that compares a company's total
debt to total equity. The debt to equity ratio shows the percentage of company
financing that comes from creditors and investors. A higher debt to equity ratio
indicates that more creditor financing (bank loans) is used than investor financing
(shareholders).

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 Formula:
The debt to equity ratio is calculated by dividing total liabilities by total equity. The debt to equity
ratio is considered a balance sheet ratio because all of the elements are reported on the balance
sheet.

Debt to Equity Ratio = Total Liabilities / Total Equity

Debt to Equity Ratio

Year 2015 2014 2013
Total Liability 7,643,420,512 8,919,507,381 8,920,003,210
Total Equity 11,715,154,000 6,606,685,402 5,637,252,251
Debt to Equity Ratio 0.652438757 1.35007297 1.582331748

Debt To Equity Ratio

1.8
1.58
1.6
1.35
1.4
1.2
1
Value
0.8 0.65
0.6 Debt To Equity Ratio
0.4
0.2
0
2015 2014 2013
Year

Trend analysis shows that debt to equity ratio decreased from 1.58 to 1.35 (2013-2014) and again
decreased from 1.35 to 0.65 (2014-2015). This clearly shows that the debt of the company is
decreasing and its a positive sign for the company.

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 Debt to Asset Ratio:
The debt to asset ratio is a leverage ratio that measures the amount of total assets
that are financed by creditors instead of investors. In other words, it shows what
percentage of assets is funded by borrowing compared with the percentage of
resources that are funded by the investors.

Formula:
The debt to assets ratio formula is calculated by dividing total liabilities by total
assets.
Debt to Asset Ratio = Total Liabilities / Total Asset

Debt to Asset Ratio

Year 2015 2014 2013
Total Liability 7,643,420,512 8,919,507,381 8,920,003,210
Total Asset 19,358,574,511 15,526,192,783 14,557,255,461
Debt to Asset Ratio 0.39483385 or 39.48% 0.574481298 or 57.44% 0.612753086 or 61.28%

Debt to Asset Ratio

0.7
0.61
0.6 0.57

0.5
0.39
0.4
Value

0.3
0.2
0.1
0
2015 2014 2013
Debt to Asset Ratio 0.39 0.57 0.61

Trend analysis shows that debt to asset ratio decreased from 0.61 to 0.57 (2013-2014) and
again decreased from 0.57 to 0.39 (2014-2015). This clearly shows that the debt of the
company is decreasing and the total asset is increasing. The ratios indicate a very high amount
of leverage, so ACI is in a risky position where it must repay the debt by utilizing a small asset
base.
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 Equity to Asset Ratio:
The equity ratio is an investment leverage or solvency ratio that measures the
amount of assets that are financed by owners' investments by comparing the total
equity in the company to the total assets.

Formula:
The equity ratio is calculated by dividing total equity by total assets. Both of these
numbers truly include all of the accounts in that category. In other words, all of the
assets and equity reported on the balance sheet are included in the equity ratio
calculation.
Equity to Asset Ratio= Total equity / Total Asset
Equity to Asset Ratio
Year 2015 2014 2013
Total Equity 11,715,154,000 6,606,685,402 5,637,252,251

Total Asset 19,358,574,511 15,526,192,783 14,557,255,461

Equity to Asset Ratio 0.60516615 or 60.52% 0.425518702 or 42.55% 0.387246914 or 38.7%

Equity to Asset Ratio

70.00% 60.52%
60.00%
42.55%
50.00% 38.70%
40.00% Equity to Asset Ratio
30.00%
20.00%
10.00%
0.00%
2015 2014 2013

Trend analysis shows that Equity to asset ratio increased from 38.70% to 42.55% (2013-2014)
and again increased from 42.55% to 60.52% (2014-2015). In general, higher equity to asset
ratios are typically favorable for companies. So ACI is in a favorable condition.

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Dividend Policy:
Dividend policy is concerned with taking a decision regarding paying cash dividend in the present
or paying an increased dividend at a later stage. The firm could also pay in the form of stock
dividends which unlike cash dividends do not provide liquidity to the investors; however, it
ensures capital gains to the stockholders. The expectations of dividends by shareholders helps
them determine the share value, therefore, dividend policy is a significant decision taken by the
financial managers of any company.

Dividend Policy
Year Cash Stock Details
Dividend Dividend
The Board of Directors is pleased to recommend dividends @ 125%
which include Taka 11.5 per share (115%) as cash
dividend and 10% as stock dividend for the eighteen-month period
ended 30 June 2016 to those shareowners whose
names were appear in the Share Register of Members of the
2015 115% 10% Company or in the Depository list of CDBL on the Record Date
which was Thursday, 19 May 2016.

The Board of Directors is pleased to recommend dividend @ 115%

which include
Tk. 10.00 per share (100%) as cash dividend and 15% as stock
2014 100% 15% dividend for the
year 2014 to those shareowners whose names will appear in the Share
Register of
Members of the Company or in the Depository list of CDBL on the
Record Date
which is Wednesday, 13 May 2015.

The Board of Directors are pleased to recommend dividend @ 105%

which include
2013 85% 20% Tk. 8.50 per share (85%) as cash dividend and 20% as stock dividend
i.e. 1 share
against each 5 shares for the year 2013 to those shareowners whose
names will
appear in the Share Register of Members of the Company or in the
Depository list
of CDBL on the Record Date which is Monday, 12th May 2014.

9|Page
 Dividend Policy
140%
120% 10%
15%
100%
20%
80%
Dividend %
60% 115%
100%
40% 85%

20%
0%
2015 2014 2013
Stock Dividend 10% 15% 20%
Cash Dividend 115% 100% 85%

Earnings per Share (EPS)

Earnings per share, also called net income per share, is a market prospect ratio that
measures the amount of net income earned per share of stock outstanding. In other
words, this is the amount of money each share of stock would receive if all of the
profits were distributed to the outstanding shares at the end of the year.
Formula:
Earnings per share or basic earnings per share is calculated by subtracting preferred
dividends from net income and dividing by the weighted average common shares
outstanding. The earnings per share formula looks like this.

