Beximco Pharmaceuticals Ltd. (Beximco Pharma) belongs to Beximco Group, the largest private sector industrial conglomerate in Bangladesh which has diversified into textiles, apparels, pharmaceuticals, ceramics, aviation, real estate, I! " media, and energ# sectors. $ost of these companies are activel# being traded in the stoc% exchanges of Bangladesh with a total mar%et capitali&ation of more than '(.)* billion. Incorporated in the late +,s, Beximco Pharma began as a distributor, importing products from global $-!s li%e ba#er, German# and .p/ohn, .01 and selling them in the local mar%et, which were later manufactured and distributed under licensing arrangement. 0ince, then, the /ourne# continued, with a vision to go a long wa# and toda#, Beximco Pharma is one of the largest exporters of medicines in Bangladesh, winning -ational 2xport ( Gold) roph# for a record three times. Beximco Parma3s manufacturing facilities have been accredited b# ma/or global regulator# bodies, and it has expanded its geographic footprint to 4, countries. he compan# has the uni5ue distinction of being the onl# compan# in Bangladesh to get listed on 1I$ of London stoc% exchange. Beximco Pharma produces pharmaceutical formulations and active pharmaceutical ingredients, having a current portfolio of more than 4,, products and dedicated team of more than 6,*,, emplo#ees. In its long /ourne# over three decades, the simple principle on which it was fronded remains the same7 producing high85ualit# generics and providing better access to medicines at a much affordable cost. In 6,,9 was another successful #ear for Beximco Pharma. In our :, #ears in the business, we have continues our efforts to meet the strategic goals we set for ourselves, while at the same time delivered consistent financial performance. he compan# has achieved this b# sta#ing focused on crating value for all its customers and shareholders. 1fter the 6,,+86,,; political turmoil3s and certain unprecedented events in the countr# which has seriousl# disrupted our business activities, the compan# showed strong performance in 6,,9 recovering from its earlier setbac%s. 0ales revenue in the #ear crossed B< 4.;) billion with a robust growth of more than 6(=. otal pharma mar%et of the countr# was valued at approximatel# ';,, million and the government has recentl# declared pharma as a thrust sector owing to its huge export potential. Page 7 Manpower and Management Corporate Governance: he !ompan# has a three8tier management structure, comprising the Board of <irectors, the 2xecutive !ommittee and the $anagement !ommittee. here is also an 1udit !ommittee, constituted in 6,,). he Board is the highest level of authorit# within the !ompan# comprising mainl# non8 executive directors, none of whom receive directors> remuneration from it. he Board meets with the 2xecutive !ommittee, comprising six executive directors, twice a #ear to conduct a full review of the !ompan#>s operations. Board Details (. 2xecutive !ommittee 6. $anagement !ommittee :. 1udit !ommittee Manufacturing Capabilities 0ituated near <ha%a, the capital cit# of Bangladesh, our manufacturing site extends over an area of 6: acres. his main site houses manufacturing facilities for producing various drugs in different strengths and deliver# s#stems such as capsules, tablets, intravenous fluids, metered dose inhalers, sterile ophthalmic drops, prefilled s#ringes, dr# powder inhalers, in/ectables and nebuli&er solutions etc. he site has its own utilit# infrastructure to ensure ade5uate generation and distribution of electricit# with an installed capacit# of (, $?, in addition