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Letter of Transmittal 1
Executive Summary i
Acknowledgement 2
References 11
Appendixes
0
Letter of Transmittal
Dear Madam,
As a part of fulfillment of requirements for the course Principle of Finance on Bachelor of
Business Administration (BBA) degree at United International University, We have
completed the report on concept of ratio analysis of Square Pharmaceuticals Ltd.
This report has been prepared in accordance with the rules and regulations as required.
In this circumstances stated above We believe that you will accept this report.
Sincerely,
All group members
1
Acknowledgement
We would like to give thank and express sincerest gratitude to our honorable course teacher
Zinnatun Nesa for her outstanding guidance, friendly support, advice and help in
preparing the report on “Ratio Analyses”. She offered necessary advices and information for
making the task very easy and comfortable. She helped us throughout the course Principles
of Finance. Her engaging arguments and strong feedback have contributed greatly to this
dissertation. She has been an invaluable mentor who was always available for giving
suggestions and wise comments to help building up this report. We would sincerely thank her
for her all the valuable time and efforts that she devoted for us during her classes.
2
General Information
• Advanced technology, the Issue Manager, has prepared this Information Memorandum (“IM”)
based on the information provided by Square Pharmaceuticals Limited (the Company/the
Issuer) and also upon several discussions with the Managing Director and concern executives of
the Issuer Company. The Directors, including Managing Director of Square Pharmaceuticals
Limited and Advanced Technology Collectively and individually, having made all reasonable
inquires, confirm that to the best of their Knowledge and belief, the information contained herein
is true and correct in all material aspects and that there are no other material facts, the omission of
which would make any statement here in Misleading.
• No person is authorized to give any information or to make any representation not contained in
this Prospectus, and if given or made, any such information or representation must not be relied
upon as having been authorized by the Issuer or Issue Manager.
• The Issue as contemplated in this document is made in Bangladesh and is subject to the exclusive
Jurisdiction of the courts of Bangladesh. Forwarding this prospectus to any person resident
outside Bangladesh in no way implies that the Issue is made in accordance with the laws of that
country or is subject to the jurisdiction of the laws of that country.
3
1. Current ratio:
2011 2.195576664
2012 1.814397279
2013 1.303487998
2014 2.104011453
The company should concern to its current asset which is efficiently unutilized in 2010.
2010 3.075755095
2011 3.441071544
2012 3.016256534
2013 2.237787366
2014 3.313274822
The company should concerned to its quick ratio which is alarming in 2010
4
3. Debt to equity ratio:
2010 0.150927982
2011 0.237603035
2012 0.15524357
2013 0.075677076
2014 0.049150814
2010 10.14673029
2011 14.04536923
2012 10.1769214
2013 14.46396277
2014 39.07171448
5. Receivable turnover:
Rec. turnover= (365/ days sales in receivable)
2010 31.99602506
2011 25.70926302
2012 27.81641855
2013 27.6138247
2014 34.63852492
5
6. Inventory turnover:
2010 2.972839311
2011 3.030922762
2012 3.410666946
2013 4.083375209
2014 4.735232919
2010
1.076964812
2011 1.084464025
2012 1.091523121
2013 1.029141198
2014 0.988181443
2010 0.754293053
2011 0.692817355
2012 0.748326014
2013 0.765939996
2014 0.749480041
6
9. Return on equity:
Return on equity= (net income / total asset)
2010 0.178125815
2011 0.189940144
2012 0.178135566
2013 0.171928494
2014 0.18998608
2011 14.19721755
2012 13.12174676
2013 13.21801684
2014 10.53740022
2011 0.181457708
2012 0.262441665
2013 0.347946605
2014 0.955503374
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12. Total debt ratio:
Total debt ratio= total debt/total equity
2010 0.22867972
2011 0.289373695
2012 0.241770884
2013 0.196305395
2014 0.138411147
2011 0.045300191
2012 0.030328344
2013 0.016359663
2014 0.042374458
2011 14.50770954
2012 10.40430451
2013 14.70124781
2014 39.426714
8
15. Days’ sales in inventory:
Days’ sales in inventory= 365 days/inventory torn over
2010 122.7782473
2011 120.4253716
2012 107.0171922
2013 89.38683842
2014 77.08174154
2011 15.17762992
2012 12.59772757
2013 4.829992924
2014 7.144558372
2011 0.194822578
2012 0.180492954
2013 0.18040317
2014 0.218404601
9
18. Return on assets (ROA):
Return on assets= net income/ total assets
2010 0.137392054
2011 0.134976463
2012 0.135067573
2013 0.138178003
2014 0.163689889
2011 129.07
2012 10.94
2013 9.01
2014 10.26
2011 0.774773379
2012 0.914076782
2013 1.109877913
2014 0.974658869
10
Company should concern to its present return on equity ratio it should be increase
References
http://www.google.com.bd/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CDQ
QFjAB&url
https://www.google.com.bd/?gws_rd=cr,ssl&ei=QIQ_VYiSBMO4uASs8oGoDA#q=ann
ual+report+of+square+pharma
http://www.assignmentpoint.com/business/finance/assignment-on-ratio-analysis-of-
financial-statement-on-square-ltd.html
http://www.google.com.bd/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CCg
QFjAB&url=http%3A%2F%2Fwww.squarepharma.com.bd%2Ffinancialreports%2FAnn
ual%2520Report%25202014.pdf&ei
http://www.google.com.bd/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&ved=0CDA
QFjAC&url=http%3A%2F%2Fwww.squarepharma.com.bd%2Ffinancialreports%2FAnn
ual%2520Report%25202012,2013.pdf&ei
http://www.google.com.bd/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&ved=0CDY
QFjAD&url=http%3A%2F%2Fwww.squarepharma.com.bd%2Ffinancialreports%2Fannu
al_report_2010-11.pdf&e
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