Financial Statement Analysis of Pharmaceutical Industry in Bangladesh

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Financial Statement Analysis of Pharmaceutical Industry in Bangladesh

1. INTRODUCTION

1.1 Background

Financial statement analysis is defined as the process of identifying financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. There are various methods or techniques that are used in analyzing financial statements, such as comparative statements, schedule of changes in working capital, common size percentages, funds analysis, trend analysis, and ratios analysis.

Financial statements are prepared to meet external reporting obligations and also for decision making purposes. They play a dominant role in setting the framework of managerial decisions. But the information provided in the financial statements is not an end in itself as no meaningful conclusions can be drawn from these statements alone. However, the information provided in the financial statements is of immense use in making decisions through analysis and interpretation of financial statements.

There are various advantages of financial statements analysis. The major benefit is that the investors get enough idea to decide about the investments of their funds in the specific company. Secondly, regulatory authorities like International Accounting Standards Board can ensure whether the company is following accounting standards or not. Thirdly, financial statements analysis can help the government agencies to analyze the taxation due to the company. Moreover, company can analyze its own performance over the period of time through financial statements analysis.

Following are the most important tools and techniques of financial statement analysis:

1. <href=”#Horizontal%20and%20Vertical%20Analysis”>Horizontal and Vertical Analysis
2. <href=”#Ratios%20Analysis”>Ratios Analysis

1. Horizontal and Vertical Analysis:

Comparison of two or more year’s financial data is known as horizontal analysis, or trend analysis. Horizontal analysis is facilitated by showing changes between years in both dollar and percentage form.

Horizontal analysis of financial statements can also be carried out by computing trend percentages. Trend percentage states several years’ financial data in terms of a base year. The base year equals 100%, with all other years stated in some percentage of this base.

Vertical analysis is the procedure of preparing and presenting common size statements. Common size statement is one that shows the items appearing on it in percentage form as well as in dollar form. Each item is stated as a percentage of some total of which that item is a part. Key financial changes and trends can be highlighted by the use of common size statements.

2. Ratios Analysis:

The ratios analysis is the most powerful tool of financial statement analysis.Ratios simply mean one number expressed in terms of another. A ratio is a statistical yardstick by means of which relationship between two or various figures can be compared or measured. Ratios can be found out by dividing one number by another number. Ratios show how one number is related to another.

Financial ratio analysis, base year analysis, common size analysis, trend analysis are the best tools of performance evaluation of any company. In order to determine the financial position of the pharmaceutical company and to make a judgment of how well the pharmaceutical company efficiency, its operation and management and how well the company has been able to utilize its assets and earn profit.

1.2 Purpose of This Report

The purpose of this study is to evaluate the performance of two pharmaceutical companies in Bangladesh.

2. LITERATURE REVIEW

2.1 Pharmaceutical sector in Bangladesh

In Bangladesh Pharmaceutical sector is one of the most developed hi tech sector which is contributing in the country’s economy. After the promulgation of Drug Control Ordinance – 1982, the development of this sector was accelerated. The professional knowledge, thoughts and innovative ideas of the pharmacists working in this sector are the key factors for these developments. Due to recent development of this sector we are exporting medicines to global market including European market. This sector is also providing 95% of the total medicine requirement of the local market. Leading Pharmaceutical Companies are expanding their business with the aim to expand export market. Recently few new industries have been established with hi tech equipments and professionals which will enhance the strength of this sector.

The annual per capita drug consumption in Bangladesh is one of the lowest in the world. However, the industry has been a key contributor to the Bangladesh economy since independence. With the development of healthcare infrastructure and increase of health awareness and the purchasing capacity of people, this industry is expected to grow at a higher rate in future. Healthy growth is likely to encourage the pharmaceutical companies to introduce newer drugs and newer research products, while at the same time maintaining a healthy competitiveness in respect of the most essential drugs.

In 2000, there were 210 licensed allopathic drug-manufacturing units in the country, out of which only 173 were on active production; others were either closed down on their own or suspended by the licensing authority for drugs due to non compliance to GMP or drug laws. They manufactured about 5,600 brands of medicines in different dosage forms. There were, however, 1,495 wholesale drug license holders and about 37,700 retail drug license holders in Bangladesh. Anti-infective is the largest therapeutic class of locally produced medicinal products, distantly followed by antacids and anti-ulcerants.

