Presentation on Financial Statement and Ratios Analysis of Beximco Pharma

Course Title: Principles of Accounting

Course Code:EMIS-504
Semester: Spring 2020
Department: Management Information System

Group Members Are:

Md.Ehsanul Islam Biswas Submitted to:
Id:6194235027 Mohammad Tariqul Islam, Assistant Prof.
Maisha Anzum Management Information System
Id:6194235053
Samsun Nahar Eti
Id:6194235038
 Financial Statement & Ratios Analysis of Beximco Pharmaceuticals Limited

Financial statement analysis is the process of reviewing and

analyzing a company's financial statements to make better
economic decisions to earn income in future.

Ratio analysis expresses the relationship among selected items of

financial statement data. A ratio expresses the mathematical
relationship between one quantity and another. The relationship
is expressed in terms of either a percentage, a rate, or a simple
proportion.
Liquidity Ratios
• How comfortable a company is to pay its debts in the short term?

One of the example is,

𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑨𝒔𝒔𝒆𝒕
𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑹𝒂𝒕𝒊𝒐 =
𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒆𝒔

𝟐𝟎𝟏𝟗

12,793,492,489
= 1.07: 1
11,895,847,518

𝟐𝟎𝟏𝟖

10832521567
= 1.33: 1
8,096,861,126
Beximco’s Current ratio has decreased in the current year.

Higher Ratio=Lower Risk=Better

Profitability Ratios

• How good a company is at good at making money?

• What about the Company’s competitive position in the market?
• Income statement and source of the Income and Expenses

One of the best example is ,

𝑵𝒆𝒕 𝑰𝒏𝒄𝒐𝒎𝒆
𝑷𝒓𝒐𝒇𝒊𝒕 𝑴𝒂𝒓𝒈𝒊𝒏 =
𝑵𝒆𝒕 𝑺𝒂𝒍𝒆
𝟐𝟎𝟏𝟗

3,021,648,415
= 14.8%
21,156,331,039

𝟐𝟎𝟏𝟖

2,559,452,960
= 14.5%
17,380,728,001
Beximco experienced a slight increase in its profit margin from 2018 to 2019 of 14.5% to 14.8%.
Higher Profit Margin=Better
Solvency Ratios
• How comfortable a company is to pay its Long-term debt?
• How much debt is used to finance its debt?
• Also known as the leverage ratios or debt ratios
One of the best example is ,

𝑻𝒐𝒕𝒂𝒍 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔
𝑫𝒆𝒃𝒊𝒕 𝒕𝒐 𝑨𝒔𝒔𝒆𝒕𝒔 𝒓𝒂𝒕𝒊𝒐 =
𝑻𝒐𝒕𝒂𝒍 𝑨𝒔𝒔𝒆𝒕

𝟐𝟎𝟏𝟗

6,296,204,472 + 11,895,847,518
= 37%
47,792,895,230

𝟐𝟎𝟏𝟖
6,963,764,382 + 8,096,861,126
= 38.3%
42,165,015,439

A ratio of 37% means that creditors have provided 37% of Beximco’s total asset. The lower the ratio the more equity .Thus from the creditors
point of view ,a low ratio of debit to asset is usually desirable.
Lower =Better