3. Submitted to:
Ms. Shobnom Munira
Lecturer Department of
Business Administration
{NUB}
Presented by Errorgroup:
[Department of BBA 3rd semester]
Khaladha Nasrin Mitu {ID:160170991}
Al Mamun {ID:160170993}
Sumaiya Binta Siddiqua {ID:160170995}
Abdullah Rakib {ID:160170997}
4. SQUARE PHARMACEUTICALS Ltd.
Horizontal Analysis of Income Statement
For the Years Ended December 31
2015 2014 Change Percent
GROSS TURNOVER 30,833,571,248 26,945,687,557 3,887,883,691 14%
NET TURNOVER 26,684,573,116 23,268,413,217 3,416,159,899 15%
COST OF GOODS SOLD -14,942,870,155 -12,960,738,683 -1,982,131,472 15%
GROSS PROFIT 11,741,702,961 10,307,674,534 1,434,028,427 14%
OPERATING EXPENSES: -4,692,091,383 -4,340,021,264 -352,070,119 8%
Selling & Distribution Expenses -3,757,838,863 -3,431,938,716 -325,900,147 9%
Administrative Expenses -775,638,213 -730,951,152 -44,687,061 6%
Financial Expenses -158,614,307 -177,131,396 18,517,089 -10%
PROFIT FROM OPERATIONS 7,049,611,578 5,967,653,270 1,081,958,308 18%
Other Income 293,730,506 245,133,874 48,596,632 20%
PROFIT BEFORE WPPF 7,343,342,084 6,212,787,144 1,130,554,940 18%
Allocation for WPPF -379,795,062 -300,438,842 -79,356,220 26%
PROFIT BEFORE TAX 6,963,547,022 5,912,348,302 1,051,198,720 18%
Income Tax Expenses - Current -1,679,877,193 -1,518,801,391 -161,075,802 11%
Income Tax Expenses - Deferred -172,400,209 -142,966,048 -29,434,161 21%
PROFIT AFTER TAX FOR THE YEAR 5,186,436,869 4,250,580,863 935,856,006 22%
PROFIT FOR THE YEAR 5,981,636,337 4,946,205,162 1,035,431,175 21%
Other Comprehensive Income: -183,922,744 135,723,333 -319,646,077 -236%
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 5,797,713,593 5,081,928,495 715,785,098 14%
Owners of the Company 5,983,806,201 4,944,554,910 1,039,251,291 21%
Non Controlling Interest -2,169,864 1,650,252 -3,820,116 -231%
Total Comprehensive Income Attributable to: 5,797,713,593 5,081,928,495 715,785,098 14%
Earnings Per Share (EPS) 10.8 8.92 2 21%
Number of Shares used to compute EPS 554,299,152 554,299,152 0 0%
5. Interpretation:
The comparative income statement show that a number of
significant changes have occurred in Square
Pharmaceuticals Ltd. from 2014-2015.
1. Cost of goods sold increased 15%.
2. Total operating expenses increased 8%.
Overall, gross profit & net income were up substantially.
Gross profit increased 14%, & Net Income 14%.
Square Pharmaceuticals Ltd. appears favorable
6. SQUARE PHARMACEUTICALS Ltd.
Horizontal Analysis of Balance Sheet
For the Years Ended December 31
2015 2014 Change Percent
Assets:
Non-Current Assets: 25,458,986,164 23,546,701,250 1,912,284,914 8%
Current Assets: 9,732,170,099 7,499,373,281 2,232,796,818 30%
Inventories 3,310,086,668 2,737,085,779 573,000,889 21%
Trade Debtors 894,543,303 766,634,978 127,908,325 17%
Advances, Deposits and Prepayments 750,169,066 671,749,541 78,419,525 12%
Short Term Loan 885,185,428 1,161,185,776 -276,000,348 -24%
Cash and Cash Equivalents 3,892,185,634 2,162,717,207 1,729,468,427 80%
TOTAL ASSETS 35,191,156,263 31,046,074,531 4,145,081,732 13%
SHAREHOLDERS' EQUITY AND LIABILITIES:
Shareholders' Equity: 31,093,302,284 26,739,581,929 4,353,720,355 16%
Share Capital 5,542,991,520 4,819,992,630 722,998,890 15%
Share Premium 2,035,465,000 2,035,465,000 0 0%
General Reserve 105,878,200 105,878,200 0 0%
Retained Earnings 23,143,634,751 18,922,758,840 4,220,875,911 22%
Non Controlling Interest -1,669,864 9,369,803 -11,039,667 -118%
Non-Current Liabilities: 1,550,505,777 1,902,585,673 -352,079,896 -19%
Long Term Loans - Secured 659,147,818 1,183,627,923 -524,480,105 -44%
Deferred Tax Liability 891,357,959 718,957,750 172,400,209 24%
Current Liabilities: 2,549,018,066 2,394,537,126 154,480,940 6%
Short Term Bank Loans 131,104,817 -131,104,817 -100%
Long Term Loans-Current Portion 257,154,669 461,433,822 -204,279,153 -44%
Trade Creditors 254,773,030 217,855,755 36,917,275 17%
Liabilities for Expenses 43,002,246 20,518,598 22,483,648 110%
Liabilities for Other Finance 1,994,088,121 1,563,624,134 430,463,987 28%
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 35,191,156,263 31,046,074,531 4,145,081,732 13%
7. Interpretation:
The comparative balance sheets show that a number of significant changes
have occurred in Square Pharmaceuticals Ltd. from
2014-2015.
