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Term paper on
financial Analysis of Working Capital
Management
Modern Working Capital management (Fin-4139)
SUBMITTED TO:

Khairul Alam

Lecturer
School of business study
Southeast University
Banani Dhaka
SUBMITTED BY:
Name
Umme Farzana Jannat
Md.Majedul Islam
Rejaul Karim Ripon
Batch :23rd
Section:C
Submission date :26.12.12

ID
2009210000084
2009210000102
2008110000123

Date : 26-12-2012
To
Khairul Alam
Lecturer of Southeast University
School of Business Studys

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LETTER OF TRANSMITTAL

Subject: Submission of Assignment on Ratio Analysis.


Sir,
It is our pleasure to submit this term paper on Modern working capital management. This
has been prepared as a partial requirement of the course Performance Analysis of the working
capital management. We have tried our level best to complete our term paper successfully and
to produce a meaningful term paper within the all constrains.
We consider our self very auspicious to prepare this assignment under your guidance. We have
tried our best to follow your guidelines in every aspect of preparing this report. We learned many
unidentified facts, which we believe will be supportive to our lives & our professional careers in
the future. While doing this term paper, we learned how to integrate plenty of information into a
concise volume.
We have enjoyed working on this report and we hope that our work will meet the level of your
expectations. We will always be available for any further query.

Sincerely YoursAnimesh Bairagi


Umme Farzana junnat
Md.Majedul Islam
Rehaul Karim Ripon

ID:2009210000113
ID:2009210000084
ID:2009210000102
ID:2008110000123

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ACKNOWLEDGEMENT
At first we desire to express my deepest sense of gratitude of almighty God or Allah. With
profound regard we gratefully acknowledge my respected course teacher Khairul Alam of
Modern Working Capital Management we thank him for his kind suggestions and tremendous
support about our term paper performance analysis of the working capital management.
There were many persons whom we interviewed during the preparation of this term paper. And
we get some support from the World Wide Web. We have tried my level best to complete this
term paper. When we prepare this term paper, we have learned so many things about finance. We
have learned about performance ration also. We have so many things which we never know
before. We hope that this term paper will help the new students while they will deal with such a
study.
The success of my term paper will be proved if the students are benefited from it. We again
would like thank our respected curse teacher and my classmates who help us to make this term
paper.

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Executive Summary

Performance is very much important for every company to properly evaluate the companys
different financial aspect to understand the real conditions of the company. Valuation is like the
arts because different analyst uses different financial tools, technique, others quantitative and
qualitative measurements to properly evaluate the performance of a company. Different financial
tools include normal ratio analysis, cash flow ratio analysis, DuPont analysis, market risk
analysis etc. so every company and analyst must have to follow the perfect information to carry
on the analysis procedures. This report mainly focuses on the companies financial statements
and other important issues to properly calculate different ratios and use different financial tools
to complete the valuation process of Beximco synthetics limited. The main objectives of this
report are to understand the real scenario of theoretical and practical concepts to develop
knowledge & this can be utilized at practical field in near future. This papers information
basically has been collected form secondary sources.

Background of the study:

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Introduction

The topic of the term paper is Financial Ratio Analysis of four industries: A study on financial
performance about this industry . This report is partial requirement of BBA program of
Southeast University. Generally by the word industry we can easily understand that the
financial deals with product. In term paper program is essential for every student, especially for
the students of Business Administration., which helps them to know the real life situation. For
this reason a student takes the term paper program at the last stage of the bachelors degree, to
launch a career with some practical experience. And by this study we will able to know the
financial activities of industry how they perform their financial activities.

Objective of the Study :


Behind every work, there must have to some objectives. In this report, objective are categorized
into two ways-

1.Primary Objective
2.Secondary Objective

Primary Objective
The main objective of this report is to understand the real scenario between theoretical and
practical concept of ratios and use of different financial tools to valuate companies by using
those tools.

Secondary Objective
To fulfill the course requirement , that is essential part of our BBA program. To achieve our
objective, our course teacher provides us a structured way and we made report on that. I tried to
enumerate our findings in this term paper.

Methodology
For the research, relevant date have been collected and used from the sources:

Limitations
Prime limitation is the inadequate time and not having access to exclusive sites and articles,
organizing and developing group & technical problems. My limited knowledge in also a
constraint. I have found a great number of information related to our topic but it was very much
difficult to organize the data. I have tried my best and felling glad because I believe that I
overcame all the difficulties and completed my report.

