THE DRUG SCENE
Group II
July 18, 2013

FIN301

THE DRUG SCENE
Ms. Mahtab Faruqui
Section 03
7/18/2013

SUBMITTED BY
Team organizer: Samiy...
Group II
July 18, 2013

I.

LETTER OF TRANSMITTAL

Date: July 18, 2013

Ms. Mahtab Faruqui
Senior Lecturer
BRAC Business S...
Group II
July 18, 2013

II.

ACKNOWLEDGEMENT

We would like to thank Ms. Mahtab Faruqui for making us understand what all ...
Group II
July 18, 2013

III.
I.

CONTENTS

Letter of Transmittal ............................................................
Group II
July 18, 2013

IV.

ABSTRACT

This is the term paper of FIN301- Fundamentals of Financial Management course.
Here...
Group II
July 18, 2013

1. I NTRODUCTION
a.

INDUSTRY BACKGROUND

The pharmaceutical sector is highly developed in Banglad...
Group II
July 18, 2013
Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh
and it has been ...
Group II
July 18, 2013

2. BEXIMCO P HARMACEUTICALS L TD . (BPL)
BPLRATIO ANALYSIS 2010-2011:
Liquidity

2010

2011

1. Cu...
Group II
July 18, 2013
Coverage

2010
2.68 times

1. Interest coverage

2011
2.96 times

5. Interest coverage: this has in...
Group II
July 18, 2013
9. Inventory turnover in days:
As the inventory turnover has increased due to increase in Cost of G...
Group II
July 18, 2013
13. Return on equity (ROE): this is the measure of shareholder’s wealth maximization. This
ratio is...
Group II
July 18, 2013
4. Debt to Total Assets: As we have seen earlier there were quite a few changes in the
assets of th...
Group II
July 18, 2013
The Physician Samples have also increased from Taka 52126812 in 2011 to
Taka 65863326 in 2012
9. In...
Group II
July 18, 2013
The Graphs (Figures 1-5) given below, show the changes in the above mentioned
ratios over the years...
Group II
July 18, 2013

3. S QUARE P HARMACEUTICALS L TD . (SPL)
SPL RATIO ANALYSIS 2010 - 2011:
Liquidity

2010
2.15:1
1....
Group II
July 18, 2013

Activity
1.
2.
3.
4.
5.

Receivable Turnover
Receivables turnover in days
Inventory Turnover
Inven...
Group II
July 18, 2013
Profitability

2010

2011

1. Net profit margin

18.21%

18.80%

2. Return on investment (ROI)

13....
Group II
July 18, 2013
3. Debt to Equity: The ratio for debt to equity has decreased in the year 2012 mainly
because the S...
Group II
July 18, 2013

Profitability

2011

2012

1. Net profit margin

18.80%

18.05%

2. Return on investment (ROI)

13...
Group II
July 18, 2013
FIGURE 7: SPL LEVERAGE RATIOS

0.4
0.3

2010

0.2

2011

0.1

2012

0
Debt-to-equity

Debt-to-total...
Group II
July 18, 2013

4. C OMPANY C OMPARISONS FOR 2012
Liquidity
1. Current ratio
2. Quick ratio

3

BPL SPL
2.67 1.59
...
Group II
July 18, 2013
BPL

SPL

7.99 times
45.68 days
2.07 times
176.38 days
0.39 times

19.8 times
18.4 days
1.19 times
...
Group II
July 18, 2013
BPL

SPL

14.20%
5.54%
7.43%

18.05%
13.51%
20.41%

Profitability
11. Net profit margin
12. Return ...
Group II
July 18, 2013

5. S ECTOR M ARKET A NALYSIS
All of the ratios given above (in section- 4 Company Comparisons for ...
Group II
July 18, 2013

6. C ONCLUSION
Considering all of the above ratio analysis, company comparisons as well as sector
...
Group II
July 18, 2013

V.

WORKS CITED

1. Horne, J. C., & Wachowicz Jr., J. M. Fundamentals of Financial Management.
2. ...
Group II
July 18, 2013
365
IT

9 Inventory Turnover In Days (ITD)=

Net Sales
Total Assets

10 Asset Turnover=

11 Net Pro...
Group II
July 18, 2013
2010
Liquidity
1.
2.

Current ratio
Quick ratio

6191667831/2513157232=2.50:1
4207858387/2513157232...
Group II
July 18, 2013
2012
Liquidity
1. Current ratio
2. Quick ratio
Leverage
3. Debt-to-equity
4. Debt-to-total-assets
C...
Group II
July 18, 2013
2010
Liquidity
1. Current ratio
2. Quick ratio
Leverage
3. Debt-to-equity
4. Debt-to-total-assets
C...
Group II
July 18, 2013
SPL WORKINGS FOR 2012
2012
Liquidity
1. Current ratio
2. Quick ratio
Leverage
3. Debt-to-equity
4. ...
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Fin301 Term Paper - The Drug Scene

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It is the financial statement analysis of the two pharmaceutical companies in Bangladesh.
Sqaure Pharma. SPL
BEXIMCO Pharma BPL

for Ms. Mahtab Faruqui's FIN301 Class at BRAC University

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Transcript of "Fin301 Term Paper - The Drug Scene"