Besides, out of the total domestic requirement of medicines almost 95 per cent is met by the local manufacturing and Bangladesh also exports formulations to 27 countries around the world. The current turnover of the industry in Bangladesh is Tk. 3,000 crore. According to industry sources, the formulation industry in Bangladesh currently grows at the rate of 22 per cent. With this estimate, the expected business in year 2005 is 50,000 million Tk. Today, Bangladesh is dealing with USA, India, China, Taiwan, Hong Kong, European Union, Singapore, Malaysia, Pakistan, Sri Lanka, Thailand, Burma, Bhutan, Nepal, Yemen, Mauritius, Vietnam, Kampuchea, Laos, Mexico, Columbia, Ecuador, Kuraso Russia, Uzbekistan, Tazakistan, Kenya, Tunisia, Maldives, etc. as well as with the least developing countries where there is hardly any industry for the production of pharmaceutical formulations.

The combined capacity of the industry for the pharmaceutical formulation is huge and a number of companies have recently got approval from UNICEF as its global as well as local supplier of pharmaceutical products. Turnover from pharmaceutical sector is encouraging which is about 14% of total industry turnover is. This position also indicates the positive sign for investment in pharmaceutical sector.

Presently top pharmaceutical companies in Bangladesh are also in the process of getting into bulk drug production with collaborative technology, technology transfers and joint venture basis. The large-scale players in the Bangladesh pharmaceutical industry currently include Square Pharma, Beximco, Alma, Apson Chemicals, FEI, Araneta, General Pharma, Hudson Pharma and SKF among others. The MNCs that have a major presence in the country’s pharma sector are Aventis, Pfizer, Novartis and Astra Zeneca.

Bangladesh, currently having more than a couple of hundred manufacturing facilities with huge potential in pharmaceutical formulations, is heading on a new path of industry economics for self-reliance. Aiming at minimizing the import dependency on basic drugs, the country’s prime concern is about building up of own capability in the manufacturing of active pharmaceutical ingredients(APIs), base materials and other allied industry inputs.

2.2 Pharmaceuticals Industry Analysis

Increasing Political Attention:

Over the years, the industry has witnessed increased political attention due to the increased recognition of the economic importance of healthcare as a component of social welfare. Political interest has also been generated because of the increasing social and financial burden of healthcare. Examples are the UK’s National Health Service debate and Medicare in the US.

Economic Value Added:

In the decade to 2003 the pharmaceutical industry witnessed high value mergers and acquisitions. With a projected stock value growth rate of 10.5% (2003-2010) and Health Care growth rate of 12.5% (2003-2010), the audited value of the global pharmaceutical market is estimated to reach a huge 500 billion dollars by 2004. Only information technology has a higher expected growth rate of 12.6%. Majority of pharmaceutical sales originate in the US, EU and Japanese markets. Nine geographic markets account for over 80% of global pharmaceutical, Canada, Brazil and Spain. Of these markets, the US is the fastest growing market and since 1995 it has accounted for close to 60% of global sales. In 2000 alone the US market grew by 16% to $133 billion dollars making it a key strategic market for pharmaceuticals.

The Social Dimension:

Good health is an important personal and social requirement. And pharmaceutical firms play a significant role in meeting this society’s need. In recent times, the impact of various global epidemics (e.g. SARS, AIDS etc) has also attracted political and media attention to the industry. The effect of the intense media and political attention has resulted in increasing industry efforts to create and maintain good government-industry-society communications.

Technological Advances:

Modern scientific and technological advances are forcing industry players to adapt ever faster to the evolving environments in which they participate. Scientific advancements have also increased the need for increased spending on research and development in order to encourage innovation.

Legal Environment:

The pharmaceutical industry is a highly regulated and compliance enforcing industry. As a result there are immense legal, regulatory and compliance overheads which the industry has to absorb. This tends to restrict it’s dynamism but in recent years, government have begun to request industry proposals on regulatory overheads to so as not to discourage innovation in the face of mounting global challenges from external markets.