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Introduction:

BEXIMCO Synthetics textile Limited :


BEXIMCO Group is the largest private sector industrial conglomerate in Bangladesh engaged in
diverse business areas. BEXIMCO comprises of five publicly listed companies and sixteen
private companies. The Group turnover in 2008 was BDT 18.5 billion. BEXIMCO employs
35,000 people and has 230,000 shareholders. BEXIMCOs shares constitute 4.84% of the
market capitalization of DSE.

Monno fabrics :
A leading Textile factory in Bangladesh. Produce Fabrics, Garments and export in world wide.
We produce yarn, then weave and produce fabrics, then process in our Dyeing and Finishing
section. After that we make garments for our export .

Saiham textile mills ltd


Cotton fiber originated from seed, which is called seed cotton. In cotton plant several cotton
boll is processed. Cotton mainly growing in USA, CIS countries, Egypt, Australia, China,, India
and Pakisthan. In our country cotton is mainly imported from USA, CIS, Australia, Egypt etc.
Because cotton of India and Pakistan fails to meet our demand from view of quantity.
During harvesting seed cotton bolls are collected from the plants which is known as picking.
Picking is done by manually. Manual picking can ensure cotton boll selection and collection
separately. So manual picking cotton is less trashy but collection process is very slow. Again in
mechanical picking provides high production but contains a large number of trash and other
material. After picking seeds cottons, fibers are separated from seed by ginning machine through
subsequent processing. In Saiham textil Mills Ltd. Mainly use Brazil and CIS (Uzbekistan)
cotton. Textile mill purchase those cotton bales depends on some fiber properties like length,
fineness, strength, trash content etc. Modern textile mill test all fiber properties of each bales.
These huge bales are tested by HVI machine; it is done at short time.

cMc kamal textile ltd:


Comprehensive range of Textile Fabrics, Furnishing Items and Dress Material that we
manufacture and export throughout the globe is highly demanded for its salient attributes like
fabulous designs, eye-catching colors & patterns and durability. We export Taffeta Fabrics,
Garment Fabrics, Textile Fabric, Polyester Yarns Knitting Yarn, Textured Yarns, Ladies Dress
Material, Suiting Fabrics in various parts of the world at competitive market prices. These are
manufactured with high quality raw material that is procured from quality driven organization.

Historical background of the company

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History of BEXIMCO:
Since independence Bangladesh has come a long way, and the Beximco Group of Companies is
honored to have had a role in the development of its parent nation. The Group has worked with a
simple philosophy; identify an important need and then do everything possible to successfully
satiate that need, in a manner which best facilitates the well being of the nation. As a result
Beximco has focused on those industries which give Bangladesh a competitive advantage in the
global market place in many cases creating the industries for the first time in the region.
Throughout its four and a half decade journey the Group has been one of the leading innovators
in the country .Presently Beximco Group comprises twenty one companies of which five are
listed with the Dhaka Stock Exchange employing over 35,000 personnel and is the largest private
sector industrial conglomerate in the nation. . In the course of its growth, it has created industrial
and management capabilities that will serve the country for generations to come. It was the first
local conglomerate to embrace an international corporate structure which is the foundation of its
success. BEXIMCO's industrial businesses include jute, textiles, basic chemicals,
pharmaceuticals, and ceramics. BEXIMCO's non-industrial undertakings are focused on real
estate and construction, engineering, media, information technology, trading and financial
services. It is the creation and expansion of businesses critical to Bangladesh development,
businesses, which are developed and run by Bangladeshis, businesses that develop technologies
and practices specific to the needs of the country, which is the defining characteristic of the
BEXIMCO story.

