10.

0 Appendix: Ratios of ten companies with the respective years are

listed below:

Ambee pharmaceuticals ltd.

Glaxo smithkline
ACI ltd.
Recckit Benckiser
IBNA SINA
Orion Infusion
Pharma Aids
Beximco Pharmeceuticals ltd.
Reneta Limited
Square Pharmeceuticals Ltd.

2002
2.45222749
1.62075119
1.95177477
3.3443296
5.73591727
0.545776
1.51301909
1.45526356
2.07602328
4.34621707

2003
1.22297663
2.73874826
0.86346845
5.08088263
5.95379989
0.58070561
0.44654584
1.1853948
2.01085647
3.51371173

1997
0.799197711
2.572524334
1.372883782
5.038746686
2.534280457
1.0078403
0.310666726
1.711390026
2.540855116
3.810006283

2004
2.14132583
1.98654026
1.0859764
4.38445291
6.12074342
0.63324107
1.07791716
1.02566366
1.92834567
3.5370205

Table 01
1998
1.122433635
2.002606697
1.991541304
3.014938127
2.582785819
0.346692965
0.560486309
1.50596258
2.517047821
3.575461907

2005
2.50981368
6.32684223
2.04521389
6.71028849
6.70165066
1.98551694
0.39669295
1.05036479
2.13499377
2.75955945

1999
0.96233488
1.97188814
1.57695619
4.19849742
2.88631386
0.34961569
0.48802711
1.60121884
2.58369819
3.39547125

2006
0.8367415
8.05925079
1.88835887
7.40021526
7.05612707
2.83660028
0.10382373
1.12356707
1.53164254
2.62626338

Page 1 of 10

2000
2.20114723
2.07742236
1.88318873
6.8230698
3.15530383
0.34414753
1.05955692
1.16651436
2.07822093
4.24454322

2001
1.92817468
2.14939349
2.11801005
4.53866801
2.96565142
0.35508504
0.8970785
1.27508762
1.95661233
4.39994246

Table 02

Ambee pharmaceuticals ltd.

Glaxo smithkline
ACI ltd.
Recckit Benckiser
IBNA SINA
Orion Infusion
Pharma Aids
Beximco Pharmeceuticals
ltd.
Reneta Limited
Square Pharmeceuticals Ltd.

2002
21.6875373
11.2242742
18.2501906
18.6610983
460.630467
9.22972963
1.1656864
5.64028077
13.9031034

1997
48.47432697
8.811726527
16.46634277
17.09734516
524.1461173
14.41804302
1.912764828

1998
67.75197261
4.075915207
15.03893824
7.429466426
558.8089182
1.198800237
2.052180156

10.42189222
10.63008117

7.735947112
13.16645505

2003
7.37425609
10.2617217
12.5164383
26.7513255
570.052455
4.26603089
0.41030383
4.37047788
1.06130614

2004
3.88317776
7.19394118
9.36962206
53.0342431
566.578565
1.5501828
0.59737179
4.00431351
11.9734801

2005
1.94556985
8.0871511
9.081543
793.672507
726.565251
7.62203906
2.40429366
4.26651332
9.91564174

Account receivables turnover

1999
2000
58.1696958 19.6438959
8.57071078 10.4567551
16.9624501 20.2102611
6.32815375 16.0420703
588.72535 471.193223
1.53817428 1.43576564
2.42718106 1.75424745

2001
17.4551009
10.1554237
24.5837508
8.63615106
454.778675
1.79612808
1.38997901

8.8632834 5.35114539 7.1918339

8.62104621 15.1290186 12.8996488

2006
4.18779744
10.0332014
7.93696052
225.458594
763.822858
10.6316746
2.66679954
8.60523508
9.70533092

Page 2 of 10

Table 03

Ambee pharmaceuticals ltd.

Glaxo smithkline
ACI ltd.
Recckit Benckiser
IBNA SINA
Orion Infusion
Pharma Aids
Beximco Pharmeceuticals ltd.
Reneta Limited
Square Pharmeceuticals Ltd.

