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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-501 is one of the courses for a student doing in MBA. 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-501 that is conduct by Sakib Hasan Siddiqui, our respected course teacher of
Financial Management has given us this assignment on BEXIMCO Pharmaceutical Ltd and
IBN SINA Pharmaceuticals financial ratio analysis.
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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 companies. We also collected 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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4 | Page
Corporate Overview
The IBN SINA Pharmaceutical Industry Ltd. is an enterprise of the IBN SINA trust (for more
detail, please visit-http://www.ibnsinatrust.com). A group of dedicated people inspired enough to
serve the mankind, devoted their lives to alleviate the pain of the distressed people and form the
trust. The journey of the trust begins in the year 1980 and continues with full grace. Ibn Sina
Trust is one of the largest Social Ventures in Bangladesh and playing pioneer role in the private
healthcare sector in Bangladesh. Now, IBN SINA itself is a brand to the people of Bangladesh as
a reliable source of believes and hope. Ibn Sina trust has been dedicated to serve the nation
providing the following healthcare facilities, education & assistance to the distressed people
since its start.
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Ratio analysis
Liquidity Ratios of BEXIMCO Pharmaceutical Compare to IBN SINA Pharma. Ltd.
(2013-2015):
Current ratio:
CurrentRatio=
CurrentAssets
CurrentLiabilities
BEXIMCO Pharmaceutical
Liquidity Ratios
Current ratio(times)
2013
2014
2015
2.0315475
66
1.7771299
82
1.726054
98
Current ratio(times)
2013
2014
2015
1.1871614
1.029271
0.81287103
From 2013 to 2015 BEXIMCO Pharmaceutical ltd. has approximately more current ratio than
its competitor IBN Sina Pharma. Ltd. But with the time BEXIMCO Pharmaceutical ltd had
decreased current ratios to meet up its current liabilities with current assets. That means in 2015
BEXIMCO Pharmaceutical ltd company has 1.72605498 unit current assets to cover 1 unit of
short term liabilities on the other hand their competitor Ibn Sina had 0.81287103 unit which was
less than Beximco Pharma.
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Quick ratio:
QuickRatio=
CurrentAssetsInventories
CurrentLiabilities
BEXIMCO Pharmaceutical
Liquidity Ratios
2
2013
2014
2015
1.481213908
1.24743773
1.146626511
Liquidity Ratios
2013
2014
2015
0.7576926
0.65504
0.47478919
From 2013 to 2015 BEXIMCO Pharmaceutical ltd. has higher quick ratio than its compotator
IBN Sina Pharma. Ltd. But with the time BEXIMCO Pharmaceutical ltd earn faced decreased in
quick ratio level to meet up its current liabilities with current assets without inventories. That
means in 2015 BEXIMCO Pharmaceutical ltd company has 1.146626511 unit current assets to
cover 1 unit of short term liabilities where the IBN SinaPharma. Ltd. has bellow 1 unit which
was 0.47478919. That means BEXIMCO Pharmaceutical ltd has stronger financial strength.
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NetIncome
100
S ales
BEXIMCO Pharmaceutical
Profitability Ratios
2013
2014
2015
13.39%
13.64%
15.07%
Profitability Ratios
2013
2014
2015
3.95%
4.75%
5.63%
IBN SinaPharma.Ltd.
In 2013, 2014 and 2015 BEXIMCO Pharmaceutical ltd. has higher percentage than its
compotator IBN Sina Pharma. Ltd. In 2015 it also had 15.07% 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 has also generated profit but at a very
lower rate than Beximco. So comparatively BEXIMCO Pharmaceutical ltd has very good
profitability than its competitor IBN Sina.
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Gross Profit
100
S ales
BEXIMCO Pharmaceutical
2
Profitability Ratios
2013
2014
2015
46.12%
45.55%
46.28%
2013
39.34%
2014
39.91%
2015
40.02%
IBN SinaPharma.Ltd.
2
Profitability Ratios
Gross Profit Margin
Over the year BEXIMCO Pharmaceutical ltd. had higher percentage than its compotator IBN
Sina Pharma. Ltd. In 2015 it also had 46.28% 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 on the other hand IBN Sina had 40.02% profit. Though IBN Sina
is doing well still it is lower than Beximcos gross profit margin. So comparatively BEXIMCO
Pharmaceutical ltd has good profitability rather than its competitor.