Monno Fabrics ltd:


Monno Fabrics Limited is a manufacturing company within textile industry in Bangladesh. It
was incorporated on September 7, 1994 as a public limited company. It commenced commercial
operation in 1998 and went for pubic issue of share in 1996. The registered office of the
company is located at 9, Wire Street, Wary, Dhaka 1203 and manufacturing plants are located
at Gironde, Manikgonj. The business of the company is producing high quality yarn and woven
fabrics. The total number of employees working in the factory and Head Office of the company
was 1,555 (as of 31st December, 2008).
cMc kamal textile Ltd:
Kamal started his business career in the year 1981 by establishing his first manufacturing unit
title Lotus Engineering Industries Ltd,. a project involved in the manufacturing of jute and textile
mills machinery and spares. The operation and financial health of the Company would have been
better if there would have not been management and financial dislocations due to political
reasons. You will kindly observe from the Directors Report that the Company is gradually
coming out of disorders as reflected through the operational and financial performance of the
Company during the financial year ending 31 December 2009. The production has increased
from 2.254 million pounds in 2008 to 2.916 million pounds in 2009 and the turnover has in
creased from Tk. 163 million Tk.207 million. the Company suffered a loss of Tk. 13.9 million in
the year 2008 and by the grace of Almighty ALLAH this situation has been reversed in 2009 in
which year your Company made a profit of Tk. 17.3 million.

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Saiham textile mills ltd

Saiham textile mills Limited is a manufacturing company within textile industry in Bangladesh.
It was incorporated on July 15, 1992 as a public limited company. It commenced commercial
operation in 1994 and went for pubic issue of share in 1996. The registered office of the
company is located at 13, Giltuli, Bangshal, Dhaka 1203 and manufacturing plants are located
at Pubil, Gazipur. The business of the company is producing high quality yarn and woven
fabrics. The total number of employees working in the factory and Head Office of the company
was 1,555 (as of 31st December, 2008).

Major product and service of the company


Beximco ltd:
Beximco Synthetics Limited, a member of BEXIMCO Group, has been a manufacturer of
Polyester Filament Yarns, namely, Partially Oriented Yarn (POY) and Draw Text prized Filament
Yarn (DTFY) since July 1, 1994 and has an annual production capacity of 28 million linear
meters.

Monno ltd: Our major product are disposable shower cap, Mover's Blanket, nonwoven felt,
Popular Moving Pads, Charily Blanket etc. We are committed to your better product providing.

cMc kamal ltd:


Attributes like fabulous designs, eye-catching colors & patterns and durability. We export Taffeta
Fabrics, Garment Fabrics, Textile Fabric, Polyester Yarns Knitting Yarn, Textured Yarns, Ladies
Dress Material, Suiting Fabrics in various parts of the world at competitive market prices.

Saiham textile mills ltd


Our major product are disposable shower cap, Mover's Blanket Textile Fabric, Polyester Yarns
Knitting Yarn, Ladies Dress Material, Popular Moving Pads etc.

Theoretical review

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Ratio Analysis

Ratio Analysis is a form of Financial Statement Analysis that is used to obtain a quick indication
of a firm's financial performance in several key areas. The ratios are categorized as Short-term
Solvency Ratios, Asset Management Ratios, Profitability Ratios, and Market Value Ratios.
Ratio Analysis as a tool possesses several important features. The data, which are provided by
financial statements, are readily available. The computation of ratios facilitates the comparison
of firms which differ in size. Ratios can be used to compare a firm's financial performance with
industry averages. In addition, ratios can be used in a form of trend analysis to identify areas
where performance has improved or deteriorated over time.
Because Ratio Analysis is based upon Accounting information, its effectiveness is limited by the
distortions which arise in financial statements due to such things as Historical Cost Accounting
and inflation. Therefore, Ratio Analysis should only be used as a first step in financial analysis,
to obtain a quick indication of a firm's performance and to identify areas which need to be
investigated further.
1.Current Ratio : An indication of a companys ability to meet short term debt obligations; the
higher the ratio ,the mere liquid the company is ,current ratio is equal to current asset divided by
current liabilities. If the current assets of a company are more than twice the current liabilities ,
then the company is generally considered to have good short term financial strength . If current
liabilities exceed current assets then the company may have problems meeting its short term
obligations.
Current assets =(Current assets /Current liabilities)
2. Quick Ration: An indicator of a companys short term liquidity. The quick ratio measures a
companys ability to meet its short term obligation with its most liquid assets. The higher the
quick ratio ,the better the position of the company.
Quick Ratio=(Quick assets/Current liabilities)
3.Cash Ratio= Cash/Current liability
4.Inventory turnover: A ratio showing how many times a companys inventory is sold and
replaced over a period. The days in the period can then be divided by the inventory turn over
formula to calculate the days it takes to sell the inventory on hand or inventory turnover days.
Inventory turnover=( Cost of goods sold/Average inventory)
5.Account Receivable turnover= An accounting measure used to quantify a firms effectiveness
in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio
measuring how efficiently a firm uses its assets. Some companies reports will only show sales
this can affect the ratio depending on the size of cash sales.
Accounts Receivable turnover=Credit sales /Average accounts receivable
6.Days sales outstanding =A measure of the average number of days that a company takes to
collect revenue after a sale has been made. A low DSO number means that it takes a company
fewer days to collect its accounts receivable. A high DSO number shows that a company is
selling its product to customers on credit and taking longer to collect money.