to water purif#ing and li5uid nitrogen generation facilities. he bul% drug unit for producing paracetamol is also located within this site while the penicillin 1PI and formulation units are situated at @alia%oir, a few %ilometers from the main site. $etered <ose Inhaler Aral 0olid <osage Aphthalmic Intravenous Bluid Li5uid and 0emisolid Prefilled 0#ringe <r# Powder Inhaler L#ophili&ed In/ectable Page 8 trategic !nalysis Generall# the companies use 0trategic 1nal#sis as a basis for their business strateg#. he Porter3s Generic 0trategic 1nal#sis maintains a matrix model b# putting competitive advantage against competitive scope.
"#e Generic trategy t#at Be$imco %ollows: Beximco Pharma follows cost leadership approach as Beximco Pharma3s main focus is on cost reduction in ever# activit# in the value chain. It is important to note that a compan# might be a cost leader but that does not necessaril# impl# that the compan#>s products would have a low price. Beximco Pharma has differentiated itself b# offering generic drugs at the most affordable price. he !ompan# is ideall# positioned as a contract manufacturing partner for clients from developed mar%ets with its cost and s%ill advantages along with a long trac% record of wor%ing with global $-!s. Page & 'ndustry !nalysis of Be$imco (#arma Competitive force: ) *ivalry among e$isting firms 'ndustry Growt# *ate: Beximco pharmaceutical is the accelerated medicine compan# in the pharmaceutical industr# in Bangladesh. he compan# has grown mar%et share b# ta%ing share awa# from other pla#ers .he# involve with export processing in 6,,* and has able to grab mar%et share than incumbent firms. he Pharma 1I<0 is the lower competitors in the industr# and still the# could not able to capture mar%et share for the strong existing firms. 1s a result, price wars the firms in the industr#. 0tagnant firm3s gains higher profit than that the incumbent firms. Concentration and balance of competitors: he number of the industr# and their relative si&e determines the degree concentration in an industr#. Beximco pharma, 05uire Pharma etc are the largest compan# and leading position at the present time. he# produce in a large scale and ultimatel# the# are able to cut the price of the products. 0o small competitors can not able reduce the price then the# have to follow the largest firms pricing strateg# and rules. 1s a result price wars among the existing firms. But when the Beximco fights against the 05uare pharma then there are no destructive price competitions among them. Degree of differentiation and switc#ing cost : Beximco pharma produces the various t#pes products .he compan# more emphasis on some important matters such as dimension of the product form, features, performance , conformance , durabilit# , reliabilit# as well as service dimension such as order ease deliver#, installation customer consulting and others. B# considering this the compan# has able to differentiate the products in the mar%et. Price is also important issues for switching cost .0ometimes switching cost is high for customer lo#alt# .Bor example, sometimes the doctor prescribes to their patient according to the choice of his own and select the brand name for purchasing the products .0o that ,switching cost determines the customers propensit# to move from one to another. +$cess capacity and +$it barriers: Beximco pharmaceutical Ltd. has able to fulfill the huge customer demands and also earn abnormal profit .0o there is a good advantage for the compan# to cut prices to fill capacit#. Government rules and regulations create the barriers to excess capacit# for a firm but when a firm enters into the industr# the# can never leave from the industr# as li%e. he# must bind to follow to the government polic# for continuing their business operation. Page ), Competitive %orce -: "#reat of .ew +ntrants Beximco Pharmaceuticals Ltd is earning abnormal profit. 