Profitability and Liquidity Analysis of the top Pharmaceutical Companies in Bangladesh

Abstract

The research paper specially analyzes profitability and liquidity and the effects of the ratios on the financial performance of the top pharmaceutical companies in Bangladesh. Over the past five years from 2016 to 2020, this study covered three listed and well managed pharmaceutical companies, those are ACME laboratories ltd, Beximco Pharmaceutical ltd, and Square pharmaceutical ltd. Secondary data has been collected for this study and all mathematical data have been gained from firms' annual audit reports. Each essential data is introduced in the figure and table and all data have been effectively organized in different chapters. The paper contains the firm’s overview and important information, range structures financial wealth, profitability and liquidity management theories and formulas. Between liquidity position and profitability of those companies, there is an effective correlation. Defend the liquidity and profitability ratios evaluates such as current ratio, quick ratio, cash ratio, profit margin ratios (gross profit and net profit), operation expenses ratio, ROA and ROE. Mathematical and graphical analysis has been established for measuring all those profitability and liquidity ratios. As appeared in the findings, companies need to maintain enough liquid assets and minimize liquidity and other related cost of liquidity. Meantime, the study is to assess the significant effect of profitability on how efficiently companies maintain and earning profit. And over all analyses have the measurement of pharmaceutical companies’ performance, liquidity and profitability position in the pharmaceutical sector.