Here i compare two years ratio.

1. Welcome to my
presentation

2. Md. Enamul Islam Shemul
Student of Patuakhali Science and Technology University
Faculty of Business Administration and Management
Session 2013-14

3. Introduction
Financial ratios are mathematical comparisons of financial
statement accounts or categories. These relationships
between the financial statement accounts help investors,
creditors, and internal company management understand
how well a business is performing and areas of needing
improvement. Financial ratios are the most common and
widespread tools used to analysis a business financial
standing. Ratios are easy to understand and simple to
compute. They can also be used to compare different
companies in different industries. Since a ratio is simply a
mathematically comparison based on proportions, big and
small companies can be use ratio to compare the financial
information. In a sense, financial ratios don’t take into
consideration the size of a company or the industry. Ratios are
just raw computations of financial position and performance.

4. Objectives of the Report
• To analysis Financial Ratios of Beacon
Pharmaceuticals Limited .
• To assess the performance and financial condition
of Beacon Pharmaceuticals Limited .
• To compare the financial condition between last
two years.

5. Methodology of the Report
. Research Problem
. Sampling
. Data collection
. Variable Description
1) Dependent variable
2) Independent variable
. Procedure of data analysis

6. Procedure of data analysis
• Current ratio = Current Asset ÷ Current liability
• Quick Ratio = (Current Asset-inventory) ÷ Current liability
• Inventory Turnover Ratio = Cost of goods sold ÷ inventory
• Days Sales Outstanding = Accounts receivable ÷ average daily sales
• Fixed asset Turnover Ratio = Sales ÷ Net fixed asset
• Total Asset Turnover Ratio = Sales ÷ Total asset
• Debt Ratio = Total Liability ÷ Total asset
• Times Interest Earned Ratio = Earnings before interest & tax ÷ Interest
charges
• Net Profit Margin = Net profit ÷ Sales
• Return on Total Asset = Net income ÷ Total asset
• Return on Common Equity = Net income available to common
stockholders ÷ Common Equity

7. Organizational overview
Beacon Pharmaceuticals Limited, a leading
Pharmaceutical Company in Bangladesh in respect of
producing high-tech products like anticancer and
cardiovascular portfolio. Beacon is a Public Limited
Company listed with Dhaka and Chittagong Stock
Exchange, which was incorporated on 12th September,
2001 as a private limited company with the Registrar of
Joint Stock Companies and Firms, Dhaka, Bangladesh
under the companies Act 1994 and subsequently
converted into a Public Limited Company with a mission
to improve the quality of human life by providing
innovative pharmaceutical products through continuous
research and development by ensuring stakeholders
satisfaction with the aim of becoming one of the most
value driven Pharmaceutical Companies in the

8. Liquidity Ratio
In 2013
Current Ratio = Current Assets / Current
Liabilities.
= 1526460823
4251619886
= 0.36
In 2014
Current Ratio = Current Assets / Current
Liabilities.
=
2157357740
1062083274
= 2.031
Comparative Ratio Analysis:
In 2013 & 2014 Current ratio are 0.36 & 2.03 respectively. The Current Ratio of 2014 is
higher than 2013 because the Current Asset of 2014 is greater than 2013 but the
current liability of 2014 is lower than 2013.

9. Comparative Ratio Analysis:
I found that the Quick Ratio of 2014 is upper than 2013, because the Current Assets
and Inventory increases but liability decreases 2014 than 2013.
In 2013
Quick ratio = (Current Assets - Inventory)
/ Current Liabilities
=
1526460823−920497475
702348389
= 0.862
In 2014
Quick ratio = (Current Assets-Inventory) /
Current Liabilities
=
2157357740−1064947942
1062083274
= 1.028

10. Profitability Ratio
In 2013
Net Profit Margin = Net Income / Net
Sales
=
9131066
1226906195
*100
=0.744 %
In 2014
Net Profit Margin = Net Income / Net
Sales
=
24228195
169036346
*100
=14.33 %
Comparative Ratio Analysis:
In 2013 & 2014 Net Profit Margin are 0.744% & 14.33% respectively. The
Net Profit Margin of 2014 is higher than 2013 because the Net Income &
Net Sales increases from 2013 to 2014

