1
Assignment On,
Annual Financial Statement
2017-2018 & 2018-2019
Square Pharmaceuticals Ltd. and Beximco
Pharmaceuticals Ltd.
Submitted to: Aditi Shams
Assistant Professor
Department of International Business
University of Dhaka
Submitted by: “Team Dynamos”
1) Sabrina Rahman Suchi (026)
2) Syeda Nusrat Ahsan (038)
3) Kowshik Ahmed Efty (042)
4) Nazmul Hudha (067)
5) Md. Mazharul Islam (071)
2
Discussion:
Beximco Pharmaceuticals Ltd.:
1.Current Ratio: The Current Ratio of 2017-2018 was 1.34:1 and in 2018-2019 it was 1.08:1.
The Current Ratio in 2018-2019 has decreased in compare to the previous year which indicates
the corporations ability to pay short term debts has decreased in 2019.
2.Acid test ratio: The Acid test of 2017-2018 was 0.43:1 and in 2018-2019 it was 0.36:1. The
Acid test ratio in 2018-2019 has decreased in compare to the previous year. Thus, the
corporations short term liquidity has decreased.
3.Account receivable turnover: The Account Receivable turnover of 2017-2018 was 7.09
times and in 2018-2019 it was 6.98 times. The Account receivable turnover in 2018-2019 has
decreased. So, the company ability of turning certain assets to cash has deteriorated in 2019.
4.Inventory turnover: The Inventory turnover Ratio of 2017-2018 was 2.28 times and in
2018-2019 it was 2.22 times. The Inventory Turnover Ratio in 2018-2019 has decreased in
compare to the previous year. The Inventory Turnover has been improved in recent year which
means the company is able to reduce inventory obsolescence has increased.
5.Profit Margin: The Inventory turnover Ratio of 2017-2018 was 14.72% and in 2018-2019
it was 14.29%. The Profit Margin Ratio in 2018-2019 has decreased in compare to previous
year. The income or operating success if the company has decreased slightly in 2019.
6.Asset Turnover: The Asset turnover Ratio of 2017-2018 was 0.456 times and in 2018-2019
it was 0.47 times. The Asset turnover Ratio in 2018-2019 has increased in compare to the
previous year. The ratio has improved in 2019 which indicates the company ability to use its
assets to generate sales is better than previous year.
7.Return on Assets: The Return on Assets Ratio of 2017-2018 was 6.71% and in 2018-2019
it was 6.72%. The Return on Assets Ratio in 2018-2019 has increased slightly in compare to
the previous year. So, the overall profitability has improved in 2019.
8. Return on Ordinary Shareholders Equity : The Return on Ordinary Shareholders Equity
of
2017-2018 was 9.81% and in 2018-2019 it was 10.66%. The Return on Ordinary
Shareholders Equity in 2018-2019 has increased in compare to the previous year. That means
the company the company’s euros of net income has increased in 2019.
3
9.Earnings Per Share: Earnings Per Share Ratio of 2017-2018 was 14.44 and in 2018-2019 it
was 3.75. Earnings Per Share Ration in 2018-2019 has decreased in compare to the previous
year. Therefore, net income earned on each ordinary share has decreased in 2019 which
indicates profitability has deteriorated.
10.Price Earning Ratio: Price Earning Ratio of 2017-2018 was 14.44 times and in 2018-2019
it was 3.75 times. Price Earning Ratio in 2018-2019 has decreased in compare to the previous
year.
11. Payout Ratio: Payout Ratio of 2017-2018 was 19.81% and in 2018-2019 it was 16.77%
Payout Ratio in 2018-2019 has decreased in compare to the previous year. The percentage of
earning
distributed
in
the
form
of
cash
dividends
has
decreased
in
2019.
12.Debt to Assets Ratio: Debt to Assets Ratio of 2017-2018 was 35.72% and in 2018-2019 it
was 38.00%. Debt to Assets Ratio in 2018-2019 has increased in compare to the previous year.
So, it means that the risk to meet the maturing obligations of the company has increased in
2019.
