reports on various companies including ratios of aftab

8/10/2019 Reports on various companies including ratios of Aftab

1/54

ACT 330.5

GROUP PROJECT

PREPARD FOR- Sayba Kamal Athoi

Prepared by:

Sumaiya Hossain Sujana 1110930020

Md. Nafiul Rahman 1120483020

Humayra Akter 1110619030

Sadia Azmin Anisha 1230084630

Afsana Nawmy 1030839030


2/54

Content

No Details Page no

1 Executive summary 3

2 Introduction 3

3 Interpretation and graphs

4 Off balancing financing

5 Investors decision based on 2013 financial

statements

6 Rank of investment based on ratios

7 Project selection rank

8 Conclusion


3/54

Executive summary

The following report is based on three companies financial analysisand their respective

company profile. The company profile includes some important information about the

company. It also shows different performance of the computer. The report then shows 2013

financial statement analysis and drawn graphs for each ratio comparing all the six companies

2013 data. Based on the graphs a table was extracted ranking all the companies from one to six

at each ratio performance. Later the companies are ranked in terms of positive investment

opportunities of which Marico Bangladesh turned out to be the ideal one and Libra Infusion is

considered the least selected for investment due to negative gross working capital turnover

ratio. The conclusion was drawn based on the detailed analysis which includes all the six

companies efficientand inefficient performance and position.

Introduction

Aftab Automobiles Limited, In 1981 the Company was converted into Public Limited Company

which is the lone largest assembler-cum-progressive manufacturer of Toyota & Hino vehicles in

the private sector of Bangladesh. The Company is mainly a vehicle assembler and body

fabricator but has been successfully assembling Toyota & Hino vehicles for Bangladesh market

since 1982.Libra Infusion Ltd, there was always a scarcity of Intravenous (I.V.) Fluid in the market as Govt.

could not manufacture enough to fulfill the local demand. Before 1985, the major portion of

the local demand was being covered by the imported I.V. Fluid. To overcome this situation

LIBRA made its debut in February 1985 under the strong leadership of Dr. Roushon Alam with a

view to provide quality products.

Quasem Drycells Limitedis the largest dry cell manufacturing & first ISO certified company in

Bangladesh of its kind. The journey started in June 14, 1980, where the company brought a new

era of modern battery manufacturing technology in Bangladesh . And now its representing as a

pioneer company in terms of Dry Cell Manufacturing, where it has successfully established its

SUNLITE brand as a leader in the dry cell Industry.

Rangpur Foundry Ltdgroup is a professionally managed, ISO 9001 certified organization. It is

dedicated to serve the need of Cast Iron, PVC and plastic products in all the continents of the

world. RFLis a listed and blue chip company in few stock exchanges.

RFLCast Iron products are the result of 30 years extensive service to Agriculture and people to

supply pure drinking water at the most cheapest cost in the world. It is the largest cast Iron


4/54

foundry in Bangladesh and expands its services with innovative products.

Marico Bangladesh Ltdis the fastest Growing FMCG company in Bangladesh. Marico

Bangladesh Limited (MBL) holds a leadership position in the FMCG space. MBL is the subsidiary

of Marico Limited, India (Marico). MBL's Products in Pure coconut oil, Hair care and Skin Care

reach out to more than 450,000 outlets in Bangladesh. MBL generated a turnover of about Tk.2650 Million (about USD 38.4 Million) during 2007-08. MBL markets well-known brands such as

Parachute, Aromatic, Camelia, Hair Code and Beliphool to name a few, most of which enjoy

leadership positions (No. 1 in coconut oil segment.)

TheSINGERsaga began in 1851, when Sir Isaac Merritt Singer with US$ 40 in borrowed capital

began to manufacture and sell a machine to automate and assist in themaking of clothing. This

revolutionary product was the first offering from the newly formed I.M. Singer & Company,

which hasnow evolved into the world leader in manufacturing and distribution of sewing

related products. The SINGER brand name is now famous around the globe.

In 1876, SINGER became the first multinational industrial company as it began manufacturing

sewing machines in Glasgow, Scotland. By 1880, world sales had reached 250,000 units.

Additional factories were established in New Jersey, and one of the best-known emblems- the

RED S Girl Trademark-was developed.

The first electric machine was introduced in 1889 and by the turn of the century annual sales

had reached US$1.35 million. A separate subsidiary, the singer Sewing Machine Company, was

established to handle sales and distribution in the western hemisphere.

Return on Assets (ROA)


5/54


6/54

They had a ROA of 2% in 2008. It was their highest value till 2013. Though it was the highest

ROA of Libra Infusion but the fraction is very far away from the benchmark. Somehow this year

they managed to reduce their expenses.

Libra Infusion constantly performed very poor in terms of ROA. They had a very low

performance of ROA from 2008 to 2013. And the lowest percentage is 0.19% in the year 2013.

Rangpur Foundry Limited:

7.38% was the highest ROA of Rangpur Foundry in the year 2013. This year they got approach

to reduce asset costs and increase income to keep their ROA high.

5.8% was the lowest ROA of this company. Decreasing of revenue and increasing of asset costs

leaded them to the lowest figure of ROA.

Marico:

In 2009 they had their highest ROA

of 18.5%. Marico had a very

constant growth of performance

since 2008 to 2013. It maintained a

ROA which was up to the

benchmark of 16.2%. They reducedtheir expenses and cost of assets in a adequate level which ranked up their ROA.

During 2010 it had their lowest value of 12.3%. High expenditure cost and falling of revenue

move toward the lowest percentage of ROA.

Singer:

0

0.05

0.1

0.15

0.2

2013 2012 2011 2010 2009 2008

ROA

ROA

0

0.02

0.04

0.06

0.08

2013 2012 2011 2010 2009 2008

ROA

ROA


7/54


8/54


9/54

During 2008 Marico had their highest ROE of 31.5%. They showed their best performance of

controlling shareholders equity to increase ROE.

Later on their performance declined and got the lowest ROE of 20.3%. Though it was better

than the benchmark but they deteriorated their performance of keeping their net income

higher than the shareholders equity.

Singer:

In 2010 Singer had their best ROE of 62%. They retained a very strong control over their net

income over shareholders equity.

Last year ROE of Singer is the lowest of previous 5 years and it is only 9%. They had loosened

the control over net income which eventually got a lower fraction of ROE.

Rangpur Foundry:

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

2013 2012 2011 2010 2009 2008

(ROE)

(ROE)


10/54

In 2012 Rangpur Foundry had the

highest ROE of 15.5%. They had much

higher net income than the

shareholders equity than the previous

years.

In 2008 it had their lowest ROE of12.3%. The percentage was very much close to the benchmark but they failed to take the full

manage of their net income over shareholders equity.

Leverage Debt to Equity

The debt-to-equity ratio is a measure of the relationship between thecapital contributed by

creditors and the capital contributed by owners. It also shows the extent to which

shareholders' equity can fulfill a company's obligations to creditors in the event ofliquidation.