1s we %now the potential for earning abnormal profit attracting new entrants to an industr#. Beximco Pharmaceuticals Ltd has alread# established in the mar%et. +conomics of scale7 Beximco Pharmaceuticals Ltd has listed in (9;). 0o, Beximco Pharmaceuticals Ltd gets large cost advantage and facilit# from government. An the other hand, Beacon Pharmaceuticals Limited face the choice of having either to invest in a large capacit# which might not be utili&ed right awa# or to enter with less than the optimum capacit# and Beacon Pharmaceuticals Limited or Pharma 1ids are at least initiall# suffer from cost disadvantage in competing with Beximco Pharmaceuticals Ltd. %irst Mover !dvantage: Beximco Pharmaceuticals Ltd. 05uare Pharmaceuticals Ltd. alwa#s get the first mover advantage because it has alread# set industr# standards and enter into exclusive arrange meets with suppliers of cheap raw materials as well as tax advantages. Beximco pharma leads all over the countr#. An the other hand, the new entrants firm doesn3t get these t#pes of facilities. Birst mover advantages are also li%el# to be large when there are significant switching costs for customers once the# start using existing products. !ccess to c#annels of distribution and relations#ips: Beximco Pharmaceuticals Ltd. has a limited capacit# and Beximco Pharmaceuticals Ltd. and 05uare Pharmaceuticals are famous compan#. <istributors can easil# sell their product to the customer. 0imilarl#, new consumer goods manufacturers find it difficult to obtain value of the mar%et and it is difficult to ma%e relationship with the customers. Competitive %orce /: "#reat of ubstitute (roduct Celevant substitutes are not necessar# for those that have the same form as the existing products, but those that perform the same function. Bor example, Beximco Pharma produces different products. -apa is one of them for reducing the fever. An the other hand 05uare pharmaceuticals also produce 1!2 for reducing the fever. But the price of this product is almost same of these companies. 0o, customer bu#s sometimes -1P1 and sometimes 1!2. It3s a threat for the Beximco Pharmaceuticals Ltd. Daving the reputation and goodwill of the compan# is leading position among the pharmaceutical companies. Page )) Competitive %orce 0: Bargaining (ower of Buyers (rice ensitivity: Bu#ers are more prices sensitive when the product is undifferentiated but in the Beximco pharma there is no undifferentiated products. ?hen the products are undifferentiated there is low switching cost here. Beximco pharma has so man# products such as -apa 2xtra,Aseltamivir, <ecomit, -itrosol, Bexi gold,<exiten,1tri&in,-apa <,Cas,0aritene,-itaxide, E8Cespria (, 6 etc all products Price are fixed. ?e %now that in the field of medicine site bu#er feel reluctant to bargain. *elative Bargaining (ower: Daving the fixed Price of Beximco Parma3s product so the bu#ers in the mar%et have no abilit# to bargain. he# feel interest to bu# on the showing price. Competitive %orce 1: Bargaining (ower of uppliers