13.Time Interest Earn Ratio: Time interest earn ratio of 2017-2018 was 7.57 times and in
2018-2019 it was 5.17 times. Price Earning Ratio in 2018-2019 has decreased in compare to
the previous year. The corporations ability to meet interest payment as they come to due has
decreased in 2019.
The comparative Statement of financial position in Trend analysis show that a number of
significant changes have occurred in financial structure 2018-2019
•
•
In the Asset section, Short term investment (net) increased BDT 213197494 or 57.76%
In the Equity section, Retained Earnings (net) increased BDT 2525730709 or 17.26%
•
In the liability section, Short term borrowings (net) increased BDT 3738926253 or
75.35%
The table of Income statement in Trend analysis show that a number of significant changes
have occurred in Income statement 2018 & 2019.
•
Net sales revenue increased BDT 9775603038 or 21.73%
•
Cost of goods sold increased BDT 2110425005 or 22.80%
4
•
Total Selling, marketing and distribution expense increased BDT 779826938 or
21.98%.
Square Pharmaceuticals Ltd:
1.Current Ratio: The Current Ratio of 2017-2018 was 4.91:1 and in 2018-2019 it was 12.91:1.
The Current Ratio in 2018-2019 has increased in compare to the previous year which indicates
the corporations ability to pay short term debts has increased in 2019.
2.Acid test ratio: The Acid test of 2017-2018 was 3.87:1 and in 2018-2019 it was 10.6:1. The
Acid test ratio in 2018-2019 has increased in compare to the previous year. Therefore, the
corporations short term liquidity has increased.
3.Account receivable turnover: The Account Receivable turnover of 2017-2018 was 18.30
times and in 2018-2019 it was 28.32 times. The Account receivable turnover in 2018-2019 has
increased and so the company’s ability of turning certain assets to cash has increased in 2019.
4.Inventory turnover: The Inventory turnover Ratio of 2017-2018 was 4.71 times and in
2018-2019 it was 4.79 times. The Inventory Turnover Ratio in 2018-2019 has increased in
compare to the previous year. The Inventory Turnover did not improve in recent year which
means the company is able to reduce inventory obsolescence has decreased.
5.Profit Margin: The Inventory turnover Ratio of 2017-2018 was 23.77% and in 2018-2019
it was 27.30%. The Profit Margin Ratio in 2018-2019 has increased in compare to previous
year. The income or operating success if the company has improved in 2019.
6.Asset Turnover: The Asset turnover Ratio of 2017-2018 was 0.70 times and in 2018-2019
it was 0.65 times. The Asset turnover Ratio in 2018-2019 has decreased in compare to the
previous year. The ratio has deteriorated in 2019 which indicates the company’s ability use its
assets to generate sales is worse than previous year.
7.Return on Assets: The Return on Assets Ratio of 2017-2018 was 16.59% and in 2018-2019
it was 17.84%. The Return on Assets Ratio in 2018-2019 has increased in compare to the
previous year. So, the overall profitability has improved in 2019.
8. Return on Ordinary Shareholders Equity: The Return on Ordinary Shareholders Equity
of 2017-2018 was 18.71% and in 2018-2019 it was 19.66%. The Return on Ordinary
5
Shareholders Equity in 2018-2019 has decreased in compare to the previous year. That means
the company the company’s euros of net income has decreased in 2019.
9.Earnings Per Share: Earnings Per Share Ratio of 2017-2018 was 11.15 and in 2018-2019 it
was 13.39. Earnings Per Share Ration in 2018-2019 has increased in compare to the previous
year. Therefore, net income earned on each ordinary share has increased in 2019 which
indicates profitability has been improved.
10.Price Earning Ratio: Price Earning Ratio of 2017-2018 was 5.68 times and in 2018-2019
it was 18.89 times. Price Earning Ratio in 2018-2019 has increased in compare to the previous
year.
11. Payout Ratio: Payout Ratio of 2017-2018 was 29.21% and in 2018-2019 it was 22.73%
Payout Ratio in 2018-2019 has increased in compare to the previous year. The percentage of
earning distributed in the form of cash dividends has decreased in 2019.