Aftab:

It had their highest Leverage Debt to Equity ratio in 2008, the ratio was 26%.This higher debt-

to-equity ratio indicates that Aftab was not able to generate enough cash to satisfy its debt

obligations.

In 2010 they had the lowest leverage debt to equity ratio of 17%. This implies that Aftab was

not taking advantage of the increased profits that financial leverage could bring.

Rangpur Foundry:

0

0.5

1

1.5

2

2.5

3

2013 2012 2011 2010 2009 2008

Leverage (Debt to equity)

Leverage (Debt

to equity)

0

0.05

0.1

0.15

0.2

2013 2012 2011 2010 2009 2008

(ROE)

(ROE)
http://www.investinganswers.com/financial-dictionary/economics/capital-5749http://www.investinganswers.com/financial-dictionary/economics/capital-5749


11/54

In 2012 the company had the maximum leverage debt to equity ratio of 1.14 and the lowest in

2009 with a ratio of 1.009. The company had a very constant leverage debt to equity ratio since

2008 to 2013. It was not varying significantly.

Singer:

In 2008, singer had a very high leverage ratio of 2.34 but later on they managed lowering the

ratio very well. In 2010 it had a leverage debt to equity ratio of 0.12. Lower debt to equity ratio

attracts investors and creditors towards company that is why they controlled the ratio very

effectively.

Marico:

0.9

0.95

1

1.05

1.1

1.15

1.2

2013 2012 2011 2010 2009 2008


Leverage (Debt to

equity)

0

0.5

1

1.5

2

2.5

2013 2012 2011 2010 2009 2008


Leverage (Debt

to equity)


12/54

In 2011 Marico had the highest leverage debt to equity ratio of 0.87. They had a tendency to

lower the ratio but it did not vary significantly.In 2009, Marico had a leverage debt to equity

ratio of 0.614, which was the lowest in the 6 years time period (2008-2013).

Libra Infusion:

Libra Infusion had the highest leverage ratio of 3.92 in 2009. Later on they came up with lower

leverage debt to equity ratio. This higher debt-to-equity ratio point toward that Libra Infusion

was not able to generate enough cash to satisfy its debt obligations.

In 2010 they had the lowest leverage debt to equity ratio of 0.226. This implies that Libra

Infusion was not taking advantage of the increased profits that financial leverage could bring.

Quasem Dry Cells:

0

0.2

0.40.6

0.8

1

2013 2012 2011 2010 2009 2008


Leverage (Debt to

equity)

0

1

2

3

4

5

2013 2012 2011 2010 2009 2008


Leverage (Debt

to equity)


13/54

In 2010 the company had the maximum leverage debt to equity ratio of 0.789. Because this

time Quasem faced a hard situation of breeding enough cash to pay off its debt. And the lowest

ratio was in 2013 with a ratio of 0.023. The lower ratio attract investors but a lower ratio mightindicating a mishandling the increased profit.

Current Ratio

The current ratio is afinancial ratio that measures whether or not a firm has enough

resources to pay its debts over the next 12 months. It compares a firm's current assets to its

current liabilities.

Aftab:

In 2010 Aftab had their highest current ratio of 4.73. Afatb was capable to pay back its short-

term liabilities with its short-term assets (cash, inventory, receivables). But their higher current

ratio indicates idle usage of their assets.

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

2013 2012 2011 2010 2009 2008


Leverage (Debt to

equity)

0

1

2

3

4

5

2013 2012 2011 2010 2009 2008

Current Ratio

Current Ratio
http://en.wikipedia.org/wiki/Financial_ratiohttp://en.wikipedia.org/wiki/Current_assethttp://en.wikipedia.org/wiki/Current_liabilitieshttp://en.wikipedia.org/wiki/Current_liabilitieshttp://en.wikipedia.org/wiki/Current_assethttp://en.wikipedia.org/wiki/Financial_ratio


14/54

In 2008 it had their lowest current ratio of 1.2. Aftab had a shortage of their assets but it was

not running out of assets and it was capable to pay off its debt by its current assets.

Marico:

In 2012 Marico had the highest current ratio of 2.38. They were capable to disburse their debt

by employing their current assets.

In 2008 they have their lowest current ratio of 1.2. Though they had higher assets in terms of

debt, but they were in risk of losing assets in terms of debt.

Libra Infusion:

During 2011 Libra Infusion had their peak current ratio of 1.33. Though this year they had

higher assets than their debt but they were in the borderline of loosing assets. They employed

most of their assets which is not good for any company.

0

0.5

1

1.5

2

2.5

3

2013 2012 2011 2010 2009 2008

Current Ratio

Current Ratio

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

2013 2012 2011 2010 2009 2008

Current Ratio

Current Ratio


15/54

During 2010 Libra Infusion had the lowest ratio of 0.53. Any company should have a current

ratio of minimum 1, but in that year Libra had more debt to pay off, which is higher than their

total current asset value.

Rangpur Foundry:

In 2013 Rangpur Foundry had their maximum current ratio of 1.73 times. They had further

current assets after paying off their debt, but they did not have scores of idle assets.

In 2010 they had their lowest current ratio of 1.48. In this year they were struggling to keep the

ratio in a minimum limit. They had a lot of debt to pay back by using their current assets.

Singer:

In 2010 Singer had their highest CR of 6.48. They had enough assets to pay off their debt but at

the same time they had a lot of current assets which they kept idle. Inoperative current assets

would affect companys future growth in the long run.

In 2008 the company experienced the lowest CR of 1.30 in the six years time span. They were

capable to pay off the debt but at the same time they did not have sufficient assets to run the

company.

1.3

1.4

1.5

1.6

1.7

1.8

2013 2012 2011 2010 2009 2008

Current Ratio

Current Ratio

0

2

4

6

8

2013 2012 2011 2010 2009 2008

Current Ratio

Current Ratio


16/54

Quasem Battery:

In 2011 Quasem had the highest CR of 1.12. . They had further current assets after paying off

their debt, but they did not have scores of idle assets by which they could take ore loan to

expand the business.

In 2010 they had their least CR of 1.02. They were in the borderline of losing their current

assets. They took a lot of loan and were not concern about the total current assets value.

Cash conversion Cycle (CCC)

The cash conversion cycle (CCC) measures the number of days a company's cash is tied up in

the production and sales process of its operations and the benefit it gets from payment terms

from its creditors. The shorter this cycle, the more liquid the company's working capital positionis.

Formula:

It can also be calculated through the below formula if the operating cycle is known

Cash Conversion Cycle = Operating Cycle Days Payables Outstanding

Aftab:

0.95

1

1.05

1.1

1.15

201320122011201020092008

Current Ratio

Current Ratio


17/54

In 2011Aftab had the highest CCC ratio which was 1572 because the DSO of the company was

1531 compared to the other years. That means thecompany had high cash needs and it

negates all the positive liquidity qualities. In 2008Aftab had the lowest CCC ratio which was 28

because Aftab experienced very low DIO in that period which was 134. Thatmeans they had

greater liquidity, which translates into less of a need to borrow, more opportunity to realize

price discounts with cash purchases for raw materials.

