Assignment on ratio analysis on beximco

pharmaceutical Ltd.
Presented by
Group: Platinum
 Date of submission: 11th March, 2020
Group: Platinum
Intake : 45
Section : 05
Program : BBA

Serial no. Name ID Intake

1 Umme fabiha binte mahmud 17182101190 45

2 Hasibul haque 17182101194 45

3 Nasir uddin 17182101211 45

4 Zaiyed zabir abir 17182101221 45

5 Salman rahman 17181101155 44

 Introduction
The BEXIMCO GROUP was founded by brothers A. S. F. Rahman and Salman F Rahman in
1972, soon after the establishment of the Bangladeshi Republic. Beximco has been a pioneer in
Bangladeshi industry, including the modern textile sector, pharmaceuticals, ceramics and
information and communication technology. Beximco Pharmaceuticals Ltd (Beximco Pharma) is
a leading manufacturer and exporter of medicines in Bangladesh. Incorporated in the late 70s,
Beximco Pharma began as a distributor, export and import products from international market. In
2005, Beximco Pharma became the first Bangladeshi company to list on the Alternative
Investment Market of the London Stock Exchange. Beximco Pharma is one of the largest
exporters of medicines in Bangladesh, winning National Export Trophy (Gold). Now this
company has more than 3600 employees and each of them are guided by some moral and social
responsibilities to produce better medicines for the globe
1.Current:Ratio:
Current ratio = current assets / current liabilities
Source: annual financial report of beximco pharmaceutical limited

Particular 2016-2017 2017-2018 2018-2019

Current assets 9130816169 11344199700 13264161542

Current liabilities 3406039548 9018185760 12745832154

Current ratio 2.68 1.26 1.040

2.QUICK RAITO:
Quick ratio: Current assets – inventory / current liabilities

Particular 2016-2017 2017-2018 2018-2019

9130816169- 11344199700- 13,264,161,542-
Current assets - 3468089061 5058847681 5,924,031,678
Inventory =5662727108 =6285352019 =7340129864

Current liabilities 3406039548 9018185760 12745832154

Current ratio 1.66 .696 .575

3.Inventory turnover:
Inventory turnover: cost of goods sold / inventory
Source: annual financial report of beximco pharmaceutical limited

Particular 2016-2017 2017-2018 2018-2019

Cost of goods sold 8323895349 9430737431 12196286770

Inventory 3468089061 5058847681 5924031678

     

Inventory turnover 2.400 1.864 2.058

4.Average collection period:
Average collection period: Account receivable / average sale per day

Particular 2016-2017 2017-2018 2018-2019

Account receivable 2,167,339,867 2,761509393 3,334,958,905

Average sale per day 15,508,776,972/365 17,716,716,855/365 22,816,629,795/365

Average collection 51.008 56.89 53.35

period
5.Total asset turnover:
Total asset turnover: Sales / Total assets

Particular 2016-2017 2017-2018 2018-2019

sales 15,508,776,972 17,716,716,855 22,816,629,795

Total assets 34,084,132,870 43,738,886,412 49,214,092,360

Total asset .455 .405 .463

turnover
 6.DEBT RATIO:
DEBT RATIO: TOTAL LIABILITIES / TOTAL ASSETS

Particular 2016-2017 2017-2018 2018-2019

Total liabilities 9011706970 16387049620 19349768523

Total assets 34,084,132,870 43,738,886,412 49,214,092,360

Debt ratio .264 .374 .393

7.Time interest earned ratio:
Time interest earned ratio: Earning before tax and interest / Interest

Particular 2016-2017 2017-2018 2018-2019

operating profit 3,448,206,072 4,026,167,984 5,066,173,567

Interest 557,003,162 536,570,775 1,032,409,014

Time interest 6.19 7.50 4.90

earned ratio
8.Gross profit margin:
Gross profit margin: Gross profit / sale

Particular 2016-2017 2017-2018 2018-2019

Gross profit 7,184,881,623 8,285,979,424 10,620,343,025

sales 15,508,776,972 17,716,716,855 22,816,629,795

Gross profit .463 .467 .465

margin
9.Operating profit margin:
Operating profit margin: operating profit / sale

Particular 2016-2017 2017-2018 2018-2019

operating profit 3,448,206,072 4,026,167,984 5,066,173,567

sales 15,508,776,972 17,716,716,855 22,816,629,795

Operating profit .222 .227 .222

margin
10.Net profit margin:
Net profit margin: Earning available for common stock holder / sale

Particular
2016-2017 2017-2018 2018-2019

Earnings
available for 2,226,695,124 2,536,543,948 3,033,402,333
common stock
holder

sales 15,508,776,972 17,716,716,855 22,816,629,795

Net profit margin .1.43 .132

.145
11.Earnings per share:
Earning per share: Earning available for common stock / number of share of common stock outstanding

Particular 2016-2017 2017-2018 2018-2019

Earnings
available for
2,226,695,124 2,536,543,948 3,033,402,333
common stock
holder

number of share
of common stock
405,556,445 405,556,445 405,556,445
outstanding.

Earning per share 5.49 6.25 7.48

12.Return on total asset:
Return on total asset: Earning available for common stock holder / total assets

Particular 2016-2017 2017-2018 2018-2019

Earnings available
for common stock
2,226,695,124 2,536,543,948 3,033,402,333
holder

Total assets 34,084,132,870 43,738,886,412 49,214,092,360

Return on total .065 .057 .061

asset
13.Return on equity
Return on equity: Earing available common stockholder / common stock equity

Particular 2016-2017 2017-2018 2018-2019

Earnings available 2,226,695,124 2,536,543,948 3,033,402,333

for common stock
holder

Common stock
equity
25,072,425,900 27,081,962,616 29,588,317,284

Return on equity .088 .093 .103

Summary:
The liquidity position of the firm in 2018-2019is lower than 2016-2017 and 2017-2018. The
firm is more efficient in using assent in 2018-2019 than previous two years. The firm is taking
more financial risk in 2018-2019 than 2016-2017 & 2017-2018. The return on equity of the
firm is higher than previous two years. The high ROE of the firm may caused by law liquidity
position, better asset utilization and high financial risk.

Recommendation:
The firm should be concerned about high financial risk and low liquidity.