International Islamic University Chittagong

PERFORMANCE MEASUREMENT OF
BEXIMCO PHARMACEUTICALS LTD
PRESENTED BY

Dynamic Group

Group Members:

1.Ameen Mahmood M101505

2.Kazi Robiul Hasan M101521
3.Ashraful Islam M101523
4.Abdul Kadir Anshur M101502
5.Ahmed Mohamed Dahir M101507
 CONTENTS

Introduction to Performance Measurement

Formulas for measurement of performance
Performance measurement of BEXIMCO Pharmaceuticals ltd

Productivity and profitability relationship

Productivity
Productivity and
and profitability
profitability relationship
relationship of
of BEXIMCO
BEXIMCO Pharmaceuticals
Pharmaceuticals ltd
ltd
 PERFORMANCE MEASUREMENT

Performance refers to job or activities &

measurement refers to evaluation or assessment. So
by Performance Measurement is meant evaluation
or assessment of job of an organization.
 FORMULAS FOR PERFORMANCE MEASUREMENT

A. Profitability Standar
Measurement: Formula d Norms

Profit Net Profit

X 100 5%-6%
Margin= Sales

Return on Net profit

X 100 10% -12%
Investment= Investment

Net profit
Return on equity= X 100 13%-15%
equity
 PRODUCTIVITY MEASUREMENT
Standard
B. Productivity Measurement : Formula Norms

Sales revenue
Raw Material Productivity= 2 Times
Raw Material Cost

Sales revenue
Labor Productivity= 2.5 Times
Labor Cost

Sales revenue
Capital Productivity= 1 Times
capital
 PERFORMANCE
PERFORMANCE MEASUREMENT
MEASUREMENT FOR
FOR
BEXIMCO
BEXIMCO PHARMACEUTICAL
PHARMACEUTICAL LTD.
LTD.

A. Profitability Measurement: 2004 2003

294,302,934 207,140,366
Profit Margin= X 100 X 100
2,402,700,962 2,183,829,795

12.25% 9.49%
294,302,934 207,140,366
Return on Investment= X 100 X 100
8,560,380,432 8,012,857,866

3.44% 2.59%
294,302,934 207,140,366
Return on equity= X 100 X 100
4,834,747,661 4,596,420,977

6.09% 4.51%
 18.00%
Profitability
16.00%

14.00%

12.00%

10.00%
Percentage

8.00%

6.00%

4.00%

2.00%

0.00%
Profit Margin Return On Investment Return On Equity
2003 9.49% 2.59% 4.50%
2004 12.25% 3.44% 6.09%
Standard Norms 6% 12% 16%
B. Productivity Measurement : 2004 2003

2,402,700,962 2,183,829,795
Raw Material Productivity=
787,768,299 851,733,404

3.05 2.56

2,402,700,962 2,183,829,795
Labor Productivity=
101,417,546 84,829,589

23.69 25.74

2,402,700,962 2,183,829,795
Capital Productivity=
559,762,500 508,875,000

4.29 4.29
 30
Productivity

25

20
Times

15

10

0
Raw Material Labor Capital
2003 2.6 25.74 4.29
2004 3 23.69 4.29
Standard Norms 2 2.5 1
 PRODUCTIVITY AND PROFITABILITY RELATIONSHIP

Profit earning capacity of an enterprise.

Best measurements of evaluating of overall
performance.
 Measurement of productivity alone cannot
identify the causes of productivity changes.
Profitability may be changed due to
productivity or price cost movement.
 Productivity and profitability Relationship
For the year ended 31st Dec, 2004

Case Profitability Productivity Impact What Should be done

Profit Margin Raw Material Financial Maintain or increase

1 condition will productivity further
be sound and
HIGH HIGH stable

Return on Labor The company Improve profitability,

2 Investment may soon be strengthen, market
operating at a research, market
LOW HIGH loss and may promotion, advertising and
be on the pricing policy
bridge of shut
down

Return on Equity Capital The company Improve profitability,

3 Productivity may soon be strengthen, market
operating at a research, market
LOW HIGH loss and may promotion, advertising and
be on the pricing policy
bridge of shut
down
 Productivity and profitability Relationship
For the year ended 31st Dec, 2003

Case Profitability Productivity Impact What Should be

done
Profit Margin Raw Material Financial Maintain or increase
1 condition will productivity further
be sound and
HIGH HIGH stable

Return on Labor The company Improve profitability,

2 may soon be strengthen, market research,
Investment operating at a market promotion,
LOW HIGH loss and may advertising and pricing policy
be on the
bridge of shut
down

Return on Capital The company Improve profitability,

3 may soon be strengthen, market research,
Equity Productivity operating at a market promotion,
loss and may advertising and pricing policy
be on the
bridge of shut
down
Questions?