12.Debt to Assets Ratio: Debt to Assets Ratio of 2017-2018 was 12.50% and in 2018-2019 it
was 6.540%. Debt to Assets Ratio in 2018-2019 has decreased in compare to the previous year.
So, it means that the risk to meet the maturing obligations of the company has decreased in
2019.
13.Time Interest Earn Ratio: Time interest earn ratio of 2017-2018 was 126,683.91 times
and in 2018-2019 it was 180,836.211 times. Price Earning Ratio in 2018-2019 has icreased in
compare to the previous year. The corporations ability to meet interest payment as they come
to due has increased in 2019.
The comparative Statement of financial position in Trend analysis show that a number of
significant changes have occurred in financial structure 2018-2019
•
•
In the Asset section, Current asset(net) increased BDT 11,094,955,602 or 40.80%
In the Equity section, Retained Earnings (net) increased BDT 11,485,406,553 or
31.09%
•
In the Liabilities, Liabilities for Other Finance section, (net) increased BDT
978,997,440 or 94.57%.
The table of Income statement in Trend analysis show that a number of significant changes
have occurred in Income statement 2018 & 2019.
6
•
Gross revenue increased BDT 10,02,20,95,525 or 28.99%
•
Cost of goods sold increased BDT 4,112,457,480 or 26.36%
•
Total operating expense increased BDT 1,064,989,696 or 15.93%
In the ratio(1-4) they were enhanced in the year 2019. Their Liquidity ratio is adequate than
earlier in the year 2018. In the portrait of Profitability ratios(5-10) in the year 2019 the profit
margin & Earning per share are weakened but completely the asset turnover, return on asset,
return on Ordinary shareholders equity, and price earning share are better in the year 2019. In
2019 Portfolio of Beximco Pharmaceuticals Ltd. is indicated slightly progressive. And the
solvency ratio is decreased significantly.
n the scenery of Square Pharmaceutical Ltd's liquidity ratio is politely from the earlier the year
2018. It demonstrates modifying the proficiency to pay short term debt & exhibits that they
were able to diminish inventory. The portrait of profitability ratio compare to the prior year's
profitability has gained in 2019. But the net income of 2019 has reduced. And their solvency
ratio shows that their cash dividend has lessened by 2019. And the corporation's ability to meet
interest payment has weakened in 2019.
In the analysis part, we can discover that the liquidity ratio of a Square Pharmaceutical Ltd. is
qualified than the ratio of Beximco Pharmaceutical Ltd. so Square Pharmaceutical Ltd. pays
it's short term debt properly. The profitability ratios of Square Pharmaceutical Ltd. indicated a
better execution than Beximco Pharmaceutical Ltd. So Square Pharmaceuticals properly
acquire its shareholder demand from another company Beximco Pharmaceutical Ltd. The
solvency ratio of Square Pharmaceutical Ltd. is favorable than Beximco Pharmaceuticals. So,
Square Pharmaceutical Ltd pays its long-term debt more efficiently than Beximco
Pharmaceutical. After comparing both company's ratios the comparison shows that Square
pharmaceutical Ltd. is adequate than Beximco pharmaceutical Ltd. So we can say as a new
investor, Mr. Alan should capitalize on Square Pharmaceutical Ltd. Share.
7
Appendix:
Beximco Pharmaceuticals Ltd.