MARICO

In 2013, Marico had the highest CCC ratio which was 111.15 because the DIO was 130 higher

than other years. That means thecompany has high cash needs and it negates all the positive

liquidity qualities. In 2008Marico had the lowest CCC ratio which was 0.988 because the DIOwas 34 is lowest among the other years. Thatmeans they had greater liquidity, which translates

into less of a need to borrow, more opportunity to realize price discounts with cash purchases

for raw materials, and an increased capacity to fund the expansion of the business into new

product lines and markets.

Quasem drycells Ltd

0

500

1000

1500

2000

2013 2012 2011 2010 2009 2008

CCC

CCC

0

20

40

60

80

100

120

2013 2012 2011 2010 2009 2008

CCC

CCC


18/54

In 2008, Quasem drycell ltd. had the highest CCC ratio which was 124.342 because DIO and

DSO were comparatively higher than other years which were respectively 122.3196641 and

16.55882507. That means thecompany has high cash needs and it negates all the positive

liquidity qualities. In 2009, Quasem drycell ltd had the lowest CCC ratio which was 85.1 because

DIO was very low which was 79.83586675 compared to other years and DPO was high which

was 5.91608565. Thatmeans they had greater liquidity, which translates into less of a need to

borrow, more opportunity to realize price discounts with cash purchases for raw materials, and

an increased capacity to fund the expansion of the business into new product lines and

markets.

Rangpur foundry ltd

In 2009, Rangpur had the highest CCC ratio which was 158.02 because day payable outstanding

is low. That means thecompany has high cash needs and it negates all the positive liquidity

qualities. In 2008, Rangpur had the lowest CCC ratio which was 147.66 because day payable

142144

146

148

150

152

154

156

158

160

2013 2012 2011 2010 2009 2008

CCC

CCC

0

20

40

60

80

100

120

140

2013 2012 2011 2010 2009 2008

CCC

CCC


19/54

outstanding is high. Thatmeans they had greater liquidity, which translates into less of a need

to borrow, more opportunity to realize price discounts with cash purchases for raw materials,

and an increased capacity to fund the expansion of the business into new product lines and

markets.

LIBRA INFUSION

In 2012, Libra had the highest CCC ratio which was 88.392 because DIO and DSO were

comparatively high than other years which were respectively 69.85672424 and 69.85672424

That means thecompany has high cash needs and it negates all the positive liquidity qualities.

In 2009, Libra had the lowest CCC ratio which was 22.736 because DIO was comparatively lower

than other years which was 36.93316351. Thatmeans they had greater liquidity, which

translates into less of a need to borrow, more opportunity to realize price discounts with cashpurchases for raw materials, and an increased capacity to fund the expansion of the business

into new product lines and markets

Singer bd

0

20

40

60

80

100

2013 2012 2011 2010 2009 2008

CCC

CCC

0

20

40

60

80100

120

140

160

2013 2012 2011 2010 2009 2008

CCC

CCC


20/54

In 2012, Singer had the highest CCC ratio which was 137.32 because DIO & DSO was high and

DPO was low. That means thecompany has high cash needs and it negates all the positive

liquidity qualities. In 2010, Singer had the lowest CCC ratio which was 80.62because DIO&DSO

was low compare to other years. Thatmeans they had greater liquidity, which translates into

less of a need to borrow, more opportunity to realize price discounts with cash purchases for

raw materials, and an increased capacity to fund the expansion of the business into newproduct lines and markets

Total CA to TA ratio

Formula = Total current assets/ Total assets

Aftab

Total current asset to total asset ratio represent the Current Asset Intensity Ratio. This ratio

measures the activity of a business. Aftab had the highest total CA to TA ratio in 2012 which

was 0.9155, because the company had the high amount of total current assets which was

5914169478 compared to the other years. In 2013, Aftab had the lowest total CA to TA ratio

which was 0.6658, because the company had experienced high amount of total asset which was

7524216860 compared to the other years.

0

0.2

0.4

0.6

0.8

1

2013 2012 2011 2010 2009 2008


Total CA to TA

ratio


21/54

MARICO


measures the activity of a business. Marico had the highest total CA to TA ratio in 2011 whichwas 0.9396, because the company had the high amount of total current assets which was

4334737374 compared to other years. In 2008, Aftab had the lowest total CA to TA ratio which

was 0.7325, because the company had experienced low amount of total current asset and low

amount of total asset compared to other years which was respectively 1091158408 and

1489486309.

Quasem drycell

Total current asset to total asset ratio represent the Current Asset Intensity Ratio. This ratiomeasures the activity of a business. Quasem Company had the highest total CA to TA ratio in

2010which was 0.425, because the company had the high amount of total current assets and

low amount of total assets which was respectively 376550056 and 885,904,358. In 2011,

Quasem Company had the lowest total CA to TA ratio which was 0.210679, because the

company had experienced low amount of total current asset and significantly high amount of

total assets which was 457861411 and 2,173,267,379 compared to the other years.

0

0.2

0.4

0.6

0.8

1

2013 2012 2011 2010 2009 2008


Total CA to TA

ratio

0

0.1

0.2

0.3

0.4

0.5

2013 2012 2011 2010 2009 2008


Total CA to TA

ratio


22/54

Rangpur foundry ltd


measures the activity of a business. Rangpur Company had the highest total CA to TA ratio in

2013which was 0.86174, because the company had the high amount of total current assets

which was 331698001 compared to other companies. In 2008, Rangpur Company had the

lowest total CA to TA ratio which was 0.7807, because the company had experienced

comparatively lower amount of total current asset which was 274086279.

LIBRA INFUSION


measures the activity of a business. Libra Fusion Company had the highest total CA to TA ratio

in 2008which was 0.35876, because the company had comparatively high amount of total

current assets and total assets which was respectively 109,657,939 and 305,654,738. In 2010,

Libra Fusion Company had the lowest total CA to TA ratio which was 0.059967, because the

company had experienced comparatively higher amount of total assets which was

2,404,338,076.

0.74

0.76

0.78

0.8

0.82

0.84

0.86

0.88

1 2 3 4 5 6


Total CA to TA

ratio

0

0.1

0.2

0.3

0.4

2013 2012 2011 2010 2009 2008


Total CA to TA

ratio


23/54

Singer bd


measures the activity of a business. Singer Company had the highest total CA to TA ratio in 2010

which was 0.8396, because the company had comparatively high amount of total current assetsand total assets which was respectively 3458768635 and 4119072827. In 2009, Singer Company

had the lowest total CA to TA ratio which was 0.6341, because the company had experienced

lower amount of total current assets and total assets which was 1388597492 and 2189641761

compared to other years.

Size (Total Assets)

The sum of all cash, investments, furniture, fixtures, equipment, receivables, intangibles, and

any other items of value owned by a person or a business entity. It is the summation of totalcurrent assets and non-currents assets.

