Part 5 (Comparative Analysis)

5.0. Comparative Analysis of Square Pharmaceuticals Ltd.
with Beximco
Pharmaceuticals Limited and ACI Limited
5.1. About Beximco Pharmaceuticals Ltd.
Beximco Pharmaceuticals Ltd. (BPL) is the leading pharmaceutical manufacturer in Bangladesh.

For nearly two decades, BPL's products have been the trendsetters in the country's
Pharmaceutical Industry. BPL started its operations in 1980 with products made under license of
Bayer AG Germany; products made under license of Upjohn Inc. USA. In 1985 it was registered
in the Dhaka Stock Exchange as a PLC. Over the last decade, BPL rose to a new standard -
moving beyond manufacturing quality medicines to win mind share of patience, physicians,
shareholders, business partners and communities where we work and live.
While Pharmaceutical companies in many developed countries have lost their luster, the business
is still highly attractive in Bangladesh. Beximco Pharmaceuticals is an industry leader in the
Bangladesh Pharmaceutical Industry. Many of its products are brand leaders in their respective
fields. The company produces pharmaceutical specialties of uncompromising quality. Its
comprehensive range of about 80 formulations, cover all major therapeutic groups. BPL's
products come in tablet, capsule, powder, liquid, cream, and suppository and inhaler forms.
BPL is the first company to go beyond the national boundary, exporting its quality products in
overseas markets in Asia, Africa and Europe and has thus received “National Export Trophy
(Gold)”. BPL has fulfilled a national aspiration of turning a once import dependent country into
an exporter of quality medicine.
The future promises greater prospects for Beximco Pharmaceuticals. To meet the growing
demand both at home and abroad, BPL is currently building a new formulations plant according
to USFDA standard. With their technological and managerial know-how and ability to take on
challenges, they will be able to progress much faster toward their objective of becoming the
nation’s most visionary company.
A Report on Financial Performance Analysis of SPL

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5.2. Qualitative analysis (SWOT analysis) of Beximco Pharmaceuticals Ltd.
Strengths:
 Legal protection of domestic industries by Drug Policy, 1982

 A good growth of market
 Availability of raw materials from nearest source location
 Least presence of multinational giants
Weaknesses:
 High price sensitive target group

 Need broad distribution network
 Need continuous monitoring for prescription generations
 Strong position of chemist group
Opportunities:
 Acceptability of new molecules to the doctor is high

 New market for meeting existing demands can be created
 There is government’s exemption of patent free business for the pharmaceuticals sector
up to 2016
Threats:
 Infiltration of cheap Indian drugs

 Trend of copying of highly prescribed drugs
 Price war among the competitors

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5.3. About Advanced Chemical Industries Limited (ACI)
ACI's mission is to achieve business excellence through quality by understanding, accepting,

meeting and exceeding customer expectations. ACI follows International Standards on Quality
Management System to ensure consistent quality of products and services to achieve customer
satisfaction. ACI also meets all national regulatory requirements relating to its current businesses
and ensures that current Good Manufacturing Practices (cGMP) as recommended by World
Health Organization is followed properly. ACI has been accepted as a Founding Member of the
Community of Global Growth Companies by the World Economic Forum which is the most
prestigious business networking organization.
ACI’s mission is to enrich the quality of life of people through responsible application of
knowledge, skills and technology. ACI is committed to the pursuit of excellence through world-
class products, innovative processes and empowered employees to provide the highest level of
satisfaction to its customers. ACI follows International Standards on Quality Management
System to ensure consistent quality of products and services to achieve customer satisfaction.
ACI also meets all national regulatory requirements relating to its current businesses and ensures
that current Good Manufacturing Practices (cGMP) as recommended by World Health
Organization is followed for its pharmaceutical operations. The management of ACI commits
itself to quality as the prime consideration in all its business decisions. All employees of ACI
must follow documented procedures to ensure compliance with quality standards. The pool of
human resources of the company will be developed to their full potential and harnessed through
regular training and their participation in seeking continuous improvement of work methods.