Return on asset:
Return on Assset=
Net Income
Total Asset
BEXIMCO Pharmaceutical
Profitability Ratios
2013
2014
2015
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3
ROA
6.39%
5.27%
6.34%
Profitability Ratios
2013
2014
2015
ROA
7.95%
10.65%
11.02%
IBN SinaPharma.Ltd.
3
Return on asset is an indicator of how a profitable a company is before leverage. Over the year
the ROA is increasing as 2013 it was 6.39% and at 2014 it was 5.27% of BEXIMCO
Pharmaceutical LTD. Now the company is generating 6.34% 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 2014 it had 7.95% ROA and in 2015 it was
11.02%. That means over the year the ROA is going upward. So the profitability position is
better than Beximco Pharma.
Return on equity:
ReturnonEquity=
NetIncome
CommonEquit y
BEXIMCO Pharmaceutical
Profitability Ratios
2013
2014
2015
ROE
29.48%
30.17%
15.07%
2013
2014
2015
IBN SinaPharma.Ltd.
Profitability Ratios
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ROE
12.94%
18.74%
21.38%
In 2013 BEXIMCO Pharmaceutical LTD had generated 29.48% net income by its total equity. In
2014 it increased 30.17% but in 2015 it decreased to 15.07% . So the profitability position not
good at all. On the other hand in 2013 IBN Sina Pharm LTD has generated 12.94% net income
by its total equity. Over the year the ROE is increasing as in 2014 it was 18.74% and in 2015 it
was 21.38%. So the profitability is in an increasing trend.
Operating Profit
100
S ales
BEXIMCO Pharmaceutical
Profitability Ratios
2013
2014
2015
22.16%
21.58%
21.99%
Profitability Ratios
2013
2014
2015
5.22%
6.45%
7.31%
IBN SinaPharma.Ltd.
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In 2013, 2014 and 2015 BEXIMCO Pharmaceutical ltd. has higher percentage than its
compotator IBN Sina Pharma. Ltd. In 2015 it also had 7.31% in profit, which means BEXIMCO
Pharmaceutical ltd Company is in a better passion than its competitor.
BEXIMCO Pharmaceutical
Profitability Ratios
2013
2014
2015
4.75
6.02
6.08
Profitability Ratios
2013
2014
2015
4.08
5.67
7.93
IBN SinaPharma.Ltd.
In 2013, 2014 BEXIMCO Pharmaceutical ltd. has higher EPS than its compotator IBN Sina
Pharma. Ltd. But in 2015 Beximcos EPS is 6.08 which lower than the EPS of IBN Sina of 7.93.
That means IBN Sina has a better earning than Beximco and their earning is increasing at a
constant rate.
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COGS
Inventories
BEXIMCO Pharmaceutical
1
Activity Ratios
2013
2014
2015
2.343356313
2.447286654
2.472384888
IBN SinaPharma.Ltd.
1
Activity Ratios
Inventory turnover (Times)
2013
9.8045162
2014
10.7286
2015
10.4922436
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Accounts Payable
Annual Purch ase
365
BEXIMCO Pharmaceutical
Activity Ratio
2
2013
33.3250348
8
2014
30.1371063
4
2015
29.1736843
5
Activity Ratios
2013
2014
2015
34.53981
45.95046
46.91094
In 2013 IBN Sina Pharmaceutical LTD paid their account payables within 34.53981 days. Over
the year payment period is increasing 34.53981 days to 46.91094 (2013-2015). So the efficiency
is good. On the other hand BEXIMCO Pharma LTD paid their account payables within
33.32503488 days. Over the year payment period has decreased from 33.32503488 days to
29.17368435 days (2013-2015). So the efficiency level is decreasing.
BEXIMCO Pharmaceutical
3
Activity Ratio
2013
2014
2015
43.5483512
45.51550013
43.47123679
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Activity Ratios
2013
2014
2015
0.5847045
0.65177
0.89279196
In 2013 IBN Sina Pharmaceutical LTD collect their account receivable within 0.89279196 days.