If the total asset ratio is high, then the company is using its assets efficiently to generate sales.

Aftab

0

0.2

0.4

0.6

0.8

1

2013 2012 2011 2010 2009 2008



0

1,000,000,000

2,000,000,000

3,000,000,000

4,000,000,0005,000,000,000

6,000,000,000

7,000,000,000

8,000,000,000

Size(Total Asstes)

Size(Total

Asstes)


24/54

In 2013, total asset of Aftab was 7524216860 because at that time they had high amount of

non-current asset and current asset which was respectively 1610047382 and 5009069522.In

2008, the total asset ratio was too low which was 2236319794 because the total current asset

was comparatively lower than other years which was 1,797,116,898. It indicates that the

company is not using its asset base efficiently and effectively enough to generate adequate

sales.

Marico

In 2013, total asset of Marico was 5183078478 because Marico had very high amount of total

current asset at that period which was 4279126199.If the total asset ratio is high, then the

company is using its assets efficiently to generate sales. In 2008, the total asset ratio was too

low which was 1489486309 because the total current asset was too low among the other years

which was 1091158408. It indicates that the company is not using its asset base efficiently and

effectively enough to generate adequate sales.

Quasem drycell

0

1E+09

2E+09

3E+09

4E+09

5E+09

6E+09

2013 2012 2011 2010 2009 2008

Size(Total Asstes)

Size(Total

Asstes)

0

500000000

1000000000

1500000000

2000000000

2500000000

2013

2012

2011

2010

2009

2008

Size(Total Asstes)

Size(Total

Asstes)


25/54

In 2013, total asset of Quasem was 2260399377 because current asset was comparatively high

than other years which was 531367645.If the total asset ratio is high, then the company is

using its assets efficiently to generate sales. In 2008, the total asset ratio was too low which

was 818321292 because current asset was lower comparatively than other years which was

308786461. It indicates that the company is not using its asset base efficiently and effectively

enough to generate adequate sales.

Rangpur foundry ltd

In 2012, total asset of Quasem was 394330433 because in 2012 total asset is highIf the total

asset ratio is high, then the company is using its assets efficiently to generate sales. In 2009, the

total asset ratio was too low which was345231675 because total asset is low in 2009. It

indicates that the company is not using its asset base efficiently and effectively enough to

generate adequate sales.

LIBRA INFUSION

In 2013, total asset of Libra was 2757058025 because noncurrent and current asset both were

comparatively high than other years which were respectively 2556878954 and 200179071If the

320,000,000

330,000,000

340,000,000350,000,000

360,000,000

370,000,000

380,000,000

390,000,000

400,000,000

1 2 3 4 5 6

Size(Total Asstes)

Size(Total Asstes)

0

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

2013

2012

2011

2010

2009

2008

Size(Total Asstes)

Size(Total Asstes)


26/54

total asset ratio is high, then the company is using its assets efficiently to generate sales. In

2008, the total asset ratio was too low which was305654738 because noncurrent assets was

comparatively low than other years which was 195996799. It indicates that the company is not

using its asset base efficiently and effectively enough to generate adequate sales

Singer BD

In 2012, the total asset ratio was high which were 4489242680 because the amount of total

asset is high.If the total asset ratio is high, then the company is using its assets efficiently to

generate sales. In 2009, the total asset ratio was too low which was 2189641761 because the

amount of total asset was low. It indicates that the company is not using its asset base

efficiently and effectively enough to generate adequate sales

Inventory turnover ratio

Inventory turnover ratio gives the frequency of conversion of inventory into cash in a given

financial year. Formula for Inventory Turnover Ratio:

0.0

1,000,000,000.0

2,000,000,000.0

3,000,000,000.0

4,000,000,000.0

5,000,000,000.0

1 2 3 4 5 6

Size(Total Asstes)

Size(Total

Asstes)


27/54

Aftab

In 2012, aftab had highest inventory turnover ratio which is 3 because sales was quiet high in

that year than other years which was 3735217015. It means that the complete investment in

inventory is sold 3 times a year .Normally, higher this ratio better is the inventory management.

It would mean effective utilization of working capital funds. In 2011, Aftab had the lowest

inventory turnover ratio which is 1 because the Sales were very low which was 178,097,695. Its

not an expected ratio for any company. A very low turnover ratio of inventory will not utilize

the fixed interest cost incurred on investment in inventory

MARICO

In 2008, Marico had highest inventory turnover ratio which is 15 because Sales revenue was

2658852912 and inventory was 175874007. It means that the complete investment in

inventory is sold 15 times a year. Normally, higher this ratio better is the inventory

management. It would mean effective utilization of working capital funds. In 2012, Marico hadthe lowest inventory turnover ratio which is 3 because the amount of inventory was too high

which was 1777938918 compared to the other years. Its not an expected ratio for any

company. A very low turnover ratio of inventory will not utilize the fixed interest cost incurred

on investment in inventory

0

1

2

3

4

2013 2012 2011 2010 2009 2008


Inventory

turnover ratio

0

5

10

15

20

2013 2012 2011 2010 2009 2008


Inventory

turnover ratio


28/54

Quasem drycell

In 2009, Quasem had highest inventory turnover ratio which is 5 because sales was quiet high

in that year and inventory was also high which were respectively 969204292 and 185830294. It

means that the complete investment in inventory is sold 5 times a year normally, higher this

ratio better is the inventory management. It would mean effective utilization of working capital

funds. In 2008, Quasem had the lowest inventory turnover ratio which is 4 because the sales of

the company was very low which was 640329379. Its not an expected ratio for any company. A

very low turnover ratio of inventory will not utilize the fixed interest cost incurred on

investment in inventory

Rangpur:

In 2013, Rangpur had highest inventory turnover ratio which is 3 because in 2013 rangpur hadhigher revenue or sales compare to inventories. . It means that the complete investment in

inventory is sold 3 times a year normally, higher this ratio better is the inventory management.

