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March 2013 Vol. 2 Issue
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Dey M
Dey S
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Global Advanced
Research Journal of Economics, Accounting and Finance
March 2013 Vol. 2(2), pp. 039-044
Copyright © 2013 Global Advanced
Research Journals
Full Length Research Paper
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Profitability Indicators of Listed Pharmaceutical
Industries of Bangladesh:
A Comparative Study of Square and Beximco
Pharmaceutical Companies
Mouri Dey1 and Suman Dey2
1Lecturer
Department of Accounting and Information Systems
University of Chittagong.
2Lecturer
Department of Humanities Chittagong University of
Engineering and Technology (CUET)
*Corresponding
Author’s Email:
suman_cuet@hotmail.com
Accepted 06 February, 2013
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Abstract |
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Pharmaceutical industry is technologically the most
advanced manufacturing industry in Bangladesh and
the third largest industry in terms of contribution
to government’s revenue. The industry contributes
about 1% of the total GDP. There are about 250
licensed pharmaceutical companies in Bangladesh.
Currently a little over 100 companies are in
production. According to IMS, a US-based market
research firm, the retail market size is about BDT
84 billion as on 2011. Based on IMS report for the
fourth quarter 2011, square pharmaceuticals holds
the top market share in the retail market (18.7%),
followed by Incepta and Beximco pharma. This sector
fulfills 97% of the local medicine requirement.
Besides, it is exporting chemicals and
pharmaceutical products to global market including
European market. The professional think tank,
quality management, innovative ideas, government
support are the key factors for the development of
this sector. Hence the present study reports the
profitability of two listed pharmaceutical companies
of four year accounting period from 2008 to 2011.
The analysis shows that average profitability
indicators for Square are higher than Beximco,
except gross profit ratio and operating profit
ratio. On the other hand, the six other
profitability indicators of Square are much higher
than that of Beximco and go with the industry norm.
Beximco has not been able to attain industry average
net profit ratio, return on investment and return on
equity, cash flow margin and cash return on assets
Keywords: Profit, Profitability indicators,
Square and Beximco Pharmaceuticals industry.
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