Financial Statment Analysis

Group Members MD.Hasan al mamun (133011029) Arpon puri (133011082) Sajib Hasan (133011085) Niloy(133011096

 Performance

evaluation  One of the best tools  Uses (Measurement, Liquidity, assets Management)  Best use of assets  Square Pharma  1958-1991  Goal to serve the mankind

Financial ratios are useful indicators of a firm's performance and financial situation. Financial ratios can be used to analyze trends and to compare the firm's financials to those of other firms. Financial ratios can be classified according to the information they provide. The following types of ratios frequently are used

1. 2. 3. 4.

Liquidity ratios Activity ratios Debt management ratios Profitability ratios

Liquidity ratios are the first ones to come in the picture. These ratios actually show the relationship of a firm’s cash and other current assets to its current liabilities. Two ratios are discussed under Liquidity ratios. They are  Current ratio  Quick/ Acid Test ratio  Net working capital (NWC) Ratio



CR

Year 2011 2012 CR 1.50 1.59 Year 2011 2012

Qr

QR

NWC

Year 2011

2,354,024,414

NWC

0.96

0.95

2012

2,492,572,163



Interpretation: We have calculated QR, CR, NWC of square

pharma of year 2012 and 2011. Findings suggest that CR and Qr of square pharma is higher than 2011 compare to 2012. Furthermore, it suggests that the liquidity of square pharma is better in 2012 compare to 2011. Current ratio of Square Pharmaceuticals Ltd. shows that the ability of the company to meet the current liabilities with available current assets was decreased in the year 2011 and again increased n 2012. If we take a closer look on the balance sheet, this assumption gets a more realistic touch. Year by year assets have gone slightly up and the liabilities as well, but proportionately assets were a little higher than the liabilities which actually reflected as a marginal increase in the ratio. As the current ratio is not consistent the management...