Evaluation of Financial Performance of Gsk
EVALUATION OF THE FINANCIAL PERFORMANCE OF GLAXOSMITHKLINE 2008 AND 2009
BACKGROUND OF THE COMPANY
GSK is the world’s largest pharmaceutical company. It has a 7% share of the global pharmaceutical market, 26% of all vaccine sales, and 17% of all anti-invectives. It was formed with the merger of two top pharmaceutical companies, Glaxo Wellcome Plc and SmithKline Beecham Plc in December 2000. “GSK’s history dates back to 1715, when Plough Court pharmacy, a predecessor to SmithKline Beecham, was opened in London. Glaxo Laboratories Limited (the predecessor to Glaxo Wellcome) was set up in 1929, with director Alec Nathan”. (www.referenceforbusiness.com/history2/.../GlaxoSmithKline-plc.htm). Glaxo’s Motto is ‘committed to improving the quality of life.’ GSK is in the industry area of prescription medicines, vaccines and other consumer health products. Amongst their popular products are Antibiotics, Antidepressants, gastrointestinal, dermatological, respiratory, cancer drugs, dermatological medications, Health drinks (Lucozade, Ribena, and Horlicks), toothpaste (Aqua Fresh), etc. The company is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
CALCULATION OF KEY RATIOS
TABLE OF FINANCIAL INDICES FOR CALCULATION OF KEY RATIOS
€million
S/n 2009 2008
1 Fixed Assets 25,292 22,124
2 Current Assets 17,570 17,269
4 Total assets 42,862 39,393
5 Current Liabilities 12,118 10,017
6 Long term liabilities 20,002 21,058
7 Total Liabilities 32,120 31,075
8 Net assets 10,742 8,318
9 Net sales 28,368 24,352
10 Gross profit before tax 8,425 7,141
11 Net profit before tax 7,891 6,659
12 Profit after tax 5,669 4,712
13 Equity share capital 1,416 1,415
14 Reserves 8,589 6,516
15 Minority interest 737 387
16 Total Equity 10,742 8,318
17 Earnings per share 1.93dollars 2.01dollars
18 Market share price 43dollars 48dollars
Source: Based on data from GSK Annual Reports and Accounts
Return on Sales
BACKGROUND OF THE COMPANY
GSK is the world’s largest pharmaceutical company. It has a 7% share of the global pharmaceutical market, 26% of all vaccine sales, and 17% of all anti-invectives. It was formed with the merger of two top pharmaceutical companies, Glaxo Wellcome Plc and SmithKline Beecham Plc in December 2000. “GSK’s history dates back to 1715, when Plough Court pharmacy, a predecessor to SmithKline Beecham, was opened in London. Glaxo Laboratories Limited (the predecessor to Glaxo Wellcome) was set up in 1929, with director Alec Nathan”. (www.referenceforbusiness.com/history2/.../GlaxoSmithKline-plc.htm). Glaxo’s Motto is ‘committed to improving the quality of life.’ GSK is in the industry area of prescription medicines, vaccines and other consumer health products. Amongst their popular products are Antibiotics, Antidepressants, gastrointestinal, dermatological, respiratory, cancer drugs, dermatological medications, Health drinks (Lucozade, Ribena, and Horlicks), toothpaste (Aqua Fresh), etc. The company is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
CALCULATION OF KEY RATIOS
TABLE OF FINANCIAL INDICES FOR CALCULATION OF KEY RATIOS
€million
S/n 2009 2008
1 Fixed Assets 25,292 22,124
2 Current Assets 17,570 17,269
4 Total assets 42,862 39,393
5 Current Liabilities 12,118 10,017
6 Long term liabilities 20,002 21,058
7 Total Liabilities 32,120 31,075
8 Net assets 10,742 8,318
9 Net sales 28,368 24,352
10 Gross profit before tax 8,425 7,141
11 Net profit before tax 7,891 6,659
12 Profit after tax 5,669 4,712
13 Equity share capital 1,416 1,415
14 Reserves 8,589 6,516
15 Minority interest 737 387
16 Total Equity 10,742 8,318
17 Earnings per share 1.93dollars 2.01dollars
18 Market share price 43dollars 48dollars
Source: Based on data from GSK Annual Reports and Accounts
Return on Sales