Financial analysis of GlaxoSmithKline Bangladesh Ltd.: a guideline for potential shareholders

Abstract

GlaxoSmithKline first established in Bangladesh on the year 1949 and used to import it’s own product through Chittagong port. As time went by, GSK started to establish its own manufacturing unit in Chittagong as they found the cheap labor and easy resources of Bangladesh lucrative. So, it has been more than 67 years that GSK has been operating in Bangladesh and it’s really providing excellent service in Consumer Healthcare and Pharmaceutical sector. As a leading multinational company they are offering high quality medicines and vaccines to enhance the quality of human life around the world. GlaxoSmithKline has a strong Marketing and Trade Finance department which is working in line with the strategies of the organization and working with the aim of attaining the mission and vision of the company. GlaxoSmithKline Bangladesh Ltd is listed in the Dhaka Stock Exchange and has been performing quite good in the share market. GlaxoSmithKline Bangladesh Limited has a very high dividend payout ratio that mainly attracts the shareholders of the company. The profitability of this company has decreased in the year 2016. The company has a very lower current ratio that could pose a threat for it. So the company should increase its focus on this matter and should be careful to control the debts. Although, after comparing GSK’s financial report with Beximco Pharmaceutical’s and Reckitt Benckiser’s, it has been found that GSK has been doing good financially. It should be working on expanding its product line as it has a narrow product line and also should work on improving its current ratio. Shareholders would be highly benefited if the company could increase its Earning per share ratio. In order to perform better, GSK should be more focused on expanding its product line and its payout ratio.