2.3 The Pharmaceutical Industry Economic Environment

The modern pharmaceutical industry is a highly competitive non-assembled global industry. Its origins can be traced back to the nascent chemical industry of the late nineteenth century in the Upper Rhine Valley near Basel, Switzerland when dyestuffs were found to have antiseptic properties. A host of modern pharmaceutical companies all started out as Rhine-based family dyestuff and chemical companies e.g. Hoffman-La Roche, Sandoz, Ciba-Geigy (the product of a merger between Ciba and Geigy), and Novartis. Most are still going strong today. Over time many of these chemical companies moved into the production of pharmaceuticals and other synthetic chemicals and they gradually evolved into global players. The introduction and success of penicillin in the early forties and the relative success of other innovative drugs, institutionalized research and development (R&D) efforts in the industry

The industry expanded rapidly in the sixties, benefiting from new discoveries and a lax regulatory environment. During this period healthcare spending boomed as global economies prospered. The industry witnessed major developments in the seventies with the introduction of tighter regulatory controls, especially with the introduction of regulations governing the manufacture of ‘generics’. The new regulations revoked permanent patents and established fixed periods on patent protection for branded products, a result of which the market for ‘branded generics’ emerged.

2.4 The Ten Principles of Global Compact (UN):

The ten principles of Global Compact initiated by the UN Secretary General as have been adopted by the two pharmaceutical companies are as follows:

Human Rights:

1) Businesses should support and respect the protection of internationally proclaimed human rights within their sphere of influence; and

2) Make sure that they are not complicit in human rights abuses.

Labor Standards:

3) Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

4) The elimination of all forms of forced and compulsory labor;

5) The effective abolition of child labor and

6) Eliminate discrimination in respect of employment and occupation.

Environment:

7) Business should support a precautionary approach to environmental challenges:

8) Undertake initiatives to promote greater environmental responsibility; and

9) Encourage the development and diffusion of environmentally friendly technologies.

Ethical Standards:

10) Business should work against corruption in all its forms, including extortion and bribery.

3. METHODOLOGY

3.1 Data collection

Main data for my project is the annual financial reports on these two pharmaceutical companies in 2005 to 2010. When any one measures the financial condition for any company, he must use the annual financial report of that company. Otherwise he does not measure it. I used four main financial statements for financial analysis of pharmaceutical company such as; balance sheets, an income statement, cash flow statement; statement of shareholder’s equity. Data is also collected from different financial books and websites. The annual financial report presents financial data of a company’s position, operating performance, and funds flow for an accounting period. I used the annual report of these two pharmaceutical companies in 2005 to 2010.

4. RESULTS AND ANALYSIS

4.1 Base Year Analysis

Base-Year Analysis is the analysis of economic trends in relation to a specific base year. Base-year analysis expresses economic measures in base-year prices to eliminate the effects of inflation. This analysis is an analysis of company’s financial statements by comparing current data with that of a previous year, or base year. Base-year analysis allows for comparison between current performance and historical performance.

4.2 Common Size analysis

Common-size analysis (also called vertical analysis) expresses each line item on a single year’s financial statement as a percent of one line item, which is referred to as a base amount. The base amount for the balance sheet is usually total assets (which is the same number as total liabilities plus stockholders’ equity), and for the income statement it is usually net sales or revenues. By comparing two or more years of common-size statements, changes in the mixture of assets, liabilities, and equity become evident. On the income statement, changes in the mix of revenues and in the spending for different types of expenses can be identified.

4.3.1. Liquidity ratio

Liquidity ratio refers to the ability of a company to interact its assets that is most readily converted into cash. Assets are converted into cash in a short period of time that are concerns to liquidity position. However, the ratio made the relationship between cash and current liability.

The Liquidity ratio we can satisfy on the four ratios, those are:

1) Current ratio,

2) Quick ratio or acid test,

3) Average Collection Period,

4) Days to sell inventory.