  1. 1. THE DRUG SCENE
  2. 2. Group II July 18, 2013 FIN301 THE DRUG SCENE Ms. Mahtab Faruqui Section 03 7/18/2013 SUBMITTED BY Team organizer: Samiya Yesmin Sl. Name I.D. 1. Lamisa Manzoor 11304072 2. Fariha Ahmed 11204035 3. Upeksha Abeysekara 11204098 4. Protiti Khan 11304018 5. Samiya Yesmin 11304043 Page 1
  3. 3. Group II July 18, 2013 I. LETTER OF TRANSMITTAL Date: July 18, 2013 Ms. Mahtab Faruqui Senior Lecturer BRAC Business School Subject: Submission of Term Paper Dear Madam: We are pleased to submit our term paper “The Drug Scene” for your review. It is the financial statement analysis of the two pharmaceutical companies in Bangladesh. It has been an enlightening experience for us to work on this project. We would like to thank you for giving us such an opportunity. Sincerely Yours, SamiyaYesmin……………………… Protiti Khan…...……………………. Fariha Ahmed………………………. Upeksha Abeysekara.………………. Lamisa Manzoor ..…………………. Page 2
  4. 4. Group II July 18, 2013 II. ACKNOWLEDGEMENT We would like to thank Ms. Mahtab Faruqui for making us understand what all the neon green numbers stand for, for enabling us to make sense of enormous financial data and for making it so easy for us. We would also like to thank (Horne & Wachowicz Jr.) For their exceptional book “Fundamentals of Financial Management”, this has simplified learning finance. And we would also like to sincerely thank everyone whose work we have referred to, as it all helped making us form a better picture of the situation. And to amazing team members thank you. Page 3
  5. 5. Group II July 18, 2013 III. I. CONTENTS Letter of Transmittal ....................................................................................... 2 II. Acknowledgement .......................................................................................... 3 IV. Abstract ........................................................................................................... 5 1. Introduction ............................................................................................... 6 a. Industry Background ......................................................................... 6 b. Outlook .............................................................................................. 6 c. Company Backgrounds...................................................................... 6 d. Opportunities ..................................................................................... 7 e. Threats ............................................................................................... 7 2. BEXIMCO Pharmaceuticals Ltd. (BPL)................................................... 8 3. Square Pharmaceuticals Ltd. (SPL) ........................................................ 15 4. Company Comparisons for 2012............................................................. 21 5. Sector Market Analysis ........................................................................... 24 6. Conclusion ............................................................................................... 25 7. Recommendations ................................................................................... 25 V. Works Cited .................................................................................................. 26 VI. Appendix ...................................................................................................... 26 01.Ratio Formulae ................................................................................ 26 02.Calculations for BPL ....................................................................... 27 03.Calculations for SPL ........................................................................ 29 V. Table of Figures:........................................................................................... 31 Page 4
  6. 6. Group II July 18, 2013 IV. ABSTRACT This is the term paper of FIN301- Fundamentals of Financial Management course. Here we will be analyzing the financial statements of two companies from the same industrial sector. We have chosen BEXIMCO Pharmaceuticals Ltd. (BPL) and Square Pharmaceuticals Ltd.(SPL) from the Pharmaceuticals Industry in Bangladesh. We will be showing you the ratio analysis of the years 2010-2011 and 2011-2012 for these two companies along with comparison between both the companies. Page 5
  7. 7. Group II July 18, 2013 1. I NTRODUCTION a. INDUSTRY BACKGROUND The pharmaceutical sector is highly developed in Bangladesh and contributes significantly to the country's economy. After the promulgation of Drug Control Ordinance1982, the development of this sector was accelerated. The professional knowledge and innovative conceptual skills played a vital role in the development of the sector as a whole. The substantial development in this sector enabled us to export our branded generics in the international marketing domain. Healthy growth is encouraging the pharmaceutical manufacturers towards research and development for newer generics of quality drugs at affordable prices. The Bangladesh pharmaceutical market is growing at a fast pace and has a bright future indeed. According to Business Monitor International's latest report Bangladesh has moved one step upward to occupy the 14th position within 17 regional markets surveyed by BMIs Pharmaceutical & Healthcare Business Environment ratings for the Asia region. Bangladesh has a long way to go though there is huge potential in pharmaceutical manufacturing and international marketing. And due to all these factors we have decided to do our term paper on this industrial sector of Bangladesh. b. OUTLOOK In the pharmaceutical sector of Bangladesh, we have 250 licensed companies. Taking their age, brand name, national and international market position and previous stock market performance into factor- we have decided to do the financial analysis of two of the market leaders of this industry. These companies are Square Pharmaceuticals Ltd. and BEXIMCO Pharmaceuticals Ltd... As we write this paper, we hope you will come to see why they are so. c. COMPANY BACKGROUNDS BEXIMCO Pharmaceuticals Limited was founded in 1976 and started operations in 1980. It has now grown to now become one of the leading pharmaceutical companies in the country, and caters for the local and international medicinal needs. Today BPL manufactures and markets its own branded drugs for several diseases. The company launched its export operation in 1992. Today BPL is the largest exporter of pharmaceuticals in the country and the only company to win National Export Trophy (Gold), the highest national accolade for export, for record three times. BPL has extended its exports in more than 45 countries across four continents. BPL is planning to expand manufacturing products such as inhalers, eye drops and sprays. Their targeted global expansion areas include Middle East, European Union, Latin America, USA, Australia and New Zealand. Page 6