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Days sales outstanding= Days sales outstanding/Accounts Receivable turnover Gross


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7.Gross Profit margin= A ration of profitability calculated as net income divided by revenues,
or net income divided by sales. It measures how much of every dollar of sales a company
actually keeps in earnings. Profit margin is very useful when comparing companies in similar
industries. A higher profit margin indicates a more profitable company that has better control
over its costs compared to its competitors.
Gross Profit margin=Gross profit or net income/sales revenue
8.Operating profit margin= Operating profit for a certain period divided by revenues for that
period. Operating profit margin indicates how effective a company is at controlling the costs and
expenses associated with their normal business operations .
Operating profit margin=Operating profit /Sales revenue
9. Net profit margin = Net profit divided by net revenues , often expressed as a percentage .
This number is an indication of how effective a company is at cost control. The higher the net
profit margin is the more effective the company is at converting revenue into actual profit. The
net profit margin is a good way of companies in the same industry, since such companies are
generally subject to similar business conditions. However, the net profit margins are also a good
way to compare companies in different industries in order to gauge which industries are
relatively more profitable. Also called net profit margin.
Net profit margin=Net profit /Sales revenue
10.Operating expense ratio= A measure of what it costs to operate a piece of property
compared to the income the property brings in. the operating expense ratio is calculated by
dividing a property operating expense by its gross operating income. Investors using the ratio can
further compare each type of expense, such as utilities ,insurance, taxes and maintenance ,to the
gross operating income, as well as the sum of all expenses to the gross operating income.
Operating expense ratio= operating expense / Sales revenue
11.Return on assets= An indicator of how profitable a company is relative to its total assets.
ROA gives an idea as top how efficient management is at using its assets to generate earnings.
Calculated by dividing a companys annual earnings by its total assets , ROA is displayed as a
percentage. Sometimes this is referred to as return on investment.
Return on assets=Net income/total assets
12.Return on equity=The amount of net income returned as a percentage of shareholders equity.
Return on equity measures a corporation profitability by revealing how much profit a company
generates with the money shareholders have invested.
Return on equity=Net income/ Total equity
13.Sales turn over= Sales turnover is the total amount sold within a stipulated time period,
usually 12 months. Sales turnover is usually expressed in monetary terms but can also be in total
units of stock or products sold.
Sales turnover=Sales revenue/total assets

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14.Fixed assets turnover= A financial ratio of net sales to fixed assets. The fixed asset turnover
ratio measures a companys ability to generate net sales from fixed asset investments specifically
property, plant and equipment (PP&E) net of depreciation. A higher fixed asset turnover ratio
shows that the company has been more effective in using the investment in fixed assets to
generate revenue.
Fixed assets turnover=Sales revenue/Fixed assets
15.Earnings per share= The portion of a companys profit allocated to each outstanding share
of common stock. Earnings per share serve as an indicator of a companys profitability.
Earnings per share= Net income/Number of share outstanding