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5.4. Qualitative Analysis (SWOT analysis) of ACI Ltd.
Strengths:
 Up-gradation of technological process, research and training

 Development of new products every year
 Provide Quality products
 Capable and committed human resources
Weaknesses:
 Exports of goods to foreign countries

 High price sensitive target group
 Strong position of chemist group
 Complex supply chain configuration
Opportunities:
 Updated and new technology

 Increase Market Share and explore new Markets
 Export of Medicines
 Government’s exemption of patent free business for the pharmaceuticals sector up to
2016
Threats:
 Entering smuggling Goods (Medicines)

 Government Bureaucracy
 Political Un-stability
 Competitive environment with diverse players

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5.5. Comparative Quantitative Analysis of SPL with BPL and ACI Ltd.
5.5.1. Comparative Ratio Analysis

5.5.1.1. Analyzing Liquidity Ratio:
Table 26: Current ratio

Current Ratio
Beximco
Square Pharmaceuticals Advanced Chemical
Year Pharmaceuticals Ltd.
Ltd. (SPL) Industries Ltd. (ACI)
(BPL)
2003 1.16 1.69 1.18
2004 1.61 1.45 1.16
2005 1.66 1.40 1.01
2006 1.78 1.33 1.01
2007 1.44 1.80 1.00
Source: Annual Report (2003-07) of SPL, BPL and ACI Ltd.
Graphical Presentation:
Figure 24
Interpretation
As a manufacturing company, we know, the standard of current ratio is 2:1. Here, BPL’s current
ratio varies from 1.33 to 1.80 proceeding from the last 5 years. ACI’s current ratio varies from
1.00 to 1.18 and has a decreasing trend proceeding from the last 5 years. And SPL’s current ratio
varies from 1.16 to 1.78 proceeding from the last 5 years. So, according to our evaluation SPL is
in better position as it has an increasing trend unless 2007.

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Table 27: Quick Ratio
Quick Ratio
Beximco
Square Pharmaceuticals Advanced Chemical
Year Pharmaceuticals Ltd.
Ltd. (SPL) Industries Ltd. (ACI)
(BPL)
2003 0.56 0.76 0.51
2004 0.98 0.63 0.55
2005 1.08 0.72 0.55
2006 1.19 0.63 0.58
2007 0.84 0.78 0.65
Figure 25
Interpretation
We know, the standard of quick ratio is 1:1. Here, BPL has quick ratio from 0.63 to 0.78 among
the years 2003-2007. So the situation is not satisfactory. ACI has quick ratio from 0.51 to 0.65
among the years 2003-2007. Though it has an increasing trend of quick ratio, but still it is not
satisfactory. So the companies should try more to improve their increasing trend. Our company,
SPL has a quick ratio from 0.56 to 1.19 among the years 2003-2006. But the ratio had fallen in
year 2007. So again, according to our evaluation SPL is in better position as it has an increasing
trend unless 2007.

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Table 28: Net working capital
Net Working Capital
Square Pharmaceuticals Beximco Pharmaceuticals Advanced Chemical

Year
Ltd. (SPL) Ltd. (BPL) Industries Ltd. (ACI)
2003 193,585,498 842,903,882 216,094,296

2004 765,380,681 769,983,680 181,380,150
2005 1,292,552,886 994,024,595 12,752,217
2006 1,770,929,474 829,972,468 14,008,146
2007 1,126,944,426 1,295,802,522 -12,658,683
Figure 26
Interpretation
We know, the standard of net working capital is 1:1. Here, net working capital of BPL fluctuates
a lot. But in the year 2007, it has been increased which is satisfactory. So the company should try
to maintain its current ratio. Again, net working capital of ACI had been decreasing gradually in
the preceding 4 years (2004-2007). And in the FY 2007, net working capital was negative, i.e. the
company could not be able to meet up its current obligations. However, the company should try
to improve its current situation immediately. Lastly, net working capital of Square
Pharmaceuticals Limited had been increasing gradually in the preceding 4 years (2003-2006).
Though in the year 2007, it was decreased by some amount, still the company’s net working
capital is fair, i.e. the company is able to meet up its current obligations. So again, according to
our evaluation SPL is in better position as it has an increasing trend unless 2007.
5.5.1.2. Analyzing Activities Ratio:
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Table 29: Inventory turnover ratio
Inventory Turnover Ratio