Beximco Pharmaceuticals Ltd as supplier has a strong bargains power in Pharmaceuticals Ltd companies. Because we have some uni5ue features thus ma%e us uni5ue. ?e have IF fluid manufacturing plant, $<I plant and Aral solid dosage (A0<) plant. Beximco Pharmaceuticals Ltd have supported b# own3s bac%ward and forward integration. Because Beximco pharma have a own paper printing machine and plastic machine. he cover of the medicine is made b# the Beximco plastic industries L<. 0o it was bac2ward integration of Beximco pharma. he compan# entered several new mar%ets and currentl# it was global footprint in 4, countries. It has ta%en aggressive paints to capitali&e on the global generic drug opportunities with increasing focus on regulated mar%ets of 2., .01 and 1ustralia. Product registration and distribution center 1ustralia ( 1sia +* $iddle 2ast 66 !entral and Latin 1merica (( he compan# is independent on the domestic and foreign distribution centre. 0o it is a forward integration of Beximco Pharmaceuticals Ltd. .ntil now, Beximco Pharmaceuticals Ltd is the onl# compan# in Bangladesh to manufacture G1ntiretroviral drugsH compl#ing with the ?DA recommendation treatment guidelines. Page )- Be$imco (#arma (roforma Balance #eet %or t#e year -,)- 3 )4 Years 2011 2012 2013 2014 2015 2016 ASSET Non-Current Assets 15,884,877,780 18349391611 21196411934 24485299294 28284626611 32673608866 Propert#, Plant and 25uipment8 !arr#ing Falue 15,745,492,625 18189098851 21011938140 24272865194 28039868610 32391488414 Investment in 0hares 3,451,276 3289129.695 3134601.274 2987332.839 2846983.304 2713227.608 Intangible 1ssets 135,933,879 157003630.2 181339192.9 209446767.8 241911016.9 279407224.5 Current Assets 7,148,462,753 11,567,740,747 12,568,663,110 14,003,579,112 15,990,448,478 18,676,897,644 Inventories 2,291,844,631 3336959669 4069197414 4962111993 6050961142 7378739294 0pares " 0upplies 325,881,244 467211972.1 569733511.1 694751618.3 847202774.1 1033106684 1ccounts Ceceivable 978,224,317 1265576866 1543285691 1881932887 2294890318 2798464074 Loans, 1dvances and <eposits 840,320,705 1340548247 1634708238 1993416521 2430837097 2964242008 0hort erm Investment 2,193,423,560 1777931399 2168067513 2643812210 3223950804 3931390720 !ash and !ash 25uivalents 518,768,296 3,379,512,594 2,583,670,742 1,827,553,882 1,142,606,343 570,954,865 "O"!5 !+" 23,033,340,533 29,917,132,358 33,765,075,044 38,488,878,406 44,275,075,089 51,350,506,510 H!*+HO5D+*6 +78'"9 !.D 5'!B'5'"'+ Shareholders' Equity 17,128,128,177 21,521,957,501 23,051,797,651 24,944,095,865 27,269,200,986 30,112,556,589 Issued 0hare !apital 2,517,678,100 2,517,678,100 2,517,678,100 2,517,678,100 2,517,678,100 2,517,678,100 0hare Premium 5,269,474,690 5,269,474,690 5,269,474,690 5,269,474,690 5,269,474,690 5,269,474,690 2xcess of Issue Price over Bace Falue of G<Cs 1,689,636,958 1,689,636,958 1,689,636,958 1,689,636,958 1,689,636,958 1,689,636,958 !apital Ceserve on $erger 294,950,950 294,950,950 294,950,950 294,950,950 294,950,950 294,950,950 Cevaluation 0urplus 4,615,219,027 4,615,219,027 4,615,219,027 4,615,219,027 4,615,219,027 4,615,219,027 ax8Dolida# Ceserve 0 0 0 0 0 0 Cetained 2arnings 5,889,784,879 7,134,997,776 8,664,837,926 10,557,136,140 12,882,241,261 15,725,596,864 Non-Current Liabilities 3,257,050,368 3,167,760,002 3,144,035,109 3,203,246,615 3,361,810,671 3,639,679,275 Long erm Borrowing8-et off !urrent $aturit# (0ecured) 1,890,074,651 1,512,059,721 1,134,044,791 756,029,860 378,014,930 0 Bull# !onvertible, *= <ividend, Preference 0hare 0 0 0 0 0 0 Liabilit# for Gratuit# " ?PPB 403,598,795 450,662,201 508,052,852 578,036,884 663,377,693 767,445,059 <eferred ax Liabilit# 963,376,922 1,205,038,081 1,501,937,466 1,869,179,871 2,320,418,048 2,872,234,216 Current Liabilities and Provisions 2,648,161,988 4,665,284,807 6,388,708,406 8,507,053,943 11,101,231,599 14,269,691,805 0hort erm Borrowings 1,642,216,008 