Ratio Analysis
Beximco synthetics textile limited

12

Ratio Name

Formula

2011

2010

2009

2008

2007

Page

S
N

Short-Term Solvency or Liquidity Ratio


01

Current Ratio

Current Asset/Current
Liabilities

2.36

1.92

2.01

2.09

1.68

02

Quick Ratio

Quick Asset/ Current Liabilities

1.12

0.77

0.93

0.98

1.03

03

Cash Ratio

Cash/ Current Liabilities

0.0212

0.0072

0.0055

0.0025

0.0065

Asset Management or Turnover Ratio


01

Inventory
Turnover

Cost of Goods Sold / Inventory

1.52

1.21

0.87

1.01

0.93

02

Account
Receivable
Turnover

Net Sales/ Accounts Receivable

2.14

2.09

1.50

1.81

0.79

03

Days sales
outstanding in
Receivable

360/ Receivable Turnover

171

175

243

202

462

04

Fixed Asset
Turnover

Net Sales/ Net Fixed Asset

1.064

0.6889

0.53

0.61

2.16

05

Sales turnover

Sales revenue/Total asset

0.5011

0.3530

0.2715

0.3121

0.3399

Profitability Ratio
01

Gross Profit
margin

Gross profit/ Net Sales

0.15

0.13

0.16

0.14

0.10

02

Return on assets
(ROA)

Net Income/ Total Assets

0.0380

0.0096

0.0039

0.0063

0.0153

03

Return on equity
(ROE)

Net income/ Total equity

0.0509

0.0136

0.0057

0.0093

-0.0418

04

Operating profit
margin

Operating profit/Sales revenue

0.145

0.116

0.144

0.131

0.090

05

Net profit margin

Net profit/Sales

0.070

0.0272

0.0147

0.0202

-0.0450

06

Operating expense
ratio

Operating expense/Sales

0.0126

0.0157

0.0166

0.0142

0.0156

Market value Ratio

13

Earnings per
Share(EPS)

Net Income/ No. of Share


Outstanding

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01

Time series analysis


1.Current Ratio = (Current asset/ Current liability)
Year
2007

Beximco synthetics textile limited


1,959,146,335/1,164,458,597=1.68 times

1.58

4.61

2.10

3.92

-8.11

=2.09 times
=2.01 times
=1.92 times
=2.36 times

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1,480,234,662/707,239,254
1,429,542,275/710,661,585
1,394,274,544/726,097,679
1,631,449,155/692,398,967

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2008
2009
2010
2011

Current Ratio
2.5
2
1.5
Times
1
0.5
0

2007

2008

2009

2010

2011

Ratio Analysis:
In this graph we see that in 2007 year current ratio were 1.68 times in beximco synthetics
limited. In the year 2011 current ratio increasing 2.36 times. So we can say easily that company
current ratio increasing from the year of 2007.
2.Quick Ratio = (Current asset-Inventory/ Current liability)
Year
2007
2008
2009
2010

Beximco synthetics textile limited


(1,959,146,335-757,336,700)/1,164,458,597=1.03 times
(1,480,234,662-789,336,700)/707,239,254 =.98 times
(1,429,542,275-767,296,947)/710,661,585 =.93 times
(1,394,274,544-837,904,260)/726,097,679 =.77 times

(1,631,449,155-854,468,643)/692,398,967 =1.12 times


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2011

Quick Ratio
1.2
1
0.8
times

0.6
0.4
0.2
0

2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 year Quick ratio were 1.03 times in beximco synthetics limited.
In the year 2011 Quick ratio increasing 1.12 times. So we can say easily that company quick
ratio increasing from the year of 2007.
3.Cash ratio=Cash/Current liabilities
Year
2007
2008
2009
2010
2011

Beximco synthetics textile limited


7599549/1164458597=0.0065 times
1768293/707239254= 0.0025
3876722/710661585= 0.0055
5231582/726097679=0.0072
14693819/692398967= 0.0212

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Cash ratio
0.03
0.02
Cash ratio

0.02
0.01
0.01
0
2007

2008

2009

2010

2011

Ratio analysis :
In this graph we see that in 2007 year Cash ratio were 0.0065 times in beximco synthetics
limited. In the year 2011 Cash ratio increasing 0.0212 times. So we can say easily that company
Cash ratio increasing from the year of 2007.

4.Inventory turnover ratio=Cogs /Average inventory


Year
2007
2008
2009
2010
2011

Beximco synthetics textile limited


706,422,975/757,336,700 =0.93 times
796,850,257/789,637,475 =1.01 times
665,395,623/767,296,947 =0.87 times
875,885,449/726,097,679 =1.21 times
1,300,156,899/857,468,643 =1.52 times

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Inventory turnover
1.6
1.4
1.2
1

Inventory turnover

0.8
0.6
0.4
0.2
0

2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 year Inventory turnover ratio were 0.93 times in beximco
synthetics limited. In the year 2011 Quick ratio increasing 1.52 times. So we can say easily that
company inventory turnover ratio increasing from the year of 2007.