  8. 8. Group II July 18, 2013 Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh and it has been continuously in the 1st position among all national and multinational companies since 1985. Mr. Samson H. Chowdhury is the founder of SQUARE Pharmaceuticals. It was established in 1958 and converted into a public limited company in 1991. The sales turnover of SPL was more than Taka 11.46 Billion (US$ 163.71 million) with about 16.43% market share (April 2009– March 2010) having a growth rate of about 16.72%. SPL has extended its range of services towards the highway of global market. It pioneered exports of medicines from Bangladesh in 1987 and has been exporting antibiotics and other pharmaceutical products. This extension in business and services has manifested the credibility of Square Pharmaceuticals Limited. d. OPPORTUNITIES These are some opportunities that would help this industry grow in the long run:     The industry has advancing technologically as result they can formulate new drugs and medicines as soon as it is out in the market. If the industry spends more on research and development then they can eventually make their own formulas instead of buying them from other countries. Export opportunities have increased especially in the African, Middle Eastern and Central Asian markets. Production cost is low in Bangladesh because of the low operational costs. The government benefits and facilities are given to this emerging industry. e. THREATS As an emerging new industry, it may/ will have to confront these threats:        Indian companies are a threat to this industry as they can make their own formulas and save money. As a result, they can sell the final product at a lower price range. The Bangladeshi government does not have the right policy in some areas such as quality control and minimum standard monitoring. Small and new firms do not focus much on quality control and research development for lower cost, so they are able to compete with larger companies which already have a greater market share. Large scale manufacturers from multinational companies may invest highly on the pharmaceuticals industry, and this may hamper the market shares in the long run. Neighboring countries may enter our market illegally and make it unstable with cheaper products. In the long run the industry may end up using all the raw materials available to them and then may have to buy from other countries which may end up costly on the industry. Fluctuations in raw material prices may affect the industry Page 7
  9. 9. Group II July 18, 2013 2. BEXIMCO P HARMACEUTICALS L TD . (BPL) BPLRATIO ANALYSIS 2010-2011: Liquidity 2010 2011 1. Current ratio 2.50:1 2.70:1 2. Quick ratio 1.67:1 1.83:1 1. Current Ratio: the current ratio is too high which shows that the company has too much idle money that needs to be invested in profitable manner. The current ratio has increased in the year 2011 from the year 2010. This has occurred for the following reasons: Significant increase of Tk. 308035187 in inventories. This is due to production increase, increasing finished goods, raw materials and raw & packing materials in transit. The dividend payable reduced, which reduced the current liabilities. 2. Quick Ratio: this has increased in the year 2011 for the following reasons: Large increase of Tk. 49361056 in spares and supplies. Increase in accounts receivable because of export sales. Dynamic increase of Tk. 1334019856 in short term investments with Bangladesh Export Import Company Limited (BEXIMCO Ltd.). Reduction in dividend payable. Leverage 2010 2011 1. Debt-to-equity 0.34 0.34 2. Debt-to-total-assets 0.25 0.26 3. Debt-to-equity: The ratio for debt to equity has also not changed during the past two years this means that there has been no significant change in the Share holders’ Equity and the company debts. 4. Debt-to-total-assets: the debt to total assets has increased slightly, which means the firm is using borrowed money for operation. The ratio did not increase much because: Increase in long term borrowings – increase in interest and PAD Block and Obligations under Finance Leases. Increase in total assets due to high increase in intangibles, inventories, short term investments in BEXIMCO Ltd, and Accounts Receivables from export sales. Page 8
  10. 10. Group II July 18, 2013 Coverage 2010 2.68 times 1. Interest coverage 2011 2.96 times 5. Interest coverage: this has increased, which means that the company is now able to pay its interests more comfortably. This increase has happened because: The finance cost reduced by Tk. 94536627, because there was no dividend on preference shares in 2011. The earnings before interest and tax increased by Tk. 316316926 because of greater net sales revenue. Activity 2010 7.90 times 1. Receivables turnover 2. Receivables turnover in days 2011 8.07 times 46.19 days 45.25 days 3. Inventory turnover 1.79 times 1.92 times 4. Inventory turnover in days 203.9 days 190.1 days 5. Asset turnover 0.31 times 0.36 times 6. Receivables turnover: the company is now more capable of collecting its receivables. This ratio has increased by 0.17 times in 2011 due to: Increase in annual net credit sales, which is due to more export sales. As there is more export sales, the receivables have also increased. So the overall ratio has increased. 7. Receivables turnover in days: this has reduced in the year 2011. This has occurred for the following reasons: Increase in export sales, which have increased net credit sales. Significant increase in receivables from exports. So as more exports are being made, better relations are being created with foreign buyers. As a result, the company is able to collect its receivables in less time. 8. Inventory turnover: the inventory turnover is more in 2011 due to: Increase of Tk. 786068767 in Cost of Goods Sold – this is because the materials consumed has increased by Tk. 658180751. Increase of Tk. 172839086 in the factory overhead has also increased Cost of Goods Sold. So the total manufacturing cost has risen. The inventory has also increased due to increase in finished goods and raw materials used. This means that the production has increased. The work in progress has reduced. So the overall inventory turnover has increased, which means that more inventories are sold and turned into cash. Page 9