Current ratio:

The current ratio is calculated by dividing current assets by current liabilities. Current asset includes inventory, trade debtors, advances, deposits and repayment, investment in marketable securities in short term loan, cash and cash equivalents, and current liabilities are comprised short term banks loan, long term loans-current portion, trade creditors liabilities for other finance etc. Generally current ratios are acceptable of shot term creditors for any company. The formula is shown as below;

Current Ratio = Current assets /Current liabilities

Quick ratio or acid test:

Quick ratio or acid test ratio is estimating the current assets minus inventories then divide by current liabilities. It is easily converted into cash at turn to their book values and it also indicates the ability of a company to use its near cash. The formula of quick ratio or acid test ratio are as follow as;

Quick ratio = (Current asset- inventories)/Current liabilities

Average collection period:

The average collection period is refers the average number of days of the company. It maintain the company to collection its credit policy. It has made good relationships between account receivable and outstanding payment. It measures the average number of days customers take to pay their bills to divide by account receivable turnover .The average number of day also indicate the 360 days . So, the equation of average collection period is following as;

Average collection period = 360 days/Accounts receivable turnover

Days to sell inventory:

Days to sell inventory is a ratio measuring the number of day’s inventory is held. As a general rule, the longer inventory is held, the greater is its risk of not being sold at full value. This ratio is crucial in the case of inventory that is perishable or prone to obsolescence, such as high technology and fashion items.

Days to sell inventory= Average Inventory / (Cost of Goods Sold/360)

4.3.2. Capital Structure and Solvency

Capital structure refers to the way a corporation finances its assets through some combination of equity, debt, or hybrid securities. A firm’s capital structure is then the composition or ‘structure’ of its liabilities. On the other hand, Solvency, in finance or business, is the degree to which the current assets of an individual or entity exceed the current liabilities of that individual or entity. To measure the capital structure and solvency, we can satisfy on the three ratios, those are:

1) Total Liabilities to Equity

2) Equity to total asset

3) Total liabilities to asset

Total Liabilities to Equity:

It is a measure of a company’s financial leverage calculated by dividing its total liabilities by stockholders’ equity. It indicates what proportion of equity and debt the company is using to finance its assets. A high debt/equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense. Total Liabilities to Equity ratio formula as following as;

Total Liabilities to Equity= Total Liabilities/ Equity

Equity to total asset:

A ratio used to help determine how much shareholders would receive in the event of a company-wide liquidation. The ratio, expressed as a percentage, is calculated by dividing total shareholders’ equity by total assets of the firm, and it represents the amount of assets on which shareholders have a residual claim. Equity to total asset ratio formula as following as;

Equity to total asset= Equity/ Total asset

Total liabilities to asset:

Debt Ratio is a financial ratio that indicates the percentage of a company’s assets that are provided via debt. It is the ratio of total debt (the sum of current liabilities and long-term liabilities) and total assets (the sum of current assets, fixed assets, and other assets such as ‘goodwill’). The higher the ratio, the greater risk will be associated with the firm’s operation. In addition, high debt to assets ratio may indicate low borrowing capacity of a firm, which in turn will lower the firm’s financial flexibility. The Total liabilities to asset ratio formula as following as;

Total liabilities to asset= Total liabilities/ Asset

4.3.3. Profitability Ratio

Profitability ratios designate a company’s overall efficiency and performance. It measures the company how to use of its assets and control of its expenses to generate an acceptable rate of return. It also used to examine how well the company is operating or how well current performance compares to past records of both pharmaceutical companies.

There are six important profitability ratios that we are going to analyze:

1. Gross Profit Margin

2. Operating profit margin

3. Pretax profit margin

4. Net Profit Margin

5. Return on Asset

6. Return on Equity

Gross Profit Margin ratio:

Gross margin express of the company efficiency of raw material and labor during the working process .If any company higher gross profit margin then the company more efficiency to controls their raw material and labors. So it is most important for performance evaluation of pharmaceutical company. It can be assigned to single products or an entire company. It determines the gross profit to divide by net sales.

The gross profit margin ratio formula as following as;

Gross profit margin ratio= Gross profit/sales*100

Operating profit margin:

The operating profit margin ratio recognize of the percentage of sales to exchange into all cost and expenses after remaining sales. A high operating profit margin is preferred. Operating profit margin is calculated as follows:

Operating Profit Margin = Operating profits / Sales

Pretax Profit Margin:

Pretax profit margin is company’s earnings before tax as a percentage of total sales or revenues. The higher the pre-tax profit margin, the more profitable the company. The trend of the pretax profit margin is as important as the figure itself, since it provides an indication of which way the company’s profitability is headed.