5.Account receivable turnover ratio=Credit sales/ Average A/R


Year
2007
2008
2009
2010

Beximco synthetics textile limited


790,103124/1,005,929,0790.79 times
932,831,738/514,401,229= 1.81 times
792,781,515/527,839,772= 1.5 times
1,009,552,138/483,382,252= 2.09 times

1,545,017,437/721,835,474 = 2.14 times


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2011

Accunt receivable turnover ratio


2.5
2
Accunt receivable turnover
ratio

1.5
1
0.5
0

2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 year Account receivable turnover ratio were 0.79 times in
beximco synthetics limited. In the year 2011 Quick ratio increasing 2.14 times. So we can say
easily that company account receivable turnover ratio increasing from the year of 2007.

6.Day sales outstanding=Day sales outstanding/A/R


Year
2007
2008
2009
2010
2011

Beximco synthetics textile limited


365/0.79=462 days
365/1.81=202 days
365/1.50=243 days
365/2.09=175 days
365/2.14=171 days

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Day sales outstsnding


Day sales outstsnding

462

202

2007

2008

243

2009

175

2010

171

2011

Ratio analysis:
In this graph we see that in 2007 year day sales outstanding ratio were 462 days in beximco
synthetics limited. In the year 2011 day sales outstanding 171 days. So we can say easily that
company day sales outstanding ratio decreasing from the year of 2007.

7.Fixed assets turnover =Sales revenue/Fixed assets


Year
2007
2008
2009
2010
2011

Ratio
790103124/365008065=2.16 times
932831738/1508358739=.61 times
792781515/1489533171=.53 times
1009552138/1465424394=.6889 times
154501=7437/1451259573=1.064 times

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Fixed assets turnover


Fixed assets turnover

2.16

0.61

2007

2008

0.53
2009

0.68

2010

1.06

2011

Ratio analysis:
In this graph we see that in 2007 Fixed assets turnover ratio were 2.16 times in beximco
synthetics limited. In the year 2011 Fixed assets turnover ratio decrease 1.06 times. So we can
say easily that company Fixed assets turnover ratio decreasing from the year of 2007.

8.Sales turnover = Sales revenue/Total assets


Year
2007
2008
2009

Ratio
790103124/2324154400=33.99 times
932831738/2988593401=31.21 times
792781515/2919075446=27.15 times

1009552138/2859698938=35.30 times
1545017437/3082708728=50.11 times
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2010
2011

Sales turnover
Sales turnover

50.11
33.99

2007

31.21

2008

27.15

2009

35.3

2010

2011

Ratio analysis:
In this graph we see that in 2007 Sales turnover ratio were 33.99 times in beximco synthetics
limited. In the year 2011 Sales turnover ratio increase 50.11. So we can say easily that company
Sales turnover ratio increasing from the year of 2007.

9.Gross profit margin=Gross profit/Sales


Year
2007
2008
2009

Beximco synthetics textile limited


83,680,149/790,103,124 = 10%
135,981,481/932,831,738= 14%
127,385,892/792,781,515 = 16%

133,696,689/1,009,552,138=13%
244,860,538/1,545,017,437=15%

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22

2010
2011

Gross profit margin


Gross profit margin

14%

16%
13%

15%

10%

2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 year Gross profit margin ratio were 10% in beximco synthetics
limited. In the year 2011 Gross profit margin 15%. So we can say easily that company Gross
profit margin ratio increasing from the year of 2007.

10.Return on assets ratio=Net income/Total assets


Year
2007
2008

Beximco synthetics textile limited


(35,567,404)/2,324,154,400= -1.53%
18,885,302/2,988,593,401= .63%

11,655,948/2,919,075,446= .39%
27,474,123/2,859,698,938= .96%
108,176,172/3,082,708,728= 3.80%

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23

2009
2010
2011

Return on assets in %
4
3
2

Return on assets in %

1
0

2007

2008

2009

2010

2011

-1
-2

Ratio analysis:
In this graph we see that in 2007 Return on assets ratio were -1.53% in beximco synthetics
limited. In the year 2011 Return on assets ratio increase 3.80%. So we can say easily that
company Return on assets ratio increasing from the year of 2007.