2002
165.674208
257.723022
207.009074
128.699367
63.6358195
668.772831
-22.059438
315.526765
202.070042
98.5126887

2003
347.948664
168.841643
451.875417
85.4820959
61.3063139
628.546315
-61.362009
391.429186
525.430541
116.49501

1997
464.2377737
0.001375913
288.0301556
93.78699213
144.0251041
362.1607425
130.2521086
248.2993546
177.9889459
114.5270402

2004
264.450325
234.473663
375.058748
90.1310448
59.6342084
576.401528
-34.386259
447.018851
219.765453
120.596737

1998
330.5735606
271.8128884
207.5454648
170.1925407
141.3202756
1052.807034
111.4816451
289.5522287
172.7331149
123.1490479

2005
333.034825
102.824029
218.65685
54.853972
54.4650134
183.831579
-30.685726
433.048271
207.771213
150.580837

Page 3 of 10

1999
385.560592
227.688677
252.976673
144.614614
126.458876
1044.00528
76.0841404
269.13248
183.608619
136.679974

2006
523.373953
81.6687857
239.276908
50.9418121
51.7288962
128.675419
-23.785717
367.274262
275.914453
156.285962

Operating cycle
2000
184.403455
210.604169
211.880325
76.2476569
115.678245
1060.59357
83.0319742
381.107687
199.756812
108.537538

2001
210.208995
205.756732
187.178777
122.684268
123.07922
1027.9243
77.3179275
337.006845
214.842262
102.091828

Table 04
Current ratio

Ambee pharmaceuticals ltd.

Glaxo smithkline
ACI ltd.
Recckit Benckiser
IBNA SINA
Orion Infusion
Pharma Aids
Beximco Pharmeceuticals ltd.
Reneta Limited
Square Pharmeceuticals Ltd.

2002
1.03305883
3.34815191
1.22070006
1.31150967
1.09262245
0.13805655
0.70176713
1.31360001
1.72280092
1.22896991

1997
0.839933435
2.994723834
1.459427002
1.535571458
1.371807465
0.307719733
0.554955174
1.524587891
1.263132532
2.167369846

2003
1.06630113
2.25936662
1.18308334
1.56158249
1.02063852
0.27957105
0.52195025
1.68536517
1.59032575
1.15512071

2004
1.05373042
4.5560325
1.15623352
1.60110558
0.91066013
0.26531219
0.58449032
1.48952685
1.60442141
1.61546795

1998
0.815018584
1
2.156221957
1.270055482
1.18528622
0.284607645
0.478071415
1.412500247
1.298056117
2.344221762

2005
1.04721183
4.65938433
1.00836648
1.91908679
0.86038275
0.82483681
0.56319793
1.39731986
1.75028558
1.66286483

1999
0.82753616
3.87002925
1.48737415
1.25654523
1.15051765
0.26410061
0.5348172
1.46488452
1.31951988
1.51180642

2006
0.98727238
6.6322906
1.00804586
1.73231104
0.76510342
0.75517715
0.6394335
1.32838713
1.48623778
1.78331948

Page 4 of 10

2000
1.03367191
4.20773132
1.51505032
1.56068358
1.26563355
0.22484021
0.58266058
1.38893109
1.31352911
1.34245322

2001
1.03430905
3.56635647
1.33840625
1.28626971
1.21803927
0.20116839
0.65716748
1.19717406
1.45528089
1.27357067

Table 05
Acid-Test ratio
Ambee pharmaceuticals
ltd.
Glaxo smithkline
ACI ltd.
Recckit Benckiser
IBNA SINA
Orion Infusion
Pharma Aids
Beximco
Pharmeceuticals ltd.
Reneta Limited
Square Pharmeceuticals
Ltd.