EPS= Net income / No. of shares outstanding

EPS
Year 2015 2014 2013
Net income 3,183,531,914 950,713,609 764,187,906

No. of shares outstanding 39,795,690 34,380,864 28,574,654

EPS 79.99690203 27.65240597 26.74355763

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 EPS
79.99

80
70
60
50
Value 40 27.65 26.74
30
20
10
0
2015 2014 2013
EPS 79.99 27.65 26.74

Trend analysis shows that EPS of (2013-2015) gradually 26.74, 27.65 and 79.99 and its regularly
increasing and its good for the company. People will want to buy the shares of this company.

Dividend per share (DPS):

Dividend per share is a measure of the dividend payout per share of common stock.
The measure is used to estimate the amount of dividends that an income investor
might expect to receive if he or she were to buy a company's common stock. The
measure is especially effective when tracked on a trend line, since a consistent
amount per share indicates management's willingness to make consistent payouts to
investors.

Formula:
The formula for dividends per share, or DPS, is the annual dividends paid divided by
the number of shares outstanding.

Dividend per share (DPS) = Dividend paid/ No of shares

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 DPS
Year 2015 2014 2013
Dividend paid 331,064,452 235,967,127 185,992,855
No. of shares outstanding 39,795,690 34,380,864 28,574,654

DPS 8.319103199 6.863327431 6.509015122

DPS

8.32
9

8
6.86
6.51
7

5
Value
4

0
2015 2014 2013
DPS 8.32 6.86 6.51

Trend Analysis Shows that the DPS is increasing generally which indicates that it is good for the common
shareholders and by this ratio share value will increase and will be good for the company.

Dividend Payout Ratio:

The dividend payout ratio measures the percentage of net income that is distributed
to shareholders in the form of dividends during the year. In other words, this ratio
shows the portion of profits the company decides to keep funding operations and the
portion of profits that is given to its shareholders.

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 Formula:
The dividend payout formula is calculated by dividing total dividend by the net
income of the company.

Dividend Payout Ratio= Total Dividend Paid/ Net Income

Dividend Payout Ratio

Year 2015 2014 2013
Total Dividend paid 331,064,452 235,967,127 185,992,855

Net Income 3,183,531,914 950,713,609 764,187,906

Dividend Payout Ratio 0.103992817 0.24820001 0.243386284

Dividend Payout Ratio

0.25
0.24
0.25

0.2

0.15
Value

0.104

0.1

0.05

0
2015 2014 2013
Dividend Payout Ratio 0.104 0.25 0.24

Trend analysis shows that from 2013 to 2014 the DPR increased from 0.24 or 24% to 0.25 or
25% which is actually good for the business to attract new investors because more DPR will
encourage the new investors but from 2014 to 2015 the DPR drops from 25% to 10.4% which
will affect the business because shareholders did not like sudden fluctuation in DPR.

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 BEXIMCO PHARMACEUTICAL
Beximco is the largest pharmaceutical company in Bangladesh. Beximco Pharmaceuticals Ltd.(Beximco
Pharma) is a leading manufacturer of medicines and active pharmaceutical ingredients (APIs) based in
Bangladesh. Incorporated in the late 70s, Beximco Pharma began as a distributor, importing products from
global MNCs like Bayer, Germany and Upjohn, USA and selling them in the local market, which were
later manufactured and distributed under licensing arrangement. Over the years the company has grown
from strength to strength and today it has become a leading exporter of medicines in the country winning
National Export (Gold) Trophy a record four times. Benchmarked to global standards, Companys
manufacturing facilities have been accredited by the major global regulatory authorities, and it has so far
expanded its geographic footprint across all the continents.

Beximco Pharma currently produces about 300 generics in more than 500 strengths and dosage forms. It also
produces a number of active pharmaceutical ingredients (APIs). Beximco Pharmas portfolio encompasses
various therapeutic categories, including antibiotics, analgesics, respiratory, cardiovascular, central nervous
system, dermatology, gastrointestinal etc. The Company has strong capabilities with specialized drug delivery
systems that have differentiated itself from others.

Relevant Information:

Column1 2013 2014 2015

Total assets 27,470,518,802 29,000,525,961 30,835,550,584
Total debt 7,695,199,337 8,080,340,636 8,356,923,001

Total equity 19,775,552,465 20,920,185,325 22,478,627,583

No. of share 350,334,907 367,851,652 386,244,234

Net
1,404,762,780 1,528,297,573 1,954,284,516
profit/income

Capital Structure:

Trend Analysis:

Debt to Equity Ratio:

The debt-equity ratio is another leverage ratio that compares a company's total liabilities to its
total shareholders' equity. This is a measurement of how much suppliers, lenders, creditors and obligors

14 | P a g e
have committed to the company versus what the shareholders have committed. The debt to equity ratio is
the best way to measure the financial leverage of any firm. It is one of the most important ratios of any
firm. Higher the ratio, higher the debt amount of the firm, therefore higher financial leverage. If the ratio
is lower, the leverage of the firm is also lower.

Year 2013 2014 2015

Total Debt 7,695,199,337 8,080,340,636 8,356,923,001
Total Equity 19,775,552,465 20,920,185,325 22,478,627,583
D/E Ratio 0.39 0.39 0.37

Debt to Equity Ratio

0.395
0.39
0.385
0.38
0.375 D/E Ratio
0.37
0.365
0.36
2013 2014 2015

Interpretation: Trend analysis shows that debt to equity ratio remains same (2013-
2014) and again decreased from 0.39 to 0.37 (2014-2015). This clearly shows that the
debt of the company is decreasing and its a positive sign for the company.

Debt to Asset Ratio:

The debt to assets ratio indicates the proportion of a company's assets that are being financed with debt,
rather than equity. The ratio is used to determine the financial risk of a business. A ratio greater than 1
shows that a considerable proportion of assets are being funded with debt, while a low ratio indicates that
the bulk of asset funding is coming from equity. If the ratio is higher than it means that the firm has higher

15 | P a g e
 debt and it is more dependent to its creditors for necessary financing. If the ratio is higher than 1, it
indicates excess debt over total assets and the vice versa

Year 2013 2014 2015

Total Debt 7,695,199,337 8,080,340,636 8,356,923,001
Total Asset 27,470,751,802 29,000,525,961 30,835,550,584
D/A Ratio 28.01% 27.86% 27.10%

Debt to Asset Ratio

28.20%
28.00%
27.80%
27.60%
27.40%
D/A Ratio
27.20%
27.00%
26.80%
26.60%
2013 2014 2015

Interpretation: Trend analysis shows that debt to asset ratio decreased from 28.01% to
27.86% (2013-2014) and again decreased from 27.86% to 27.10% (2014-2015). This clearly
shows that the debt of the company is decreasing and the total asset is increasing. The ratios
indicate a very high amount of leverage, so Beximco is in a risky position where it must repay
the debt by utilizing a small asset base.

