financial analysis 2007-2012(cement companies.)
TRANSCRIPT
WELCOME
TO
OUR
PRESENTATION
FINANCIAL ANALYSIS & CONTROL
Financial analysis about the three
Cement companies are:
Confidence Cement ltd.
Hidelberg Cement Bangladesh ltd.
Meghna Cement Mills ltd.
RE-PRESENTERS NAME
Perthojit Kumar Dash
Biddut Ahmed Sagor
Md. Shumon Iftikher
Md. Nur-E-Alom
Confidence Cement Limited (CCL) is the first private sector
cement manufacturing company in Bangladesh.
It was established in 1994 with having 4,80,000 M/T annual
production capacity at Chittagong.
It Manufactures Portland cement and Portland Composite Cement.
CCL aims to be the number one cement manufacturing company in
Bangladesh, through continuous development and by producing
high and consistent quality Cement to meet all customers
requirement at all time.
Meghna Cement Mills Ltd is the first manufacturing unit
of Bashundhara Group and it is one of the largest cement
industries in the country.
The company markets its product under the registered
trade mark "King Brand Cement". This organization was
established in 1992.
At present the production capacity of MCML is approx.
1.0 million MT/annum.
In 1999, HeidelbergCement acquired its operations in Bangladesh.
Our subsidiary HeidelbergCement Bangladesh Ltd., which is the
market leader in Bangladesh, operates two cement grinding plants
in Dhaka, the capital city, and in Chittagong. In order to benefit
from steady growth in the Bangladeshi cement market, we have
built an additional cement mill with a capacity of 0.8 million tones
in our Chittagong grinding plant. After successful test runs at the
end of 2011, production commenced at the start of 2012.
ECONOMIC EARNING
2007 2008 2009 2010 2011 2012
Confi-dence
67340370 85773421 13264100 132324417 69341041 91769384
Megena 85108833.9707991
58334116.4053443
76948757.4026029
48627025.735246
48601728.3218894
41224870.9747113
Heidel-berg
75492150 46525550 64817080 62392240 51233250 4303650
10000000
30000000
50000000
70000000
90000000
110000000
130000000
CROSS-SECTIONAL COMPARISONS
By using cross- sectional comparisons the three companies, we can
identify the actual reported data that is filled with problems
because of the currency differentials as well as the disparity in size.
CURRENT ASSET VS. CURRENT LIABILITY
Heidelberg Confidence MEGHNA
Current asset 0.614679108917911 0.378269425857664 0.732342878781732
Current Lia-bilities
0.23276746060643 0.291859275256178 0.586505420158598
5%
15%
25%
35%
45%
55%
65%
75%
FIXED ASSET VS. TOTAL ASSET
Heidelberg Confidence MEGHNA
Fixed Asset 0.370343073160834 0.464026261944698 0.267657121218268
Total asset 1 1 1
5%15%25%35%45%55%65%75%85%95%
INTANGIBLE ASSETS VS TOTAL ASSETS
Heidelberg Confidence MEGHNA
Intangible Asset 7.28638238303042E-05
0 0
Total Assets 1 1 1
5%15%25%35%45%55%65%75%85%95%
INVESTMENT VS TOTAL ASSETS
Heidelberg Confidence MEGHNA
Investment 0 0.136164454391754 0
Total Assets 1 1 1
5%
15%
25%
35%
45%
55%
65%
75%
85%
95%
CURRENT LIABILITIES & TOTAL LIABILITIES
Heidelberg Confidence MEGHNA
Current Liabil-ities
0.23276746060643 0.291859275256178 0.586505420158598
Total Liabili-ties
0.313835707434212 0.374837964963612 0.817635702086262
5%
15%
25%
35%
45%
55%
65%
75%
85%
TOTAL EQUITY VS TOTAL ASSETS
Heidelberg Confidence MEGHNA
Total Equity 0.686164292565788 0.625162035036388 0.182364297913738
Total assets 1 1 1
5%15%25%35%45%55%65%75%85%95%
SALES VS COST OF GOODS SOLD
Heidelberg Confidence MEGHNA
Sales 1 1 1
COGS 0.808624113172859 0.828348314396255 0.894543481142581
5%
15%
25%
35%
45%
55%
65%
75%
85%
95%
SALES VS OPERATING COST
Heidelberg Confidence MEGHNA
Sales 1 1 1
Oparating Cost
0.142999722374162 0.142281345929489 0.0548549970569192
5%15%25%35%45%55%65%75%85%95%
SALES VS INTEREST EXPENSE
Heidelberg Confidence MEGHNA
Sales 1 1 1
Interest 0.000354152086410537 0.0249695981725401 0.033177885310194
5%
15%
25%
35%
45%
55%
65%
75%
85%
95%
SALES VS NET INCOME
Heidelberg Confidence MEGHNA
Sales 1 1 1
Net Income 0.118256388471858 0.0856991994022178 0.0213731601431385
5%15%25%35%45%55%65%75%85%95%
RATIO ANALYSIS
Financial ratios are used to compare the risk and return
of different firms in order help equity investors &
creditors make intelligent investment & credit decisions.