  11. 11. Group II July 18, 2013 9. Inventory turnover in days: As the inventory turnover has increased due to increase in Cost of Goods Sold (due to increase in materials consumed and factory overheads) and inventories (due to increase in finished goods and raw materials), this means that the company is able to sell more inventories and earn cash in less time. Also, the Account Payables are being paid off, which is a good sign for future loans. So the inventory turnover in days has reduced in 2011. 10. Asset turnover: the asset turnover has risen, which means that more assets are used to generate sales. The increase is for the following reasons: Net sales have increased, due to Tk. 1339620117 increase in local sales. The total assets has risen as well, but not by much amount. This is because their current assets increased by Tk. 956794922 because of increasing inventories and short term investments. Also, the investment in shares under the fixed assets has dropped. This means that the overall increase in total assets is poor. As a result, the asset turnover has increased, meaning more sales of assets are made that generates greater sales revenue. Profitability 2010 2011 1. Net profit margin 16.20% 15.19% 2. Return on investment (ROI) 5.10% 5.40% 3. Return on equity (ROE) 7.83% 7.24% 11. Net profit margin: the net profit margin has reduced. This means that the net income per dollar of sales has reduced. This is because: The cost of goods sold has risen, which is due to increase in Tk. 1339620117 of local sales. This has ultimately increased the net sales revenue by Tk. 1399394490. The net profit after tax has increased but not that much, because the income tax has risen. The deferred tax and short provision for earlier year is also seen to rise. So the overall impact on the net profit after tax is low. 12. Return on investment (ROI): this has risen, which means that more profits are being generated with the available assets. This ratio has changed mainly due to: Increase in net profit after tax by Tk. 146876534 because the finance cost has reduced. Their short term investments have increased. The cash and cash equivalents have reduced because of less amount in FDR Account. The overall assets have risen because of more intangibles and inventories. So greater assets are contributing in generating more net profit. As a result, the return from the investments is more. Page 10
  12. 12. Group II July 18, 2013 13. Return on equity (ROE): this is the measure of shareholder’s wealth maximization. This ratio is found to have decreased in 2011. This might have happened because: Shareholder’s equity has increased. Increase in issued share capital Increase in revaluation surplus Increase in retained earnings. BPLRATIO ANALYSIS 2011-2012: Liquidity 2011 2012 1. Current ratio 2.70:1 2.67:1 2. Quick ratio 1.83:1 1.88:1 1. Current Ratio: From our calculation we can see that the current ratio of 2011 is higher than of 2012. As per our study the following changes have taken place and thus caused the 2012 current ratio to decrease. There is a significant increase in Raw and Packaging Materials in Transmit. The amount has increased by Taka 8846045. The Spares and Accessories have increased by quite a margin in 2012. The Accounts Receivables have also increased in 2012 because the export sales have increased in the past one year. Project loans have increased in 2012 by Taka 318588942 Creditors and Payables have decreased because of the decrease in buying for credit on Goods and services. Accrued Expenses on Workers’ Profit Participation and Welfare funds have increased. 2. Quick Ratio: The Quick ratio has increased in 2012, and this is mainly due to the increase of inventory of the company as we saw earlier there is a Taka 142143350 difference in inventory from 2011 to 2012. Most of the change is due to the change in Raw and Packing Materials in Transmit. Leverage 2011 2012 1. Debt-to-equity 0.34 0.34 2. Debt-to-total-assets 0.26 0.25 3. Debt to Equity: The ratio for debt to equity has also not changed during the past two years this means that there has been no significant change in the Share holders’ Equity and the company Debts. Page 11
  13. 13. Group II July 18, 2013 4. Debt to Total Assets: As we have seen earlier there were quite a few changes in the assets of the company because we have seen that the company has bought new assets and also disposed a few assets. As per the statements suggests that the following changes have occurred Project Loans have increased Under Accrued expenses the expenses have increased by Taka 15440045 Income tax payable for the previous year has increased to Taka 110840941 in 2012. Coverage 2011 2.96 times 1. Interest coverage 2012 2.96 times 5. Interest Coverage: The ratio of interest coverage is the same for both years; therefore this suggests that the interest coverage has been the same throughout the past two years Activity 2011 2012 1. Receivables turnover 8.07 times 7.99 times 2. Receivables turnover in days 45.25 days 45.68 days 3. Inventory turnover 1.92 times 2.07 times 4. Inventory turnover in days 190.1 days 176.38 days 5. Asset turnover 0.36 times 0.39 times 6. Receivables turnover: Receivables turnover has decreased within the past year and this is due to the slight increase in the receivables turnover in days. This means that the company takes 7. Receivables turnover in days: The sales of all the products have increased managed to sell 146033.51 units of all their different products in 2012 compared to 2011. Therefore, their net sales have increased. Exchange rate fluctuations may have an impact on the receivables. On the other hand, the receivables from export sales in 2012 have had a dramatic increase of $751257 from the previous year. In addition to that the receivables due from companies in Bangladesh also have increased. 8. Inventory turnover: The inventory turnover has increased and this is because Total manufacturing cost has increased by Taka 812152100 The manufacturing cost has increased due to the increase in factory overheads. The cost of Physician Sample transferred to Sample Stock has increased by Taka 22884099; this is deducted before deducting the closing stock of finished goods. The Raw and Packing Materials in Transit have increased by Taka 88406045 Page 12
  14. 14. Group II July 18, 2013 The Physician Samples have also increased from Taka 52126812 in 2011 to Taka 65863326 in 2012 9. Inventory turnover in days: The inventory turnover in days has decreased, due to the changes in the cost of goods sold in 2011 and 2012. The change is also because of the fluctuations in inventories for the past one year. 10. Asset Turnover: The assets turnover has had a slight change in the past year. This is due to the changes in the total assets All the assets such as Land, Buildings, Furniture, Vehicles and Office Equipment have had changes due to the addition of new assets, adding up to Taka 189856725 Assets such as Furniture and Vehicles have also have been disposed; at a value of Taka 6567870. Capital Work in Progress has increased to Taka 1853876341 in 2012. Research and Development expenditure have increased and the company has also invested in Software development which is considered as intangible assets, thus intangible assets have increased over the year. Loans, Advances and Deposits have increased in 2012 because of changes in Raw and Packing Material, Expenses and Rent Advances Profitability 2011 2012 3. Net profit margin 15.19% 14.20% 4. Return on investment (ROI) 5.40% 5.54% 5. Return on equity (ROE) 7.24% 7.43% 11. Net Profit Margin: The Net Profit Margin has decreased due to the following changes The profit after tax has increased for 2012 although their expenses in 2012 were higher than of 2011. In 2012 the company’s financial expenses have risen. The company has also spent more on selling and advertising and administrative expenses. The sales have comparatively increased over the year. 12. Return on Investment (ROI): The Company’s return from their investment is recorded the highest during the three years. This is maybe due to the new investments that the company has done on their assets. They have bought and sold number of assets in the year of 2012. And thus their sales have also increased. 13. Return on Equity (ROE): The return on equity has undergone the following changes 215620903 Bonus Shares issued, and thus brought an increase by Taka 528712400 Retained earnings have increased in 2012 to Taka 6701180881 Page 13