(For the year: June 30,2018)
Liquidity Ratios:
1. Current Ratio =
=
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
10,832,521,567
8,096,861,126
= 1.34:1
2. Acid test ratio =
𝐶𝑎𝑠ℎ+𝑆ℎ𝑜𝑟𝑡 𝑡𝑒𝑟𝑚 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡+𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
=
3,69,108,554+3,39,397,174+2,736,944,147
8,096,861,126
= 0.43:1
𝑁𝑒𝑡 𝐶𝑟𝑒𝑑𝑖𝑡 𝑆𝑎𝑙𝑒𝑠
3. Accounts Receivable Turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑛𝑒𝑡 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
17380728001
= (27,336,944,147+2,167,39,867)/2
= 7.09 times
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑
4. Inventory Turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
9.255.504.681
= (4.665.449.461+3,468,089,061)/2
=2.28 times
Profitability Ratios :
5. Profit Margin =
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
2.558.971.263
= 17.380.728.001 𝑋 100
= 14.72%
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
6. Assets Turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
17,380,728,001
= (42,165,015,439+34,084,132,870)/2
= 0.46 times
8
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
7.Return on assets = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 𝑋 100
2.558.971.263
= 38.124.574.154.5 𝑋 100
= 6.71%
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒−𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠
8. Return on ordinary shareholder’s equity = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 ′ 𝑠𝑒𝑞𝑢𝑖𝑡𝑦
2,558,971,263−0
= (27,104,389,931+25,072,425,900)/2 𝑋 100
= 9.81%
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒−𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠
9. Earning Per Share (EPS) = 𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝑎𝑣𝑒𝑟𝑎𝑔𝑒
=
𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑠ℎ𝑎𝑟𝑒𝑠 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔
8,219,525,804−0
7,37,391,090
=11.15
10.Price Earnings ratio =
=
𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒
93.50(𝐷𝑆𝐸)
6.31
= 14.44
NOTE: Market price per share was collected from DSE price share list on 03.09.2020
11. Payout ratio =
𝐶𝑎𝑠ℎ 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠 𝐷𝑒𝑐𝑙𝑎𝑟𝑒𝑑 𝑜𝑛 𝑂𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑠ℎ𝑎𝑟𝑒
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
50,69,45,556
= 2,558,971,263 X 100
= 19.81%
Solvency Ratios:
12. Debt to asset ratio =
=
=
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
𝑁𝑜𝑛−𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠+𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑁𝑜𝑛−𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠+𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠
6,963,764,382+8,096,861,126
42,165,015,439
= 35.72%
13. Times interest earned =
=
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒+𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒+𝐼𝑛𝑐𝑜𝑚𝑒 𝑡𝑎𝑥 𝑒𝑥𝑝𝑒𝑛𝑠𝑒
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒
2558971263+512099369+807,194,527
512099369
9
= 7.57 times
NOTE: Finance cost is shown as Interest expense.
Beximco Pharmaceuticals Ltd.
For the year: June 30,2019)
Liquidity Ratios:
1. Current Ratio =
=
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
12,793,492,48.9
11,895,847,518
= 1.08:1
2. Acid test ratio =
𝐶𝑎𝑠ℎ+𝑆ℎ𝑜𝑟𝑡 𝑡𝑒𝑟𝑚 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡+𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
=
5,82,306,048+3,23,364,536+3,325,890,597
11,895,847,518
= 0.36:1
𝑁𝑒𝑡 𝐶𝑟𝑒𝑑𝑖𝑡 𝑆𝑎𝑙𝑒𝑠
3. Accounts Receivable Turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑛𝑒𝑡 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
211563331039
= (3325890597+2,736,944,147)/2
= 6.98 times
4. Inventory Turnover =
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
11,365,929,686
= (5,573,549,171+4,665,449,461)/2
=2.22 times
Profitability Ratios :
5. Profit Margin =
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
3,023,500,974
= 21,156,331,039 𝑋 100
= 14.29%
10
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
6. Assets Turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
21,156,331,039
= (47,792,895,230+42,165,015,439)/2
= 0.47 times
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
7.Return on assets = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 𝑋 100
3,023,500,974
=44,978,955,334.5 𝑋 100
= 6.72%
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒−𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠
8. Return on ordinary shareholder’s equity = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 ′ 𝑠𝑒𝑞𝑢𝑖𝑡𝑦
3,023,500,974−0
= (29,600,843,240+27,104,389,931)/2 𝑋 100
= 10.66%
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒−𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠
9. Earning Per Share (EPS) = 𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝑎𝑣𝑒𝑟𝑎𝑔𝑒
𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑠ℎ𝑎𝑟𝑒𝑠 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔
3,023,500,974−0
=
405,556,445
= 7.46
10.Price Earning ratio =
𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒
28
= 7.48
= 3.75
NOTE: Market price per share was collected from DSE price share list on 03.09.2020
11. Payout ratio =
𝐶𝑎𝑠ℎ 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠 𝐷𝑒𝑐𝑙𝑎𝑟𝑒𝑑 𝑜𝑛 𝑂𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑠ℎ𝑎𝑟𝑒
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
50,69,45,556
= 3,023,500,974 X 100
= 16.77%
Solvency Ratios:
12. Debt to asset ratio =
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
6,296,204,472+11,895,847,518
= 34,999,402,741+12,793,492,489 X 100
= 38.06%
11
13. Times interest earned =
=
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒+𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒+𝐼𝑛𝑐𝑜𝑚𝑒 𝑡𝑎𝑥 𝑒𝑥𝑝𝑒𝑛𝑠𝑒
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒
3023500974+886864143+938074846
938074846
= 5.17
NOTE: Finance cost is shown as Interest expense.
