This document analyzes working capital management (WCM) ratios for several pharmaceutical companies in Bangladesh, including Square Pharmaceuticals and GlaxoSmithKline. It calculates key WCM metrics like inventory turnover, receivables period, payables period, and cash conversion cycle for each company individually and compares them to industry averages. Graphs are presented to show how the individual companies compare to overall industry trends. The analysis provides insights into how efficiently different companies are managing their working capital.

2. Glaxo SmithKline
&
Square
Pharmaceutical

5. Ph armaceu tical,
immunization and medicinal
s er vice
F u s ed in 1 9 7 4 an d is
s itu ated in Dh aka
Offer wellb ein g s u bstan ce
d rin ks u n d er Horlicks mark
Works as b acku p of Setfirst
L im ited

6. S q u ar e
P h a r m ace utical
LTD

7. B egin n in g 1 9 5 8
B ig gest p h armaceu tical organ ization
Market covers 3 6 n ation s

8. WHAT IS “WORKING
CAPITAL
MANAGEMENT”?

9. A
strategy
designed to monitor and utilize the two
components of working capital, current
assets and current liabilities, to ensure
the most financially efficient operation of
the company.

10. OBJECTIVES
The Production
Cycle
The Financing
Cycle
Source: Hill (2013), “Working Capital Management”

11. Structure of Working Capital

12. Source: Hill (2013), “Working Capital Management”

13. Account Name ACI Limited ACME
Laboratories
Limited
Beximco
Pharmaceutical
Orion Pharma
limited
Renata Limited The IBN SINA
Pharmaceutical
Limited
Cost of goods sold
7147881434 5656961523 6102694323 647310000 571897406 1896784005
Average Inventory
2757253157 2353936599 2452769662 448769955.5 3067519861 165413488
Credit Sales 12318723190 8822686137 11026885677 1652880000 11107281260 3162625108
Average Account
Receivable’s 5799406247 744884749.5 1323466673 3533423667 1553997093 6259725
Average Payable
8230142963 7705995308 4545164354 4111429956 5430695529 467835060.5
Industry analysis
Imp ortant d ata calc u lated for six comp an ies( g iven b elow)

14. WCM
Related
Ratio
ACI
Limited
Acme
Laboratories Limited
Beximco
Pharmaceutical
Orion
Pharma
Limited
Renata Limited The IBN SINA
Pharmaceutical Limited
Inventory Turnover
2 . 5 9 2 . 4 0 2 . 4 9 1 . 4 4 1 . 8 6 1 1 . 4 6
Inventory Period
1 4 1 1 5 2 1 4 7 2 5 3 1 9 6 3 2
Receivable Turnover
2 . 1 2 1 1 . 8 8 . 3 3 . 4 6 7 . 1 5 0 5
Receivable Period
1 7 2 3 0 . 8 4 3 . 8 1 7 9 3 5 1 0 . 7 2
Payable Turnover
0 . 8 7 0 . 7 3 1 . 3 4 0 . 1 6 1 . 0 5 4 . 0 5
Payable Period
4 2 0 5 0 0 2 7 2 2 2 8 1 3 4 8 9 0
Cash cycle=
(Operating cycle –
Accounts payable
period) - 1 0 7 - 3 1 7 - 8 1 - 1 2 3 5 - 1 0 1 - 5 7
Data c alc ulation of WCM related ratios
Industry Analysis

15. Graphical representation of Industry
analysis
( Pharmaceutical)

16. G r a p h i c a l r e p r e s e n t a t i o n o f I n d u s t r y
a n a l y s i s

17. Individual Analysis
Important data calculated for SQUARE pharmaceutical Limited
Accounts name 2014 2015 2016
Cost of goods sold 1 2 9 6 0 7 3 8 6 8 3 1 4 9 4 2 8 7 0 1 5 5 1 6 4 0 7 2 3 3 8 9 3
Average inventory 2 9 1 4 1 7 4 7 4 6 3 0 2 3 5 8 6 2 2 4 3 4 8 0 5 1 8 8 0 7
Credit sales 2 3 2 6 8 4 1 3 2 1 7 2 6 6 8 4 5 7 3 1 1 6 3 1 4 8 2 5 4 0 3 5 2
Average account receivable 7 8 9 6 8 8 0 0 3 . 5 1 2 7 7 8 6 0 7 9 7 8 6 7 2 3 0 6 8 3 . 5
Average account payable 2 8 3 4 9 7 2 2 8 0 2 4 7 1 7 7 7 5 9 6 3 1 5 9 9 5 0 4 1 7

18. Individual analysis
Data calculation of WCM related ratios for SQUARE PHARMACEUTICAL
LIMITED
WCM related ratios 2013 2014 2016
Inventory turnover 4 . 4 4 4 . 9 4 4 . 7 1
Inventory period 8 2 7 4 7 8
Receivable turnover 2 9 . 5 2 0 . 8 8 3 6 . 3 0
Receivable period 1 3 1 8 1 0
Payable turnover 4 . 6 0 6 . 0 4 5 . 1 9
Payable period 7 9 6 0 7 0
Cash cycle=operating
cycle-account payable
period
1 6 3 2 1 8

19. I n d i v i d u a l ( S Q U A R E )
v s .
i n d u s t r y
Graphical representation to compare individual(SQUARE) vs. industry’s WCM
related ratios

20. Graphical representation to compare
individual(SQUARE) vs. industry’s WCM related
ratios

21. Individual analysis
Important data calculated for Glaxosmithkline limited
Accounts title 2014 2015 2016
Cost of goods sold 4 4 7 6 2 5 5 0 0 0 6 0 6 4 2 9 7 0 0 0 3 8 3 4 0 3 1 0 0 0
Average inventory 1 0 4 6 2 8 5 5 0 0 8 6 0 1 7 8 5 0 0 8 1 9 0 5 2 0 0 0
Credit sales 7 1 8 7 2 2 5 0 0 0 ( t o t a l
s a l e )
6 6 8 8 8 2 8 0 0 0 6 2 8 4 0 1 5 0 0 0
Average account
receivable
7 7 5 4 8 4 0 0 0 1 1 3 4 6 2 5 0 0 0 1 0 9 3 0 0 7 1 5 0 0
Average account payable 2 2 9 6 6 7 7 5 0 0 2 7 4 1 4 8 7 0 0 0 2 8 3 0 2 8 1 0 0 0

22. Individual analys is
Data calculation of WCM related ratios forGlaxosmithkline limited
WCM related ratio 2014 2015 2016
Inventory turnover 4 . 2 7 4 . 7 2 4 . 6 8
Inventory period 8 6 7 8 7 8
Receivable turnover 9 . 2 5 5 . 9 5 . 7 5
Receivable period 4 0 6 2 6 4
Payable turnover 1 . 9 4 1 . 4 8 1 . 3 5
Payable period 1 8 8 2 4 7 2 7 1
Cash cycle=operating
cycle – account payable
period
- 6 2 - 1 0 7 - 1 2 9

23. Individual(SQUARE) vs .
indus tr y
Graphical representation to compare individual( Glaxosmithkline )
vs. industry’s WCM related ratios

24. G r a p h i c a l r e p r e s e n t a t i o n t o
c o m p a r e i n d i v i d u a l (
G l a x o S m i t h K l i n e ) v s . i n d u s t r y ’ s
W C M r a t i o s

25. C o n c l u s i o n

26. THANK YOU,
ANY
QUESTIONS?