Assessment of Financial Soundness: A Case Study of Beximco Pharmaceuticals Ltd
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Date
2007-08
Journal Title
Journal ISSN
Volume Title
Publisher
CRP, International Islamic University Chittagong
Abstract
The main objective of the study was to assess the
financial soundness of Beximco Pharmaceuticals Ltd (BP L)
by using Du Pont Equation &Altman's Model, The finn's
management can use the Du Pont system and Altman's model
to analyze ways of improving the firm's performance. By
applying Altman's Model, it revealed that BPL would be
financially unhealthy and would like to go bankruptcy in the
near future. The main reasons for such state of affairs are
shortage of adequate working capital, shortage of raw
materials and their irregular supply, instability in raw
material price, lack of requisite research & development
activities, shortage of skilled manpower, lack of proper
responsibility and accountability, limited market for products,
absenteeism of workers from jobs, adverse factory
environmental factors, power disruption and troubles in
machinery. Therefore in order to improve the financial
soundness of the company and to save it from bankruptcy
proper steps should be taken to remove those reasons
Description
Business Review Vol-2, Article-3, August 2007 (Page-47-62)
Keywords
Financial Soundness, Performance, Du Pont Equation, Altman's Model, Beximco Pharmaceuticals