Year
2003 3.51 1.19 2.02

2004 3.54 1.00 2.57
2005 2.76 1.05 3.03
2006 2.62 1.12 3.18
2007 2.76 1.19 2.98
Figure 27
Interpretation
We know, the standard of inventory turnover ratio is generally 8 times. BPL’s inventory turnover
ratio has fluctuated throughout the period and the highest value can be observed during FY 2003
and FY 2007. ACI’s inventory turnover ratio had an increasing trend from the FY 2003 to 2006.
But the ratio has decreased in the FY 2007. SPL’s inventory turnover ratio has fluctuated
throughout the period and the highest value can be observed during FY 2003 and FY 2004. As
we know, as greater the inventory turnover ratio, it is more efficient. So again, according to our
evaluation SPL is in better position as it has an increasing trend unless 2007.
Table 30: Average collection period

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Average Collection Period

Year
2003 12.44 82.37 26.69

2004 17.16 89.90 36.42
2005 18.06 84.38 38.10
2006 17.07 41.83 42.00
2007 15.50 50.00 65.81
Figure 28
Interpretation
We know, the standard of average collection period is 60 days to 90 days. The average collection
period of BPL has fluctuated throughout the whole period and from FY 2006, it has a decreasing
trend. Then the average collection period of ACI has an increasing trend throughout the whole
period.
Lastly, the average collection period of SPL has fluctuated throughout the whole period. As we
know, the lower the average collection period, it is more efficient. So, according to our
evaluation SPL is in better position as it has the lowest average collection period.
Table 31: Total asset turnover ratio

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Total Asset Turnover Ratio

Year
2003 0.79 0.27 1.10

2004 0.80 0.28 1.08
2005 0.67 0.30 1.15
2006 0.65 0.31 1.21
2007 0.72 0.30 1.04
Figure 29
Interpretation
We know, the standard of total asset turnover ratio for large organization is 2 times. BPL’s total
asset turnover ratio fluctuates from 0.27 to 0.31 and the highest value can be observed during FY
2006.
Next, ACI’s total asset turnover ratio fluctuates from 1.04 to 1.21. It had an increasing trend from
the FY 2003 to 2006. But it has decreased in the FY 2007. Lastly, SPL’s total asset turnover ratio
fluctuates from 0.65 to 0.80. We know, the greater the total asset turnover ratio, it is more
efficient. So here, according to our evaluation ACI is in better position as it has the greater value
and an increasing trend unless 2007.
Table 32: Fixed asset turnover ratio

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Fixed Asset Turnover Ratio

Year
2003 1.09 0.37 3.50

2004 1.22 0.39 2.47
2005 1.14 0.45 2.72
2006 1.16 0.43 3.03
2007 1.10 0.40 3.05
Figure 30
Interpretation
We know, the standard of fixed asset turnover ratio for large organization is generally 4 times.
BPL’s fixed asset turnover ratio fluctuates from 0.37 to 0.45 and the highest value can be
observed during FY 2005. Then, ACI’s fixed asset turnover ratio fluctuates from 2.47 to 3.50 and
the highest value can be observed during FY 2003. But it has decreased in the FY 2004 and then
again it started to increase from the FY 2005. Next, SPL’s fixed asset turnover ratio fluctuates
from 1.09 to 1.22 and the highest value can be observed during FY 2004. We know, the greater
the fixed asset turnover ratio, it is more efficient. So again, according to our evaluation ACI is in
better position as it has the greater value and an increasing trend unless 2004.

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5.5.1.3. Analyzing Leverage Ratios:
Table 33: Debt ratio
Debt Ratio

Year
2003 0.25 0.43 0.67

2004 0.22 0.44 0.64
2005 0.30 0.38 0.66
2006 0.31 0.33 0.67
2007 0.30 0.31 0.73
Figure 31
Interpretation
We know, debt ratio indicates how much portion of total assets is financed by the debt. The
lower, it is less risky. Simultaneously it also decreases the firm’s value. So, the company should
determine a ratio which is not so high, not so low. The debt ratio of BPL fluctuates from 0.31 to
0.44 and at present the ratio has a decreasing trend. So, the company’s debt ratio is satisfactory.
Then, the debt ratio of ACI fluctuates from 0.64 to 0.73. Here we can see an increasing trend of
debt ratio, which is not desirable. Again, the debt ratio of SPL fluctuates from 0.22 to 0.31. The
company’s debt ratio is satisfactory. So, according to our evaluation SPL is in better position as it
has the lowest but increasing debt ratio.