It would mean effective utilization of working capital funds. In 2008, Rangpur had the lowest

inventory turnover ratio which is 2.5 because in 2008 sales revenue is low compare to other

year.. . Its not an expected ratio for any company. A very low turnover ratio of inventory will

not utilize the fixed interest cost incurred on investment in inventory

0

1

2

3

45

6

2013 2012 2011 2010 2009 2008


Inventory

turnover ratio

2.2

2.4

2.6

2.8

3

3.2

201320122011201020092008


Inventory

turnover

ratio


29/54

LIBRA INFUSION

In 2008, Libra had highest inventory turnover ratio which is 7 because sales revenue was

comparatively high than other years which was 413775857. It means that the complete

investment in inventory is sold 7 times a year. Normally, higher this ratio better is the inventorymanagement. It would mean effective utilization of working capital funds. In 2013, Libra had

the lowest inventory turnover ratio which is 2 because the amount of sales revenue was low

and inventories were high which were respectively 227319715 and 108443131. Its not an

expected ratio for any company. A very low turnover ratio of inventory will not utilize the fixed

interest cost incurred on investment in inventory

Singer bd

In 2009, Singer had highest inventory turnover ratio which is 6 because the amount of

inventories was low in 2009. It means that the complete investment in inventory is sold 6 times

a year normally, higher this ratio better is the inventory management. It would mean effective

utilization of working capital funds. In 2012, Singer had the lowest inventory turnover ratio

which is 3because the amount of inventories is high compare to sales in 2012 compare to other

years. Its not an expected ratio for any company. A very low turnover ratio of inventory will not

utilize the fixed interest cost incurred on investment in inventory

0

2

4

6

8

10


Inventory

turnover ratio

0

2

4

6

8

2013 2012 2011 2010 2009 2008


Inventory

turnover ratio


30/54

Total CL to TA ratioTotal Current Liabilities to Total Asset Ratio is the ratio that represents the financial position of

the company and the companys ability to meet its current financial requirements. It shows the

percentage of a companys assets that are financed with short term loan or other financial

obligations that last less than a year. As this ratio is calculated yearly, decrease in the ratio

would denote that the company is doing well, and is less dependent on short-term debts for

their business needs.

Total Current Liabilities to Total Asset Ratio = Total Current Liabilities/Total Assets

Aftab

Aftab had the lowest Total Current Liabilities to Total Asset Ratio in 2010 (0.14) which indicates

that the company was in its best financial position among the six years (2008-2013) since the

short-term debt was much less relative to the total assets. The highest value of the ratio was in

2008 (0.67), due to a high short-term debt compared to the total assets of that year. In 2008

and 2009 the company was not in a good financial position but from 2009 to 2010 the current

liabilities reduced drastically from 1,533,364,403 to 556,620,384 which greatly lowered the

ratio.

0

0.2

0.4

0.6

0.8

2013 2012 2011 2010 2009 2008

Total CL to TA ratio

Total CL to TA

ratio


31/54

MARICO

Marico had the lowest Total Current Liabilities to Total Asset Ratio in 2012 and 2009 (0.38)

which indicates that the company was in a good financial position since the short-term debt

was much less relative to the total assets. The highest value of the ratio was in 2011 (0.46), due

to a large increase in the short-term debt compared to the total assets of that year which

lowered the companys financialposition.

Quasem drycell

Quasem had the lowest Total Current Liabilities to Total Asset Ratio in 2011 (0.19) which

indicates that the company was in a good financial position since the short-term debt was much

less relative to the total assets. The highest value of the ratio was in 2010 (0.41), due to a large

increase in the short-term debt compared to the total assets of that year which lowered the

companys financial position.

0

0.1

0.2

0.3

0.4

0.5

2013 2012 2011 2010 2009 2008



0

0.05

0.1

0.15

0.2

0.25

0.3

0.350.4

0.45

2013 2012 2011 2010 2009 2008




32/54

Rangpur foundry ltd

Rangpur Foundy had the lowest Total Current Liabilities to Total Asset Ratio in 2013 (0.497)

since the short-term debt was much less relative to the total assets, which indicates that the

company is currently in a better financial position than it was in previous years. The highest

value of the ratio was in 2012 (0.538), due to an increase in the short-term debt compared to

the total assets of that year which lowered the companys financial position. The largest

increase in the ratio was from 2009 (0.500) to 2010 (0.527) which is due to a large increase in

current liabilities including a fall in the total assets. The financial position of the company

greatly reduced within this one year and remained unhealthy up to 2012.

LIBRA INFUSION

Libra infusion had the lowest Total Current Liabilities to Total Asset Ratio in 2011 (0.05) which

indicates that the company was in its best financial position in that year among these six years

(2008-2013) since the short-term debt was much less relative to the total assets. The highestvalue of the ratio was in 2009 (0.45), due to a large increase in the short-term debt compared

to the total assets of that year which lowered the companys financial position. From 2011 the

ratio is increasing constantly which is not a good sign for the company because it indicates that

the companys current liabilities are increasing relative to its total assets.

Singer bd

0.48

0.49

0.5

0.51

0.520.53

0.54

201320122011201020092008


Total CL to TA

ratio

0

0.1

0.2

0.3

0.40.5

2013 2012 2011 2010 2009 2008


Total CL to TA

ratio


33/54

Singer had the lowest Total Current Liabilities to Total Asset Ratio in 2010 (0.13) which indicates

that the company was in a good financial position since the short-term debt was much less

relative to the total assets. The highest value of the ratio was in 2008 (0.55), due to a large



Tobin q

The Tobin's Qratio is a measure of firm assets in relation to a firm'smarket value.The formula

for Tobin's Q is:

Tobin's Q = Total Market Value of Firm / Total Asset Value of Firm

When the Tobin'sQ ratio is between 0 and 1, it costs more to replace a firm's assets than the

firm is worth. A Tobin's Q above 1 means that the firm is worth more than the cost of its assets.

Because Tobin's premise is that firms should be worth what their assets are worth, anythingabove 1.0 theoretically indicates that a company isovervalued.

Aftab

Aftab Automobile Ltd company had the highest Tobins Q ratio in 2010 (19.0) due to a lower

total asset value relative to the market value of the firm. The lowest value of the Tobins Q ratio

0

0.2

0.4

0.6

201320122011201020092008


Total CL to TAratio

0

5

10

15

20

2013 2012 2011 2010 2009 2008

Tobin q

Tobin q
http://www.investinganswers.com/financial-dictionary/investing/market-value-779http://www.investinganswers.com/financial-dictionary/stock-market/q-ratio-5660http://www.investinganswers.com/financial-dictionary/investing/overvalued-837http://www.investinganswers.com/financial-dictionary/investing/overvalued-837http://www.investinganswers.com/financial-dictionary/stock-market/q-ratio-5660http://www.investinganswers.com/financial-dictionary/investing/market-value-779


34/54

the company had been in 2008 (1.5)) due to a large fall in the firms total market value. The

ratio is always above 1.0 throughout the six years from 2008-2013, which means that the firm

worth more than the cost of its assets, therefore the company is overvalued which is not good

for the company.

MARICO

Marico Ltd Company had the highest Tobins Q ratio in 2010 (6.68) due to a lower total asset

value (2,883,380,640) relative to the market value of the firm (19265400000). The lowest value

of the Tobins Q ratio the company had been in 2011 (2.66) due to a large fall in the firms total

market value (12269250000) as well as a large rise in the firms asset value (4,613,066,124). The

ratio is always above 1.0 throughout the six years from 2008-2013, which means that the firm

worth more than the cost of its assets, therefore the company is overvalued which is not good

for the company.

.