2647321428 3228230059 3936608983 4800429337 5853800041 Long erm Borrowing8!urrent $aturit# 363,744,181 378014930.2 378014930.2 378014930.2 378014930.2 378014930.2 !reditors and Ather Pa#ables 523,798,136 689641758.2 840971644.1 1025508241 1250538183 1524947031 1ccrued 2xpense 101,559,917 154235770.7 188080127.3 229351039.1 279678134.6 341048635.5 <ividend Pa#able 1,361,452 316,565,719 703,818,489 1,182,821,295 1,771,381,739 2,491,128,396 Income ax Pa#able 15,482,294 479,505,201 1,049,593,156 1,754,749,455 2,621,189,275 3,680,752,773 TOTAL LIABILITIES 5,905,212,356 7,833,044,810 9,532,743,514 11,710,300,558 14,463,042,270 17,909,371,080 "O"!5 5'!B'5'"'+ !.D H!*+HO5D+*6 +78'"9 23,033,340,533 29,355,002,311 32,584,541,166 36,654,396,423 41,732,243,257 48,021,927,669 -umber of shares Autstanding 251,767,810 312550198.4 388006816.8 481680352.9 597968778.7 742331835.1 EPS 4.76 4.99253295 4.940874328 4.922976421 4.872604841 4.79987802 Page )/ Be$imco (#arma (roforma 'ncome tatement %or t#e year -,)- : )4 2011 2012 2013 2014 2015 2016 .et ales *evenue 7,890,241,843 9,621,618,146 11,732,914,857 14,307,498,900 17,447,030,621 21,275,477,958 !ost of Goods 0old 4,103,709,021 5012452774 6112348331 7453596834 9089158986 11083616798 Gross (rofit 3,786,532,822 4,609,165,372 5,620,566,526 6,853,902,067 8,357,871,635 10,191,861,160 Operating +$penses: 1dministrative 2xpenses 275,201,846 372883450.3 454706236.3 554483609.1 676155390.6 824525927.7 0elling, $ar%eting and <istribution 2xpenses 1,522,851,278 2041002598 2488865110 3035003258 3700981922 4513098017 (rofit from Operations 1,988,479,698 2,195,279,324 2,676,995,180 3,264,415,199 3,980,734,322 4,854,237,215 Ather Income 340,907,774 378407629.1 420032468.3 466236039.9 517522004.2 574449424.7 Binance !ost 567,645,757 502183476.3 552456121.5 584209888.7 632810132.1 701953517.8 (rofit Before Contribution to ;((% 1,761,741,715 2,071,503,477 2,544,571,527 3,146,441,350 3,865,446,195 4,726,733,122 !ontribution to ?PPB 83,892,463 47063405.8 57390651.42 69984031.43 85340809.58 104067365.5 (rofit Before "a$ 1,677,849,252 2,024,440,071 2,487,180,875 3,076,457,319 3,780,105,385 4,622,665,757 Income ax 2xpense 479,323,910 464022907.1 570087955 705156299.3 866439819.5 1059563498 current tax 207,549,905 271804248.7 333932497.6 413049604.3 507522410.2 620645782.9 deffered ta$ 271,774,005 241661158.7 296899385 367242404.9 451238177 551816168.2 (rofit !fter "a$ "ransferred to tatement of C#anges in +<uity 1,198,525,342 1,560,417,164 1,917,092,920 2,371,301,020 2,913,665,565 3,563,102,259 <ividend 251690321.8 315204267.2 387252769.9 479002806 588560444.2 719746656.3 "ransfer to reserve 946,835,020 1,245,212,897 1,529,840,150 1,892,298,214 2,325,105,121 2,843,355,603 Page )0 ;!CC Page )1 Risk-free rate 0.08 Market return 0.268819617 Beta 0.734615611 Cst f e!uit" 0.218709839 Cst f #e$t 0.119093517 %fter ta& 'st f #e$t 0.091796034 (ta) *arket +a)ue f e!uit"
34,418,821,259+5 2 2a!e *er s#are 136+71 *atio !nalysis != 'nvestment >aluation *atios: (. <ividend Per 0hare <ividend per share I g outstandin shares of -umber dividend Year 2007 2008 2009 2010 2011 2i+i#en# 52960181.7 163602381.9 93111046.05 210329761.6 251690321.8 4. f S.ares 114,507,043 125,957,747 151149296 251,767,810 251,767,810 <ividend Per 0hare 0.462505889 1.298867166 0.616020375 0.83541165 0.99969222 'nterpretation7 Anl# in the #ear 6,,; the <ividend Per 0hare was the highest because of the high (:,=) dividend in that #ear. hen, although <ividend Per 0hare dropped in the next #ear ((*=), it was increasing from #ear 6,,9 to 6,((. Page )7 6. <ividend pa#out ratio <ividend