  15. 15. Group II July 18, 2013 The Graphs (Figures 1-5) given below, show the changes in the above mentioned ratios over the years 2010, 2011 and 2012. Figure 1: BPL Liquidity ratios 3 2 2010 1 2011 0 2012 Current Ratio Quick Ratio FIGURE 2: BPL COVERAGE RATIO 3 2.8 2.6 2.4 2010 2011 2012 Interest coverage FIGURE 3: BPL LEVERAGE RATIOS 0.4 0.3 0.2 0.1 0 2010 2011 2012 Debt-to-equity Debt-to-total-assets FIGURE 4: BPL ACTIVITY RATIOS 2.5 2 1.5 1 0.5 0 8.1 8 7.9 7.8 Receivables turnover 2010 2011 2012 Inventory Turnover Asset Turnover FIGURE 5: BPL PROFITABILITY RATIOS 20 15 2010 10 2011 5 2012 0 Net profit margin Return on investment (ROI) Page 14 Return on equity (ROE)
  16. 16. Group II July 18, 2013 3. S QUARE P HARMACEUTICALS L TD . (SPL) SPL RATIO ANALYSIS 2010 - 2011: Liquidity 2010 2.15:1 1.16:1 1. Current ratio 2. Quick ratio 2011 1.59:1 0.96:1 1. Current Ratio: The current ratio is lower in 2011 than in 2010 showing that the company does not have too much idle money and that the company is investing the money in a profitable manner. The company had a current ratio of 2.15 in the year 2010, which suggests they did not use their inventories or cash in hand or bank properly. On the other hand they achieved a healthier current ratio in 2011 of 1.50. This shows an effective working capital management. This change may have occurred for the following reasons: A significant increase in receivables increased the current liabilities. A significant increase of Tk. 2,451,445,025 in the current liabilities as compared to the increase in the current assets. This was due the short term loans taken from different banks. 2. Quick Ratio: This has also decreased in the year 2011 for the following reasons: Large increase in Value Added Tax. Increase in the amount of Lease Deposit. Leverage 3. Debt-To-Equity 4. Debt-To-Total-Assets 2010 0.30 0.23 2011 0.41 0.29 3. Debt-to-equity: The ratio for debt to equity has increased in 2011. This means that there has been a significant change in the total debt of the company as well as Share holder’s Equity. 4. Debt-to-total-assets: the debt to total assets has increased slightly, which means the firm is using borrowed money for operation. The ratio did not increase much because: Increase in both long term borrowings and total assets. Increase in total assets is due to high increase in intangibles, inventories, short term investments in Square Pharmaceuticals Ltd, and Accounts Receivables from export sales. Coverage 2010 2011 5. Interest Coverage 8.7 times 10.2 times 5. Interest coverage: this has increased, which means that it has become easier for the company to pay its interests. This increase has happened because: The interest expense has reduced by Tk. 40,012,036. The earnings before interest and tax increased by Tk. 61,986,411 because of greater net sales revenue. Page 15
  17. 17. Group II July 18, 2013 Activity 1. 2. 3. 4. 5. Receivable Turnover Receivables turnover in days Inventory Turnover Inventory Turnover in Days Asset Turnover 2010 22.5times 16.2 days 1.168 times 312.4 days 0.76 times 2011 17.4 times 20.9 days 1.173 times 311.2 days 0.69 times 6. Receivables turnover: Receivables Turnover has decreased by 5.1 showing the company is not collecting its receivables efficiently. This ratio has decreased because: Increase in annual net credit sales, which is due to more export sales. Due to increase in export sales, receivables has also increased, but not in the same proportion as the net credit sales. The amount of receivables being higher has led to lower receivables turnover in the year 2011 than the year 2010. 7. Receivables turnover in days: this has increased in the year 2011. This has occurred for the following reasons: Decrease in Receivables Turnover. The amount of receivables has increased significantly in the year 2011. As a result, the company is taking more time to collect their receivables. 8. Inventory turnover: the inventory turnover is more in 2011 due to: An increase in production of goods which thereby increases Cost of Goods Sold by Tk. 2931288394– this is because the materials consumed and factory overhead has increased. So the total manufacturing cost has risen. The inventory has also increased due to increase in finished goods and raw materials used. This means that the production has increased. So the overall inventory turnover has increased, which means that more inventories sold are turned into cash. 9. Inventory turnover in days: As the inventory turnover has increased due to increase in Cost of Goods Sold, this means that the company is able to sell more inventories in less time. 10. Asset Turnover: Asset turnover has decreased, this means that less assets are used in generating sales. The reason for this is: Although both net sales and total assets have increased, total assets have comparatively increased by a greater degree compared to net sales, thus asset turnover has fallen. Page 16
  18. 18. Group II July 18, 2013 Profitability 2010 2011 1. Net profit margin 18.21% 18.80% 2. Return on investment (ROI) 13.89% 13.02% 3. Return on equity (ROE) 19.73% 22.99% 11. Net Profit Margin: The net profit margin has slightly increased, meaning that the net income per unit currency has slightly increased. The reason for this is: Net profit after taxes has increased in this period. Net turnover has also increased. 12. Return on Investment (ROI): This has decreased, meaning that less profits are being generated with the assets available in the company. Net profit after taxes has increased in 2010-2011. Total assets have also increased, but by a greater proportion compared to the net profit. 13. Return on Equity (ROE):This is a measure of the shareholders wealth maximization. It can be seen that this ratio has increased in the period 2010-2011. This means that investors have higher acceptance of the company’s strong investment opportunities. SPL RATIO ANALYSIS 2011-2012: Liquidity 2011 1.50:1 0.96:1 1. Current ratio 6. Quick ratio 2012 1.58:1 0.95:1 1. Current Ratio: From the calculation we can see that the current ratio of 2012 is slightly higher than of 2011. This might have happened because: Despite a significant decrease in the current assets in the year 2012, the current ratio manages to have an overall increase because the current liabilities has decreased in the year 2012 by quite a good amount. Square Pharmaceuticals managed to lower down their current liabilities in the year 2012 by cutting down their short term loan taken from various banks . 2. Quick Ratio: The Quick ratio has remained quite same differing by a margin of 0.1. This shows the company’s ability to meet their current liabilities with its most liquid assets has almost remained the same. Leverage 1. Debt-To-Equity 2. Debt-To-Total-Assets 2011 0.41 0.29 Page 17 2012 0.32 0.24
