Operations Management

William J. Stevenson

8th edition

CHAPTER

INTRODUCTION

CORPORATE PROFILE
Genesis
BIOPHARMA Laboratories Limited, one of the fast growing pharmaceutical companies in Bangladesh, Has been manufacturing and marketing a wide range of pharmaceutical finished products with strict standard of safety, quality and efficacy to ensure public healthcare through uncompromising scientific and professional approach.

Date of Functioning Corporate Head Office

Since 1999 7/16, Block-B, Lalmatia, Dhaka1207, Bangladesh

11-4

Inventory Management

CORPORATE PROFILE
7/16, Block-B, Lalmatia, Dhaka1207, Bangladesh A-116, BSCIC Industrial Estate, Tongi, Gazipur Tel : (880-2) 9801240 Business Line manufacturing and marketing a wide range of pharmaceutical finished products for Human & Animal Health care Srilanka, Myanmar, Kenya, Afganistan, Vietnam, Yeman, Philipines, Combodia, Tanzania, Nigeria, Ivory Coast, Senegal and Benin.

Export Market

Mission & Vision

Their mission is to serve the mankind,
especially the distressed and poor ailing people vision is to be regarded globally as a Quality pharmaceutical manufacturer through the best quality pharmaceutical products.

Objective of the Report

The objectives of the report are:
To provide an overview of the organizational activities of
BIOPHARMA a fast growing pharmaceutical company of Bangladesh.

To perform ratio analysis in order to determine the stability of

financial aspects of BIOPHARMA.

To assess the rate of return to assets of BIOPHARMA

Profitability Ratios
Net Profit Margin
The ratio of net profit after tax divided by net sales is called the net profit margin
Net Profit after Taxes Net Profit Margin Net Sales

This ratio is a measure of a firms profitability of sales after taking account of all expenses and income taxes. It shows a firms net income per dollar of sales.

Net profit margin of BIOPHARMA Laboratories Limited in the year 2005, 2006, 2007, 2008,2009 are given below:
Ratios 2005 2006 2007 2008 2009

Net Profit margin Net Profit

19.67%

18.23%

29.85%

19.16%

21.19%

80,000,600 97,003,543 125,848,15 116,864,61 130,500,615 3 6 406,550,88 532,046,63 421,551,74 609,905,39 615,805,395 2 5 2 6

Sales

Figure: Net Profit Margin Ratio

25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2005 2006 2007 2008

Return on Equity Ratio

ROE
The ratio of net profit after tax divided by shareholders equity is called return on equity. Net profit After Tax Return on Equity (ROE) = --------------------------------------Shareholder's Equity Return on equity shows the earning power of the shareholders investments. A high return on equity reflects the firms acceptance of strong investment opportunities and effective expense management.

Return On Equity of BIOPHARMA Laboratories Limited in the year 2005, 2006, 2007, 2008,2009 are given below:
Ratio 2005 2006 2007 2008 2009

Return on Equity

20.77%

21.13%

22.52%

18.21%

18.90%

Net Profit

80,000,600

97,003,543 125,848,153 116,586,461 130,500,615

Equity

385,108,460 459,012,003 558,790,156 640,204,772 690,350,782

Figure: Return on Equity Ratio

2 5 .0 0 % 2 0 .0 0 % 1 5 .0 0 % 1 0 .0 0 % 5 .0 0 % 0 .0 0 % 2005 2006 2007 2008

Time Interest Earned Ratio

Time Interest Earned (TIE)
EBIT Time Interest earned ratio= ---------------------Interest Expense

Time Interest Earned Ratio of BIOPHARMA Laboratories Limited in the year 2005, 2006, 2007,2008,2009 are given below:
Ratio Times Interest Earned 2005 8.4 Times 2006 11.27 Times 2007 15.15 Times 2008 12.02 Times 2009 12.91 Times

EBIT

105,409,05 120,310,31 161,469,92 167,906,250 190,874,15 1 1 3 0

Interest

12,494,965 10,673,997 10,651,324 13,963,636 14,780,652

Figure: Time Interest Earned Ratio

0.16 0.14 0.12 0 .1 0.08 0.06 0.04 0.02 0 2 005 20 06 20 07 200 8

Debt To Equity Ratio

Debt To Equity (D/E)
The ratio of total debt divided by the shareholders equity is called debt to equity. Total Debt Debt To Equity Ratio (D/E)= -----------------------------Shareholders Equity
This ratio is the indicator of the extent to which the company is using borrowed money. Creditors would prefer a low percentage of this ratio. The ratio of debt to equity will vary according to the nature of the business and variability of cash flow.

Debt To Equity Ratio of BIOPHARMA Laboratories Limited in the year 2005, 2006, 2007,2008,2009 are given below:

Ratio Debt to Equity Ratio Long Term Debt Total Equity

2005 34.10%

2006 28.04%

2007 41.72%

2008 45.25%

2009 32.69%

131,322,765 128,729,664 233,142,506 385,108,460 459,012,003 558,790,156

289,697,540225,680,48 0 640,204,772690,350,78 2

Figure: Debt To Equity Ratio

50 45 40 35 30 25 20 15 10 5 0 20 0 5 2006 2007 2 0 08

Debt To Asset Ratio

D/A Ratio
The ratio of total debt divided by the total asset is called debt to asset. Total Debt Debt To Asset Ratio (D/A)= -------------------------Total Asset Debt ratio measures the percentage of assets provided by creditors, regardless of whether short term or long term. The debt to asset ratio reflects the financial structure of the firm by showing the firms financial risk posture, which is of primary interest to investors. Creditors prefer low debt to assets ratios

Debt To Asset Ratio of BIOPHARMA Laboratories Limited in the year 2005, 2006, 2007,2008,2009 are given below:
Ratio Debt Asset Ratio 2005 25.43% 2006 21.91% 2007 29.48% 2008 2009 31.15% 22.77%

Total Debt

131,322,765 128,729,664 233,142,506 289,697,540225,680, 480

Total Asset

516,320,225 587,361,667 790,732,662 929,898,731990,879, 331

Figure: Debt To Asset Ratio

35 30 25 20 15 10 5 0 2005 2006 2007 2008

Conclusion
BIOPHARMA Lab Ltd is the fast growing and a new
pharmaceutical company in the country. On the basis of convincing reasons, BIOPHARMA Lab Ltd management believes that in the coming years the BIOPHARMA will try its level best to sustain its earning capacity and maintain a steady growth. With the current performance of the BIOPHARMA and with little improvement here and they will certainly make BIOPHARMA Lab Ltd one of the number one Pharmaceutical company in Bangladesh in the near future. work together for turning Bangladesh into a model caring society and onward development of BIOPHARMA Lab Ltd.

Let us pray, may almighty Allah, allow the BIOPHARMA to

Thank You
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