Over the year collection period is increasing 0.5847045 days to 0.89279196 (2013-2015). So the
efficiency has decreased. On the other hand BEXIMCO Pharma LTD collects their account
receivables within 43.47123679 days. Over the year collection period is about same from
43.5483512 days to 43.47123679 days (2013-2015). So the efficiency level has decreased.
Sales
TotalAssets
BEXIMCO Pharmaceutical
4
Activity Ratios
2013
2014
2015
0.38188613
0.386437325
0.420472689
IBN SinaPharma.Ltd.
Activity Ratios
2013
2014
2015
2.0144595
2.241428
1.95726418
In 2013 BEXIMCO Pharmaceutical LTDs Total asset turnover is 0.38188613 times. Over the
year in 2014 it was stable at 3.386437325 times and 2015 it has increased to 0.420472689
times. So the efficiency is sophisticated. On the other hand IBN SinaPharma LTDs TAT is
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2.0144595 times in 2013. Over the year TAT is increasing as in 2014 it was 2.241428 times and
2015 it decreased to 1.95726418 times. So the efficiency is decreasing which is not good.
Debt Ratio of BEXIMCO Pharmaceutical Compare to IBN Sina Pharma. Ltd. (2013-2015)
Debt ratio:
Debt Ratio=
Total Liability
TotalAssets
BEXIMCO Pharmaceutical
1
Debt Ratio
2013
2014
2015
Debt Ratio
17.35%
72.14%
72.90%
Debt Ratio
2013
2014
2015
Debt Ratio
48.45%
43.16%
29.02%
From 2013 Beximco Pharmaceutical LTD. has a lower debt ratio compare to IBN Sina Pharma
LTD. So over the year Beximco Pharmaceutical LTD. has lower leverage and this firm is less
risky compare to IBN SinaPharma LTD. In 2014 and 2015 Beximco Pharma has a higher rate of
debt than IBN Sina Pharma Ltd. i.e. 72.14% on 2014 and 72.90% on 2015. From 2014 Bexico
Pharma has become more risky than IBN Sina Pharma.
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Total Liability
Common Stock Equity
BEXIMCO Pharmaceutical
2
Debt Ratio
2013
2014
2015
24.09%
24.21%
23.58%
Debt Ratio
2013
2014
2015
47.24%
75.93%
93.99%
From 2013 Beximco Pharmaceutical LTD. has a lower debt to equity ratio compare to IBN Sina
Pharma LTD. So over the year Beximco Pharmaceutical LTD. has lower leverage and this firm is
less risky compare to IBN SinaPharma LTD.
Market ratio of BEXIMCO Pharmaceutical Compare to IBN Sina Pharma. Ltd. (20132015)
BEXIMCO Pharmaceutical
1
Market ratio
2013
2014
2015
P/E ratio
8.757894737
11.1627907
13.83223684
IBN SinaPharma.Ltd.
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Market ratio
1
2013
25.098039
P/E ratio
2014
30.15873
2015
30.7692308
In 2013 Beximco Pharmaceutical LTD. had 8.76 P/E ratio and the market price per share was
41.6 tk. That means share holders were willing to pay 41.6 tk to earn 8.76 tk. On the other hand
the P/E ratio of IBN Sina Pharma was 25.10 and market price per share was 102.4 tk. that means
share holder were willing to pay 102.4 tk to get 25.10 tk profits. Over the year the P/E ratio of
Beximco Pharmaceutical LTD. was increasing. And this is lower than IBN Sina Pharma LTD. so
Beximco had higher risk, lower growth and lower in future return in comparison with IBN Sina.
BEXIMCO Pharmaceutical
Market ratio
Book Value per s h are of common stock
2013
53.7595858
5
2014
51.1996056
5
2015
58.1979628
5
Market ratio
Book Value per s h are of common stock
2013
2014
2015
29.999723
30.25603
37.0969692
The book value of Beximco Pharmas share price was 53.76 tk in 2013 and it has also been
decreased to 51.20 tk. in 2014 but it increased to 58.20 tk. In 2015. Besides IBN Sina pharma
had faced significant growth over the year from 2013 to 2015 with the price of 30 tk to 37.10 tk.
Both the companies have increasing trend of book value per share.
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Bibliography
Available
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