pa#out ratio I 0hare per 2arning share per <ividend Jearl# Year 2007 2008 2009 2010 2011 6ear)" 2i+i#en# 3er s.are 0.462505889 1.298867166 0.616020375 0.83541165 0.99969222 Earnin- 3er S.are 3 4.33 4.13 4.18 4.76 <ividend pa#out ratio 0.15016425 0.299969322 0.149157476 0.199859246 0.21001937 'nterpretation7 Anl# in the #ear 6,,; the <ividend Pa#out Catio was the highest because of the high (:,=) dividend in that #ear. hen, although <ividend Per 0hare dropped in the next #ear ((*=), it was increasing from #ear 6,,9 to 6,((. :. <ividend #ield7 <ividend #ield I share per price $ar%et share per <ividend Year 2007 2008 2009 2010 2011 2i+i#en# 3er s.are 0.462505889 1.298867166 0.616020375 0.83541165 0.99969222 Market 3ri'e 3er s.are 54.85833 104.4917 161.2833 157.70 101.92 <ividend #ield 0.008430914 0.012430342 0.003819492 0.005297474 0.00980892 'nterpretation7 Anl# in the #ear 6,,; the <ividend Jield was the lowest because of the high $ar%et Price, although the dividend was the highest. hen, although <ividend Per 0hare dropped in the next #ear ((*=), the <ividend Jield was increasing from #ear 6,,9 to 6,((. B= (rofitability *atios: (. -et Profit $argin(=)7 -et Profit $argin(=) I Cevenue income -et Year 2007 2008 2009 2010 2011 4et in'*e 353,067,878 545,341,273 620740307 1,051,648,808 1,198,525,342 Re+enue 3,597,024,812 4,010,167,059 4868254915 6,490,847,353 7,890,241,843 -et Profit $argin(=) 0.09815553 0.135989665 0.127507766 0.162020265 0.1518997 Page )8 'nterpretation7 here is a stead# growth in the net profit margin as the compan#3s -et Income and 0ales Cevenue are increasing gracefull# ever# #ear. 6. PK2 ratio7 PK2 ratio I share per 2arning share per price $ar%et Year 2007 2008 2009 2010 2011 $ar%et price per share 54.85833 104.4917 161.2833 157.70 101.92 Earnin- 3er s.are 3 4.33 4.13 4.18 4.76 PK2 ratio 17.81114719 24.13202463 39.05165456 37.72727273 21.4110644 'nterpretation7 here is a diminishing pattern in the PK2 Catio due to the decreasing $ar%et Price Per 0hare along with the 2arning Per 0hare. :. Ceturn on 1ssets (CA1)7 Ceturn on 1ssets I 1ssets total 1verage Income -et Year 2007 2008 2009 2010 2011 4et /n'*e 353,067,878 545,341,273 620740307 1,051,648,808 1,198,525,342 %+era-e tta) %ssets 11,953,418,940 14,819,665,441 19,891,933,422 21,372,399,509 23,033,340,533 Ceturn on 1ssets 0.029536978 0.036798487 0.03120563 0.049205931 0.05203437 Page )& 'nterpretation7 here is a stead# growth pattern in the Ceturn on 1sset due to the increasing -et income. 4. Ceturn on 25uit# (CA2) Ceturn on 25uit# I 25uit# total 1verage Income -et Year 2007 2008 2009 2010 2011 4et /n'*e 353,067,878 545,341,273 620740307 1,051,648,808 1,198,525,342 %+era-e tta) E!uit" 8,250,939,647 10,450,202,145 10,885,706,614 15,974,086,451 17,128,128,177 Ceturn on E!uit" 0.042791233 0.052184758 0.057023428 0.065834676 0.0699741 'nterpretation7 here is a Capid !onstant Growth pattern in the Ceturn on 25uit# due to the increasing -et income, while the 25uit# value did not fluctuate much. C= 5i<uidity !nd olvency *atios: Page -, (. !urrent Catio7 !urrent Catio I s Liabilitie !urrent 1ssets !urrent Year 2007 2008 2009 2010 2011 Current %ssets 2,923,775,458 2,861,891,654 6,916,737,893 6,191,667,831 7,148,462,753 Current 7ia$i)ities 1,627,972,936 2,602,032,267 2,321,451,642 2,513,157,232 2,648,161,988 !urrent Catio 1.795960727 1.099867857 2.979488251 2.463700938 2.69940539 'nterpretation7 Brom 6,,; the current ratios were decreased but in 6,,9 it was increased .Because the current assets were decreased in 6,,; and 6,(, and liabilities were increased so that the current ratios were decreased. But in 6,,9 and 6,(( the ratios were increased due to the increasing in current asset. 