Equity to Asset Ratio:

The equity-to-assets ratio is one of many financial ratios used to determine the financial health and long-
term profitability of a corporation. It is often used by investors to determine whether the corporation's
shares are a safe investment. Though important, the equity-to-assets ratio should be used only with other
financial ratios to determine a corporation's overall financial health. The shareholder equity ratio
determines how much shareholders would receive in the event of a company-wide liquidation.

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 Column1 2013 2014 2015
Total Equity/ 19,775,552,465 20,920,185,325 22,478,627,583
Total Asset 27,470,518,802 29,000,525,961 30,835,550,584
71.99% 72.14% 72.90%

Equity to Asset Ratio

73.00%
72.80%
72.60%
72.40%
72.20%
Series 1
72.00%
71.80%
71.60%
71.40%
2013 2014 2015

Interpretation: Trend analysis shows that Equity to asset ratio increased from
71.99% to 72.14% (2013-2014) and again increased from 72.14% to 72.90% (2014-
2015). In general, higher equity to asset ratios are typically favorable for companies. So
Beximco is in a favorable condition.

Dividend Policy:

Once a company makes a profit, management must decide on what to do with those profits. They could
continue to retain the profits within the company, or they could pay out the profits to the owners of the
firm in the form of dividends. Once the company decides on whether to pay dividends they may establish
a somewhat permanent dividend policy, which may in turn impact on investors and perceptions of the
company in the financial markets.

Column1 Column2 Column3 Column4

2013 2014 2015
Stock dividend (%) 5 5 5
Cash dividend (%) 10 10 10

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Dividend Analysis:

Trend Analysis:
We are doing three kinds of trend analysis; Earning per Share (EPS), Dividend per Share (DPS) and
Payout Ratio.

Earnings per Share (EPS):

Earnings per share, also called net income per share, is a market prospect ratio that measures the amount
of net income earned per share of stock outstanding. In other words, this is the amount of money each
share of stock would receive if all of the profits were distributed to the outstanding shares at the end of
the year.

Formula:

Earnings per share or basic earnings per share is calculated by subtracting preferred dividends from net
income and dividing by the weighted average common shares outstanding. The earnings per share
formula looks like this.

Column1 2013 2014 2015

Net Income/ 1,404,762,780 1,528,297,573 1,954,284,516
Number of Shares Outstanding s 350,334,907 367,851,652 386,244,234
EPS 4.01 4.15 5.06

EPS
6
5
4
3
Series 1
2
1
0
2013 2014 2015

Interpretation: Trend analysis shows that EPS of (2013-2015) gradually 4.01, 4.15 and 5.06 and its
regularly increasing and its good for the company. People will want to buy the shares of this company.

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Dividend per Share (DPS):

Dividend per share is a measure of the dividend payout per share of common stock. The
measure is used to estimate the amount of dividends that an income investor might expect
to receive if he or she were to buy a company's common stock. The measure is especially
effective when tracked on a trend line, since a consistent amount per share indicates
management's willingness to make consistent payouts to investors.

Formula:

The formula for dividends per share, or DPS, is the annual dividends paid divided by the
number of shares outstanding.

Dividend per share (DPS) = Dividend paid/ No of shares

Column1 Column2 Column3 Column4
2013 2014 2015
dividend paid/ 937367 454720 412480
no of shares 350334907 367851652 386244234
0.002675631 0.00123615 0.001067925

DPS
0.003
0.0025
0.002
0.0015
Series 1
0.001
0.0005
0
2013 2014 2015

Interpretation: Trend Analysis Shows that the DPS is decreasing generally which indicates that it is bad for
the common shareholders and by this ratio share value will decrease and will be bad for the company.

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Payout Ratio:

The dividend payout ratio measures the percentage of net income that is distributed to
shareholders in the form of dividends during the year. In other words, this ratio shows the
portion of profits the company decides to keep funding operations and the portion of
profits that is given to its shareholders.

Formula:

The dividend payout formula is calculated by dividing total dividend by the net income of
the company.

Dividend Payout Ratio= Total Dividend Paid/ Net Income

Year Total Net Income Payout Ratio

Dividend paid

2013 973,367 1,404,762,780 0.0006929

2014 454,720 1,528,297,573 0.00029753
2015 412,480 1,954,284,516 0.00021106

DPR
0.0008
0.0007
0.0006
0.0005
Axis Title

0.0004
0.0003
0.0002
0.0001
0
2013 2014 2015
DPR 0.0006929 0.00029753 0.00021106

Trend analysis shows that from 2013 to 2014 the DPR decreased from 0.0006929 to 0.00029753 which is actually
bad for the business to attract new investors again from 2014 to 2015 the DPR drops from 0.00029753 to
0.00021106 which will affect the business because shareholders did not like sudden fluctuation in DPR.

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 GlaxoSmithKline Bangladesh Limited
GlaxoSmithKline (GSK) Bangladesh Limited carries with it an enviable image and reputation for the
past 6 decades. A subsidiary of GlaxoSmithKline plc- one of the world's leading research-based
pharmaceutical and healthcare companies GSK Bangladesh, continues to be committed to improving the
quality of human life by enabling people to do more, feel better and live longer. The Companys principle
activities include secondary manufacture of pharmaceutical products and marketing of vaccines,
pharmaceutical healthcare products and health food drinks

In 1949 the Company commenced its journey in Bangladesh with its corporate identity as Glaxo in
Chittagong as an importer of products from the Glaxo Group Companies. It started spreading its spectrum
from being an importer to a manufacturer by establishing its own manufacturing unit at Chittagong in
1967. The facility till date is considered as one of the Centers of Excellence in Global Manufacturing &
Supply Network of the Group.