Square Pharmaceuticals Ltd.
(For the year :June 30,2018)
Liquidity Ratios:
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡
1. Current Ratio =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
27,196,589,272
=
5,539,791,081
= 4.91:1
𝐶𝑎𝑠ℎ+𝑆ℎ𝑜𝑟𝑡 𝑡𝑒𝑟𝑚 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡+𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
2. Acid test ratio =
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
=
16,703,964,704+3,131,975,363+1,587,211,300
5,539,791,081
= 3.87:1
𝑁𝑒𝑡 𝐶𝑟𝑒𝑑𝑖𝑡 𝑆𝑎𝑙𝑒𝑠
3. Accounts Receivable Turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑛𝑒𝑡 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
30004974891
= (1,587,211,300+2,188,447,720)/2
= 18.30 times
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑
4. Inventory Turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
15,598,608,803
= (3,642,090,783+2,988,121,604)/2
= 4.71 times
Profitability Ratios :
5. Profit Margin =
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
8,219,525,804
= 34,573,390,809 𝑋 100
12
= 23.77%
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
6. Assets Turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
34,573,390,809
= (53,329,313,432+45,763,246,051)/2
= 0.70 times
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
7.Return on assets = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 𝑋 100
8,219,525,804
=49,546,279,741.5 𝑋 100
= 16.59%
8. Return on ordinary shareholder’s equity =
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒−𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 ′ 𝑠𝑒𝑞𝑢𝑖𝑡𝑦
8,219,525,804−0
= (46,662,876,378+41,201,962,311)/2 𝑋 100
= 18.71%
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒−𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠
9. Earning Per Share (EPS) = 𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝑎𝑣𝑒𝑟𝑎𝑔𝑒
=
𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑠ℎ𝑎𝑟𝑒𝑠 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔
8,219,525,804−0
737,391,090
= 11.15
10.Price Earning ratio =
𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒
63.28
= 11.15
= 5.68
NOTE: Market price per share was collected from DSE price share list on 03.09.2020.
11. Payout ratio =
=
𝐶𝑎𝑠ℎ 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠 𝐷𝑒𝑐𝑙𝑎𝑟𝑒𝑑 𝑜𝑛 𝑂𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑠ℎ𝑎𝑟𝑒
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
2,400,808,200−0
8,219,525,804
= 29.21%
X 100
13
Solvency Ratios:
12. Debt to asset ratio =
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
6,666,437
= 53,329,313
= 12.50%
13. Time Interest Earned =
=
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒+𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒+𝐼𝑛𝑐𝑜𝑚𝑒 𝑡𝑎𝑥 𝑒𝑥𝑝𝑒𝑛𝑠𝑒
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒
8219525804+85450+2605528923
85450
= 126,683.91 times
NOTE: Finance cost is shown as Interest expense.
Square Pharmaceuticals Ltd.