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Table 34: Debt-equity ratio
Debt-Equity Ratio

Year
2003 0.02 0.48 0.28

2004 0.008 0.44 0.41
2005 0.07 0.24 0.27
2006 0.10 0.18 0.21
2007 0.08 0.25 0.26
Figure 32
Interpretation
We know the standard of debt-equity ratio is 2 to 3.5:1. The debt-equity ratios of BPL, ACI and
SPL have fluctuated a lot throughout the whole period. Here, according to our evaluation SPL is
in better position as it shows us more consistent result.

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Table 35: Equity ratio
Equity Ratio

Year
2003 0.75 0.57 0.33

2004 0.78 0.56 0.36
2005 0.70 0.62 0.34
2006 0.69 0.67 0.33
2007 0.70 0.69 0.27
Figure 33
Interpretation
We know, equity ratio indicates how much portion of total assets is financed by the equity. If the
ratio is higher, it is less risky. Simultaneously it also decreases the firm’s value. So, the company
should determine a ratio which is not so high, not so low. Here, the equity ratio of BPL fluctuates
from 0.56 to 0.69. Then the equity ratio of ACI Ltd. fluctuates from 0.27 to 0.36. Lastly, the
equity ratio of SPL fluctuates from 0.69 to 0.78. Here, the equity ratios are satisfactory. But
according to our evaluation SPL is in better position as it has the highest ratio.

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Table 36: Time interest earned ratio
Time Interest Earned Ratio

Year
2003 7.66 2.75 0.82

2004 11.31 2.92 2.15
2005 12.57 3.26 2.77
2006 11.30 2.95 3.57
2007 7.71 1.39 3.62
Figure 34
Interpretation
BPL’s time interest earned ratio fluctuates from 1.39 to 3.26. As we know, if this ratio is equal to
1 or more than 1, the firm is able to meet up the interest payment. Though the ratio has a
decreasing trend from the FY 2006, still BPL is able to meet up the interest payment. ACI’s time
interest earned ratio fluctuates from 0.82 to 3.62. Here the ratio has an increasing trend which is
desirable. SPL’s time interest earned ratio fluctuates from 7.66 to 12.57. Here, according to our
evaluation, though SPL has a decreasing trend from the year 2006, it is in better position because
it has the lowest debt ratio but still has the highest time interest earned ratio.

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5.5.1.4. Analyzing Profitability Ratios:
Table 37: Gross profit margin
Gross profit margin

Year
2003 0.36 0.38 0.29

2004 0.40 0.43 0.29
2005 0.41 0.47 0.31
2006 0.42 0.47 0.33
2007 0.43 0.45 0.34
Figure 35
Interpretation
We know, the standard of gross profit margin is 20% to 30%. BPL’s gross profit margin
fluctuates from 0.38 to 0.47 in the preceding 5 years (2003-2007). Here, the gross profit margin
had an increasing trend in the FY 2003 and 2004, but it was decreased in the FY 2007, which is
not desirable. Then, ACI’s gross profit margin fluctuates from 0.29 to 0.34 in the preceding 5
years (2003-2007). Here, the gross profit margin has an increasing trend, which is desirable.
Lastly, SPL’s gross profit margin fluctuates from 0.36 to 0.43 in the preceding 5 years (2003-
2007). Here, the gross profit margin again has an increasing trend, which is desirable. So here,
according to our evaluation BPL is in better position as it has the greater value and an increasing
trend unless 2007.

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Table 38: Net profit margin
Net Profit margin

Year
2003 0.19 0.10 0.04

2004 0.21 0.14 0.03
2005 0.24 0.15 0.04
2006 0.19 0.13 0.04
2007 0.17 0.10 0.06
Figure 36
Interpretation
We know, the standard of net profit margin is 5% to 10%. BPL’s net profit margin fluctuates from
0.18 to 0.23 in the preceding 5 years (2003-2007). It was increasing in the years from 2003 to
2005. But it has been decreasing from year 2006 which is not desirable. Next, ACI’s net profit
margin fluctuates from 0.03 to 0.06 in the preceding 5 years (2003-2007). Here, ACI should hold
its increasing net profit margin trend. Lastly, SPL’s net profit margin fluctuates from 0.17 to 0.24
in the preceding 5 years (2003-2007). It was increasing in the years from 2003 to 2005. But it has
been decreasing from year 2006, which is not desirable. Though SPL should try to increase its
net profit margin, but according to our evaluation still SPL is in better position as it has the
greater value.