Net Profit Margin:

The net profit margin is determined of net profit after tax to net sales. It argues that how much of sales are changeover after al expense .The higher net profit margins are the better for any pharmaceutical company. The net profit margin is calculated as follows:

Net Profit margin = Net profit after tax/sales*100

Return on asset:

The Return on Assets ratio can be directly computed by dividing net income by average total asset. It finds out the ability of the company to utilize their assets and also measure of efficiency of the company in generating profits. The Return on Assets ratio is calculated as follows:

Return on Total Assets = Net profits after taxes / total assets*100

Return on Equity:

Return on Equity is compute by dividing net income less preferred dividend by average company stockholder equity. It demonstrate how a company to generate earnings growth for using investment fund. It has some alternative name such Return on average common equity, return on net worth, Return on ordinary shareholders’ fund. Return on Equity is calculated as follows:

Return on common stock equity = Net income / Common stockholders equity*100

4.3.4. Asset management ratio

Asset management ratios are most notable ratio of the financial ratios analysis. It measure how effectively a company uses and controls its assets. It is analysis how a company quickly converted to cash or sale on their resources. It is also called Turnover ratio because it indicates the asset converted or turnover into sales. Finally, we can recognize the company can easily measurement their asset because this ratio made up between assets and sales.

Following are discussed six types of asset management ratios:

1) Cash turnover

2) Accounts receivable turnover

3) Inventory turnover

4) Working capital turnover

5) PPE turnover

6) Total asset turnover

Cash turnover:

Cash turnover indicates a firm’s efficiency in its use of cash for generation of sales revenue. It is the inverse of cash-to-sales ratio. Cash flow is extremely important in business, even more so than earning a profit. Companies that consistently lose money on their income statement may still generate cash. Executive management teams will often use ratios to help assess their company’s cash flow and efficiency.

Cash Turnover= Sales / average cash balance

Accounts receivable turnover:

The Accounts receivable turnover is comparison of the size of the company sales and uncollected bills from customers. If any company is difficult to collect money so it has large account receivable and also indicates the low ratio. Instead of, if any company aggressive collection money so it has low receivable and also high ratio. This ratio measure the number of times are collected during the period. Account receivable turnover ratio formula is;

Accounts receivable turnover = Sales / Accounts receivable

Inventory turnover:

The inventory turnover ratio measures the number of times on average the inventory was sold during the period. The ratio is calculating the cost of goods sold by divide into average inventory. The measurement of average inventory is; at first we are adding two year’s inventory after that we divide in to two. Inventory turnover ratio is also known as inventory turns ratio and stock turnover ratio. The equation of Inventory Turnover is following as;

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory

Working capital turnover:

It is a measurement which comparing the depletion of working capital to the generation of sales over a given period. This provides some useful information as to how effectively a company is using its working capital to generate sales. The working capital turnover ratio is used to analyze the relationship between the money used to fund operations and the sales generated from these operations. In a general sense, the higher the working capital turnover, the better because it means that the company is generating a lot of sales compared to the money it uses to fund the sales. The equation of working capital turnover is following as;

Working capital turnover= Sales/Working capital

Fixed asset turnover:

Fixed asset turnover ratio is the sales to the value of fixed assets of the company. It determines the effectiveness in generating net sales revenue from investments in net property, plant, and equipment back into the company evaluates only the investments. The equation of fixed asset turnover is following as;

Fixed asset turnover = Sales / Net fixed asset

Total asset turnover:

The total asset turnover ratio measures the ability of a company to use its assets to generate sales. It considers all assets including property ,plant and equipment, capital working in process, investment –long term, inventories, trade debtors, advances, deposit and prepayment, investment in market securities, short term loan, cash and cash equivalents etc. In these criteria a high ratio means the company is achieving more profit. The formula is following as:

Total asset turnover = Sales / Total asset

4.3.5. Market Measures Ratios

1) Price to earnings ratio

2) Earnings yield

3) Dividend yield

4) Dividend payout rate

5) Price to book

Price to earnings ratio:

The price-to-earnings ratio is a financial ratio used for valuation: a higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio. The P/E ratio (price-to-earnings ratio) of a stock (also called its “P/E”, or simply “multiple”) is a measure of the price paid for a share relative to the annual net income or profit earned by the firm per share.