The global corporate mergers and acquisitions has seen the evolution of the Companys identity in the
past 6 decades. In line with mergers and acquisitions the identity changed from Glaxo to Glaxo Welcome
Bangladesh Limited following the Burroughs Welcome acquisition in 1995 and finally to
GlaxoSmithKline Bangladesh Limited during 2002 after merger with SmithKline Beecham in December
2000. The mega merger of the Company enables it to deliver cutting edge advancements in health care
solutions. The relentless commitment, setting of standards of ethical standards and quality backed leading
edge technology of the Company has built a strong relationship between the stakeholders and GSK
Bangladesh. With the ever committed 615 numbers of personnel all over the country GSK Bangladesh,
which now comprises of both Pharmacy and Consumer, continually strive to meet the GlaxoSmithKline
mission to improve the quality of human life by ensuring healthcare products, health drinks and different
corporate social responsibility programs.

Debt to Equity Ratio:

The debt to equity ratio is the best way to measure the financial leverage of any firm. It is one of the most
important ratios of any firm. Higher the ratio, higher the debt amount of the firm, therefore higher financial
leverage. If the ratio is lower, the leverage of the firm is also lower. It presents the parentage of a
companys asset that is financed by debt versus equity. It is a widespread quantity of the long term
capability of a firms business and along with current ratio, a measure of its liquidity, or its ability to cover
its expenses. So, it often takes only long term debts instead of total liabilities.

Sometimes, it happens that higher debt leads the firm to gain higher debt as cost of debt is lower than the
cost of equity but it is not good for the firm to always apply this technique because if the firm fails to meet
up the obligations of debts ten the firm can reach even in the stage of the bankruptcy. So, the firms should
be much analytical and attentive when to take higher debts. Higher debt can lead to both higher gain and
risk, so firms should be very careful while taking financial leverage

Formula: Total Liabilities/Total Equity

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 Debt to Equity
1.175
1.17
1.165 1.17

1.16
1.155
1.15
Debt to Equity
1.145 1.15

1.14
1.135 1.14

1.13
1.125
2013 2014 2015

Interpretation: From the table above we can see that the Debt to Equity ratio is near to constant, Glaxo
Smith Pharma took more loans and other liabilities than the Shareholders equity. In 2014 the debt is 1.17
which more compared to 2013 and 2015. That means that year the company took more loans.

Debt to Asset:

Total debt to total assets is a leverage ratio that defines the total amount of debt relative to assets. This
enables comparisons of leverage to be made across different companies.

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 YEAR TOTAL LIABILITIES TOTAL ASSET DEBT TO ASSET
2013 2146513 3997625 0.54
2014 2711825 4390747 0.61
2015 2958614 5562419 0.53
Formula: Total Debt /Total Asset

DEBT TO ASSET
Debt to Asset

0.62

0.6

0.58

0.56

0.54

0.52

0.5

0.48
2013 2014 2015

Interpretation: The higher the Debt to Asset ratio the more risky the company is. In 2014
the company has 0.61:1 which means that the company has 61TK debt if it has 100taka
asset.

Equity to Asset Ratio:

The shareholder equity ratio determines how much shareholders would receive in the event of a
company-wide liquidation. The ratio, expressed as a percentage, is calculated by dividing total
shareholders' equity by total assets of the firm, and it represents the amount of assets on which
shareholders have a residual claim. The figures used to calculate the ratio are taken from the company
balance sheet.

Formula: Total Equity /Total Asset

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 YEAR TOTAL EQUITY TOTAL ASSET EQUITY TO ASSET

2013 1851112 3997625 0.46

2014 2316497 4390747 0.53

2015 2603804 5562419 0.47

Equity to Asset
0.54

0.52

0.5

0.48
Equity to Asset
0.46

0.44

0.42
2013 2014 2015

Interpretation: The ratio is very poor. In 2015 the ratio is 0.47:1 which means that the equity
the GSK has is almost half of it assets.

Dividend Policy:
Dividend policy is concerned with taking a decision regarding paying cash dividend in the present or
paying an increased dividend at a later stage. The firm could also pay in the form of stock dividends

24 | P a g e
which unlike cash dividends do not provide liquidity to the investors, however, it ensures capital gains to
the stockholders. The expectations of dividends by shareholders helps them determine the share value,
therefore, dividend policy is a significant decision taken by the financial managers of any company.

Dividend policies and practices, dividends can take four forms, like-
Cash.
Property.
Scrip (a promissory note to pay cash).
Stock.
Dividends may be expressed in two ways-As a percentage of the par or stated of the stock.
As a dollar amount per share.

According to GSK they dont have any stock dividend, they have only cash dividend for their company.

Earnings per Share:

Earnings per share or EPS expresses the earned profit against per share. However, always high EPS does
not mean that the firm is doing well because the Net income can be manipulated and for this reason EPS
can be overestimated. Often firms do these in order to attract the public

Formula: Net Income/ Number of shares

YEAR NET INCOME NUMBER OF SHARES EPS
2013 546249000 12046449 45.34
2014 826778000 12046449 68.63
2015 831079000 12046449 68.99

25 | P a g e
 EPS
80
70

60
50
40
EPS
30
20
10
0
2013 2014 2015

Interpretation: The Earnings per share of GSK is high. Which means it may be manipulated or
overestimated. It can be true as well. The EPS has been increasing since 2013. It has come to the highest
in 2015 (TK68.99)

Dividend per share:

Dividend per share (DPS) is the sum of declared dividends issued by a company for every ordinary
share outstanding. Dividend per share (DPS) is the total dividends paid out by a business, including
interim dividends, divided by the number of outstanding ordinary shares issued. A company's DPS is
usually derived using the dividend paid in the most recent quarter, which is also used to calculate the
dividend yield.

Formula: Dividend paid/ Number of shares

YEAR DIVIDEND PAID NUMBER OF SHARES DPS
2013 180697000 12046449 15
2014 361393000 12046449 30
2015 505950000 12046449 42

26 | P a g e
 Dividend per share
45
40
35
30
25
20 Dividend per share
15
10
5
0
2013 2014 2015

Interpretation: The above diagram andtable show that the DPS of GSK has changed from 15TK to 42TK
from the year 2013 to 2015. Which is a very good indicator of profit maximization and shareholders will
be more interested investing.

Dividend Payout Ratio:

The dividend payout ratio is the percentage of earnings paid to shareholders in dividends. Dividend
payout ratio is the fraction of net income a firm pays to its stockholders in dividends.