(For the year :June 30,2019)
Liquidity Ratios:
1. Current Ratio =
=
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
38,291,544,874
2,961,270,978
= 12.9 :1
2. Acid test ratio =
𝐶𝑎𝑠ℎ+𝑆ℎ𝑜𝑟𝑡 𝑡𝑒𝑟𝑚 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡+𝐴𝑐𝑐𝑜𝑢𝑛𝑡 𝑅𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦
=
26,923,168,224+2,937,071,066+1,561,818,167
2,961,270,978
= 10.6:1
𝑁𝑒𝑡 𝐶𝑟𝑒𝑑𝑖𝑡 𝑆𝑎𝑙𝑒𝑠
3. Accounts Receivable Turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑛𝑒𝑡 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑟𝑒𝑐𝑒𝑖𝑣𝑎𝑏𝑙𝑒
44,595,486,334
= (1,561,818,167+1,587,211,300)/2
= 28.32 times
𝐶𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑𝑠 𝑠𝑜𝑙𝑑
4. Inventory Turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
19,711,065,988
= (4,596,512,673+3,642,090)/2
14
= 4.79 times
Profitability Ratios :
5. Profit Margin =
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
10,562,863,531
= 38,685,655,814 𝑋 100
= 27.30%
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠
6. Assets Turnover = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
38,685,655,814
= (65,061,672,828+53,329,313,432)/2
= 0.65 times
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
7.Return on assets = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 𝑋 100
10,562,863,531
=59,195,493,130 𝑋 100
= 17.84%
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒−𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠
8. Return on ordinary shareholder’s equity = 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 ′ 𝑠𝑒𝑞𝑢𝑖𝑡𝑦
10,562,863,531−0
= (60,806,054,977+46,662,876,378)/2 𝑋 100
= 19.65%
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒−𝑃𝑟𝑒𝑓𝑒𝑟𝑒𝑛𝑐𝑒 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠
9. Earning Per Share (EPS) = 𝑊𝑒𝑖𝑔ℎ𝑡𝑒𝑑 𝑎𝑣𝑒𝑟𝑎𝑔𝑒
=
𝑜𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑠ℎ𝑎𝑟𝑒𝑠 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔
10,562,863,531−0
789,008,466
= 13.39
10.Price Earning ratio =
𝑀𝑎𝑟𝑘𝑒𝑡 𝑃𝑟𝑖𝑐𝑒 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒
𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑃𝑒𝑟 𝑆ℎ𝑎𝑟𝑒
63.28
= 13.39
= 18.89 times
NOTE: Market price per share was collected from DSE price share list on 03.09.2020
11. Payout ratio =
𝐶𝑎𝑠ℎ 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠 𝐷𝑒𝑐𝑙𝑎𝑟𝑒𝑑 𝑜𝑛 𝑂𝑟𝑑𝑖𝑛𝑎𝑟𝑦 𝑠ℎ𝑎𝑟𝑒
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒
15
2,400,808,200
= 10,562,863,531 X 100
= 22.73%
Solvency Ratios:
12. Debt to asset ratio =
𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
4,255,618
= 65,061,673
= 6.540%
13. Time Interest Earned = =
=
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒+𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒+𝐼𝑛𝑐𝑜𝑚𝑒 𝑡𝑎𝑥 𝑒𝑥𝑝𝑒𝑛𝑠𝑒
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑒𝑥𝑝𝑒𝑛𝑠𝑒
10,5628,63531+76,974+3,356,746,041
76,974
= 180,836.211 times
NOTE: Finance cost is shown as Interest expense.
16
Beximco Pharmaceuticals Ltd.
Income statement
(Trend Analysis)
Increase or
(Decrease)
During 2019
Percent
21.73%
22.80%
2019
21,156,331099
(11365929686)
2018
Amount
73,807,28001 97,756,03038
(9255504681) 2110425005
979,040,1353
(49,9162,7668)
(663362904)
(4328264764)
81,2522,3320
(4143623455)
(595185629)
(3548437826)
16,651,78033
84,800,4213
68177275
779826938
20.49%
20.47%
11.45%
21.98%
47,987,73685
24,518,4534
(938074846)
39,815,99865
64,973,584
(512099369)
81,717,3820
18,021,0950
425975477
20.52%
277.36%
83.18%
41,0588,3373
(19,551,8256)
35,344,74080
(16,830,290)
57,140,9293
27,209,966
16.17%
16.17%
Profit before tax
Income tax expense
Current tax
Deferred tax
39,103,65117
(88,686,4143)
(79,236,5900)
(94498243)
33,661,65790
(80,719,4527)
(79,058,0483)
(16614044)
54,419,9327
79,669,616
17,854,17
77884199
16.17%
9.87%
0.22%
468.78%
Profit after tax for the year
Other comprehensive income
30,235,00974
(18,525,59)
25,589,71263
48,1697
46,4529,711
(193,342,56)
18.15%
4013.78%
30,2116,48415
25,5945,2960
46,2195,455
18.06%
Net sales revenue
Cost of goods sold
Gross profit
Operating expenses
Administrative expense
Selling, marketing and distribution expense
Profit from operation
Other income
Finance cost
Profit before contribution to WPPF &
Welfare Funds
Contribution to WPPF & Welfare funds
Total comprehensive income for the year
17
Beximco Pharmaceuticals Ltd.
