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Financial Analysis of Selected Pharmaceutical Companies in Bangladesh

In: Business and Management

Submitted By emon5400
Words 13441
Pages 54
Journal of Biology, Agriculture and Healthcare
ISSN 2224-3208 (Paper) ISSN 2225-093X (Online)
Vol 1, No.2, 2011

Financial Analysis of Selected Pharmaceutical Companies in
Md. Tofael Hossain Majumder
Department of Accounting and Information Systems, Faculty of Business Studies
Comilla University, Comilla, Bangladesh.

Mohammed Mizanur Rahman
School of Business and Economics, Atish Dipankar University of Science and Technology
Dhaka, Bangladesh.
The Pharmaceutical industry plays a vital role in the socio-economic development of Bangladesh.
But the net profit of this industry has decreased for the last few years. This study is designed to review the financial performance of this industry, to test its strengths and weaknesses. The financial performance of this industry is measured in terms of Ratio (Profitability, Liquidity, Solvency and
Activity ratio) Analysis and in terms of Testing Financial Soundness by using Multivariate
Discriminate Analysis (MDA) as developed by Prof. Altman. For the source of data mainly relied on Annual Reports and official records. It was observed from the study of the financial statement of the Pharmaceutical industry that the profit earning capacity, liquidity position, financial position and the performance of the most of the Pharmaceuticals are not in sound position and it was also observed that the most of the Pharmaceuticals has a lower level position of bankruptcy. The reasons behind this position of the industry are inefficiency of financial management, absence of realistic goals, strict government regulation and increased cost of raw-materials, labor and overhead. The financial performance should be improved immediately. Therefore, the appropriate authority should take measures for the removal of the above problems.…...

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