Quasem drycell

Quasem had the lowest Total Current Liabilities to Total Asset Ratio in 2011 (0.19) which

indicates that the company was in a good financial position since the short-term debt was much

less relative to the total assets. The highest value of the ratio was in 2010 (0.41), due to a large

0

2

4

6

8

2013 2012 2011 2010 2009 2008

Tobin q

Tobin q

0

2

4

6

8

2013 2012 2011 2010 2009 2008

Tobin q

Tobin q


35/54



Rangpur foundry ltd

Rangpur Foundry Company had the highest Tobins Q ratio in 2013 (17.78) due to a lower total

asset value (384,915,360) relative to the market value of the firm (946000000). The lowest

value of the Tobins Q ratio the company had been in 2008 (9.25) due to a low market value

(712000000) and a high total asset value (351,045,980). The ratio are very high i.e. always

above 1.0 throughout the six years from 2008-2013, which means that the firm theoretically

worth more than the cost of its assets, therefore the company is highly overvalued and this may

lead to misinterpretation of the companys financial condition.

LIBRA INFUSION

Libra Infusion Company had the highest Tobins Q ratio in 2011 (2.06) due to a lower total asset

value relative to the market value of the firm. The lowest values of the Tobins Q ratio the

company had been in 2010 and 2013 (0.10) due to a large fall in the firms total marketvalue. In

2011 only, the ratio is above 1 which theoretically indicates the company is overvalued in that

year and therefore may lead to misinterpretation of the companys financial condition.

Singer bd

0

5

10

15

20

2013 2012 2011 2010 2009 2008

Tobin q

Tobin q

0

0.5

1

1.5

2

2.5

2013 2012 2011 2010 2009 2008

Tobin q

Tobin q


36/54

Singer Bangladesh Company had the highest Tobins Q ratio in 2010 (24.36) due to a lower total

asset value (4119072827) relative to the market value of the firm (16086246678). The lowest

value of the Tobins Q ratio the company had been in 2008 (5.37) due to a large fall in the firms

total market value (4447895450) as well as a large rise in the firms asset value (2959862237).The ratio is always above 1.0 throughout the six years from 2008-2013, which means that the

firm worth more than the cost of its assets, therefore the company is overvalued which may

lead to misinterpretation of the companys financial position.

Growth

Growth ratio is sales percentage, which compares current sales to those of the previous year.

Growth ratios can give an indication of how fast your business is growing. Different types of

industries have different benchmarks for rates of growth.

Aftab

Aftab had the lowest Growth ratio in 2011 (-0.87) due to lower sales revenue in 2011 than that

in 2010. The highest value of the Growth ratio the company had been in 2012 (19.97) due to a

0

5

10

1520

25

30

2013 2012 2011 2010 2009 2008

Tobin q

Tobin q

-5

0

5

10

15

20

25

2013 2012 2011 2010 2009 2008

Growth

Growth


37/54

large rise in the firms sales revenue in 2012 compared to the sales revenue in 2011. Except for

2010, the company had very low growth rates throughout the six years (2008-2013) which

shows the company is not doing well.

MARICO

Marico Ltd Company had the lowest Growth ratio in 2010 (-0.299) due to lower sales revenue in

2010 than that in 2009. The highest value of the Growth ratio the company had been in 2011

(1.15) due to a large rise in the firms sales revenue in 2011 compared to the sales revenue in

2010. Except for 2010, the company had a positive growth rate throughout the sis years from

2008 to 2013 which is good for the company.

Quasem drycell

Quasem Drycell Ltd Company had the lowest Growth ratio in 2008 (-0.24) due to lower sales

revenue in 2008 than that in 2007. The highest value of the Growth ratio the company had

been in 2009 (0.51) due to a large rise in the firms sales revenue in 2009 compared to the sales

revenue in 2008. The company had a high positive growth rates in 2009, 2011 and 2012 which

is good for the company but in 2008, 2010 and 2013 the company also had negative growth

rates which is indicates the company is not doing well. The trends in the graph show that the

-0.5

0

0.5

1

1.5

2013 2012 2011 2010 2009 2008

Growth

Growth

-0.4

-0.2

0

0.2

0.4

0.6

2013 2012 2011 2010 2009 2008

Growth

Growth


38/54

growth rate of the company has fluctuated greatly within these six years (2008-2013) indicating

that the company is quite unreliable.

Rangpur foundry ltd

Rangpur Foundry Ltd. Company had the lowest Growth ratio in 2013 (0.067) due to lower

change in the sales revenue between 2012 and 2013 than that between previous years. The

highest value of the Growth ratio the company had been in 2008 (0.14) due to a large rise in the

firms sales revenue in 2008 compared to the sales revenue in 2007. The company has positive

growth rates throughout the six years from 2008-2013 which shows the company is continuing

well. However the trends in the graph show that the growth rate of the company is decreasing

at a steadily especially in the recent years from 2011 to 2013 which is not a good sign for the

company because it indicates the companys reliability and financial position is currently

declining. There was a slight increase in the growth rate only between year 2010 and 2011.

LIBRA INFUSION

Libra Infusion Company had the lowest Growth ratio in 2010 (-0.08) due to lower sales revenue

in 2010 than that in 2009. The highest value of the Growth ratio the company had been in 2009

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

2013 2012 2011 2010 2009 2008

Growth

Growth

-0.2

-0.1

00.1

0.2

0.3

0.4

0.5

0.6

2013 2012 2011 2010 2009 2008

Growth

Growth


39/54

(0.51) due to a large rise in the firms sales revenue in 2009 compared to the sales revenue in

2008. The company had a high positive growth rates in 2009, 2011 and 2012 which is good for

the company but in 2008, 2010 and 2011 the company also had low growth rates which is

indicates the company was not doing well. The trends in the graph show that the growth rate of

the company has fluctuated greatly within these six years (2008-2013) which shows the

company is not reliable.

Singer bd

Singer Bangladesh Company had the lowest Growth ratio in 2009 (-0.01) due to lower sales

revenue in 2009 than that in 2008. The highest value of the Growth ratio the company had

been in 2008 due to a large rise in the firms sales revenue in 2008 compared to the sales

revenue in 2007. Except for 2009 and 2013, the company had quite growth rates throughout

the six years (2008-2013) which shows the company was doing well but from 2012 the growth

rate again dropped similar to the way it did from 2008 to 2009, which is again not a good sign

for the company.

Gross working capital turnover ratio

Gross working capital turnover ratio is a measurement 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.

A company uses working capital (current assets - current liabilities) to fund operations and

purchase inventory. These operations and inventory are then converted into sales revenue for

the company. 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

-0.05

0

0.05

0.1

0.15

0.2

0.25

0.3

2013 2012 2011 2010 2009 2008

Growth

Growth


40/54

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.

Aftab

Aftab had the highest gross working capital turnover ratio (6.19) in 2008 due to the lowest

working capital (298,947,675) to generate quite high amount of sales (1,851,769,411) which

indicates that the company was doing well. However, from 2008 the ratio of the company

drastically dropped and reached its lowest value in 2011 (0.074) due to a large fall in the sales

revenue. In 2011 the company generated lowest amount of sales (178,097,695) whereas the

working capital was higher than the sales revenue which indicates that the company was

unable to generate enough sales compared to it uses money to fund sales. From 2011 the ratio

is rising gradually which is a good sign for the company.

