Ratio Analysis of 5 Pharmacuticals Companies in Bangladesh

3775 Words Nov 24th, 2012 16 Pages
Assignment
On
Ratio Analysis

Submitted to:
Mr. Saud Ahmed
The Course Instructor Security Analysis & Portfolio Management

Submitted by: S.N. | Member Name | ID | 01 | Anwar Murshed | MBA 048 13912 | 02 | Mahfuj Reza | MBA 047 13761 | 03 | Tania Islam | MBA 048 13917 | 04 | Abdullah Al Mamun Khan | MBA 048 14013 | 05 | Swarna Akter | MBA 049 14397 |

Date of Submission: Tuesday, November 27, 2012

Stamford University Bangladesh
44 (744 old), Satmosjid Road, Dhanmondi, Dhaka

Index Chapter | Titles | Page No. | Executive Summary | 02 | Introduction | Background | 03 | | Objectives | 03 | Theoretical Aspects | Ratio Analysis | 04 | | Purpose Ratio Analysis | 04 | | Categories of Financial Ratios | 04 | |
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Objectives: Two objectives- * To discuss theoretical aspects of Ratio Analysis * To discuss practical aspects of Ratio Analysis (5 Pharmaceuticals Companies 2 years data)

Theoretical Aspects
Financial Ratio: A financial ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting or in finance, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization. Financial ratios may be used by managers within a firm, by current and potential shareholders of a firm, and by a firm's creditors. Financial analysts use financial ratios to compare the strengths and weaknesses in various companies. If shares in a company are traded in a financial market, the market price of the shares is used in certain financial ratios.
Purpose Ratio Analysis: The main purpose of ratio analysis is to evaluate management performance in three areas: 1) Profitability 2) Efficiency 3) Risk
Financial ratios allow for comparisons -between companies -between industries -between different time periods for one company -between a single company and its industry average.
Five Categories of Financial Ratios:
1. Internal liquidity (solvency)
2. Operating performance * a. Operating efficiency * b.