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Table 39: Operating profit margin
Operating Profit margin

Year
2003 0.23 0.20 0.03

2004 0.26 0.23 0.08
2005 0.25 0.22 0.07
2006 0.26 0.20 0.08
2007 0.24 0.18 0.09
Figure 37
Interpretation
We know, the standard of Operating profit margin is near about 20%. Here, BPL’s operating
profit margin fluctuates from 0.17 to 0.24 in the preceding 5 years (2003-2007). It has a
decreasing trend from year 2005 to 2007 which is not desirable. Next, ACI’s operating profit
margin fluctuates from 0.03 to 0.09 in the preceding 5 years (2003-2007). Lastly, SPL’s operating
profit margin fluctuates from 0.23 to 0.26 in the preceding 5 years (2003-2007). So here,
according to our evaluation SPL is in better position as it has the greater value.

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Table 40: Return on investment
Return on Investment

Year
2003 0.15 0.03 0.04

2004 0.17 0.04 0.04
2005 0.16 0.04 0.04
2006 0.13 0.04 0.05
2007 0.12 0.03 0.07
Figure 38
Interpretation
BPL’s return on investment varies from 0.03 to 0.04 in the preceding 5 years (2003-2007). The
company’s return on investment has been decreased in the year 2007, which is not desirable.
Then, ACI’s return on investment varies from 0.04 to 0.07 in the preceding 5 years (2003-2007).
And it has an increasing trend throughout the whole period, which is desirable. Lastly, SPL’s
return on investment varies from 0.12 to 0.17 in the preceding 5 years (2003-2007). Though the
company’s return on investment has a decreasing trend from the year 2005, still SPL is in better
position as it has the highest rate.

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Table 41: Return on equity
Return on Equity

Year
2003 0.20 0.05 0.13

2004 0.21 0.07 0.10
2005 0.23 0.07 0.12
2006 0.18 0.06 0.16
2007 0.18 0.04 0.25
Figure 39
Interpretation
BPL’s return on equity varies from 0.05 to 0.07 in the preceding 5 years (2003-2007) and the
lowest value can be observed during the FY 2007, which is not desirable. Next, ACI’s return on
equity varies from 0.10 to 0.25 in the preceding 5 years (2003-2007) and the highest value can be
observed during the FY 2007 and the lowest value can be observed during the FY 2004 which is
desirable. SPL’s return on equity varies from 0.18 to 0.23 in the preceding 5 years (2003-2007)
and the highest value can be observed during the FY 2005 and the lowest value can be observed
during the FY 2006 and 2007. So here, according to our evaluation SPL is in better position as it
has the greater value.

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 Earnings Ratios
Table 42: Earning per share

Earnings Per Share (EPS)

Year
2003 254.96 4.41 5.25

2004 269.46 4.71 5.54
2005 290.71 6.36 6.94
2006 234.67 4.11 9.51
2007 218.61 3.08 19.36
Figure 40
Interpretation
BPL’s earning per share varies from 3.08 to 6.36 in the preceding 5 years (2003-2007) and the
lowest value can be seen in the FY 2007 which is not desirable. Then ACI’s earning per share
varies from 5.25 to 19.36 in the preceding 5 years (2003-2007) and the highest value can be seen
in the FY 2007 which is quite desirable. Lastly, SPL’s earning per share varies from 218.61 to
290.71 in the preceding 5 years (2003-2007) and the lowest value can be seen in the FY 2007. So
here, according to our evaluation SPL is in better position as it has the greater value.