  19. 19. Group II July 18, 2013 3. Debt to Equity: The ratio for debt to equity has decreased in the year 2012 mainly because the Shareholder’s Equity has increased significantly in 2012 by the amount of Tk 2,449,175,260. 4. Debt to Total Assets: Debt to Total Assets has decreased slightly in the year 2012. This is because: Long term loans have decreased in the year 2012. Total Assets has increased. Coverage 1. Interest Coverage 2011 2012 10.2 times 7.6 times 5. Interest Coverage: The ratio of interest coverage has decreased in the year 2012 by 2.6 times, indicating the company’s ability to cover their interest has decreased than the previous year. Activity 2011 2012 1. Receivables turnover 17.4 times 19.8 times 2. Receivables turnover in days 20.9 days 18.4 days 3. Inventory turnover 1.173 times 1.19 times 4. Inventory turnover in days 311.2 days 305.8 days 5. Asset turnover 0.69 times 0.75 times 6. Receivables turnover: Receivables turnover has increased in 2012 in compared to 2011. This has happened due to the significant increase in Net Turnover in 2012. 7. Receivables turnover in days: this has decreased in compared to the previous year. Higher credit sales are one reason behind this. Also exchange rate fluctuations may have an impact on the receivables. 8. Inventory turnover: the inventory turnover is more due to an increase in finished goods and raw materials used i.e. due to an increase in production by Tk. 3016368700 more in 2012 than in 2011 9. Inventory turnover in days: it has decreased, meaning that they are able to sell products faster than the year before resulting in faster inventory turnover. Also, the Account Payables are being paid off, which is a good sign for future loans. So the inventory turnover in days has reduced in 2012. 10. Asset Turnover: it has increased in this period meaning that more profits are being generated by the assets available to the company. Net sales have risen to a certain degree. Total assets have been increased by a relatively small amount. Page 18
  20. 20. Group II July 18, 2013 Profitability 2011 2012 1. Net profit margin 18.80% 18.05% 2. Return on investment (ROI) 13.02% 13.51% 3. Return on equity (ROE) 22.99% 20.41% 11. Net Profit Margin: The net profit margin has slightly decreased. Net turnover has increased in this period. Although net profit after tax has increased, total expenditures of the business have also increased in this period, thus profit margin has decreased in 20112012 with respect to the previous period comparison. 12. Return on Investment (ROI): The return from investments has increased in this timeframe; this may be due to increased profits are being generated by the company on its assets, including purchase of new assets. This has resulted in an overall increase in sales. 13. Return on Equity (ROE): The return on equity has fallen during this period, this may be due to an increase of almost 33% of retained earnings in 2012 compared to 2011. The Graphs (Figures 6- 10) given below, show the changes in the above mentioned ratios over the years 2010, 2011 and 2012. FIGURE 6: SPL LIQUIDITY RATIOS 2.5 2 1.5 2010 1 2011 2012 0.5 0 Current Ratio Quick Ratio Page 19
  21. 21. Group II July 18, 2013 FIGURE 7: SPL LEVERAGE RATIOS 0.4 0.3 2010 0.2 2011 0.1 2012 0 Debt-to-equity Debt-to-total-assets FIGURE 8: SPL COVERAGE RATIO 12 10 8 6 4 2 0 2010 2011 2012 Interest coverage FIGURE 9 : SPL ACTIVITY RATIOS 25 1.195 1.19 1.185 1.18 1.175 1.17 1.165 1.16 1.155 20 15 10 5 0 0.78 0.76 0.74 0.72 0.7 0.68 0.66 0.64 Inventory Turnover Receivables turnover Asset Turnover FIGURE 10 : SPL PROFITABILITY RATIOS 25 20 15 2010 10 2011 2012 5 0 Net profit margin Return on investment (ROI) Page 20 Return on equity (ROE)
  22. 22. Group II July 18, 2013 4. C OMPANY C OMPARISONS FOR 2012 Liquidity 1. Current ratio 2. Quick ratio 3 BPL SPL 2.67 1.59 1.88 0.95 2.5 2 Liquidity: By comparing the ratios above, we can see that BPL is more liquid than SPL as both its current ratio and quick/acid-test ratio is higher than SPL. Note that SPL has higher current liabilities than BPL, while BPL has more current assets than SPL. This could also mean that BPL is playing too safe and hence investing less of its current assets. Leverage 3. Debt-to-equity 4. Debt-to-total-assets BPL SPL 0.34 0.32 0.25 0.24 Leverage: SPL has less debt than BPL, while having roughly the same amount of equity and assets, thus we see differences in their leverage ratios. From the debt-to-equity ratio we can see that BPL has a higher leverage compared to SPL. But by comparing Debt-tototal-assets ratio we can say that SPL has lower financial risk than BPL due to the fact that its Debt-to-total-assets ratio is lower. 1.5 5. Interest coverage SPL 1 0.5 0 Current Ratio 0.4 0.35 0.3 0.25 0.2 BPL 0.15 SPL 0.1 0.05 0 Debt-to-equity BPL SPL 2.96 times 7.6 times Coverage: Coverage ratio shows the firm’s ability to meet interest payments. As SPL has higher coverage ratio than BPL, showing SPL can cover its interest better hence enabling them to have a higher capacity to take in new debt, making them more viable investment for loans than BPL. FIGURE 13: CC COVERAGE RATIOS Page 21 Quick Ratio FIGURE 11: CC Liquidity Ratio FIGURE 12: CC LEVERAGE RATIOS Coverage BPL Debt-to-equity 8 7 6 5 4 3 2 1 0 BPL SPL Interest Coverage
  23. 23. Group II July 18, 2013 BPL SPL 7.99 times 45.68 days 2.07 times 176.38 days 0.39 times 19.8 times 18.4 days 1.19 times 305.8 days 0.75 times Activity 6. 7. 8. 9. 10. Receivables turnover Receivables turnover in days Inventory turnover Inventory turnover in days Asset turnover FIGURE 14: CC RECEIVABLE RATIOS 50 45 40 35 30 25 20 15 10 5 0 Receivables Turnover: It is higher for SPL showing that it is more capable of collecting its receivables, which could mean that BPL is more lax in collecting its receivables, hence could also have past-due accounts still in their books. BPL Receivables Turnover in Days: the difference between this ratio of BPL and SPL is significant. We see BPL as having a higher no. of days; this is due to the fact that their receivable turnover is lower than SPL. SPL Receivables Turnover Receivables Turnover in Days 2.5 Inventory Turnover: it is higher for BPL than for SPL. This is due to fact that total inventory of BPL is roughly one-fourth of that of SPL. Hence they would be required to higher turnovers to try and reach the same level of output. 2 1.5 BPL 1 SPL 0.5 0 FIGURE 15: CC INVENTORY RATIOS Inventory Turnover 350 300 250 200 150 100 50 0 BPL SPL Inventory Turnover in Days Inventory Turnover in Days: it is higher for BPL as its total inventory is less than that of SPL. What we really need to see is BPL running out-of-stock or is SPL having a stock-pile up~ neither- actually because the market size of SPL is roughly double that of BPL. 0.8 0.6 Asset Turnover: from this we can see that SPL has a higher asset turnover ratio, while having higher net sale and total assets than BPL. This goes on to show that SPL does indeed generate higher sales revenue per taka of asset invested than BPL. FIGURE 16: CC ASSET TURNOVER RATIO Page 22 0.4 BPL 0.2 SPL 0 Asset Turnover