1. In the assets section, current assetsincreased30%.
2. In the liabilities section, current liabilitiesincreased6%.
3. In the stockholders equity section, retainedearningsincreased22%.
These changes suggest that the company expanded it’s asset base during
2015 & financed this expansion primarily by returning income rather than
assuming additional long term debt.
8. Ratioanalysis
Expression of logical relationships between items in a
financial statement of a single period
Current Ratio
Quick Test Ratio
Inventory Turnover
Profit Margin
Return on Assets
Asset Turnover
9. Current Ratio
Year Current Assets Current liability Current Ratio
2015 9,732,170,099 2,549,018,066 3.82
2014 7,499,373,281 2,394,537,126 3.13
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
2014 2015
3.31
3.82
AxisTitle
Axis Title
CURRENT RATIO
Current Ratio
The Interpretation:
SQUARE PHARMACEUTICALS Ltd. 2014 of
Current Ratio was 3.31 & the next year 2015 of
Current Ratio has 3.82. That means this year
company Current Ratio increased 0.51 & this
time Current Assets $9,732.17 Million Current
liability $2,549.02 Million.
10. Quick Test Ratio
Year Total Quick Assets Total Current liability Quick Test Ratio
2015 25,458,986,164 2,549,018,066 9.99
2014 23,546,701,250 2,394,537,126 9.83
9.75 9.8 9.85 9.9 9.95 10
2015
2014
9.99
9.83
Quick Test Ratio
The Interpretation:
SQUARE PHARMACEUTICALS Ltd. 2014 of Quick
Test Ratio was 9.83 & the next year 2015 of Quick
Test Ratio has 9.99. That means this year company
Quick Test Ratio increased 0.16 & this time Total
Quick Assets $ 25,458.99 Million Current liability
$2,549.02 Million.
11. Profit Margin
Year Net Income Net Sales Profit Margin
2015 5797713593 26684573116 21.7%
2014 5081928495 23268413217 21.8%
Profit Margin
21.65
21.7
21.75
21.8
2014
2015
21.8
21.7
Profit Margin
Profit Margin
The Interpretation:
SQUARE PHARMACEUTICALS Ltd. 2014 of Profit Margin was
21.8% & the next year 2015 of Profit Margin has 21.7%. That
means this year company Profit Margin Decreased 0.1% & this
time Net Income $ 5,797.71 Million Net Sales $26,684.57 Million.
12. Inventory Turnover
Year Cost of Goods sold Average Inventory Inventory Turnover
2015 14942870155 3023586224 4.94
2014 12960738683 3023586224 4.29
3.5
4
4.5
5
2014 2015
Inventory Turnover 4.29 4.94
AXISTITLE
Inventory Turnover
The Interpretation:
SQUARE PHARMACEUTICALS Ltd. is able to rotate
its inventory in sales 4.94 times in one fiscal
year 2015. Review the Industry Norms & Ratio
for this ratio to compare their efficiency and see
if they are above, below or equal to the others
in the same industry.
13. Return on Assets
Year Net Income Average total Assets Return on Assets
2015 5797713593 33118615397 17.5%
2014 5081928495 33118615397 15.3%
14.0%
14.5%
15.0%
15.5%
16.0%
16.5%
17.0%
17.5%
2014 2015
Return on Assets 15.3% 17.5%
AXISTITLE
Return on Assets
The Interpretation:
SQUARE PHARMACEUTICALS Ltd.
generates makes year 2015 17.5% return on
the Assets that it employs in its operations.
Review the Industry Norms & Ratio for this
ratio to compare.
14. Asset Turnover
Year Net Sales Average Total Assets Asset Turnover
2015 26684573116 33118615397 0.81
2014 23268413217 33118615397 0.70
0.64 0.66 0.68 0.7 0.72 0.74 0.76 0.78 0.8 0.82
Asset Turnover
Asset Turnover
2014 0.7
2015 0.81
Asset Turnover
The Interpretation:
SQUARE PHARMACEUTICALS Ltd. 2014 of Asset
Turnover was 0.70 times & the next year 2015 of Asset
Turnover has 0.81times. That means this year company
Asset Turnover increased 0.11times.
15. SQUARE PHARMACEUTICALS Ltd. Ratio Analysis
Ratio 2014 2015 Increased or Decreased
Current Ratio 3.13 3.82 0.69
Quick Test Ratio 9.83 9.99 0.16
Inventory Turnover 4.29 4.94 0.65
Profit Margin 21.8% 21.7% -0.1
Return on Assets 15.3% 17.5% 2.2
Asset Turnover 0.70 0.81 0.11
Here, its analysis that the company are satisfactory with these result. The
company liquidity position, profitability position & companies ability to grow so,
these company is favorable.
