1 | Page

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.

Background of the study

The report is done as a part of the research of the course FIN-501.The report focuses on
BEXIMCO Pharmaceutical and IBN SINA Pharmaceuticalss financial ratio analysis. The
research paper is prepared Sakib Hasan Siddiqui, Lecturer of business Administration Dept. at
East West University. He authorized the task of writing this report to a group of four
members. This research is prepared during the semester Summer- 2016.
A finance student must know about the analysis of a financial statement. As a finance student we
try our best to analyze the financial statement of BEXIMCO Pharmaceuticals and IBN SINA
Pharmaceuticals.

Objective of the study

The main objective of this assignment is to practice the real life financial statements analysis. It
will help us to know how we can analyze a financial statement and how we can recommend for
improvement and so on.

2 | Page

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

3 | Page

History of the Beximco Pharmaceutical Ltd

Beximco Pharmaceuticals Ltd. is a leading manufacturer of pharmaceutical formulations and
Active Pharmaceutical Ingredients (APIs) in Bangladesh. It is the flagship company of Beximco
Group, the largest private sector industrial conglomerate in Bangladesh. It is acclaimed for
itsoutstanding product quality, world-class manufacturing facilities,product development
capabilities and outstanding professionalservices. Beximco Pharma is the pioneer in
pharmaceutical exportfrom Bangladesh and has received National Export Trophy (Gold),the
highest national accolade for export, for record three times.
Beximco Pharma was founded in 1976 and started operations in 1980, manufacturing products
under the licenses of Bayer AG of Germany and Upjohn Inc. of USA. It has now grown to
become a leading pharmaceutical company in Bangladesh, and it supplies more than 10% of
country's total medicinal needs. Today Beximco Pharma manufactures and markets its own
branded generics for several diseases including AIDS, cancer, asthma, hypertension, and diabetes
for both national and international markets. Number of Employees are 2310.
Mission:
BEXIMCO Pharmaceutical are committed to enhancing human health and wellbeing by
providing contemporary and affordable medicines,manufactured in full compliance with global
quality standards. They continually strive to improve their core capabilities toaddress the unmet
medical needs of the patients and to deliveroutstanding results for their shareholders.
Vision:
BEXIMCO Pharmaceuticalwill be one of the most trusted, admired and successful
pharmaceutical companies in the region with a focus on strengthening research and development
capabilities, creating partnerships and building presence across the globe.

4 | Page

History of IBN SINA Pharmaceuticals

The IBN SINA Pharmaceutical Industry Ltd. (IPI) is a leading pharmaceutical company in
Bangladesh. The company was founded in the year 1983. The manufacturing facilities located at
Gazipur, 56 kilometer away from the center of the capital city Dhaka, in a campus of about 15
acres of land. The manufacturing plant has been established with modern state of the art
technology and equipped with high standard machineries for the production and quality checking
of various dosage forms of several therapeutic classes.
Besides contemporary medicines, the company is also encouraging traditional herbal/unani
medicines. Hence, its Manufacturing Plant is broadly divided into two principal unites, i.e.
Pharmaceutical Manufacturing Plant and Natural Medicine Manufacturing Plant (Herbal/Unani).
Both unites are maintaining GMP complacence and highest ethical practice. As a good corporate
citizen IPIs priority is to serve the mankind in ethical manner that is both socially and
ecologically responsible and of course, sustainable.
Ibn Sina Pharmaceutical Industry Ltd. is committed to making sustainability an integral part to
continually enabling the people in good health for better life, improving the environmental and
social performance through mainstream operation of health services ensuring availability of
quality medicines which we commonly refer to as our corporate footprint.

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.

5 | Page

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

IBN Sina Pharma.Ltd.

Liquidity Ratios
1

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.

6 | Page

Quick ratio:

QuickRatio=

CurrentAssetsInventories
CurrentLiabilities

BEXIMCO Pharmaceutical
Liquidity Ratios
2

Quick Ratio (Times)

2013

2014

2015

1.481213908

1.24743773

1.146626511

IBN Sina Pharma.Ltd.

Liquidity Ratios

2013

2014

2015

Quick Ratio (Times)

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.

7 | Page

Profitability Ratios of of BEXIMCO Pharmaceutical Compare to IBN Sina Pharma. Ltd.

(2013-2015)

Net Profit margin on sales:

N et ProfitMarginon on Sa l es=

NetIncome
100
S ales

BEXIMCO Pharmaceutical

Profitability Ratios

2013

2014

2015

Net Profit Margin

13.39%

13.64%

15.07%

Profitability Ratios

2013

2014

2015

Net Profit Margin

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.