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Table 43: Price earnings ratio
Price Earning Ratio

Year
2003 4.62 9.01 12.70

2004 8.43 19.55 17.04
2005 12.96 9.09 10.03
2006 9.70 13.07 7.38
2007 11.19 19.12 9.39
Figure 41
Interpretation
BPL’s price earnings ratio varies from 9.01 to 19.55 in the preceding 5 years (2003-2007). It has
an increasing trend from the FY 2006 which is desirable. Next, ACI’s price earning ratio varies
from 7.38 to 17.04 in the preceding 5 years (2003-2007) and the highest value can be seen in the
FY 2004 and after then it has a decreasing trend, which is not desirable. Lastly, SPL’s price
earnings ratio varies from 4.62 to 12.96 in the preceding 5 years (2003-2007). It has an
increasing trend which is satisfactory.

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5.5.2. Comparative Trend Analysis
5.5.2.1. Trend analysis of some important income statement items taking 2003 as base year
Table 44: Net Turnover
Net Turnover
Year 2003 2004 2005 2006 2007
% % % % %
Square Pharmaceuticals 100 116.13 131.14 149.78 184.48
Ltd. (SPL)
Beximco Pharmaceuticals 100 110.02 152.35 169.53 164.71
Ltd. (BPL)
Advanced Chemical 100 114.21 137.92 156.93 219.57
Industries Ltd. (ACI)
Figure 42
Interpretation
Taking 2003 as base year, net turnover of SPL and ACI Ltd. has seen a gradual climb over the
years 2004-07. It can be seen that except for a slight decline in net turnover in 2007, BPL has
also experienced a growing rate over the years.
Table 45: Cost of Goods Sold

Cost of Goods Sold
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Year 2003 2004 2005 2006 2007
% % % % %
Ltd. (SPL)
Ltd. (BPL)
Figure 43
Interpretation
Taking 2003 as base year, costs of goods sold of SPL and ACI Ltd. has seen a gradual climb over
the years 2004-07. It can be seen that except for a slight decline in costs of goods sold in 2007,
BPL has also experienced a growing rate over the years.
Table 46: Gross Profit

Gross Profit
Year 2003 2004 2005 2006 2007
% % % % %
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Ltd. (SPL)
Ltd. (BPL)
Figure 44
Interpretation
Taking 2003 as base year, gross profit of SPL and ACI Ltd. has seen a gradual climb over the
years 2004-07. It can be seen that except for a slight decline in gross profit in 2007, BPL has also
experienced a growing rate over the years.
Table 47: Operating Profit

Operating Profit
Year 2003 2004 2005 2006 2007
% % % % %
Ltd. (SPL)

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Ltd. (BPL)
Figure 45
Interpretation
Taking 2003 as base year, operating profit of SPL and ACI Ltd. has seen a gradual climb over the
years 2004-07. It can be seen that except for a slight decline in operating profit in 2007, BPL has
also experienced a growing rate over the years.
Table 48: Net Profit After Tax

Net Profit After Tax
Year 2003 2004 2005 2006 2007
% % % % %
Ltd. (SPL)
Ltd. (BPL)

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Figure 46
Interpretation
Taking 2003 as base year, net profit after tax of ACI Ltd. has seen a gradual climb over the years
2004-07. It can be seen that except for a slight decline in net profit after tax in 2006, SPL has
also experienced a growing rate over the years. Again, BPL has faced a decreasing trend from the
year 2006.
5.5.2.2. Trend percentages of some important balance sheet items taking 2002 as base year
Table 49: Shareholders' Equity

Shareholders' Equity
Year 2003 2004 2005 2006 2007
% % % % %
Ltd. (SPL)
Ltd. (BPL)
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Figure 47
Interpretation
Taking 2003 as base year, shareholders' equity of SPL, BPL and ACI Ltd. has seen a gradual
climb over the years 2004-07.
Table 50: Non-Current Liabilities

Non-Current Liabilities
Year 2003 2004 2005 2006 2007
% % % % %
Ltd. (SPL)
Ltd. (BPL)

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Figure 48
Interpretation
Taking 2003 as base year, non-current liabilities of SPL and ACI Ltd. has seen a gradual climb
over the years 2004-07. Again, BPL has faced a decreasing trend in non-current liabilities from
the year 2004.
Table 51: Current Liabilities

Current Liabilities
Year 2003 2004 2005 2006 2007
% % % % %
Ltd. (SPL)
Ltd. (BPL)

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Figure 49
Interpretation
Taking 2003 as base year, it can be seen that except for a slight decline in current liabilities in
2007, SPL and BPL has experienced a growing rate over the years. Again, ACI has faced a
decreasing trend in current liabilities from the year 2005.