  24. 24. Group II July 18, 2013 BPL SPL 14.20% 5.54% 7.43% 18.05% 13.51% 20.41% Profitability 11. Net profit margin 12. Return on investment (ROI) 13. Return on equity (ROE) 25 20 15 BPL 10 SPL 5 0 Net Profit Margin ROI ROE FIGURE 17: CC PROFITABILITY RATIOS Net Profit Margin: from this ratio we can see that SPL has higher profit per sales. This indicates that SPL’s operations are more efficient than BPL, hence making SPL more effective at producing and selling products. Return on Investment (ROI): Although BPL and SPL have roughly the same amount to total assets but there is a vast difference in the net profit after tax; hence SPL’s ROI is higher than that of BPL’s. This shows that SPL generates more profit from its assets than BPL. Return on Equity (ROE): SPL has a higher ROE than BPL, showing that they can give back more to shareholders’ than BPL as their net profit after tax is roughly double that of BPL’s. Page 23
  25. 25. Group II July 18, 2013 5. S ECTOR M ARKET A NALYSIS All of the ratios given above (in section- 4 Company Comparisons for 2012) go on to make impact on the share prices of both the companies in the secondary market. From the graphs below we can see than the latest price of SPL ≈ tk.240 while BPL shares are being offered at ≈ tk. 52. FIGURE 18: MARKET PRICE GRAPHS From Fig. 18 (stockbangladesh.com), we can see that SPL’s market share price is approx. 5 times that of BPL’s while total volume of shares of SPL is approx. double that of BPL. This causes the share price of SPL to directly reflect any major change in over-all market prices, while small fluctuations are absorbed. This is why we can see that over a year long time period (as shown in Fig.19) SPL share prices show small fluctuations mostly. But for BPL the vice versa is true, as its market volume and share price is small. The extent of market fluctuation impact on BPL prices is higher (as shown in fig.20). FIGURE 19: SPL CLOSING PRICE FIGURE 20: BPL CLOSING PRICE Page 24
  26. 26. Group II July 18, 2013 6. C ONCLUSION Considering all of the above ratio analysis, company comparisons as well as sector market analysis, we can conclude the following:  Square Pharmaceutical has a higher performance in the industry, with higher market share, higher profitability and lower risks etc, while only its liquidity ratio is lower than that of BPL’s  BEXIMCO Pharmaceutical has smaller market share, lower profitability and higher risks etc. than SPL. It only has greater liquidity than SPL.  While Beta (stockbangladesh.com) of both Companies fall in defensive investment (β<1) making them both safe investments. But as βSPL- 0.53 is less than βBPL- 0.88, it makes SPL’s shares a more reliable and safer investment than BPL’s. 7. R ECOMMENDATIONS After considering all of the above we have come up with the following recommendations:  Square Pharmaceuticals needs to increase its liquidity position.  BEXIMCO Pharmaceuticals needs benchmarking in most categories, (Key beingreceivables, inventory turnovers), and try to achieve them faster.  Both need to search for new finances to expand their respective business to maintain an equivalent or increased growth in the industry.  Both need to look for new market segment within as well as outside the country to expand their market. Page 25
  27. 27. Group II July 18, 2013 V. WORKS CITED 1. Horne, J. C., & Wachowicz Jr., J. M. Fundamentals of Financial Management. 2. Saad, K. S. (2012). An Overview of Pharmaceutical Sector in Bangladesh. BRAC EPL. 3. stockbangladesh.com. (Retrieved July 14, 2013), from www.stockbangladesh.com/ 4. Dhaka Stock Exchange (Retrieved July 14, 2013), from www.dse.com.bd 4. Annual Report of BEXIMCO Pharmaceuticals Ltd. 2010, 2011 and 2012 5. Annual Report of Square Pharmaceuticals Ltd. 2010, 2011 and 2012 VI. APPENDIX 01. RATIO FORMULAE 1 2 Current= Quick= 3 Current Assets Current Liabilities Current Assets— Inventories Current Liabilities Debt-To-Equity= 4 Total Debt Shareholders’ Equity Debt-To-Total-Assets= 5 Interest Coverage= Total Debt Total Assets EBIT Interest Expense 6 Receivable Turnover (RT)= Annual Net Credit Sales Receivables 7 Receivable Turnover In Days (RTD) = 8 Inventory Turnover (IT)= Page 26 365 RT Cost Of Goods Sold Inventory
  28. 28. Group II July 18, 2013 365 IT 9 Inventory Turnover In Days (ITD)= Net Sales Total Assets 10 Asset Turnover= 11 Net Profit Margin= Net Profit After Taxes Net Sales 12 Return On Investment (ROI)= 13 Return On Equity (ROE)= 02. Net Profit After Taxes Total Assets Net Profit After Taxes Shareholders’ Equity CALCULATIONS FOR BPL 2010 2011 2012 2.50:1 1.67:1 2.70:1 1.83:1 2.67:1 1.88:1 0.34 0.25 0.34 0.26 0.34 0.25 2.68 times 2.96 times 2.96 times 7.90 times 46.19 days 1.79 times 203.9 days 0.31 times 8.07 times 45.25 days 1.92 times 190.1 days 0.36 times 7.99 imes 45.68 days 1.07 imes 176.38 ays 0.39 times 16.20% 5.10% 7.83% 15.19% 5.40% 7.24% 14.20% 5.54% 7.43% Liquidity 1. 2. Current ratio Quick ratio Leverage 3. 4. Debt-to-equity Debt-to-total-assets Coverage 5. Interest coverage Activity 6. 7. 8. 9. 10. Receivables turnover Receivables turnover in days Inventory turnover Inventory turnover in days Asset turnover Profitability 11. 12. 13. Net profit margin Return on investment (ROI) Return on equity (ROE) BPLWORKINGS FOR 2010 Page 27
  29. 29. Group II July 18, 2013 2010 Liquidity 1. 2. Current ratio Quick ratio 6191667831/2513157232=2.50:1 4207858387/2513157232=1.67:1 Leverage 3. 4. Debt-to-equity Debt-to-total-assets 5398313058/15974086451=0.34 5398313058/21372399509=0.25 Coverage 5. Interest coverage 1361532326/508432384=2.68 times Activity 6. 7. 8. 9. 10. Receivables turnover Receivables turnover in days Inventory turnover Inventory turnover in days Asset turnover (6490847353/821356439)=7.90 times 365/7.90=46.19 days 3317640254/(3706762728/2)=1.79 times 365/1.79=203.9 days 6490847353/(41264332931/2)=0.31 times Profitability 11. 12. 13. Net profit margin Return on investment (ROI) Return on equity (ROE) (1051648808/6490847353)*100=16.20% (1051648808/20632166460)*100=5.10% (1051648808/13429896530)*100=7.83% BPL WORKINGS FOR 2011 2011 Liquidity 1. Current ratio 2. Quick ratio Leverage 3. Debt-to-equity 4. Debt-to-total-assets Coverage 5. Interest coverage Activity 6. Receivables turnover 7. Receivables turnover in days 8. Inventory turnover 9. Inventory turnover in days 10. Asset turnover Profitability 11. Net profit margin 12. Return on investment (ROI) 13. Return on equity (ROE) 7148462753/2648161988=2.70:1 4856618122/2648161988=1.83:1 5905212356/17128128177=0.34 5905212356/23033340533=0.26 1677849252/567645757=2.96 times 7890241843/978224317=8.07 times 365/8.07=45.25 days 4103709021/(4275654075/2)=1.92 times 365/1.92=190.1days 7890241843/(44405740042/2)=0.36 times (1198525342/7890241843)*100=15.19% (1198525342/22202870020)*100=5.40% (1198525342/16551107310)*100=7.24% BPL WORKINGS FOR 2012 Page 28