Activity Analysis
A firms operation activities require investments in both
short-term (inventory & AR) & long-term (property,
plant, equipment) assets.
INVENTORY TURNOVER RATION
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
6.51475308140523
3.53901072880101
6.28843272748389
5.24896875550348
6.39752539117704
7.40653933115619
Con-fi-dence ce-ment
4.06229841762375
4.86909732376753
3.65753504994561
3.57606711447249
5.93068719533052
7.52324359460018
Meghna Ce-ment
38.0429261745353
43.1745190290583
39.3748328754279
6.94220003575746
6.96089200977289
13.4198104315861
2.50
12.50
22.50
32.50
42.50
RECEIVABLES TURNOVER
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
9.96384758413732
10.5324604672006
12.2812806723376
14.1208997442828
10.6286900294166
11.8602568796144
Con-fi-dence ce-ment
9.35616859728393
8.45935157454327
6.93678342889338
13.2369471918377
9.67462121477059
7.33839940266004
Meghna Ce-ment
3.19208220501794
6.08381297458663
6.43333514734693
13.1961442013186
7.67588837878994
5.91882419811884
1.00
5.00
9.00
13.00
PAYABLE TURNOVER
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
3.02232574629301
4.98547048967868
4.95885458062775
5.58002175326138
4.33355699625326
5.76840045043195
Con-fi-dence ce-ment
21.1648640441278
30.5196268413962
47.5030307191305
31.6896838315565
28.08782452025
13.6470555585867
Meghna Ce-ment
78.8877160797071
25.7064362341375
16.7814736756361
16.4738902197579
20.2401254226866
15.5371033931372
5.00
25.00
45.00
65.00
85.00
WORKING CAPITAL TURNOVER
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
6.58473998514669
4.01689367729469
3.5204621432521
2.84162636194889
3.28109976598265
2.90653583479682
Con-fi-dence ce-ment
2.32460279869713
2.4204708471093
2.00088486333847
2.23683627923026
2.17053285507127
2.4788574760769
Meghna Ce-ment
2.54427997107791
3.06926352142219
3.09109307781001
3.29948448444507
2.62413038764426
2.62675735634353
0.50
2.50
4.50
6.50
FIXED ASSETS TURNOVER
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
2.16028610770467
2.25017963944932
2.76082111621179
3.37095318531841
3.57102224958057
3.20122494749742
Con-fi-dence ce-ment
2.11151528508143
2.50501113773888
0.786712272633769
1.10218828221636
1.1930732259865
1.72654280543026
Meghna Ce-ment
2.25572732325201
2.78801405047525
4.28972871944151
4.37742338410947
4.99251455674238
5.92362983580918
0.50
2.50
4.50
6.50
LIQUIDITY ANALYSIS
Short term leandes and creditors must assess the
ability of a firm to meet its short term obligation. The
ability depends on the cash resources available as of
the balance sheet date and the cash to be generated
through the operating cycle of the firm.