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Table 52: Non-Current Assets
Non-Current Assets
Year 2003 2004 2005 2006 2007
% % % % %
Ltd. (SPL)
Ltd. (BPL)
Figure 50
Interpretation
Taking 2003 as base year, non-current assets of BPL and ACI Ltd. has seen a gradual climb over
the years 2004-07. It can be seen that except for a slight decline in non-current assets in 2007,
SPL has also experienced a growing rate over the years.
Table 53: Current Assets

Current Assets

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Year 2003 2004 2005 2006 2007
% % % % %
Ltd. (SPL)
Ltd. (BPL)
Figure 51
Interpretation
Taking 2003 as base year, current assets of SPL and ACI Ltd. has seen a gradual climb over the
years 2004-07. Again, BPL has faced a decreasing trend in current liabilities from the year 2006.

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5.0. Comparative Analysis of Square Pharmaceuticals Ltd.

5.1. About Beximco Pharmaceuticals Ltd.

Beximco Pharmaceuticals Ltd. (BPL) is the leading pharmaceutical manufacturer in Bangladesh.

A Report on Financial Performance Analysis of SPL

 Legal protection of domestic industries by Drug Policy, 1982

 High price sensitive target group

 Acceptability of new molecules to the doctor is high

 Infiltration of cheap Indian drugs

A Report on Financial Performance Analysis of SPL

ACI's mission is to achieve business excellence through quality by understanding, accepting,

A Report on Financial Performance Analysis of SPL

 Up-gradation of technological process, research and training

 Exports of goods to foreign countries

 Updated and new technology

 Entering smuggling Goods (Medicines)

A Report on Financial Performance Analysis of SPL

5.5.1. Comparative Ratio Analysis

Table 26: Current ratio

A Report on Financial Performance Analysis of SPL

A Report on Financial Performance Analysis of SPL

Net Working Capital

Square Pharmaceuticals Beximco Pharmaceuticals Advanced Chemical

2003 193,585,498 842,903,882 216,094,296

Inventory Turnover Ratio

Square Pharmaceuticals Beximco Pharmaceuticals Advanced Chemical

2003 3.51 1.19 2.02

Table 30: Average collection period

A Report on Financial Performance Analysis of SPL

Square Pharmaceuticals Beximco Pharmaceuticals Advanced Chemical

2003 12.44 82.37 26.69

Table 31: Total asset turnover ratio

A Report on Financial Performance Analysis of SPL

Square Pharmaceuticals Beximco Pharmaceuticals Advanced Chemical

2003 0.79 0.27 1.10

Table 32: Fixed asset turnover ratio

A Report on Financial Performance Analysis of SPL

Square Pharmaceuticals Beximco Pharmaceuticals Advanced Chemical

2003 1.09 0.37 3.50

A Report on Financial Performance Analysis of SPL

Table 33: Debt ratio

Square Pharmaceuticals Beximco Pharmaceuticals Advanced Chemical

2003 0.25 0.43 0.67

A Report on Financial Performance Analysis of SPL

Square Pharmaceuticals Beximco Pharmaceuticals Advanced Chemical

2003 0.02 0.48 0.28

A Report on Financial Performance Analysis of SPL

Square Pharmaceuticals Beximco Pharmaceuticals Advanced Chemical

2003 0.75 0.57 0.33

A Report on Financial Performance Analysis of SPL

Time Interest Earned Ratio

Square Pharmaceuticals Beximco Pharmaceuticals Advanced Chemical

2003 7.66 2.75 0.82

A Report on Financial Performance Analysis of SPL

Table 37: Gross profit margin

Gross profit margin

Square Pharmaceuticals Beximco Pharmaceuticals Advanced Chemical

2003 0.36 0.38 0.29

A Report on Financial Performance Analysis of SPL

Net Profit margin

Square Pharmaceuticals Beximco Pharmaceuticals Advanced Chemical

2003 0.19 0.10 0.04

A Report on Financial Performance Analysis of SPL