2002
0.42674421
0.62410496
0.3838523
0.66325641
0.68267902
0.04184358
0.66830117
0.57566955
0.61733574
0.79448707

2003
0.43754794
0.998032
-0.3870497
1.02635921
0.56532891
0.0734347
0.45529213
0.75541388
0.56312393
0.5622881

1997

1998

1999

2000

2001

0.253592276
1.450908458
0.377165543
1.086743738
0.771883543
0.117225021
0.41129711

0.2117519
0.416398705
0.888241017
0.578270963
0.664123444
0.101376614
0.365591563

0.2327731
1.74716298
0.33568536
0.72015778
0.59609209
0.0992004
0.4255478

0.44047376
1.72860122
0.34766634
1.2320057
0.71323972
0.08306978
0.46841357

0.45474194
1.36964788
0.42181023
0.92278109
0.79778834
0.08249708
0.54691805

0.767851887
0.536173006

0.644571327
0.539308688

0.70218662
0.62340175

0.63469405 0.42933975
0.4713719 0.50958825

1.38429492

1.413416113

0.91473769

0.8459017 0.72753376

2004
0.66387352
1.91975367
-0.2852617
1.10246724
0.46260275
0.07021082
0.53731701
0.64891453
0.59248356
0.97549362

2005
0.80609758
3.67026911
0.32459434
1.4809436
0.4660981
0.39647121
0.50318783
0.72432221
0.73923837
1.07571506

2006
0.41657041
5.22462517
0.29631069
1.42385785
0.45287959
0.35142321
0.5838312
0.63422481
0.51673906
1.18955664

Page 5 of 10

Table 06
Sales to Working capital

Ambee pharmaceuticals ltd.

Glaxo smithkline
ACI ltd.
Recckit Benckiser
IBNA SINA
Orion Infusion
Pharma Aids
Beximco Pharmeceuticals ltd.
Reneta Limited
Square Pharmeceuticals Ltd.

2002
73.9046055
2.64252832
1.93135753
10.66823
37.6722919
-0.0751487
-2.341877
5.33139888
5.4410949
13.5443986

2003
22.6365283
2.74302807
1.60381374
7.7412261
196.07805
-0.2056281
-0.9498635
2.59084083
0.65726073
21.0028691

1997
5.067782669
2.364264846
4.790621066
6.42636413
6.362177844
0.433559728
1.397707794
3.579059495
10.68796652
3.868783947

2004
29.4188618
1.98725602
1.90546416
6.02963523
-46.279397
-0.2068545
-1.5423768
2.95807104
6.2577759
6.16889328

1998
6.261671658
2.897562264
3.269906626
11.62085223
11.30608723
0.049195496
1.084381286
4.098412117
10.04259808
3.786648175

2005
24.0907633
2.18592077
2.00963132
5.05789098
-29.294754
-7.8128111
-2.2214552
3.34702239
5.58109789
4.12520578

1999

2000

2001

-5.7049624
2.01846898
5.32458477
13.1850423
16.0766988

64.7648911
2.25264443
2.03011566
7.08312963
9.94938265

55.6127311
2.57085041
2.03033925
9.56558216
8.51114073

-0.063961

-0.0522952

-0.0611337

-1.5241464 -1.6111674
3.82452052 3.89523303
8.93013892 8.99088343
6.09232814 9.57680449

-1.9889491
8.17157954
6.92449627
9.72498312

2006
-65.446239
2.50757494
2.00328719
5.13665837
-14.719499
-7.5074506
-3.3697392
4.46077105
6.01714525
3.43885754

Page 6 of 10

Table 07
Industry average

Ambee pharmaceuticals ltd.

Glaxo smithkline
ACI ltd.
Recckit Benckiser
IBNA SINA
Orion Infusion
Pharma Aids
Beximco Pharmeceuticals ltd.
Reneta Limited
Square Pharmeceuticals Ltd.
Industry average

Company
average
0.987272382
3.709406683
1.353290894
1.503472104
1.084069143
0.354539035
0.581851098
1.420227684
1.480358996
1.608516479
1.40830045
Table 08

Ambee pharmaceuticals ltd.

Glaxo smithkline
ACI ltd.
Recckit Benckiser
IBNA SINA

1997
-17957304
467938.2222
166355561
100826728.5
30787996

Orion Infusion
Pharma Aids
Beximco Pharmeceuticals ltd.
Reneta Limited
Square Pharmeceuticals Ltd.