11.Return on equity =Net income/Total equity


Year
2007
2008

Ratio
35567404/850800333=-4.18
18885302/2017766294=.93%

11655948/2029422242=.57%
27474123/2015310518=1.36%
108176172/2123486690=5.09%

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24

2009
2010
2011

Return on equity in %
6
4
2

Return on equity in %

0
2007

2008

2009

2010

2011

-2
-4
-6

Ratio analysis:
In this graph we see that in 2007 Return on equity ratio were -4.18% in beximco synthetics
limited. In the year 2011 Return on equity ratio increase 5.09%. So we can say easily that
company Return on equity ratio increasing from the year of 2007.

12.Operating profit margin=Operating profit/Sales revenue


Year
2007

Beximco synthetics textile limited


71,334,683/790,103,124=9%

122,655,987/932,831,738=13.1%
114,193,822/792,781,515=14.4%
117,841,745/1,009,552,138=11.6%
225,272,659/1,545,017,437=14.5%
Page

25

2008
2009
2010
2011

Operating profit margin


Operating profit margin

13.10%

14.50%

14.40%
11.60%

9.00%

2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 year Operating profit margin ratio were 9% in beximco
synthetics limited. In the year 2011 Operating profit margin 14.50%. So we can say easily that
company Operating profit margin ratio increasing from the year of 2007.

13.Net profit margin=Net profit/Sales


Year
2007

Beximco synthetics textile limited


(35,567,404)/790,103,124=-4.5%

26

18,885,302/932,831,738=2.02%
11,655,948/792,781,515=1.47%
27,474,123/1,009,552,138=2.72%
108,176,172/1,545,017,437=7%

Page

2008
2009
2010
2011

Net profit margin


8.00%
6.00%
4.00%
Net profit margin

2.00%
0.00%

2007

2008

2009

2010

2011

-2.00%
-4.00%
-6.00%

Ratio analysis:In this graph we see that in 2007 year Net profit margin ratio were -4.5% in
beximco synthetics limited. In the year 2011 Net profit margin 7%. So we can say easily that
company Net profit margin ratio increasing from the year of 2007.

14.Operating expense ratio=Operating expense/ Sales


Year

Beximco synthetics textile limited

27

12,345,466/790,103,124=1.56%
13,325,494/932,831,738=1.42%
13,192,070/792,781,515=1.66%
15,854,944/1,009,552,138=1.57%
19,587,878/1,545,017,437=1.26%

Page

2007
2008
2009
2010
2011

Operating expense ratio


1.80%
1.60%
1.40%
1.20%
In persentage

1.00%
0.80%
0.60%
0.40%
0.20%
0.00%

2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Operating expense ratio were 1.56% in beximco synthetics
limited. In the year 2011 Operating expense ratio decrease 1.26%. So we can say easily that
company Operating expense ratio decreasing from the year of 2007.

15.Earning per share =Net income/No of share


Year

Ratio

28

(35567404)/4383225=-8.11
18885302/4821547=3.92
11655948/5544779=2.10
27474123/5960637=4.61
108176172/68547320=1.58

Page

2007
2008
2009
2010
2011

Earning per share


6
4
2
Earning per share

0
-2

2007

2008

2009

2010

2011

-4
-6
-8
-10

Ratio analysis:
In this graph we see that in 2007 Earnings per share ratio were -8.11 times in beximco synthetics
limited. In the year 2011 Earnings per share ratio increase 1.58 times. So we can say easily that
company earnings per share ratio increasing from the year of 2007.

Ratio Analysis:

Ratio Name

Formula

Page

S
N

29

Monno Fabrics Limited:

