Financial Profile Analysis of “SQUARE Pharmaceuticals LTD, Bangladesh”

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2. Group Members:
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SL.
No.
NAME ST. ID.
1. APE KHANAM 513142028
2. TASLIMA NAHAR DALIA 513142029
3. ZAHID MOLLIK 513142033
4. ASADDUZAMAN 513142034
5. MD. MURSHID ALI 513142055

3. Financial Profile Analysis of
“SQUARE Pharmaceuticals LTD, Bangladesh”
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A subjective
measure of
A subjective
measure of
how well a
firm can use
assets
how well a
firm can use
assets
from its primary mode
of business and
generate revenues.
from its primary mode
of business and
generate revenues.

5.  Useful in making investment and credit decisions.
 To determine firms current strengths and
weaknesses.
 To take advantage of the strengths .
 To correct the weakness in the future.
 To examine its ability to meet its current and
expected future financial obligations.
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Debt equity Ratio
Year 2014 2013 2012 2011 2010
Total
Debt
136,440,907 313,421,158 508,778,060 655,645,734 1032,633,160
Total
Equity
22,277,516,628 18,844,746,184 16,266,884,255 13,817,708,999 11,721,331,851
Debt to
equity
Ratio
0.006 0.017 0.03 0.04 0.08

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Year 2014 2013 2012 2011 2010
Total
Debt
136,440,907 313,421,158 508,778,060 655,645,734 1032,633,160
Total
Asset
26549534878 23734742933 21637553544 21453784762 19444409654
Debt to
Asset
Ratio
0.006 0.013 0.03 0.03 0.05

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 Inventory Turnover Ratio:
Year 2014 2013 2012 2011 2010
COGS 11727992 11810961 9167253 7703661 6561288
Inventory 2,424,536 5392173 2,687,818 2,541,688 2,207,078
Inventory
Turnover
4.84 2.19 3.41 3.03 2.97

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 Gross Profit Margin:
Year 2014 2013 2012 2011 2010
Gross Profit 9182781155 7825814319 6887171623 5767763259 4901289925
Net Sales 20910773826 17959489496 16054425243 13471424469 1146578410
Gross Profit
Margin
0.44 0.43 0.42 0.43 0.41

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Year 2014 2013 2012 2011 2010
Net
Income
4151546470 3318309302 2897710641 2532054550 2087871791
Net Sales 20910773826 17959489496 16054425243 13471424469 1146578410
Net Profit
Margin
0.20 0.18 0.18 0.19 0.18

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Figure in Million USD
 Liquidity position is relatively stronger.
 Company management has proven efficiency in managing its
inventory.
 Company’s management has dealt proficiency with its collection
policies
 Company is generating sufficient volume of business given its
total investment
 Operating expenses are going down signifying the company’s
efficiency.

14. To strength the financial soundness in those areas where the Square
Pharmaceuticals Ltd. needs to improve, the following suggestive
measures are recommended-
•The company should give more attention to improve efficiency in
utilizing the capital.
•The company should give more attention on how to effectively
manage its cost and revenue mixes.
•The company should give more emphasizes in making the
investment decision in a much better way
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15. The financial performance analysis of Square Pharmaceuticals Ltd.
shows that it has performed better in different specific aspects like
short term and long term debt payment. However it has yet some
financial and operating areas like profitability where those need
much attention to be given. It can consider same actions
recommended to improve its financial performance in the years to
come.
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