CURRENT RATIO
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
1.03027404932429
1.2682812492124
2.03450267904854
2.37855165797104
2.14291984672478
2.64074328652504
Con-fi-dence ce-ment
1.29331822111695
1.07270784312541
1.41975446018849
1.36003852218422
1.23600006107024
1.29606785847611
Meghna Ce-ment
1.10181984900947
1.42972169514931
1.29488382978566
1.20345479960558
1.19334371338603
1.24865492050133
0.2500.7501.2501.7502.2502.750
CASH RATIO
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
0.398271511475298
0.322793572809955
1.09482760695734
1.32468192682088
1.16153129856811
1.61895873817413
Con-fi-dence ce-ment
0.0743592381829229
0.0435868625324313
0.0546017161127385
0.0652803254302491
0.0650166387721889
0.0361638528624869
MeghnaCement
0.0587876994955567
0.067510225959143
0.0913260533476677
0.0326432764108373
0.0386080213050382
0.0637690183321207
0.10
0.50
0.90
1.30
1.70
CASH FLOW FROM OPERATION RATIO
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
0.527645663127684
0.0137324647699186
1.25693953004723
0.615007811206534
0.541678013482141
0.537026058450549
Con-fi-dence ce-ment
0.0624026227886084
-0.116172731
64003
0.36760612096061
0.333459976662235
0.166794162351624
0.0492460346156213
Meghna Ce-ment
0.166561190992336
0.00984520046901306
-0.054577904
8387939
0.153039042592615
-0.186530874
75316
0.0837461089086883
-0.30
0.10
0.50
0.90
1.30
DEFENSIVE INTERVAL
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
5.27593572123503
4.92354054771142
7.5418825439512
7.12891025700265
7.32390802636542
9.82810619802798
Con-fi-dence ce-ment
54.02 49.64 71.1385 40.4055 53.3703 63.6925
Meghna Ce-ment
46.4645 45.2235 36.27735 33.18215 55.626 74.387
5.00
25.00
45.00
65.00
LONG TERM DEBT & SOLVENCY ANALYSIS
The analysis of a firm's capital structure is essential to evaluate
its long term risk and return prospects . Leveraged firms accrue
excess return to their shareholders as long as the rate of return
on the investment financed by debt is greater than the cost of
debt. The benefits of financial leverage bring additional risks in
the form of fixed cost ( interest on debt) may affect profitability if
the demand or profit margins decline. The ability to meet those
obligation may lead the company to default and possible
bankruptcy.
PROFITABILITY ANALYSIS
Equity investors are concerned with the firm's ability
to generate , sustain, and increase profits.
Profitability cab be measured in several differing but
interrelated dimension. First there is a relationship
of a firm's profit to sales that is the firm residual
return to the firm per sales. Another measures ,
return on Investment (ROI) relates the investment
required to generate them.
GROSS MARGIN
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
0.21534139769739
0.191650197597431
0.248720558271573
0.237130774206596
0.157470944220936
0.191375886827141
Con-fi-dence ce-ment
0.117625685494022
0.0192797435069301
0.188332565916528
0.137679705664866
0.140321177215342
0.171651685603745
Meghna Ce-ment
0.121679055616579
0.0692141975880501
0.0970452481596942
0.0805429024914519
0.0886354001407565
0.105456518857419
0.030.080.130.180.230.28
RETURN ON ASSETS(ROA)
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
0.131354510360573
0.11203496611896
0.144480262666965
0.139245776552797
0.0937172201037672
0.140513936104852
Con-fi-dence ce-ment
0.0614990575408831
-0.007570896
93640573
0.0644448608480162
0.0771520233808287
0.0579357731594809
0.0836623787859337
Meghna Ce-ment
0.0515916712429326
0.00793128431465634
0.0398019929236606
0.0138880845120415
0.016194056337428
0.0338871819340044
-0.01
0.03
0.07
0.11
0.15
RETURN ON EQUITY(ROE)
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
0.217564848600256
0.179114602100559
0.214220551845316
0.20997052244917
0.142434531711429
0.20432283998873
Con-fi-dence ce-ment
0.0768832278591469
-0.045295835
8020039
0.0766803515359552
0.0925696682003976
0.0788201801182452
0.109825725067815
Meghna Ce-ment
0.239299246402491
0.0402400173370866
0.196088638901377
0.0746922054364425
0.0984583151940797
0.185821360439935
-0.08
0.03
0.13
0.23
OPERATING & FINANCIAL LEVERAGE ANALYSIS
Profitability ratios imply that profits are proportional
to sales, which may misstate the true relationship
among sales, cost, and profit. Generally a doubling of
sales would be expected to double of income only if
all expense are variables.
