Financial Performance of Pharmaceutical Industry in Bangladesh with Special Reference to Square Pharmaceuticals Ltd

Abstract

Financial performance analysis is a vital tool to find out the efficiency of management in different aspects of a company. Financial performance has been evaluated in the study through analyzing the financial statement i.e. through ratio analysis. Solvency, profitability, activity or turnover and return on assets and equity have been analyzed to measure the financial performance and efficiency of management. To measure the financial strengths and weaknesses of the company is the main objective of the study. This study is empirical in nature and mainly based on secondary data which are collected from Annual reports of 'Square Pharmaceuticals Ltd.'. Data of 08-year ranging from 2006-2013 have been used for conducting the research work. Some ratios, percentage and statistical tools have been used for analyzing and interpreting the data. This study is following the pharmaceutical industry with special reference to 'Square Pharmaceuticals Ltd.'. Proper financial performance of manufacturing sub-sector like pharmaceutical sub-sector may be helpful for preparing fiscal and economic policy of the country. This study is the part of this effort. From the finding of the study, it is said that liquidity position and inventory turnover ratio is not so much satisfactory while the accounts receivable turnover ratio, earning power and return on equity is satisfactory. From overall findings of the study, it is inferred that the management of Square Pharmaceuticals Ltd. has been able to keep stability in running the business as well as bring upward trend in earning profit. Ultimately, the study recommends maintaining an effective coordination among different departments especially in the finance, sales and PPIC department for further improvement of the company.