MARICO

Marico had the highest gross working capital turnover ratio (5.78) in 2008 due to the lowest

working capital (460,038,276) to generate quite high amount of sales (2,658,852,912) which

0

0.5

1

1.5

2013 2012 2011 2010 2009 2008

Gross working capital turnover

ratio

Gross working

capital turnover

ratio

0

1

2

3

2013 2012 2011 2010 2009 2008


ratio

Gross workingcapital turnover

ratio


41/54


drastically dropped and reached its lowest value in 2010 (1.95) due to a large fall in the sales

revenue. From 2010 to 2011 the ratio increased slightly and recently has maintained a stable

ratio above 2.0 which is a good sign for the company because it means that the company is

generating sales more than two times the money it uses to fund sales

Quasem drycell

Quasem Drycell had the highest gross working capital turnover ratio (96.5) in 2010 due to the

second lowest working capital (9,685,157) to generate quite high amount of sales (935,094,525)

which was a good sign for the company. However, from 2010 the ratio dropped rapidly and

reached its lowest value in 2011 (23.3) due to the highest working capital (49,351,352) to

generate sales. In recent years from 2012 to 2013 the ratio is rising again which shows the

company is recovering its position. The ratios are quite high throughout the six years (2008-

2013) which indicates that the company is generating a high amount of sales compared to the

money it uses to fund the sales and therefore the efficiency of the company is very high.

However, the trends in the graph show that the ratio of the company has fluctuated throughout

these six years which means the company is also quite unstable.

Rangpur foundry ltd

0

1

2

3

4

2013 2012 2011 2010 2009 2008

Gross working capital

turnover ratio

Gross working

capital turnover

ratio

0

1

2

3

2013 2012 2011 2010 2009 2008

Gross working capital

turnover ratio

Gross working

capital

turnover ratio


42/54

Rangpur foundry had the lowest gross working capital turnover (5.27) in 2008 due to the lowest

amount of sales (502,499,414) generated by a quite high working capital (95,409,182). The ratio

of the company increased and reached its peak in 2010 (6.54) due to the lowest working capital

(93,929,606) to generate high amount of sales (613,959,750) which indicates the efficiency and

position of the company improved. The ratio is more or less stable throughout the six years

(2008-2013) which shows the company is quite stable and doing well.

LIBRA INFUSION

Libra infusion had the lowest gross working capital turnover ratio (5.78) in 2008 (-19.69) due to

a low negative working capital (-21,010,352) to generate high amount of sales (413,775,857)

which indicates that the company was not doing well because it had negative gross working

capital turnover ratios. In 2011 the company had the highest gross working capital ratio due to

a positive working capital (4,368,609) to generate quite high amount of sales (351,429,516)

which was a good sign for the company. However the ratio again reduced to negative value in

2012 which shows that the companys position dropped again. The trends in the graph showthat the ratio of the company has fluctuated throughout the six years which indicates the

company is quite unstable.

Singer bd

-30

-20

-10

0

10

2013 2012 2011 2010 2009 2008


ratio

Gross working

capital turnover

ratio

0

1

2

3

4

2013 2012 2011 2010 2009 2008


ratio

Gross working

capital turnover

ratio


43/54

Singer Bd had the highest gross working capital turnover ratio (8.83) in 2008 due to the lowest

working capital (502201985) to generate quite high amount of sales (4281291373) which


drastically dropped and reached its lowest value in 2010 (1.65) due to a large rise in the

working capital (2,925,512,635) to generate almost same amount of sales (4,693,875,115).

From 2010 to 2011 the ratio increased slightly and recently has maintained a stable ratio whichis a good sign for the company because it means that the company is generating sales more

than two times the money it uses to fund sales.

Z Score

A Z-Score is a statistical measurement of a score's relationship to the mean in a group of scores.

A Z-score of 0 means the score is the same as the mean. A Z-score can also be positive or

negative, indicating whether it is above or below the mean and by how many standard

deviations.

IF Z >3 Company Unlikely to Fail or no possibility to bankruptcy.

If Z


44/54

MARICO

In 2010 Marico has the highest Z score ratio of 12.848 because in 2010 market value equity was

higher than other years and Marico unlikely to fail. In 2008 Marico has the lowest Z core 3.754

because in 2008 market value of equity is 0 and Marico unlikely to fail.

Quasem drycell

In 2010 Quasem has the highest Z score ratio of 6.0405 because in 2010 market value equity

was higher than other years and Quasem unlikely to fail. In 2008 Quasem has the lowest Z core

2.676 because in 2008 net working capital was low.

Rangpur foundry ltd

0

510

15

2013 2012 2011 2010 2009 2008

Z Score

Z Score

0

2

4

6

8

2013 2012 2011 2010 2009 2008

Z Score

Z Score

0

2

4

6

8

2013 2012 2011 2010 2009 2008

Z Score

Z Score


45/54

In 2010 Rangpur foundry ltd has the highest Z score ratio of 6.42 because in 2010 market value

equity was higher than other years and rangpur foundry ltd unlikely to fail. In 2008 Rangpur

foundry ltd has the lowest Z core 4.416578649 because in 2008 retained earnining was low and

Rangpur foundry ltd unlikely to fail.

LIBRA INFUSION

In 2011 Libra infusion has the highest Z score ratio of 6.0102 because in 2011 market value

equity was higher than other years and Libra infusion unlikely to fail. In 2013 Libra infusion has

the lowest Z core 0.28478 because in 2013 Sales revenue was low and Libra infusion likely to

fail.

Singer bd

0

2

4

6

8

2013 2012 2011 2010 2009 2008

Z Score

Z Score

0

10

20

30

40

1 2 3 4 5 6

Z Score

Z Score


46/54

In 2010 singer bd has the highest Z score ratio of 28.603 because in 2010 market value equity

was higher than other years and singer bd unlikely to fail. In 2008 singer bd has the lowest Z

core 3.505 because in 2008 EBIT & was low and singer bd unlikely to fail.

Off-Balance-Sheet FinancingIt is a form of financing in which large capital expenditures are kept off of a company's balance

sheet through various classification methods. Companies will often use off-balance-sheet

financing to keep their debt to equity (D/E) and leverage ratios low, especially if the inclusion of

a large expenditure would break negative debt covenants. Examples may include joint ventures,

research and development partnerships, and operating leases (rather than purchases of capital

equipment).

Types ofOff-Balance-Sheet Financing

1)

Operating Leases:The lease payments appear as operating expenses instead.Operating leases, which are popular in industries that use expensive equipment, are

disclosed in the footnotes of the company's published financial statements.

2)

Synthetic Leases: a bank or other third party purchases the property and rents it to the

company

3)

Securitizations: Banks and other financial organizations often hold assets--like credit

card receivables--that third parties might be willing to buy. To distinguish the assets it

sells from the ones it keeps, the company creates a Special purpose entity (SPE). The SPE

purchases the credit card receivables from the company with the proceeds from a bond

offering backed by the receivables themselves. The SPE then uses the money received

from cardholders to repay the bond investors. Since much of the credit risk getsoffloaded along with the assets, these liabilities are taken off the company's balance

sheet.