0o increasing in current assets help to meet up the current liabilities. 6. <ebt 25uit# Catio7 <ebt 25uit# Catio I 25uit# holders3 0hare otal <ebt otal Year 2007 2008 2009 2010 2011 (ta) 2e$t 3,702,479,293 4,369,463,296 9,006,226,808 5,398,313,058 5,905,212,356 (ta) S.are .)#ers8 E!uit" 8,250,939,647 10,450,202,145 10,885,706,614 15,974,086,451 17,128,128,177 <ebt 25uit# Catio 0.44873426 0.418122371 0.827344253 0.337941896 0.34476694 'nterpretation7 Brom the table we can see that the <ebt to 25uit# Catio did not fluctuated much in the #ear 6,,+,; and 6,(,8((. But it had a massive increase in 6,,9 due to Beximco3s huge debt finance for further growth. :. Binancial Leverage ratio7 Binancial Leverage ratio I s liabilitie total 1verage assets total 1verage Year 2007 2008 2009 2010 2011 Page -) %+era-e tta) assets 11,953,418,940 14,819,665,441 19,891,933,422 21,372,399,509 23,033,340,533 %+era-e tta) )ia$i)ities 3,702,479,293 4,369,463,296 9,006,226,808 5,398,313,058 5,905,212,356 Binancial Leverage ratio 3.228490423 3.391644336 2.208686706 3.959088567 3.90051012 'nterpretation7 Generall# the Binancial Leverage Catio indicates the Birm3s dependence on its <ebt Binancing. Brom the table we see, Beximco Pharma3s <ependenc# on <ebt Binancing has an increasing pattern. 4. <ebt to 1sset ratio7 <ebt to 1sset ratio I 1ssets otal debt otal Year 2007 2008 2009 2010 2011 (ta) #e$t 3,702,479,293 4,369,463,296 9,006,226,808 5,398,313,058 5,905,212,356 (ta) %ssets 11,953,418,940 14,819,665,441 19,891,933,422 21,372,399,509 23,033,340,533 <ebt to 1sset ratio 0.309742285 0.294842236 0.452757739 0.252583387 0.25637672 'nterpretation7 <ebt Catio is a financial ratio that indicates the percentage of a compan#>s assets that are provided via debt. In this case it did not fluctuate much except in the #ear 6,,9 because of increased debt finance in that #ear. D= Management +fficiency *atios: (. Inventor# urnover Catio Inventor# urnover Catio I Inventor# 1verage sold goods of !ost Year 2007 2008 2009 2010 2011 Cst f -#s s)# 1,967,509,975 2002871181 2566206626 3,317,640,254 4,103,709,021 %+era-e /n+entr" 1,470,152,242 1,505,288,093 1,722,953,284 1,983,809,444 2,291,844,631 Inventor# urnover Catio 1.338303557 1.330556716 1.489423219 1.672358333 1.79057034 Page -- 'nterpretation7 Inventor# turnover is a measure of the number of times inventor# is sold or used in a time period such as a #ear. Beximco Pharma3s Inventor# urnover Catio is increasing rapidl# indicating the rapidl# increased use of its inventor#. 6. Ceceivable turnover7 Ceceivable turnover I s receivable 1verage 0ales 1nnual Year 2007 2008 2009 2010 2011 %nnua) Sa)es 3,597,024,812 4,010,167,059 4868254915 6,490,847,353 7,890,241,843 %+era-e re'ei+a$)es 499,680,792 503,916,401 694,111,730 821,356,439 978,224,317 Ceceivable turnover 7.198645354 7.958000674 7.013647378 7.902595079 8.06588193 'nterpretation7 his ratio measures the number of times, on average, receivables (e.g. 1ccounts Ceceivable) are collected during the #ear. Dere Beximco Pharma3s 1KC collection is stead# over the * #ears. :. otal 1ssets urnover Catio7 otal 1ssets urnover Catio I assets total 1verage Cevenue Year 2007 2008 2009 2010 2011 Re+enue 3,597,024,812 4,010,167,059 4868254915 6,490,847,353 7,890,241,843 %+era-e tta) assets 11,953,418,940 14,819,665,441 19,891,933,422 21,372,399,509 23,033,340,533 otal 1ssets urnover Catio 0.300920166 0.270597678 0.24473513 0.303702322 0.34255743 Page -/ 'nterpretation7 $easures the efficienc# of a compan#>s use of its assets in generating sales revenue or sales income to the compan#. In the face of otal 1sset urnover, Beximco Pharma has a stead# efficienc# in using their asset to generate Cevenue. 