BASIC EPS
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
110.000286707497
104.864859890294
150.607979175833
176.754287073492
13.2674956170919
22.7815476470694
Con-fi-dence ce-ment
27.72851 -14.97838526
31579
68.6123846889952
7.39139219114219
5.28684754604663
6.23203550200118
Meghna Ce-ment
65.8570616522373
10.2808758955396
58.6596162734885
2.22869926756858
2.95590868290082
6.28247275603989
-25.00
25.00
75.00
125.00
175.00
PRICE EARING RATIO(PE RATIO)
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
10.2817913830302
11.5768046728909
14.2920714545076
20.702468158402
19.2877395542785
11.7946332778917
Con-fi-dence ce-ment
13.037123163127
-21.24728362
96176
20.3789739467293
39.6948223572292
22.660006545788
0
Meghna Ce-ment
5.45499588027544
37.5454391164732
22.2299442587617
155.247504692489
43.7767244802068
16.6813297995199
-25
25
75
125
175
BOOK VALUE RATIO
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
50.559 58.546 70.305 84.18 93.14 111.49
Con-fi-dence ce-ment
360.657464210526
330.679078947368
894.78443062201
79.8468044105018
67.0747965573709
56.7447699357596
Meghna Ce-ment
1276.50568523226
1296.24351967076
1473.78590780608
160.475641233045
182.530468050124
185.393780110576
100
500
900
1300
WHICH COMPANY IS THE
BEST?
AND
WHY?
ECONOMIC EARNING
2007 2008 2009 2010 2011 2012
Confi-dence
67340370 85773421 13264100 132324417 69341041 91769384
Megena 85108833.9707991
58334116.4053443
76948757.4026029
48627025.735246
48601728.3218894
41224870.9747113
Heidel-berg
75492150 46525550 64817080 62392240 51233250 4303650
10000000
30000000
50000000
70000000
90000000
110000000
130000000
SALES VS INTEREST EXPENSE
Heidelberg Confidence MEGHNA
Sales 1 1 1
Interest 0.000354152086410537 0.0249695981725401 0.033177885310194
5%
15%
25%
35%
45%
55%
65%
75%
85%
95%
SALES VS OPERATING COST
Heidelberg Confidence MEGHNA
Sales 1 1 1
Oparating Cost
0.142999722374162 0.142281345929489 0.0548549970569192
5%15%25%35%45%55%65%75%85%95%
RATIOS POINT OF VIEWRECEIVABLES TURNOVER
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
9.96384758413732
10.5324604672006
12.2812806723376
14.1208997442828
10.6286900294166
11.8602568796144
Con-fi-dence ce-ment
9.35616859728393
8.45935157454327
6.93678342889338
13.2369471918377
9.67462121477059
7.33839940266004
Meghna Ce-ment
3.19208220501794
6.08381297458663
6.43333514734693
13.1961442013186
7.67588837878994
5.91882419811884
1.00
5.00
9.00
13.00
PAYABLE TURNOVER
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
3.02232574629301
4.98547048967868
4.95885458062775
5.58002175326138
4.33355699625326
5.76840045043195
Con-fi-dence ce-ment
21.1648640441278
30.5196268413962
47.5030307191305
31.6896838315565
28.08782452025
13.6470555585867
Meghna Ce-ment
78.8877160797071
25.7064362341375
16.7814736756361
16.4738902197579
20.2401254226866
15.5371033931372
5.00
25.00
45.00
65.00
85.00
CASH RATIO
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
0.398271511475298
0.322793572809955
1.09482760695734
1.32468192682088
1.16153129856811
1.61895873817413
Con-fi-dence ce-ment
0.0743592381829229
0.0435868625324313
0.0546017161127385
0.0652803254302491
0.0650166387721889
0.0361638528624869
MeghnaCement