Financial Statement
(Trend Analysis)
Amount
Increase or
(Decrease)
During 2019
Percent
31,332,493,872
28,645,104,798
525,695,416
21,25,186,000
30,749,850
5,757,808
10,832,521,567
4,665,449,461
654,781,270
2,736,944,147
2,066,840,961
339,108,554
3,666,908,869
3,564,335,246
84,426,282
19,999,900
(1,424,130)
(428,429)
1,960,970,922
908,099,710
60,560,046
588,946,450
206,199,860
213,197,494
11.70%
12.44%
16.06%
0.94%
(4.63%)
(7.44%)
18.10%
19.46%
9.25%
21.52%
9.97%
57.76%
47,792,895,230 42,1650,15439
5,627,879,791
13.35%
29,600,843,240
4,055,564,450
5,269,474,690
1,689,636,958
294,950,950
11,31,853,004
2,504,203
17,156,858,985
629,620,4472
2,544,73,2500
1,748,900,794
20,02,571,178
11,89,5847,518
8,701,02,4499
1,487,254,413
103,7089,244
49,617,8291
7,002,833
167,298,238
2,496,453,309
0
0
0
0
(27,4248,41)
(1,852,559)
2525730709
(667,,559910)
(1304746,227)
52,443,8524
1127,47793
3798,986,392
3738,926,253
3,3434,858
97,551,009
1927,304,67
246,2019
(26,611,8214)
9.21%
0%
0%
0%
0%
(2.37%)
(42.52%)
17.26%
(9.59%)
(33.89%)
42.83%
5.97%
49.92%
75.35%
2.299%
10.38%
63.51%
54.22%
61.40%
562,787,9791
13.35%
2019
Assets
Non-current assets
Property, plant, & equipment (carrying value)
Intangible assets
Investment in subsidiaries
Investment in associates
Other investments
Current assets
Inventories
Spares and supplies
Accounts receivable
Loans, advances and deposits
Short term investment
Total
34,999,402,741
322,094,400,44
610,121,698
214,518,59,00
293,25,720
53,29,379
127,934,92,489
5,573,549,171
715,341,316
3,325,890,597
227,304,0821
323,364,536
2018
assets
Equity and Liabilities
Shareholder’s equity
Issued share capital
Share premium
Excess of issue price over face value of
GDRs
Capital reserve on merger
Revaluation surplus
Unrealized gain / (Loss)
Retained Earnings
Non-current liabilities
Long term borrowings- Net of current
maturity
Liability for gratuity and WPPF welfare funds
Deferred tax liability
Current liabilities and provisions
Short term borrowings
Long term borrowings- current maturity
Creditor and other payables
Accrued expense
Dividend payable
Income tax payable
Total equity and
liabilities
2,710,438,9931
4,055,564,450
5,269,474,690
1,689,636,958
294,950,950
1,159,277,845
43,567,62
146,311,28,276
6,963,764,382
384,9478,727
1,224,462,270
1889,823,385
809,686,1126
4962,098,246
145,381,9555
939,538,235
30,344,7824
4,540,814
433,416,452
47,792,895,230 421,6501,5439
18
Square Pharmaceuticals Ltd
Income statement
(Trend Analysis)
Particulars
Gross revenue
Less : Value added tax
2018-19
44,595,486,334
5,909,830,520
Net revenue
2017-18
34,573,390,809
4,568,415,918
Amount
10,02,20,95,525
1,341,414,602
Increase or
(Decrease)
During
2019
Percent
28.99%
29.36%
38,685,655,814
30,004,974,891
8,680,680,920
(19,711,065,988) (15.598.608.803) 4,112,457,480
28.93%%
26.36%
Gross Profit
Operating expenses
Selling & distribution expense
Administrative expense
Finance cost