Formula: Total Dividend paid / Net income

YEAR DIVIDEND PAID NET INCOME DPR

2013 180697000 546249000 0.74
2014 361393000 826778000 0.66
2015 505950000 831079000 0.60

27 | P a g e
 Dividend payout ratio
0.8
0.7
0.6
0.5
0.4
Dividend payout ratio
0.3
0.2
0.1
0
2013 2014 2015

Interpretation: The dividend payout ratio of the company fluctuated from 2013 to 2015.It might be
because GSK kept less money as retain earnings and paid more as dividend. The highest paid dividend
ratio is in 2013 which is (0.84%)

RECKITTBEN PHARMA

Reckitt Benckiser Bangladesh Ltd. (RB Bangladesh) is a leading UK based

multinational company in Bangladesh. RB (Reckitt Benckiser) is a global leader of
consumer goods in health, hygiene and home products.

Reckitt Benckiser started its business operation in Bangladesh on the 15th of April 1961,
under name of Robinsons Foods (Pakistan) Limited. After the liberation war in 1971, the
name of the company was changed to Robinsons Foods (Bangladesh) Limited. Finally
after the merger with Benckiser, in accordance with parent company, the name of the
company was changed to Reckitt Benckiser (Bangladesh) Limited.

Debt to Equity Ratio: Total Liabilities/Total Equity

28 | P a g e
Debt to Equity Ratio of RBK

Year Total Liabilities Total Asset Debt to Equity

2013 782081436 431406527 1.81
2014 814785314 211422425 3.85

2015 2942459000 710122000 4.14

Debt to Equity Ratio

3.5E+09

3E+09

2.5E+09

2E+09

1.5E+09

1E+09

500000000

0
2013 2014 2015

Total Liabilities Total AssetDebt to Equity Series 3

In 2013 the ratio was decrease, and it was 1.81and also year 2014 debt to equity goes up
from 2013 it was 3.85 respectively which might lead the firm towards huge risk. And
2015 its 4.14.

29 | P a g e
Debt to Asset Ratio: Total Debt / Total Asset

Debt to Asset Ratio of RBK:

Year Total Debt Total Asset Debt To Asset

2013 782081436 1213487963 0.64

2014 814785314 1026207739 0.79

2015 2942459000 3652781000 0.80

30 | P a g e
 Debt to Asset Ratio

3652781000

2942459000

1213487963
1026207739
782081436 814785314
0.644490477 0.793976973 0.805539396

2013 2014 2015

Total Debt Total AssetDebt to Asset Debt to Asset

A debt ratio less than .50 is considered as good for any firm because those firm take less
debt to grow more asset but debt ratio of RBK was good before 2013 as the debt ratio
was less than .50 at those years. In 2013 the ratio was 0.67 and in 2014 and 2015 it was
0.79and 0.80 which is not fruitful for the business because RBK take too much debt to
grow more profit on the other hand it good to take risk because higher risk gave more
profit and it also signals towards higher dependency on debt of RBK.

Equity to Asset Ratio: Total Equity/Total Asset

Equity to Asset Ratio of RBK:

Year Total Equity Total Asset Equity to Asset

2013 431406527 1213487963 0.36
2014 211422425 1026207739 0.21
2015 710122000 3652781000 0.19

31 | P a g e
 Equity to Asset Ratio
4E+09

3.5E+09

3E+09

2.5E+09

2E+09

1.5E+09

1E+09

500000000

0
2013 2014 2015

Total Equity Total AssetEquity to Asset Equity to Asset

As we know that below 0.70 means it difficult for a corporation to borrow money, due to concerns about
its solvency so RBK has year 2013 to 2015their ratio below 0.70 percentage it means they had some
problem to borrow money because due to poor percentage some company would not gave them any
money to risk of losses their money.. In 2013 the ratio was 0.36 and in 2014 and 2015 it was 0.21and
0.19

32 | P a g e
Dividend Policy:
Dividend policies and practices, dividends can take four forms, like-
Cash.
Property.
Scrip (a promissory note to pay cash).
Stock.

According to Reckitt Benckiser they dont have any stock dividend, they have only cash
dividend for their company. They paid their dividend by cash and every year their cash
dividend increase.

Year Cash Dividend

2013 400%
2014 550%
2015 500%

Cash Dividend

550%
500%

400%

2013 2014 2015

Cash Dividend

33 | P a g e
So Reckitt Benckiser paid their shareholder cash dividend and their money increase every
year thats GSK borrow more money from their buyer with taking high risk as a result
they have much more profit and pay dividend by cash.

Earnings per Share: Net Income/ Number of shares

Earnings per Share of RBK:

Year Net income Number of Shares EPS

2013 129538946 4725000 27.42
2014 177535544 4725000 37.57
2015 406606000 4725000 86.05

Earnings per Share

450000000

400000000

350000000

300000000

250000000

200000000

150000000

100000000

50000000

0
2013 2014 2015

Net income Number of Shares EPS

In the year 2013and 2014 the EPS was very low but in 2015 it increased a lot which indicates that
earnings against each share were high on those years. In 2013 and 2014 the EPS was 27.42Tk and 37.57
TK. But in2015 EPS increases very highly so RBK had EPS numbers it will help them in future to get

34 | P a g e
lot of shareholders and public will their share also their share price also improve if their EPS decrease
day by day it may create confusion about the financial condition to the general public.

Dividend per share: Total dividend paid/Number of shares

Dividend per shares of RBK:

Year Total Dividend paid No. of shares DPS

2013 189000000 4725000 40
2014 283579000 4725000 60
2015 283642000 4725000 60

35 | P a g e
 Dividend per share
300000000

283579000 283642000
250000000

200000000
189000000
150000000

100000000

50000000

4725000 40 4725000
60.01671958 4725000
60.03005291
0
2013 2014 2015

Total Dividend paid No. of shares DPS

DPS of RBK increases every year. In year 2013 to 2015 their DPS increases rapidly as we see in the
graph 2013 their DPS was 40 TK but year 2014 their DPS was 60TK and year 2015 their DPS same as
2014 60TK.

Dividend Payout Ratio: Total Dividend Paid/Net Income

Dividend payout ratio of RBK:

Year Total Dividend Paid Net Income Payout Ratio

2013 189000000 129538946 1.46
2014 283579000 177535544 1.6
2015 283642000 406606000 0.69

36 | P a g e
 DIVIDEND PAYOUT RATIO

406606000
Total Dividend Paid Net Income Payout Ratio

283642000
283579000
189000000

177535544
129538946

1.459020672

0.697584394
2013 2014 1.597308311 2015

In 2014 and 2015, there was a slight difference in payout ratio. In 2013 the payout ratio was lower than
2014 which symbolizes RBKs weak financial condition. In 2014 the ratio was high which is not good, it
means then RBK gave not more concentration in future growth but 2015 the ratio is little bit higher than
the 2014 but their financial condition loss every year which is bad thing for RBK.