47/54

Singer BangladeshLeaseholds improvement 4,219,103addition during the year 2009 and

6,429,999 has been transferred to property, plant and equipment. Singer Bangladesh Limited

holds 35.57% of paid-up share capital of International Leasing and Financial

Services Ltd (ILFSL), making ILFSL an associate of the company. In 2006, Singer Bangladesh

Limited entered into a loan agreement for a total amount of Taka 80 million with CommercialBank of Ceylon Plc. The purpose of the loan was to meet the cost of imported machinery for

cable manufacturing project. The loan is repayable in 20 quarterly installments and an interest

@ 13% per annum will be charged. Securities against the loan are the registered hypothecation

on stocks, book debts and machineries on parri passu basis with other lenders and specific

registered hypothecation (first charge) over machinery imported for cable manufacturing

project.

Claims against the Company not acknowledged as debts in 2008 and in 2009 7,016,721 tk in

2010 an 2011. 6,756,587.

In 2012 shop rent is 10,885,143 and in 2013 17,994,326 this is an operating leaseShort-term borrowings - secured

Bank overdrafts in 2013 25,547,124 and in 2012 494,195,655 these overdrafts are secured by

collateralization of hypothecation of Company's inventory, plant and machinery and

receivables.

Marico Bangladesh

Rent is being paid by Marico on the year 2013 of amount

11,785,791 taka and 12269215 in2012.

Libra infusion

Payment for Finance and Operating Lease in 2008 1,969,082 in 2009 tk 2547310tk in 2010

518008 tk in 2011 Increase in Long Term Borrowings 39965010 tk. The term borrowing

increased in 2012 by 10615511 tk and in 2013 39810126.

Investors decision based on 2013 financial statement

0

0.05

0.1

0.15

0.2

ROA (Return on Asset)

ROA (Return on

Asset)


48/54

00.05

0.10.15

0.20.25

0.3

ROE(Return on Equity)

ROE(Return on

Equity)

012345

Current Ratio

Current Ratio

050

100150200250

Cash Conversion Cycle

Cash Conversion

Cycle


49/54

00.20.40.60.8

1


Total CA to TA

ratio

01,000,000,0002,000,000,0003,000,000,0004,000,000,0005,000,000,0006,000,000,000

7,000,000,0008,000,000,000

Size(Total Asstes)

Size(Total Asstes)

01234567


Inventory turnover

ratio


50/54

00.10.2

0.30.40.50.6



0

5

1015

20

Tobin q

Tobin q

-0.15

-0.1

-0.05

0

0.05

0.1

0.15

Growth

Growth


51/54

-20

0

20

4060

80


ratio

Gross working

capital turnover

ratio

02468

1012

Z Score

Z Score


52/54

Rank of investment based on ratios

Ratio Rank(1) Rank(2) Rank(3) Rank(4) Rank(5) Rank(6)

ROA (Return

on Asset)

Marico

Bangladesh

Singer

Bangladesh

Rangpur

Foundry Ltd

Aftab

Automobiles

Quasem

Drycells

Libra Infusion

ROE(Return

on Equity)

Marico

Bangladesh

Rangpur

Foundry Ltd

Singer

Bangladesh

Aftab

Automobiles

Quasem

Drycells

Libra Infusion

Leverage

Debt to

equity)

Rangpur

Foundry Ltd

Aftab

Automobiles

Marico

Bangladesh

Singer

Bangladesh

Libra Infusion Quasem Drycells

Current

Ratio

Singer

Bangladesh

Marico

Bangladesh

Aftab

Automobiles

Rangpur

Foundry Ltd

Quasem

Drycells

Libra Infusion

Cash

Conversion

Cycle

Aftab

Automobiles

Rangpur

Foundry Ltd

Singer

Bangladesh

Marico

Bangladesh

Quasem

Drycells

Libra Infusion

Total CA to

TA ratio

Rangpur

Foundry Ltd

Marico

Bangladesh

Singer

Bangladesh

Aftab

Automobiles

Quasem

Drycells

Libra Infusion

Size(Total

Assets)

Aftab

Automobiles

Marico

Bangladesh

Singer

Bangladesh

Libra Infusion Quasem

Drycells

Rangpur Foundry

nventory

urnover

atio

Marico

Bangladesh

Singer

Bangladesh

Quasem

Drycells

Rangpur

Foundry Ltd

Aftab

Automobiles

Libra Infusion

Total CL to

TA ratio

Rangpur

Foundry Ltd

Marico

Bangladesh

Aftab

Automobiles

Quasem

Drycells

Singer

Bangladesh

Libra Infusion

Tobin q Rangpur

Foundry Ltd

Singer

Bangladesh

Aftab

Automobiles

Marico

Bangladesh

Quasem

Drycells

Libra Infusion

Growth Libra infusion Rangpur

Foundry Ltd

Singer

Bangladesh

Marico

Bangladesh

Quasem

Drycells

Aftab Automobile

Gross

working

capital

urnoveratio

Quasem

drycells

Rangpur

Foundry Ltd

Marico

Bangladesh

Singer

Bangladesh

Aftab

Automobiles

Libra Infusion

Z Score Marico

Bangladesh

Singer

Bangladesh

Rangpur

Foundry Ltd

Aftab

Automobiles

Quasem

Drycells

Libra Infusion


53/54

Project Selection Rank:

1)Marico Bangladesh

2) Singer Bangladesh

3) Rangpur Foundry Ltd

4) Aftab Automobiles

5) Quasem Drycells

6) Libra Infusion

Conclusion

By considering various ratios the 6 companies investments were ranked. The ratios provide a

clear picture about the risk, profitability, liquidity position and performance of the companies.

Marico Bangladeshcould be an ideal investment opportunities as it has a comparatively better

Return on asset, return on equity, inventory turnover ratio and z-score. Singer Bangladeshcan

be the next best option as it showed an immense performance in terms of current ratio and

secondly on inventory turnover, Tobin q, return on asset and z-score. Rangpur Foundry Ltdis

the next option to go as its performance in terms leverage to debt, total current asset to total

asset ratio, current liability to total asset and Tobin q are very impressive however it carries athreat in terms of size(total asset). Aftab automobilesis very efficient in terms of cash

conversion cycle and very much secured in terms of risk as it has the highest back up of assets

comparatively. Quasem Drycellsis also good in terms of growth working capital and thirdly on

inventory turnover. Libra Infusionwould be least preferred in this scenario as the z- score,

return on asset, return on equity, current ratio, cash conversion ratio, current asset to total

asset turnover ratio, inventory turnover, gross working capital turnover ratio, current liability to

total asset, Tobin q but has the highest comparative gr


54/54

reports on various companies including ratios of aftab

Documents