Financial Analysis And Analysis Project

PART 1

PROJECT OBJECTIVES AND OVERALL RESEARCH APPROACH

(1064 Words)

1.1 Introduction

I have selected topic-8 which is “An analysis and evaluation of the business and financial performance of an organization over a three year period” for my research and analysis project. The organization chosen here is a pharmaceutical company named “Beximco Pharmaceuticals Ltd.”(BPL) and decided to conduct a business and financial analysis between the periods from 01 January 2010 to 31 December 2012.

1.2 Reasons for choosing the project topic and organization (320)

I have been working as a financial analyst in a credit rating agency where my responsibilities include analyzing and evaluating performance of a business comprising of both financial and non financial performance. I have developed an expertise on this specific topic from my work and ACCA qualification. This is why I believe that I have the necessary skills as well as enthusiasm to conduct my research on this topic. In addition to that this research would also help me in my career ahead. Moreover, analysis of financial performance of a company acts as a useful tool for various stakeholders and facilitates investment decisions to a large extent.

The pharmaceuticals industry in my country is growing at a fast pace and I am very keen to understand more in depth the reasons behind it. I have decided to carry out the analysis on a local pharmaceuticals company and chosen BPL which is a leading pharmaceutical company in Bangladesh.

Since BPL is one of the leading companies and trading shares publicly on the stock exchange, it has made a wide range of information available to the public, availability of which played a vital role in deciding to choose this company...

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...ecided to do a ratio analysis using four ratios (Profitability, Liquidity, Gearing and Investor) for analyzing BPL’s financial performance. The ratios were then used to compare with the ratios of a major competitor. This facilitated my understanding on how BPL has performed over the last three years comparing it with a major competitor.

For the analyzing the business position of BPL, I employed a substantial amount of my time for the selection of appropriate business model and finally gave more preference towards SWOT analysis comprising of Strength, Weakness, Opportunity and Threat. However, I have properly accounted for the limitations on the model.

For other non-financial factors, I studied the core values and achievements of the company and decided to analyze results on areas such as quality control, customer satisfaction and corporate social responsibility.

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