  30. 30. Group II July 18, 2013 2012 Liquidity 1. Current ratio 2. Quick ratio Leverage 3. Debt-to-equity 4. Debt-to-total-assets Coverage 5. Interest coverage Activity 6. Receivables turnover 7. Receivables turnover in days 8. Inventory turnover 9. Inventory turnover in days 10. Asset turnover Profitability 11. Net profit margin 12. Return on investment (ROI) 13. Return on equity (ROE) 03. 8197421953/3064944769=2.67:1 5765433772/3064944769=1.88:1 6181648733/18408161859=0.34 6181648733/24589810592=0.25 1909829236/645406575=2.96 times 9289115284/1162404807=7.99 times 365/7.99=45.68 days 4889713857/2362916306=2.07 times 365/2.07=176.38 days 9289115284/(47623151120/2)=0.39 times (1319389328/9289115284)*100=14.20% (1319389328/23811575560)*100=5.54% (1319389328/17768145010)*100=7.43% CALCULATIONS FOR SPL 2010 2011 2012 2.15:1 1.16:1 1.50:1 0.96:1 1.58:1 0.95:1 0.30 0.23 0.41 0.29 0.32 0.24 8.7 times 10.2 times 7.6 times 22.5times 16.2 days 1.168 times 312.4 days 0.76 times 17.4 times 20.9 days 1.173 times 311.2 days 0.69 times 19.8 times 18.4 days 1.19 imes 305.8 days 0.75 times 18.21% 13.89% 19.73% 18.80% 13.02% 22.99% 18.05% 13.51% 20.41% Liquidity 1. Current ratio 2. Quick ratio Leverage 3. Debt-to-equity 4. Debt-to-total-assets Coverage 5. Interest coverage Activity 6. 7. 8. 9. 10. Receivables turnover Receivables turnover in days Inventory turnover Inventory turnover in days Asset turnover Profitability 11. Net profit margin 12. Return on investment (ROI) 13. Return on equity (ROE) SPL WORKINGS FOR 2010 Page 29
  31. 31. Group II July 18, 2013 2010 Liquidity 1. Current ratio 2. Quick ratio Leverage 3. Debt-to-equity 4. Debt-to-total-assets Coverage 5. Interest coverage Activity 6. Receivables turnover 7. Receivables turnover in days 8. Inventory turnover 9. Inventory turnover in days 10. Asset turnover Profitability 11. Net profit margin 12. Return on investment (ROI) 13. Return on equity (ROE) 4774311194/2216744401= 2.15:1 2567233112/2216744401= 1.16:1 3475120453/11554379825= 0.30 3475120453/15029500278= 0.23 2689618986/308861107= 8.7 times 11462578410/508249174= 22.5 times 365/22.5= 16.2 days (13279142/ 11366598)= 1.168 365/1.168=312.4 (11462578000/15029500000)=0.76 (2087872000/11462578000)*100=18.21% (2087872000/15029500000)*100=13.89% (2087872000/10581589000)*100=19.73% SPL WORKINGS FOR 2011 2011 Liquidity 1. Current ratio 2. Quick ratio Leverage 3. Debt-to-equity 4. Debt-to-total-assets Coverage 5. Interest coverage Activity 6. Receivables turnover 7. Receivables turnover in days 8. Inventory turnover 9. Inventory turnover in days 10. Asset turnover Profitability 11. Net profit margin 12. Return on investment (ROI) 13. Return on equity (ROE) 7022213840/4668189426= 1.50:1 4480525511/4668189426= 0.96:1 5626700664/13817708990= 0.41 5626700664/19444409654= 0.29 2751605397/268849071=10.2 times 13471424469/772421345=17.4 times 365/17.4=20.9 days (15576488/13279142)=1.173 365/1.173= 311.2 (13471424000/19444410000)=0.69 (2532055000/13471424000)*100=18.80% (2532055000/19444410000)*100=13.02% (2532055000/11014891000)*100=22.99% Page 30
  32. 32. Group II July 18, 2013 SPL WORKINGS FOR 2012 2012 Liquidity 1. Current ratio 2. Quick ratio Leverage 3. Debt-to-equity 4. Debt-to-total-assets Coverage 5. Interest coverage Activity 6. Receivables turnover 7. Receivables turnover in days 8. Inventory turnover 9. Inventory turnover in days 10. Asset turnover Profitability 11. Net profit margin 12. Return on investment (ROI) 13. Return on equity (ROE) V. 6745507008/4252934845= 1.58:1 4057688536/4252934845= 0.95:1 5186900507/16266884255= 0.32 5186900507/21453784762= 0.24 3321146713/433581036=7.6 times 16054425243/808311714=19.8 times 365/=18.4 days (18592856236/15576487536)= 1.194 365/1.194= 305.78 (16054425000/21453785000)=0.75 (2897711000/16054425000)*100=18.05% (2897711000/21453785000)*100=13.51% (2897711000/1419879000)*100=20.41% TABLE OF FIGURES: FIGURE 1: BPL LIQUIDITY RATIOS ................................................................................................................................. 14 FIGURE 2: BPL COVERAGE RATIO ................................................................................................................................. 14 FIGURE 3: BPL LEVERAGE RATIOS................................................................................................................................. 14 FIGURE 4: BPL ACTIVITY RATIOS .................................................................................................................................. 14 FIGURE 5: BPL PROFITABILITY RATIOS ........................................................................................................................... 14 FIGURE 6: SPL LIQUIDITY RATIOS .................................................................................................................................. 19 FIGURE 7: SPL LEVERAGE RATIOS ................................................................................................................................. 20 FIGURE 8: SPL COVERAGE RATIO ................................................................................................................................. 20 FIGURE 9: SPL ACTIVITY RATIOS................................................................................................................................... 20 FIGURE 10: SPL PROFITABILITY RATIOS ......................................................................................................................... 20 FIGURE 11: CC LIQUIDITY RATIO ................................................................................................................................ 21 FIGURE 12: CC LEVERAGE RATIOS ................................................................................................................................ 21 FIGURE 13: CC COVERAGE RATIOS ............................................................................................................................... 21 FIGURE 14: CC RECEIVABLE RATIOS .............................................................................................................................. 22 FIGURE 15: CC INVENTORY RATIOS............................................................................................................................... 22 FIGURE 16: CC ASSET TURNOVER RATIO ....................................................................................................................... 22 FIGURE 17: CC PROFITABILITY RATIOS........................................................................................................................... 23 FIGURE 18: MARKET PRICE GRAPHS ............................................................................................................................. 24 FIGURE 19: SPL CLOSING PRICE ................................................................................................................................... 24 FIGURE 20: BPL CLOSING PRICE................................................................................................................................... 24 Page 31

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