11. Comparative Ratio Analysis:
I found that the Return on assets (ROA) of 2014 is upper than 2013, because the Net
Income and Total assets increases from 2013 to 2014.
In 2013
Return on assets (ROA)= Net Income /
Total assets *100
=
9131066
4251619886
* 100
= 0.214 %
In 2014
Return on assets (ROA) = Net Income /
Total assets *100
=
24228195
4589825300
* 100
= 0.52 %

12. Comparative Ratio Analysis
In 2013 & 2014 the Return on Equity (ROE) are 0.329% & 0.844% respectively, because the Net
income & shareholders’ equity of 2014 is higher than 2013.
In 2013
Return on Equity (ROE) = Net Income /
average shareholders’ equity *100
=
9131066
2773258328
*100
= 0.329 %
In 2014
Return on Equity (ROE) = Net Income /
Shareholders’ equity *100
=
24228195
2867382009
*100
= 0.844 %

13. Asset Management
In 2013
Inventory Turnover = Cost of goods sold /
Inventory
=
609987995
920497475
= 0.662 times
In 2014
Inventory Turnover = Cost of goods sold /
Inventory
=
894119555
1064947942
= 0.839 times
Comparative Ratio Analysis:
Here, I found that the Inventory Turnover of 2014 is superior than 2013,
because the Cost of goods sold & Inventory increases from 2013 to 2014

14. Comparative Ratio Analysis:
From the calculation, I found that the Days Sales Outstanding (DSO) of 2014 is better
than 2013, because the Accounts Receivable & Annual sales increases from 2013 to
2014.
In 2013
Days Sales Outstanding (DSO) =
Accounts Receivable/(Annual sales/360)
=
157859545
3408073
= 46.32
In 2014
Days Sales Outstanding (DSO) =
Accounts Receivable/ (Annual sales/360)
=
264808362
4695544
= 56.39

15. Comparative Ratio Analysis:
In 2013 & 2014 the Fixed asset turnover are 0.45 times & 0.70 times respectively. For
the reason that the Sales & Net fixed assets increases but the net fixed assets are more
increases than sales.
In 2013
Fixed asset turnover = Sales/Net fixed
assets
=
1226906195
2725159063
= 0.45 times
In 2014
Fixed asset turnover = Sales/Net fixed
assets
=
1690363446
2432467559
= 0.70 times

16. Comparative Ratio Analysis:
From the equation, I institute that the Total assets turnover of 2014 is better than 2013.
As the Sales & Total assets are increases from 2013 to 2014.
In 2013
Total assets turnover = Sales/Total
assets
=
1226906195
4251619886
= 0.289 times
In 2014
Total assets turnover = Sales/Total
assets
=
1690363446
4589825300
= 0.37 times

17. Debt Management
In 2013
Debt to assets = Total Liabilities/Total
assets
=
702348389
4251619886
* 100
= 16.51%
In 2014
Debt to assets = Total Liabilities/Total
assets
=
1722443291
4589825300
* 100
= 37.52
Comparative Ratio Analysis:
In 2013 & 2014 the Debt to assets are 16.51% & 37.52% respectively.
Because the Total Liabilities drops but Total assets rises in 2014 from
2013.

18. Conclusion
Beacon is a very popular name in the Pharmaceuticals Industries in
Bangladesh due to its high quality products of Anticancer,
cardiovascular, Gastrointestinal, Antibiotics, Anti - Coagulants,
Protein Supplements, l'"muscle relaxant, Anti-histamine, Analgesics
and NSAIDS etc . The study concentrated on the financial statement
of ratio analysis. The products line of Beacon Pharmaceuticals
Limited is much diversified in terms of items and designs. Beacon
Pharmaceuticals Limited has tremendous problem in maintaining
liquidity but they try to maintain it by delay payment to their
creditors. At the same time it is not so good in debt management.
However, Beacon Pharmaceuticals Limited is highly efficient to
control its inventory, creditors and sales. On the other hand Beacon
Pharmaceuticals Limited is in high position in profitability by
improving net profit, gross profit and operating profit. Though they
have problems in ROE and ROA they should recover it by giving
deep concentration