4. Pa#ables turnover7 Pa#ables turnover I pa#ables trade 1verage !AG0 or Purchases Year 2007 2008 2009 2010 2011 Pur'.ases r C9:S 1,967,509,975 2002871181 2566206626 3,317,640,254 4,103,709,021 %+era-e tra#e 3a"a$)es 271,814,118 263,176,822 409,898,122 432,315,660 523,798,136 Pa#ables turnover 7.23843923 7.610363123 6.260596202 7.674115377 7.83452391 'nterpretation7 1 short8term li5uidit# measure used to 5uantif# the rate at which a compan# pa#s off its suppliers. An the face of it, Beximco Pharma is stead# in repa#ing its short term debts. *. ?or%ing capital turnover7 ?or%ing capital turnover I capital wor%ing 1verage Cevenue Year 2007 2008 2009 2010 2011 Re+enue 3,597,024,812 4,010,167,059 4868254915 6,490,847,353 7,890,241,843 %+era-e 5rkin- 'a3ita) 2,320,596,318 2,205,590,760 2,625,548,713 3,059,959,766 3,483,670,148 ?or%ing capital turnover 1.550043316 1.818182743 1.854185714 2.121219836 2.2649222 Page -0 Year 2007 2008 2009 2010 2011 Re+enue 3,597,024,812 4,010,167,059 4868254915 6,490,847,353 7,890,241,843 %+era-e 5rkin- 'a3ita) 2,320,596,318 2,205,590,760 2,625,548,713 3,059,959,766 3,483,670,148 ?or%ing capital turnover 1.550043316 1.818182743 1.854185714 2.121219836 2.2649222 'nterpretation7 1 measurement comparing the depletion of wor%ing capital to the generation of sales over a given period. imes ?or%ing !apital converted into Cevenue to show how effectivel# a compan# is using its wor%ing capital to generate sales. In this case Beximco Pharma3s ?or%ing !apital urnover is increasing gentl# over the five #ears indicating that it is 5uite efficient in manipulating its ?or%ing !apital. Page -1 Conclusion Beximco Pharmaceuticals Ltd (BPL) is a leading manufacturer of pharmaceutical formulations and 1ctive Pharmaceutical Ingredients (1PIs) in Bangladesh. he compan# is the largest exporter of pharmaceuticals in the countr# and its state8of8the8art manufacturing facilities are certified b# global regulator# bodies of 1ustralia, Gulf nations, Bra&il, among others. he compan# is consistentl# building upon its portfolio and currentl# producing more than 4,, products in different dosage forms covering broader therapeutic categories which include antibiotics, antih#pertensive, ant diabetics, antireretrovirals, anti asthma inhalers etc, among man# others. ?ith decades of contract manufacturing experience with global $-!s, s%illed manpower and proven formulation capabilities, the compan# has been building a visible and growing presence across the continents offering high. 2nsuring access to 5ualit# medicines is the powerful aspiration that motivates more than :,,, emplo#ees of the organi&ation, and each of them is guided b# the same moral and social responsibilities the compan# values most. Page -4 !ppendi$ %ormula of Current *atio Current !sset Current *atio?33333333333333333333333333333 Current 5iabilities %ormula of Cas# *atio: Cas# @!A* Cas# *atioI888888888888888888888888 Current 5iabilities %ormula of 7uic2 *atio !urrent 1sset8 Inventor# 7uic2 *atioI8888888888888888888888888888888888888 !urrent Liabilities %ormula of "otal !sset "urnover -et 0ales T%ta! asset tr(%)er I888888888888888888888888888888888 otal 1sset %ormula of %i$ed !sset "urnover -et 0ales "i3e/ asset tr(%)er I888888888888888888888 Bixed 1sset Gross (rofit Margin Gross Profit 4r%ss Pr%$it 5ar.i( I 888888888888888888888 0ales %ormula of Operating (rofit Margin 93eratin- Profit O*erati(. Pr%$it 5ar.i( I 888888888888888888888 0ales