Earnings yield:

The earnings yield can be used to compare the earnings of a stock, sector or the whole market against bond yields. Generally, the earnings yields of equities are higher than the yield of risk-free treasury bonds reflecting the additional risk involved in equity investments. Earnings yield is the quotient of earnings per share divided by the share price. It is the reciprocal of the P/E ratio.

Dividend yield:

The dividend yield or the dividend-price ratio on a company stock is the company’s total annual dividend payments divided by its market capitalization, or the dividend per share, divided by the price per share. It is often expressed as a percentage. Its reciprocal is the Price/Dividend ratio.

Dividend payout rate:

Dividend payout ratio is the fraction of net income a firm pays to its stockholders in dividends. The part of the earnings not paid to investors is left for investment to provide for future earnings growth. Investors seeking high current income and limited capital growth prefer companies with high Dividend payout ratio.

Price to book:

A ratio used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share. A lower P/B ratio could mean that the stock is undervalued.

4.3.6. Cash Based Ratios

1) Operating Cash Flow to Sales

2) Operating Cash Flow to Assets

3) Operating Cash Flow to Equity

4) Operating Cash flow per share

Operating Cash Flow to Sales:

Percentage measure of a firm’s ability to convert sales into cash, and an important indicator of its creditworthiness and productivity. A high number means the firm will be able to grow because it has sufficient cash flow to finance additional production, a low number indicates the opposite. Formula: Cash flows from operating activities x 100 ÷ Sales revenue.

Operating Cash Flow to Assets:

This ratio indicates the cash a company can generate in relation to its size. A healthy firm would be expected to generate positive cash flow. However, if the firm is young and/or is investing heavily to promote growth, then a negative Cash Flow from the firm’s assets may be excused.

Operating Cash Flow to Equity:

This is a measure of how much cash can be paid to the equity shareholders of the company after all expenses, reinvestment and debt repayment.

Operating Cash flow per share:

It is a measure of a company’s financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding. This measure serves as a proxy for measuring changes in earnings per share.

Beximco Pharmaceuticals Ltd Bangladesh

BEXIMCO PHARMACEUTICALS LTD.

About Beximco Pharma

Beximco Pharmaceuticals Ltd (BPL) is a leading manufacturer of pharmaceutical formulations and Active Pharmaceutical Ingredients (APIs) in Bangladesh. Beximco Pharma is the flagship company of Beximco Group, the largest private sector industrial conglomerate in Bangladesh, and remains the only Bangladeshi company with an AIM listing on the London Stock Exchange.

The company is the largest exporter of pharmaceuticals in the country and its state-of-the-art manufacturing facilities are certified by global regulatory bodies of Australia, European Union, Gulf nations, Brazil, among others. The company is consistently building upon its portfolio and currently producing more than four hundred products in different dosage forms covering broader therapeutic categories which include antibiotics, antihypertensives, antidiabetics, antireretrovirals, anti asthma inhalers etc, among many others.

With decades of contract manufacturing experience with global MNCs, skilled manpower and proven formulation capabilities, the company has been building a visible and growing presence across the continents offering high quality generics at the most affordable cost.

Ensuring access to quality medicines is the powerful aspiration that motivates more than 2,500 employees of the organization, and each of them is guided by the same moral and social responsibilities the company values most. Today Beximco Pharma is building its presence across five continents and is the only Bangladeshi company to market pharmaceutical products in the USA. The company has a visible and growing presence in emerging market.

Base-Year Analysis

Findings:

According to the base year analysis, I took five years data of Beximco Pharmaceuticals Limited. The change in Total asset condition is positively high in 2009 and lowest in the year 2007. On the other hand, in 2008 the highest amount of percentage change is reported for total current liabilities. In case of income statement, in 2010 the highest amount of percentage change is reported for sales, and it was lowest in 2007. It was the only year where the sales growth was negative.

In 2010, the change in gross profit is positively high as followed by the sales. And as like as the sales, 2007 was the only year where the gross profit growth was negative. In 2008, both the net profit before WPP and net profit before tax was good. But in the both case, it was lowest in 2007.

The change in net profit is best in 2010. And it was negatively high in 2007.Common-Size Analysis