-241844533
-13357352
629014418
41616931
410863089

1998
-20552971
143863
296407292
31826280
20287857
281,186,207
-19147018
563721305
52805432
470601539

1999
-19255138
450431
225268940
33099308
15039972
281186207
-20994150
596367862
65034178
345756335

2002
2003
2004
2005
2006
2682639
7494682
6745735
7209104
-3396934
457474
473542
640381
614224
573998
1062938118 1396399846 1342335529 1536955895 1755046596
40,75,962
71627089 110180670 176192504 232288228
10330609
2139249
-9679208
-18253715
-39228721
-486983482 -607126193 -238858443 -249571219
-31979019
-17251161
-27144770
-26196873
-23238341
-17131685
473223366 842903882 812252623 994024595 829972468
Page 7 of 10

Net working capital

2000
2001
2680815
2678991
427597
429934
816,320,835
694,845,617
83966600
67433149
27338751
21593693
-337690219
-22141501
707704947
73812760
241609201

-403802891
-19111194
293852749
118823883
308581103

167538678
271020609

168945660
193585498

216018791 288214948 320373168

765380681 1292552886 1770909474

Various ratios:
Days sales in receivables =
Accounts receivables turnover =
Accounts receivables turnover in days =
Inventory turnover =
Inventory turnover in days =
Operating cycle = (Accounts receivables turnover in days + Inventory turnover in
days)
Working Capital = (Current assets Current liabilities)
Current ratio =
Acid-Test ratio =
Sales to Working capital =
Current assets to sales =
Page 8 of 10

Current assets to Total assets =

Return on assets =
Sales to Total assets =

References:
Afza, T., & Nazir, M.S., (2007) Is it Better to be Aggressive or Conservative in
Managing

Working

Capital?

[Online]

Available

at:

https://editorialexpress.com/cgibin/conference/download.cgi?db_name=SERC2007&paper_id=107
[Accessed 16 August 2010].
Ganesan, V., (2007) An Analysis of Working Capital Management Efficiency in
Telecommunication Equipment Industry, Rivier Academic Journal, 3(2)
[Online] Available at: http://www.rivier.edu/journal/ROAJ-Fall-2007/J119Ganesan.pdf [Accessed 16 August 2010].
Padachi, K., (2006) Trends in Working Capital Management and its Impact on
Firms Performance: An Analysis of Mauritian Small Manufacturing Firms,
International Review of Business Research Papers, 2 (2) [Online] Available
at: http://www.bizresearchpapers.com/Kesseven.pdf [Accessed 16 August
2010].
Raheman, A., & Nasr, M., (2007) Working Capital Management and Profitability
Case Of Pakistani Firms, International Review of Business Research Papers,
3(1)

[Online]

Available

at:

http://www.bizresearchpapers.com/Paper%2019.pdf [Accessed 16 August

2010].

Page 9 of 10

Deloof, M and Jegers, M. 1996. Trade credit, product Quality, and Intra Group
Trade:
Some European Evidence, Financial Management, Vol 25 No 3 pp. 33-43
Deloof, M. 2003. Does Working Capital Management Affects Profitability of
Belgian
Firms?, Journal of Business Finance & Accounting, Vol 30 No 3 & 4 pp. 573 587
Eljelly, A. 2004. Liquidity-Profitability Tradeoff: An empirical Investigation in
an
Emerging Market, International Journal of Commerce & Management, Vol 14
No 2 pp.
48 - 61
Ghosh, S. K. and Maji, S. G. 2003. Working Capital Management Efficiency: A
study on
the Indian Cement Industry, The Institute of Cost and Works Accountants of India
Joshi, P. V. 1995. Working Capital Management under Inflation, 1st Ed. Anmol
Publishers, pp. 20 - 93
Long, Michael. S, Malitz. Lleen. B, and Ravid, S. Abraham, (1993) Trade Credit,
Quality Guarantees, and Product Marketability Financial Management, pp. 117 127

Page 10 of 10