Analysis for Pa

2006-

Submitted to:
Dr. Karamjeet Singh
s for Panacea Biotech
2006- 2009

Submitted by:
Name Neha Sabharwal
Roll No. 34
Class MBA Biotech (A)
BALANCE SHEET 2006 2007 2008 2009
Current Assets:
Cash 44,145.73 15,712.41 14,118.02 5,948.09
Marketable Securities
Accounts Receivable 7,745.35 9,291.60 14,826.08 12,388.01
Inventories 18,389.50 21,043.09 21,459.71 45,324.21
Total Current Assets
Gross Fixed Assets (at cost):
Land & Buildings 5,742.60 10,343.01 12,397.87 21605.19
Machinery and Equipment 12,668.49 20,752.07 25,628.16 42386.71
Furniture & Fixtures 1,609.42 4,670.84 5,510.73 6597.78
Vehicles 840.95 1,095.84 1,195.94 1388.11
Other (Inc. Fin. Leases) 946.72 1,403.87 1,848.29 2,134
Total Gross Fixed Assets 21,808.18 38,265.63 46,580.99 74,111.69
Less: Accumulated Depreciation 7,107.25 10,533.34 14,760.40 21,700.81
Net Fixed Assets 14,700.93 27,732.29 31,820.59 52,410.88
Other Assets 17,079.01 29,465.79 46,154.41 52,630.33
Total Assets 102,060.52 103,245.18 128,378.81 168,701.52

Current Liabilities: 2006 2007 2008 2009

Accounts Payable 2,727.73 6,900.86 6,352.99 3,598.02
Notes Payable 19,391.01 6,985.21 10,262.31 26,918.82
Accruals 136.57 2.18
Taxes Payable 393.63 1,865.96 145.15 59.58
Other Current Liabilities 5,993.02 10,062.07 3,069.23 19,047.45
Total Current Liabilities
L / T Debt (Inc. Financial Leases) 44,971.04 19,750.66 32,931.75 54,261.46
Total Liabilities 73,613 45,567 52,761 $103,885
Preferred Stock 9,043.49
Common Stock 571.69 657.74 667.86 667.86
Paid-In Capital In Excess of Par 3,371.98 3,769.41 5,229.06 2,633.41
Retained Earnings 15,460.36 53,251.09 69,720.46 61,514.92
Total Stockholders' Equity 25,076 53,909 70,388 62,183
INCOME STATEMENT 2005 2006 2007 2008 2009
Sales Revenue 54344.59 86150.82 86761.84 79938.49
Less: Cost of Goods Sold 26396.06 37419.21 36366.88 31078.47
Gross Profits 0 27948.53 48731.61 50394.96 48860.02
Less: Operating Expenses:
Selling Expense 2644.24 3269.21 4510.93 4345.44
General / Admin. Exp. 12558.65 20395.59 22357.41 44917.02
Lease Expense 0 2 0 0
Depreciation Expense 1391.56 2452.22 2986.6 5360.73
Total Operating Expenses 0 16594.45 26119.02 29854.94 54623.19
Operating Profits 0 11354.08 22612.59 20540.02 -5763.17
Less: Interest Expense 1333.32 1704.45 1501.39 3474.2
Net Profits Before Taxes 0 10020.76 20908.14 19038.63 -9237.37
Less: Taxes 3926.83 6229.15 5721.6 -2332.43
Net Profit After Taxes 0 6093.93 14678.99 13317.03 -6904.94
Less: Pref. Stock Divds. 0 0 0 0
Earnings Available for Common Stockholders 0 6093.93 14678.99 13317.03 -6904.94
 RATIO
ANALYSIS ### ### ### ###
Current Ratio Err:522 Err:522 Err:522 Err:522
Quick Ratio Err:522 Err:522 Err:522 Err:522

Inventory Turnover Err:522 Err:522 Err:522 Err:522

Average Collection Period Err:522 Err:522 Err:522 Err:522
Fixed Asset Turnover Err:522 Err:522 Err:522 Err:522
Total Asset Turnover Err:522 Err:522 Err:522 Err:522

Debt Ratio Err:522 Err:522 Err:522 Err:522

Debt-to-Equity Err:522 Err:522 Err:522 Err:522
Times Interest Earned Err:522 Err:522 Err:522 Err:522

Gross Profit Margin Err:522 Err:522 Err:522 Err:522

Operating Profit Margin Err:522 Err:522 Err:522 Err:522
Net Profit Margin Err:522 Err:522 Err:522 Err:522

Return on Total Assets (ROA) Err:522 Err:522 Err:522 Err:522

Return on Equity (ROE) Err:522 Err:522 Err:522 Err:522

DUPONT ANALYSIS
Net Profit AT/Sales Err:522 Err:522 Err:522 Err:522
Sales/Total Assets Err:522 Err:522 Err:522 Err:522
ROA Err:522 Err:522 Err:522 Err:522
Net Profit AT/Total Assets Err:522 Err:522 Err:522 Err:522

Total Assets/Stockhldrs. Equity Err:522 Err:522 Err:522 Err:522

ROE Err:522 Err:522 Err:522 Err:522
3.00

THE COMPANY HAS WITNESSED A DECREASE IN THE LIQUIDITY RATIO WHICH HAS AN
ULTIMATE IMPACT ON THEIR DEBT PAYING CAPACITY AND WORTHYNESS

2.54
2.50
2.45

2.00

1.81 1.78

1.50 Current
1.46 Ratio
Quick Ratio
1.28

1.00 0.97

0.50
0.37

0.00
1 2 3 4
70.00%
Although they have witnessed an incerase in their gross profit but they have decreasing net margin may be
due to higher operating profits
61.12%
60.00%
58.08%
56.57%

51.43%
50.00%

40.00%

30.00%
Gross Profit Margin
26.25% Operating Profit
23.67% Margin
20.00% 20.89% Net Profit Margin
17.04%
15.35%
11.21%
10.00%

0.00%
1 2 3 4

-7.21%
-8.64%
-10.00%

-20.00%
30.00%
After recession in 2007 they have countinuously witness a
27.23% decrease in their return on equity and return on assets again
imphasizing their net profit margin
25.00%
24.30%

20.00%
18.92%

15.00%
14.22%

10.00% 10.37%

Return on assets
Return on
5.97% Equity
5.00%

0.00%
1 2 3 4

-4.09%
-5.00%

-10.00%
-11.10%

-15.00%
 D-E Ratio
2.00
Over the yeras they have again increased their debt in
their capital mix may be in an effort to reduce their cost of
1.80 1.79 capital

1.60

1.40

1.20

1.00 D-E
Ratio
0.87
0.80

0.60

0.47
0.40
0.37

0.20

0.00
1 2 3 4