0.0587876994955567
0.067510225959143
0.0913260533476677
0.0326432764108373
0.0386080213050382
0.0637690183321207
0.10
0.50
0.90
1.30
1.70
CURRENT RATIO
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
1.03027404932429
1.2682812492124
2.03450267904854
2.37855165797104
2.14291984672478
2.64074328652504
Con-fi-dence ce-ment
1.29331822111695
1.07270784312541
1.41975446018849
1.36003852218422
1.23600006107024
1.29606785847611
Meghna Ce-ment
1.10181984900947
1.42972169514931
1.29488382978566
1.20345479960558
1.19334371338603
1.24865492050133
0.2500.7501.2501.7502.2502.750
CASH FLOW FROM OPERATION RATIO
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
0.527645663127684
0.0137324647699186
1.25693953004723
0.615007811206534
0.541678013482141
0.537026058450549
Con-fi-dence ce-ment
0.0624026227886084
-0.116172731
64003
0.36760612096061
0.333459976662235
0.166794162351624
0.0492460346156213
Meghna Ce-ment
0.166561190992336
0.00984520046901306
-0.054577904
8387939
0.153039042592615
-0.186530874
75316
0.0837461089086883
-0.30
0.10
0.50
0.90
1.30
DEFENSIVE INTERVAL
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
5.27593572123503
4.92354054771142
7.5418825439512
7.12891025700265
7.32390802636542
9.82810619802798
Con-fi-dence ce-ment
54.02 49.64 71.1385 40.4055 53.3703 63.6925
Meghna Ce-ment
46.4645 45.2235 36.27735 33.18215 55.626 74.387
5.00
25.00
45.00
65.00
RETURN ON ASSETS
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
0.131354510360573
0.11203496611896
0.144480262666965
0.139245776552797
0.0937172201037672
0.140513936104852
Con-fi-dence ce-ment
0.0614990575408831
-0.007570896
93640573
0.0644448608480162
0.0771520233808287
0.0579357731594809
0.0836623787859337
Meghna Ce-ment
0.0515916712429326
0.00793128431465634
0.0398019929236606
0.0138880845120415
0.016194056337428
0.0338871819340044
-0.01
0.03
0.07
0.11
0.15
ROE
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
0.217564848600256
0.179114602100559
0.214220551845316
0.20997052244917
0.142434531711429
0.20432283998873
Con-fi-dence ce-ment
0.0768832278591469
-0.045295835
8020039
0.0766803515359552
0.0925696682003976
0.0788201801182452
0.109825725067815
Meghna Ce-ment
0.239299246402491
0.0402400173370866
0.196088638901377
0.0746922054364425
0.0984583151940797
0.185821360439935
-0.08
0.03
0.13
0.23
PE RATIO
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
10.2817913830302
11.5768046728909
14.2920714545076
20.702468158402
19.2877395542785
11.7946332778917
Con-fi-dence ce-ment
13.037123163127
-21.24728362
96176
20.3789739467293
39.6948223572292
22.660006545788
0
Meghna Ce-ment
5.45499588027544
37.5454391164732
22.2299442587617
155.247504692489
43.7767244802068
16.6813297995199
-25
25
75
125
175
BOOK VALUE RATIO
2007 2008 2009 2010 2011 2012
Hei-del-bergcement
50.559 58.546 70.305 84.18 93.14 111.49
Con-fi-dence ce-ment
360.657464210526
330.679078947368
894.78443062201
79.8468044105018
67.0747965573709
56.7447699357596
Meghna Ce-ment
1276.50568523226
1296.24351967076
1473.78590780608
160.475641233045
182.530468050124
185.393780110576
100
500
900
1300
So, We Conclude that Confidence Shows the
best Financial Performance of Cement
Companies in Bangladesh.