18,974,589,826
14,406,366,088
4,568,223,740
31.71%
(6,559,717,827)
(1,189,514,648)
(76,974)
(5,661,467,912)
(1,022,766,391)
(85,450)
898,249,915
166,748,257
(8,476)
15.87%
16.90%
(9.92%)
Total operating expense
(7,749,309,449)
(6,684,319,753)
1,064,989,696
15.93%
Profit from operations
Other income
11,225,280,377
3,438,272,847
7,722,046,335
3,644,261,128
3,503,234,035
(205,988,281)
45.37%
(5.65%)
Profit before WPPF & Welfare funds
Allocation for WPPF & welfare funds
14,663,553,224
(698,264,439)
11,366,307,463
(541,252,736)
3,297,245,760
157,011,703
29%
29%
Profit before tax
Income tax expenses current
Income tax expenses Deferred
13,965,288,785
(3,356,746,041)
(45,67,213)
10,825,054,727
(2,534,562,419)
(70,966,504)
3,140,234,060
822,183,622
(25,287,291)
29%
32.44%
(35.63%)
Profit after tax
Other comprehensive income
10,562,863,591
(26,427,408)
8,219,525,804
(357,803,537)
2,343,337,726
(331,376,129)
28.50%
(92.61%)
Total comprehensive income for the
year
10,536,436,123
7,861,722,267
2,674,713,853
34.02%
Cost of goods sold
19
Square Pharmaceuticals Ltd
Financial Statement
(Trend Analysis)
Particulars
Assets
Non-current assets:
Property, Plant and equipment
Investment long term (At cost)
Investment in marketable securities
2019
2018
Amount
20,760,435,864 18,271,557,962 2,488,877,900
2,996,252,356 5,381,098,073 (2,384,845,717)
3,013,439,734 2,480,068,125 533,371,609
Total non-current assets 26,770,127,954 26,132,724,160 637,403,790
Current Assets:
Inventories
Trade debtors
Advances, deposits and pre-payment
Short term loan
Cash and cash equivalents
Total current assets
Shareholder’s equity and liabilities :
Shareholder’s equity:
Share capital
Share premium
General Reserve
Tax Exemption Reserve
Gain on Marketable Securities
Retained Earnings
Total Shareholder’s Equity
Non-current liabilities:
Deferred tax liabilities
Current Liabilities:
Trade creditors
Liabilities for expenses
Liabilities for other finance
4,596,512,673
1,561,818,167
2,272,974,744
2,937,071,066
26,923,168,224
13.62%
44.32%
21.51%
2.44%
954,421,890
(25,393,133)
141,627,622
(194,904,297)
10,219,203,520
26.21%
(1.60%)
6.64%
(6.22%)
61.18%
38,291,544,874 27,196,589,272 11,094,955,602
40.80%
65,061,672,828 53,329,313,432 11,732,359,396
22%
7,890,084,660
2,035,465,000
105,878,200
2,211,743,936
145,585,283
48,417,297,898
3,642,090,783
1,587,211,300
2,131,347,122
3,131,975,363
16,703,964,704
Percent
7,373,910,900 516,173,760
2,035,465,000
0
105,878,933
0
_
2,211,743,936
215,730,933
(70,145,650)
36,931,891,345 11,485,406,553
7%
0%
0%
_
(32.51%)
31.09%
60,806,054,977 46,662,876,378 14,143,178,599
30.31%
1294346,873
1,126,645,973
167,700,900
14.88%
708,882,226
238,201,942
2,014,186,770
4,414,979,709
89,622,042
1,035,189,330
(3,706,097,443)
148,579,900
978,997,440
(83.94%)
165.78%
94.57%
2,961,270,978
5,539,791,081
(2,578,520,103)
(46.54%)
65,061,672,828 53,329,313,432 11,732,359,396
22%