8 | Page

GrossProfit margin on sales:

N et ProfitMargin on Slaes=

Gross Profit
100
S ales

BEXIMCO Pharmaceutical
2

Profitability Ratios

2013

2014

2015

Gross Profit Margin

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

9 | Page

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

10 | P a g e

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 Margin:

Operating Profit Margin=

Operating Profit
100
S ales

BEXIMCO Pharmaceutical

Profitability Ratios

2013

2014

2015

Operating Profit Margin

22.16%

21.58%

21.99%

Profitability Ratios

2013

2014

2015

Operating Profit Margin

5.22%

6.45%

7.31%

IBN SinaPharma.Ltd.

11 | P a g e

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.

Earnings Per Share:

Earnings available
Earnings Per S h are= common stock h oldersOperating Profit

Number of s h are outstanding

BEXIMCO Pharmaceutical

Profitability Ratios

2013

2014

2015

Earnings Per Share

4.75

6.02

6.08

Profitability Ratios

2013

2014

2015

Earnings Per Share

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.

12 | P a g e

Activity Ratios of of BEXIMCO Pharmaceutical Compare to IBN Sina Pharma. Ltd.

(2013-2015)

Inventory turnover ratio:

InventoryTurnoverRatio=

COGS
Inventories

BEXIMCO Pharmaceutical
1

Activity Ratios

2013

2014

2015

Inventory turnover (Times)

2.343356313

2.447286654

2.472384888

IBN SinaPharma.Ltd.
1

Activity Ratios
Inventory turnover (Times)

2013
9.8045162

2014
10.7286

2015
10.4922436

In 2013 BEXIMCO Pharmaceutical LTDs inventory turnover is 2.343356313 times on sales.

Over the year inventory turnover is increasing as in 2014 it was 2.447286654 times and 2015 it
was 2.472384888 times .So the efficiency is better. On the other hand IBN Sina Pharma LTDs
inventory turnover was 9.8045162 times in 2013. Over the year inventory turnover is increasing
significantly as in 2014 it was 10.7286 times and 2015 it was 10.4922436.So IBN Sinas
efficiency is better than Beximco.

13 | P a g e

Average Payment Period

Average Payment Period =

Accounts Payable
Annual Purch ase
365

BEXIMCO Pharmaceutical
Activity Ratio
2

Average payment period (Days)

2013
33.3250348
8

2014
30.1371063
4

2015
29.1736843
5

IBN Sina Pharma Ltd.

2

Activity Ratios

2013

2014

2015

Average payment period (Days)

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.

Average Collection Period

Average Collection Period=

Accounts Rec eivable

Annual Sales
365

BEXIMCO Pharmaceutical
3

Activity Ratio

2013

2014

2015

Average payment period (Days)

43.5483512

45.51550013

43.47123679

14 | P a g e

IBN Sina Pharma.Ltd.

3

Activity Ratios

2013

2014

2015

Average payment period (Days)

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.

Total asset turnover ratio:

TotalAssetsTurnoverRatio=

Sales
TotalAssets

BEXIMCO Pharmaceutical
4

Activity Ratios

2013

2014

2015

Total asset Turnover (Times)

0.38188613

0.386437325

0.420472689

IBN SinaPharma.Ltd.

Activity Ratios

2013

2014

2015

Total asset Turnover (Times)

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

15 | P a g e

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%

IBN Sina Pharma. Ltd.

1

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.

Debt to Equity Ratio:

16 | P a g e

Debt Equity Ratio=

Total Liability
Common Stock Equity

BEXIMCO Pharmaceutical
2

Debt Ratio

2013

2014

2015

Debt to equity Ratio

24.09%

24.21%

23.58%

Debt Ratio

2013

2014

2015

Debt to equity ratio

47.24%

75.93%

93.99%

IBN Sina Pharma. Ltd.

2

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)

Price to Earnings ratio:

Price Earning Ratio=

Market Price Per S h are

EPS

BEXIMCO Pharmaceutical
1

Market ratio

2013

2014

2015

P/E ratio

8.757894737

11.1627907

13.83223684

IBN SinaPharma.Ltd.

17 | P a g e

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.

Book Value per Share of Common Stock:

Book Value per s h are of common stock=

Common Stock Equity

Number of S h are outstanding

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

IBN Sina Pharma.Ltd.

2

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.

18 | P a g e

Bibliography

1. Leading edge pharmaceutical company, based in Dhaka, Bangladesh. 2013.leading edge

pharmaceutical company, based in Dhaka, Bangladesh. [ONLINE] Available
at: http://www.beximco-pharma.com/. [Accessed 27 July 2016].
2. THE IBN SINA. 2013. THE IBN SINA. [ONLINE]

Available

at:

http://www.ibnsinapharma.com/. [Accessed 27 July 2016].

3. BEXIMCO PHARMACEUTICALS LIMITED 2013 to 2015. Annual Report 2013to
2015 Bangladesh: BEXIMCO PHARMACEUTICALS LIMITED
4. The IBN SINA Pharmaceutical LTD. 2013 to 2015. Annual Report 2013 to
2016. Bangladesh: The IBN SINA Pharmaceutical LTD.
5. Dhaka Stock Exchange Website [Accessed 27 July 2016].