SQUARE Pharmaceuticals Limited

Square pharmaceutical limited is the largest pharmaceutical company in Bangladesh and also holding
the strong leadership position among national and multinational pharmaceutical industry. But its journey
to the growth and prosperity is not always in good position.

In 1958 it started as a partnership firm and converted into a privet limited company in 1964 and in1991
converted as a public limited company .From the inception in 1958, it has prospered into one of the top
line conglomerates in Bangladesh. The turnover of Square Pharmaceutical was Taka 30.28 Billion (US$
385.22 million) with about 18.64% market share having a growth rate of about 25.36% (April 2014
March 2015).

37 | P a g e
 Square pharmaceutical limited extending its business giving services all over the world. It pioneered
exports of medicines from Bangladesh in 1987 and has been exporting antibiotics and other
pharmaceutical products. Present export market covers 36 countries. This extension in business and
services has manifested the credibility of Square Pharmaceuticals Limited.

Capital Structure of Square Pharmaceuticals:

The capital structure is how a firm finances its overall operations and growth by using different
sources of funds. In other words, it shows the proportions of debt and equity (common or
preferred) in the funding.

Debt to Equity Ratio:

Debt-to-equity (D/E) ratio tells how risky a company is. Usually, a company that is heavily financed by
debt has a more aggressive capital structure and therefore poses greater risk to investors.

Formula: Total Liabilities/Total Equity

Debt to equity ratio of square pharmaceuticals:

Year Total liability Total equity Debt to equity ratio

2013 4957726318 22586225346 0.22

2014 4297122799 26739581929 0.16

2015 4099523843 31093302284 0.13

table 1: Debt to Equity Ratio

38 | P a g e
 Debt to equity ratio
0.25

0.2

0.15

0.1

0.05

0
2013 2014 2015

debt to equity ratio

Graph 1:Debt to equity ratio

Explanation: : In 2013 the company its debt/equity ratio is 0.22 or 22% which means creditors provide
22 paisa for each taka provided by stockholders to finance the assets. Indicating that the company had
been heavily taking on debt that year and thus had high risk. In 2014 its debt/equity ratio is 0.16 or
16%which means the creditors provide 16 paisa for each taka provided by stockholders to finance the
assets indicating that the company had relatively little debt and thus had low risk than in 2013. In 2015
its debt/equity ratio is 0.13 or 13% which means the creditors provide 12 paisa for each taka provided by
stockholders to finance the assets indicating that the company had little debt than the other two
preceding years thus had low risk

Debt to asset ratio:

The debt to assets ratio indicates the proportion of a company's assets that are being financed with debt.
A ratio greater than 1 shows that a considerable proportion of assets are being funded with debt, while a
low ratio indicates that the bulk of asset funding is coming from equity. The higher the ratio, the higher
the degree of leverage, and consequently, financial risk.

Formula: Total Debt / Total Assets

Debt to Asset Ratio of Square Pharmaceuticals:

39 | P a g e
 Year Total liability Total asset Debt to asset ratio

2013 4957726318 27,551,671,215 0.17

2014 4297122799 31,046,074,531 0.14

2015 4099523843 35,191,156,263 0.12

Table 2: Debt to Asset Ratio

Debt to asset ratio

0.18

0.16

0.14

0.12

0.1

0.08

0.06

0.04

0.02

0
2013 2014 2015

Debt to asset ratio

Graph 2: Debt to asset ratio

Equity to Asset Ratio:

In 2013 the companys debt /asset ratio is 0.17 or 17% which is less than 1 indicates a low amount of
leverage , therefore a lower degree of financial flexibility. In 2014 the companys debt /asset ratio is
0.14 or 14% which is less than 1 indicates a low amount of leverage , therefore a lower degree of
financial flexibility. In 2015 the companys debt /asset ratio is 0.12 or 12% which is less than 1 indicates
a very low amount of leverage , therefore a lower financial risk.

Formula: Total Equity/Total Asset

Equity to Asset Ratio of Square Pharmaceuticals:

40 | P a g e
 Year Total asset Total equity Equity to asset ratio

2013 27,551,671,215 22586225346 0.82

2014 31,046,074,531 26739581929 0.86

2015 35,191,156,263 31093302284 0.88

Table 3: Equity to Asset Ratio

Equity to asset ratio

0.89
0.88
0.87
0.86
0.85
0.84
0.83
0.82
0.81
0.8
0.79
2013 2014 2015

Equity to asset ratio

Graph 3: Equity to Asset Ratio

Explanation: : In 2013 the companys equity /asset ratio is 0.82 or 82% which impliesthat of every
1taka employed in the business, the contribution of shareholders is about 82 paisa. The creditors
contribution, therefore, would be 18 paisa . In 2014 the companys equity /asset ratio is 0.86 or 86%
which implies that of every 1taka employed in the business, the contribution of shareholders is about 86
paisa. The creditors contribution, therefore, would be 14 paisa. In 2015 the companys equity /asset
ratio is 0.88or 88% which implies that of every 1taka employed in the business, the contribution of

41 | P a g e
shareholders is about 88 paisa. The creditors contribution, therefore, would be 12paisa. It seems that the
company is mostly owned by its shareholders.

Dividend Policy of Square Pharmaceuticals Ltd.

A dividend policy is the policy a company uses to decide how much it will pay out to shareholders in the
form of dividends .A company's dividend policy is an important consideration for some investors like
company leadership because company leaders are often the largest shareholders and have the most to
gain from a generous dividend policy.

year Dividened(cash) Dividend(stock)

2013 30% 10%
2014 30% 12.5%
2015 40% 15%

250%

200%

150%

100%

50%

0%
2013 2014 2015

dividend(cash) dividend(stock)

42 | P a g e
 Grapg4:Dividend (cash) and Dividend (stock)

Earning Per Share

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share
of common stock. Earnings per share serves as an indicator of a company's profitability.The figure can
be calculated simply by dividing net income earned in a given reporting period (usually quarterly or
annually) by the total number of shares outstanding .The higher the EPS figure, the better.

