Hamdard University Bangladesh

Assignment On
Bengal drugs & chemical works (pharmaceutical) ltd ratio Analysis
Course Name: Principle of Managerial Finance
Course code: BBA

Submitted To, Submitted By,

Ayesha Begum Kaniz Fatema Borna

ID: 22122100
Lecturer,
Department of Business Administration Tamanna Akter Shoily
Faculty of Business Administration ID: 221221012
Hamdard University Bangladesh
Imran Hossain
ID: 22122102

Program: BBA (22nd Batch)

Department of Business Administration
Hamdard University Bangladesh

Date of submission: 28th January, 2024

 Bengal Drugs & Chemical Works (pharmaceutical) LTD
Income statement

2022 2021 2020 2019

Sales revenue 600,000 500,000 550,000 480,000
Less: cost of goods sold 460,000 380,000 390,000 300,000
Gross profits 140,000 120,000 160,000 180,000
Less: operating expenses
General and administrative expenses 45,000 35,000 39,000 37,000
Depreciation expense 35,000 33,000 36,000 39,000
Total operating expense 80,000 68,000 75,000 76,000
Operating profits 90,000 85,000 75,000 82,000
Less: interest expense 15,000 18,000 15,000 13,000
Net profits before tax 105,000 103,000 90,000 95,000
Less: taxes 27,100 19,000 18,000 13,000
Earning available for common 77,900 84,000 72,000 82,000
stockholders
share (Earnings per EPS) 1.15$ 1.38$ 1.16$ 1.36$
 Bengal Drugs & Chemical Works (pharmaceutical) LTD
Balance sheet

Asset 2022 2021 2020 2019

Cash 150,000 103,000 103,000 102,000
Marketable securities 52,000 55,000 45,000 36,000
Account receivable 34,100 33,000 29,000 40,000
Inventories 82,000 72,000 68,000 70,000
Total current assets $ 318,100 $ 263,000 $ 245,000 $ 148,000
Land and buildings 150,000 150,000 150,000 150,000
Machinery and equipment 200,000 180,000 190,000 152,000
Furniture and fixtures 45,000 38,000 55,000 39,000
Other 11,000 8000 9000 5000
Total gross fixed assets 406,000 376,000 404,000 346,000
Less: accumulated depreciation 154,000 135,000 136,000 150,000
Net fixed assets 252,000 241,000 268,000 196,000
Total assets $ 570,100 $ 504,000 $ 513,000 $ 344,000

Liabilities and stockholder equity

Accounts payable 57,000 49,000 59,000 45,000
Notes payable 13,000 15,000 16,000 140,00
Accruals 5000 6000 5000 8000
Total current liabilities $ 75000 $ 70,000 $ 80,000 $ 67,000
Long term debt 150,000 140,000 160,000 80,000
Common stock equity 110,200 108,000 112,000 60,000
Retained earnings 73,000 69,000 55,000 45,000
Total stockholders equity 161,900 117,000 106,000 92,000
Total liabilities and stockholders $ 570,100 $ 504,000 $ 513,000 $ 344,000
equity

Ratio 2022 2021 2020 2019

Quick ratio 3.12 2.58 2.09 1.03
Current ratio 4.25 3.76 3.07 2.21
Inventory turnover 6.36 times 5.88 times 6.0 times 4.29 times
Total assets turnover 1.19 times 0.97 times 1.56 times 1.4 times
Net profit margin 17.5 20.6 16.36 19.79
Gross profit margin 23.33% 24% 29.09% 37.5%
 Quick ratio

The acid-test quick ratio is a measure of a company immediate short term liquidity. We compute this ratio
by dividing the sum of cash, short term investments, and net receivables by current liabilities. Thus, it is
an important complement to the current ratio

current assets−inventory
Quick ratio = ,
current liabilities

2022 2021 2020 2019

318,100−82,000 263,000−72,000 245,000−68,000 148,000−70,000
= = = =
75,000 70,000 80,000 67,000
3.12 2.58 2.09 1.03

Quick ratio
3.5
3
2.5
2
1.5
1
0.5
0
2022 2021 2020 2019
 Current ratio

The current ratio is a widely used measure for evaluating a company liquidity and short term
debt paying ability. The ratio is computed by dividing current assets by current liabilities

current a assets
Current Ratio =
current li abilities

2022 2021 2020 2019

318,100= ¿ ¿4.2 263,000
=¿3.76
245,000
=¿3.07
148,000
=¿2.21
75000 70,000 80,000 67,000
5

Current ratio
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0
2022 2021 2020 2019
 Inventory turnover

Inventory turnover measures the number of times on average, the inventory is sold during the period its
purpose is to measure the liquidity of the inventory.

cost of goods sold

Inventory turnover = ,
average invenory

2022 2021 2020 2019

460,000 380,000 390,000 300,000
82,000+ 72,000 =6.36 72,000+68,000 =5.88 68,000+70,000 , 70,000+70,000 =4.29
2 2 2 2
times times =6.0times times

Inventory turnover
7
6
5
4
3
2
1
0
2022 2021 2020 2019
 Total assets turnover ratio

Total asset turnover, or asset turns is a financial ratio that measures the efficiency of a company's use of
its assets in generating sales revenue or sales income to the company

sales
Total assets turnover ratio ,
average total assets

2022 2021 2020 2019

600,0000 500,000 550,000 480,000
=1.19׿ =0.97׿ =1.56׿ =1.4׿
570,100+504,000 504,000+513,000 513.000+344,000 344,000+344,000
2 2 2 2

Total assets turnover

1.8
1.6
1.4
1.2
1 Series1
0.8
0.6
0.4
0.2
0
2022 2021 2020 2019
 Gross Profit Margin

The gross profit margin measures the percentage of each sales dollar remaining after the firm has paid for
its goods

gross proti
Gross profit margin = × 100
turnover

2022 2021 2020 2019

140,000 120,000 160,000 180,000
×100 =23.33 ×100 = 24% ×10 0 = × 100 =
600,000 500,000 550,000 480,000
% 29.09% 37.5%

Gross profit margin

40.00%
35.00%
30.00%
25.00%
Series1
20.00%
15.00%
10.00%
5.00%
0.00%
2022 2021 2020 2019
 Net Profit Margin

The net profit margin measures the percentage of each sales tk remaining after all costs and expenses
including interest, taxes and preferred stock dividends, have been deducted

net prot before tax

Net Profit Margin = ×100
turnover

2022 2021 2020 2019

105,000 103.000 90,000 95,000
×100 = 17.5 ×100 = 20.6 ×100=16.36 × 100= 19.79
600,000 500.000 550,000 480,000

Net profit margin

25

20

15
Series1
10

0
2022 2021 2020 2019