Upload
ridwan-m-hossain
View
217
Download
0
Embed Size (px)
Citation preview
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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)
8/10/2019 Reports on various companies including ratios of Aftab
5/54
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
7/54
8/10/2019 Reports on various companies including ratios of Aftab
8/54
8/10/2019 Reports on various companies including ratios of Aftab
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)
8/10/2019 Reports on various companies including ratios of Aftab
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-57498/10/2019 Reports on various companies including ratios of Aftab
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)
Leverage (Debt to
equity)
0
0.5
1
1.5
2
2.5
2013 2012 2011 2010 2009 2008
Leverage (Debt to equity)
Leverage (Debt
to equity)
8/10/2019 Reports on various companies including ratios of Aftab
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)
Leverage (Debt to
equity)
0
1
2
3
4
5
2013 2012 2011 2010 2009 2008
Leverage (Debt to equity)
Leverage (Debt
to equity)
8/10/2019 Reports on various companies including ratios of Aftab
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)
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_ratio8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
Total CA to TA
ratio
8/10/2019 Reports on various companies including ratios of Aftab
21/54
MARICO
Total current asset to total asset ratio represent the Current Asset Intensity Ratio. This ratio
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
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
Total CA to TA
ratio
8/10/2019 Reports on various companies including ratios of Aftab
22/54
Rangpur foundry ltd
Total current asset to total asset ratio represent the Current Asset Intensity Ratio. This ratio
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
Total current asset to total asset ratio represent the Current Asset Intensity Ratio. This ratio
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
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
Total CA to TA
ratio
8/10/2019 Reports on various companies including ratios of Aftab
23/54
Singer bd
Total current asset to total asset ratio represent the Current Asset Intensity Ratio. This ratio
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
Total CA to TA ratio
Total CA to TA ratio
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)
8/10/2019 Reports on various companies including ratios of Aftab
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)
8/10/2019 Reports on various companies including ratios of Aftab
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)
8/10/2019 Reports on various companies including ratios of Aftab
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)
8/10/2019 Reports on various companies including ratios of Aftab
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
Inventory
turnover ratio
0
5
10
15
20
2013 2012 2011 2010 2009 2008
Inventory turnover ratio
Inventory
turnover ratio
8/10/2019 Reports on various companies including ratios of Aftab
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
Inventory
turnover ratio
2.2
2.4
2.6
2.8
3
3.2
201320122011201020092008
Inventory turnover ratio
Inventory
turnover
ratio
8/10/2019 Reports on various companies including ratios of Aftab
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
Inventory
turnover ratio
0
2
4
6
8
2013 2012 2011 2010 2009 2008
Inventory turnover ratio
Inventory
turnover ratio
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
Total CL to TA ratio
Total CL to TA ratio
0
0.05
0.1
0.15
0.2
0.25
0.3
0.350.4
0.45
2013 2012 2011 2010 2009 2008
Total CL to TA ratio
Total CL to TA ratio
8/10/2019 Reports on various companies including ratios of Aftab
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
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
Total CL to TA
ratio
8/10/2019 Reports on various companies including ratios of Aftab
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
increase in the short-term debt compared to the total assets of that year which lowered the
companys financial position.
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 TA ratio
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-7798/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
35/54
increase in the short-term debt compared to the total assets of that year which lowered the
companys financial position.
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
Gross working capital turnover
ratio
Gross workingcapital turnover
ratio
8/10/2019 Reports on various companies including ratios of Aftab
41/54
indicates that the company was doing well. However, from 2008 the ratio of the company
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
8/10/2019 Reports on various companies including ratios of Aftab
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
Gross working capital turnover
ratio
Gross working
capital turnover
ratio
0
1
2
3
4
2013 2012 2011 2010 2009 2008
Gross working capital turnover
ratio
Gross working
capital turnover
ratio
8/10/2019 Reports on various companies including ratios of Aftab
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
indicates that the company was doing well. However, from 2008 the ratio of the company
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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.
8/10/2019 Reports on various companies including ratios of Aftab
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)
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
49/54
00.20.40.60.8
1
Total CA to TA ratio
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
Inventory turnover
ratio
8/10/2019 Reports on various companies including ratios of Aftab
50/54
00.10.2
0.30.40.50.6
Total CL to TA ratio
Total CL to TA ratio
0
5
1015
20
Tobin q
Tobin q
-0.15
-0.1
-0.05
0
0.05
0.1
0.15
Growth
Growth
8/10/2019 Reports on various companies including ratios of Aftab
51/54
-20
0
20
4060
80
Gross working capital turnover
ratio
Gross working
capital turnover
ratio
02468
1012
Z Score
Z Score
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
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
8/10/2019 Reports on various companies including ratios of Aftab
54/54