Formula:Net Income/ Number of share

Earnings per Share of Square Pharmaceuticals Ltd.:

year Net income No of share EPS
2013 4,031,811 481,999,263 6.46
2014 6,523,933 554,299,152 10.46
2015 9,226,615 623,586,546 14.80

Table 4: Earning per share

Earning per share

net income no nof shares EPS

700000000

600000000

500000000

400000000

300000000

200000000

100000000

0
2013 2014 2015

Graph 4: Earning per share

43 | P a g e
Dividend Per Share
Dividend per share ( DPS) is the total dividends paid out by a business, including interim dividends,
divided by the number of outstanding ordinary shares issued .The measure is used to estimate the
amount of dividends that an income investor might expect to receive if he or she were to buy a
company's common stock.

Formula: Total dividend paid/Number of shares

Dividend per Share of Square Pharmaceuticals Ltd.:

Dividend Paid No. of Shares DPS

2013 1,445,997,789 481,999,263 3

2014 1,662,897,456 554,299,152 3

2015 623,586,546 0
Table:5 Dividend per shar

Chart Title
2.5E+09

2E+09

1.5E+09

1E+09

500000000

0
2013 2014 2015

dividend paid no of shares DPS

Graph: 5 Dividend per share

Payout Ratio:Payout ratio is the proportion of earnings paid out as dividends to shareholders,
expressed as a percentage. It is mainly a way to measure the sustainability of a company's dividend
payment stream.

44 | P a g e
Formula:Dividends per share (DPS)/Earnings per share (EPS)

Payout ratio of Square Pharmaceuticals Ltd.:

Year DPS EPS Payout Ratio

2013 3 6.46 0.20

2014 3 10.46 0.19

2015 0 14.80 0.25

Table 6: Payout Ratio

Chart Title
16

14

12

10

0
2013 2014 2015

DPS EPS

Graph 6: Payout ratio

45 | P a g e
 Beacon Pharmaceuticals Limited
Beacon Pharmaceuticals Limited is the number one oncology company and one of the leading and
fastest growing pharmaceutical companies of Bangladesh. The Company started its operation in
2006. Now Beacon is one of the top oncology pharmaceutical companies of Bangladesh.

Manufacturing plant of Beacon has the finest infrastructure & facilities developed and engineered
by European consultants to conform world class standards like US FDA,UK MHRA, TGA Australia
and WHO GMP. Beacon has dedicated facilities to manufacture lifesaving oncology, Biotech and Hi-
Tech & conventional general products. The company manufactures more than 200 world class
generic drugs and even successfully introduced a number global first generic drug. After meeting
the local demand, Beacon exports its medicines to many countries of Asia, Africa, Europe and Latin
America.

Debt to Equity Ratio:

Debt to Equity Ratio is a debt ratio used to measure a company's financial leverage calculated by
dividing a companys total liabilities by its stockholders' equity.

The D/E ratio indicates how much debt a company is using to finance its assets relative to the amount of
value represented in shareholders equity.

The result may often be expressed as a number or as a percentage.

Debt to Equity ratio= Total Liabilities / (Total Assets - Total Liabilities)

Debt To Equity Ratio

2015 2014 2013

Total liability 1,832,578,665 1,722,443,291 1,478,361,558
Total equity 2,906,118,932 2,867,382,009 2,773,258,328
Debt to equity ratio 0.63059314 0.600702412 0.533077479

46 | P a g e
 0.64 Debt to Equity Ratio:
0.62
0.6
0.58
0.56
0.54
0.52
0.5
0.48
2013 2014 2015

Series 1

In this table, we see that Beaconphar 3 Years (2013-2015) debt to equity ratio. When a company has low
liabilities than its share holders equity indicating that the company has not been heavily taking on debt
and thus has low risk. In 2013 here D/E ratio was 0.533077479 but gradually it increases in 2014 D/E
ratio was 0.600702412 and at last 2015 is 0.63059314. So companies positions D/E ratio is not good.

Debt To asset ratio:

Total debt to total assets is a leverage ratio that defines the total amount of debt relative to assets. This
enables comparisons of leverage to be made across different companies. The higher the ratio, the higher
the degree of leverage, and consequently, financial risk. This is a broad ratio that includes long-term and
short-term debt (borrowings maturing within one year), as well as all assets tangible and intangible

Debt to Asset Ratio=Total Debt /total Asset

Debt to Asset Ratio

2015 2014 2013

Total debt 1,832,578,665 1,722,443,291 1,478,361,558
Total assets 4,738,697,597 4,589,825,300 4,251,619,886
Debt to asset ratio 0.386726231 0.375274259 0.34771246

47 | P a g e
 Debt to Asset ratio:
0.39
0.38
0.37
0.36
0.35
0.34
0.33
0.32
2013 2014 2015

Series 1

In this table we see that Beaconphar 3 Years (2013-2015) debt to Asset ratio. When a company has high
total liabilities than its Total Asset indicating that the company has been taking on low debt and thus low
risk. In 2013 here D/A ratio was 0.34771246, but gradually it decrease in 2014 D/A ratio was
0.375274259, and at last 2015 is 0.386726231. The ratios indicates a very low amount of leverage, so
Beaconphar has placed itself in a low risky position.

Equity to Asset Ratio

The shareholder equity ratio determines how much shareholders would receive in the event of a company-wide
liquidation. The ratio, expressed as a percentage, is calculated by dividing total shareholders' equity by total
assets of the firm, and it represents the amount of assets on which shareholders have a residual claim. The
figures used to calculate the ratio are taken from the company balance sheet.

Equity to Asset Ratio= Total Equity /total Asset.

Equity to Asset Ratio

2015 2014 2013

Total equity 2,906,118,932 2,867,382,009 2,773,258,328
total asset 4,738,697,597 4,589,825,300 4,251,619,886
Equity to asset ratio 0.613273768 0.62472574 0.6522282754

48 | P a g e
 equity to asset ratio

0.66

0.65

0.64

0.63

0.62

0.61

0.6

0.59
2013 2014 2015

Series 1

In 2013 e/d ratio 61.32% in 2014 62.47% and 2015 e/d ratio 65.22%

Dividend policy:
Dividend policy is concerned with taking a decision regarding paying cash dividend in the present or
paying an increased dividend at a later stage. The firm could also pay in the form of stock dividends
which unlike cash dividends do not provide liquidity to the investors, however, it ensures capital gains to
the stockholders. The expectations of dividends by shareholders helps them determine the share value,
therefore, dividend policy is a significant decision taken by the financial managers of any company
Potential buyers and sellers of stock are very interested in a companys dividend policies and practices.

