This document contains an analysis of Square Pharmaceuticals, including PEST, SWOT, financial, and ratio analyses. The PEST analysis examines the political, economic, social and technological factors affecting the pharmaceutical industry in Bangladesh. The SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. The financial analysis includes horizontal analysis of the income statement from 2014-2015, a vertical common size income statement for 2015, and a vertical common size balance sheet for 2015. Ratio analysis compares the company's profitability, liquidity, and solvency ratios to industry averages.

2. Name Id No
Md.Mahabubor Rahaman M160203924
Parthn Debnath M160203934
Md.Al Amin M160203905
Abu Ufa Mohd. Ibrahim M160203915
Foisal uddin M160203945

3. PEST Analysis
Political
 With the change of
government power, export-
import policies changes.
 More than 27% tax is
charged on pharmaceutical
products.
 For pharmaceutical
industry, government do not
allocate proper budget
through fiscal policy.
Economical
 Currency fluctuation has
significant impact on
pharmaceutical industry.
 Cheap labor cost lead to a
increase in profit margin for
this industry.
 Pharmaceutical industry play a
very vital role in Bangladesh’s
GDP growth.

4. Social
Population in Bangladesh is
continuously increasing
which boost this industry.
In urban area, people are not
conscious and sufficient
enough to use
pharmaceutical products.
Culture has huge impact on
pharmaceutical industry.
Technological
 1.Square is trying to upgrade
and adopt new technology in
production, quality control,
distribution and administration
of its products.
 2. Pharmaceutical is a high-
tech industry.
 3. During the year 2013-14,
Square has invested an amount
of TK 108,086,342 in
improving its laboratory.

5. SWOT Analysis
Strengths
 Square has highly efficient sales force
and large own distribution channel.
 Square has good brand image to its
consumers.
 For last 29 years, Square has
maintained its number one position in
market.
 Square maintains high quality
standards for its products.
Weaknesses
 Square has made delay in introducing
some injections that Incepta has
introduced earlier and now those are
popular.
 Square do not spend adequate money
for R&D sector compared to the
nature of industry.
 Selling & distribution costs are
increasing.


6. Opportunities
 Square has the opportunity to
export its products to giant India
and USA market.
 People now have more
affordability as their income is
increasing.
 Square should emphasize on
innovation more and more.
 Although Square has strong
distribution channel, this need to
be improved more.
Threats
 With the change of government
power, export- import policies
changes.
 Rapid currency fluctuation has
significant impact on pharmaceutical
industry.
 There is a huge competition from
MNCs
 Recent good performance of Incepta
and Beximco pharmaceutical is posing
a threat to Square Pharmaceutical.

7. Financial Analysis
VARIOUS TOOLS NECESSARY IN financial
Analysis
 Horizontal analysis
 Vertical analysis
 Ratio analysis

8. Horizontal analysis (or trend analysis) refers to
studying the behavior of individual financial
statement items over several accounting
periods.

9. SQUARE PHARMACEUTICALS
COMPANY HORIZONTAL
ANALYSIS
Square Pharmaceuticals company Ltd.
Income Statement
Particulars 2014 2015
Percentages
differences
Pair
company
Sales Revenue $23,268,413,217 $26,684,573,116 15% 7%
Less: cogs $12,960,738,683 $14,942,870,155 15% 8%
Gross Margin $10,307,674,534 $11,741,702,961 14% 5%
Less: Operating expenses $4,340,021,264 $4,692,091,383 8% 8%
Income before income tax $5,912,348,302 $6,963,547,022 18% 1%
Less: Income tax $1,661,767,439 $1,852,277,402 11% -16%
Net Income $5,081,928,495 $5,797,713,593 14% 9%

10. Common size statement
Are that reveals each item in percentage
A material financial statement is used are a base
value and all other accounts of financial statement
are compared to it.
Vertical Analysis

11. In income statements, all items are usually expressed as a percentage of sales
Square Pharma
Income Statement
Particulars
2015
2015 Pair
company
Sales Revenue $26,684,573,116 100% 100%
Less: cogs $14,942,870,155 56% 54%
Gross Margin $11,741,702,961 44% 46%
Less: Operating expenses $4,692,091,383 18% 30%
Income before income tax $6,963,547,022 26% 19%
Less: Income tax $1,852,277,402 7% 5%
Net Income
$5,797,713,593 22% 14%

12. Vertical Analysis of Balance Sheet
In balance sheets, all items are usually expressed as a percentage of total
assets.
Square Pharma
Balance sheet
Particulars 2015
2015 Pair company
Cash $3,892,185,634 11% 1%
Inventories $3,310,086,668 9% 9%
Total Current Assets
$9,732,170,099 28% 29%
Property, Plant and Equipment $18,009,200,507 51% 70%
Investment - Long Term (at Cost) $251,599,097 1% 1%
Net Fixed Assets $25,458,986,164 72% 71%
Total assets $35,191,156,263 100% 100%

13. Ratio analysis involves studying various relationships between
different items reported in a set of financial statements.
Profitability ratiosProfitability ratios
Ratios are classified into three categories . . .
Liquidity ratiosLiquidity ratios
Solvency ratiosSolvency ratios

14. Square Beximco Aci Orion Renata Industry
average
3.82 1.78 1.19 2.30 2.87 2.392
Square Industry average
3.82 2.392

15. Profitability Ratios
Square Beximco Aci Orion Renata Industry
average
44.00% 45.55 41.98 93.20 51.21 55.128
Square Industry average
44.00% 55.128

16. Solvency Ratios
Square Beximco Aci Orion Renata Industry
average
0.12 0.28 0.54 0.24 0.19 0.274
Square Industry average
0.12 55.128

17. Thanks to all