Reason for not declaring dividend for 2015

The Board of Directors of the Company has not recommended any dividend for the year ended 30th
June, 2015 since the Company did not make such a profit to pay dividend for the year.

Reason for not declaring dividend for 2014

The Board of Directors of the Company has not recommended any dividend for the year ended 30th
June, 2014 since the Company does not make such profit to pay dividend for the year.

Reason for not declaring dividend for 2013

49 | P a g e
The Board of Directors of the Company has not recommended any dividend for the year ended 30th
June, 2013 since the Company does not make such profit to pay dividend for the year,

Earnings per Share - EPS

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share of
common stock. Earnings per share serves as an indicator of a company's profitability. Earnings per share
is generally considered to be the single most important variable in determining a share's price. It is also a
major component used to calculate the price-to-earnings valuation ratio.

EPS:
Year Net income No. of shares EPS
2013 9,240,000 231,000,000 0.04
2014 23,100,000 231,000,000 0.10
2015 39,270,000 231,000,000 0.17

EPS
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0
2013 2014 2015

Series 1

Earnings per Share= Net income/Number of share

We see that EPS of (2013-2015) gradually 0.04, 0.10 and 0.17 and its regularly increasing and its good
for company. People want to buy the share of this company.

Dividend per share (DPS):

Dividend per share (DPS) is the sum of declared dividends issued by a company for every ordinary share
outstanding. Dividend per share (DPS) is the total dividends paid out by a business, including interim dividends,
divided by the number of outstanding ordinary shares issued. A company's DPS is usually derived using the
dividend paid in the most recent quarter, which is also used to calculate the dividend yield.

50 | P a g e
DPS=Dividend Paid /No. Of share

Reason for not declaring dividend for 2015

The Board of Directors of the Company has not recommended any dividend for the year ended 30th
June, 2015 since the Company did not make such a profit to pay dividend for the year.

Reason for not declaring dividend for 2014

The Board of Directors of the Company has not recommended any dividend for the year ended 30th
June, 2014 since the Company does not make such profit to pay dividend for the year.

Reason for not declaring dividend for 2013

The Board of Directors of the Company has not recommended any dividend for the year ended 30th
June, 2013 since the Company does not make such profit to pay dividend for the year,

Dividend Pay Out Ratio:

The dividend payout ratio is the percentage of earnings paid to shareholders in dividends. Dividend
payout ratio is the fraction of net income a firm pays to its stockholders in dividend. The dividend
payout ratio provides an indication of how much money a company is returning to shareholders, versus
how much money it is keeping on hand to reinvest in growth, pay off debt or add to cash reserves. This
latter portion is known as retained earnings

Dividend payout ratio= Total Dividend paid / Net income

Reason for not declaring dividend for 2015

The Board of Directors of the Company has not recommended any dividend for the year ended 30th
June, 2015 since the Company did not make such a profit to pay dividend for the year.

Reason for not declaring dividend for 2014

The Board of Directors of the Company has not recommended any dividend for the year ended 30th
June, 2014 since the Company does not make such profit to pay dividend for the year.

Reason for not declaring dividend for 2013

The Board of Directors of the Company has not recommended any dividend for the year ended 30th
June, 2013 since the Company does not make such profit to pay dividend for the year,

51 | P a g e
 Industry Analysis

DEBT TO EQUITY RATIO

ACI BEXIMCO PHARMA GLX RECKITIBEN SQUARE BEACON
4.14

3.85

1.81
1.58
1.35

1.17

1.15
1.14
0.65

0.63

0.53
0.6
0.39

0.39
0.37

0.22
0.16
0.13

2015 2014 2013

Trend of this ration is that a decrease in the ration is good for the business.
Here Square Pharma is the best company among others,

52 | P a g e
 Debt to Asset Ratio
0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0
2015 2014 2013

ACI BEXIMCO PHARMA GLX RECKITIBEN SQUARE BEACON

Trend Of the industry is that the low the leverage the better the condition of the firm. Here Reckittben is the
risky firm and square is the most suitable.

Equity to Asset
1
0.88 0.86
0.9 0.82
0.8 0.729 0.721 0.719
0.7 0.62
0.61 0.61
0.6 0.53 0.53
0.5 0.47 0.46
0.42
0.38 0.36
0.4
0.3
0.19 0.21
0.2
0.1
0
2015 2014 2013

ACI BEXIMCO PHARMA GLX RECKITIBEN SQUARE BEACON

53 | P a g e
 Trend of the ration is that the more the ratio the better the condition. Here Square pharma is the best suitable
one among others.

DPS
70

60

50

40

30

20

10

0
2015 2014 2013

ACI BEXIMCO PHARMA GLX RECKITIBEN SQUARE BEACON

Trend of this ration is that the share value increases whose DPS is higher. Here Reckittben is the suitable
one.

EPS
100
90
80
70
60
50
40
30
20
10
0
2015 2014 2013

ACI BEXIMCO PHARMA GLX RECKITIBEN SQUARE BEACON

54 | P a g e
 Trend of this ratio is that the higher EPS is the most suitable one. 2015 Reckittben is the most suitable one
and in 2014 and 2013 Glx has the higher EPS.

Dividend Payout Ratio

1.8
1.6
1.6 1.46
1.4

1.2

0.8 0.74
0.69 0.66
0.6
0.6

0.4 0.25 0.25 0.24 0.2

0.19
0.2 0.1
0.00021 0 0.00029 0 0.00069 0
0
2015 2014 2013

ACI BEXIMCO PHARMA GLX RECKITIBEN SQUARE BEACON

Trend is that an increase in DPR is suitable to attract the investors and a decrease will affect the business.
Here Reckittben has the Higher DPR.

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 Reference:
http://www.gsk.com.bd/
https://www.aci-bd.com/
http://www.beximcopharma.com/
http://bangladeshbusinessdir.com/reckitt-benckiser-
bangladesh-ltd/
http://www.squarepharma.com.bd/
http://lankabd.com/
http://www.stockbangladesh.com/

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