2011

2010

2009

2008

2007

Short-Term Solvency or Liquidity Ratio


01

Current Ratio

Current Asset/Current
Liabilities

0.71

0.92

1.06

1.13

1.08

02

Quick Ratio

Quick Asset/ Current Liabilities

0.30

0.43

1.01

0.59

0.65

03

Cash Ratio

Cash/ Current Liabilities

0.0221

0.0246

0.0244

0.0266

0.0189

Asset Management or Turnover Ratio


01

Inventory
Turnover

Cost of Goods Sold / Inventory

0.78

0.88

1.60

1.77

2.73

02

Account
Receivable
Turnover

Net Sales/ Accounts Receivable

3.30

2.32

2.80

3.15

2.98

03

Days sales
outstanding in
Receivable

365/ Receivable Turnover

111

157

130

116

122

04

Fixed Asset
Turnover

Net Sales/ Net Fixed Asset

0.04

0.43

0.79

0.75

0.72

05

Sales turnover

Sales revenue/Total asset

0.05

0.07

0.09

11.17

1.39

Profitability Ratio
01

Gross Profit
margin

Gross profit/ Net Sales

0.7764

0.1789

0.18

0.2371

0.2203

02

Return on assets
(ROA)

Net Income/ Total Assets

0.1218

0.0646

0.0124

0.0181

0.0220

03

Return on equity
(ROE)

Net income/ Total equity

0.5338

0.1899

0.0316

0.0411

0.0461

04

Operating profit
margin

Operating profit/Sales revenue

0.8666

0.1304

0.1579

0.1279

0.1669

05

Net profit margin

Net profit/Sales

0.0484

0.0262

0.0282

0.0403

0.0464

06

Operating expense
ratio

Operating expense/Sales

0.0901

0.0485

0.0263

0.0262

0.0234

Earnings per
Share(EPS)

Net Income/ No. of Share


Outstanding

Page

01

30

Market value Ratio


-25.82

Time series analysis


Monno fabrics ltd

-19.55

3.87

5.40

6.09

Monno fabrics ltd


1,080,617,450/997,165,731=1.08times
1,387,931,147/1,224,412,403=1.13times
1,602,750,762/1,501,365,569=1.06times
1,491,184,436/1,615,370,010=.92times
1,407,808,351/1,981,476,449=.71times
Page

Year
2007
2008
2009
2010
2011

31

1.Current Ratio=Current assets/Current Liability

Current assets
1.2
1
0.8

Current assets

0.6
0.4
0.2
0

2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Current ratio were 1.08% in Monno fabrics limited. In the year
2011 Current ratio decrease 0.71%. So we can say easily that company Current ratio decreasing
from the year of 2007.
2.Quick ratio=(CA-CL)/CL
Year
2007
2008

Monno fabrics ltd

650,577,207/99,165,731=.65 times
726,024,016/1,224,412,403=.59 times

32

1,522,212,538/1,501,365,569=1.01 times
697,079,636/1,615,370,010=.43 times
601,718,007/1,981,476,449=.3 times
Page

2009
2010
2011

Quick ratio in times


1.2
1
0.8

Quick ratio in times

0.6
0.4
0.2
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Quick ratio were 0.65 times in Monno fabrics limited. In the
year 2011 Quick ratio decrease 0.30 times. So we can say easily that company Quick ratio
decreasing from the year of 2007.

3.Cash Ratio=Cash/Current liability


Year
2007

Monno fabrics ltd

18849892/997165731=1.89%

33

32591350/1224412403=2.66%
36594742/1501365569=2.44%
39683323/1615370010=2.46%
43823804/1981476449=2.21%

Page

2008
2009
2010
2011

Cash ratio times


3
2.5
2
1.5
1
0.5
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Cash ratio were 1.89 times in Monno fabrics limited. In the year
2011 Cash ratio increase 2.21times. So we can say easily that company Cash ratio increasing
from the year of 2007.

4.Inventory turnover ratio=COGs/ Inventory


Year

Monno fabrics ltd

34

1,174,820,367/430,040,243=2.73 times
1,175,447,344/661,907,131=1.77 times
1,293,232,751/804,538,224=1.60 times
704,112,596/794,104,800=0.88 times
151,178,088/806,090,344=0.78 times
Page

2007
2008
2009
2010
2011

Iventory turnover in times


3
2.5
2

Iventory turnover in times

1.5
1
0.5
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Inventory turnover ratio were 2.73 times in Monno fabrics
limited. In the year 2011 Inventory turnover ratio decrease 0.78 times. So we can say easily that
company Inventory turnover ratio decreasing from the year of 2007.

5.Account receivable turnover= Sales/ Account receivable

35

Monno fabrics ltd

1,506,857,027/505,004,319=2.98 times
1,540,870,413/489,131,171=3.15 times
1,577,113,111/561,736,245=2.80 times
857,628,009/369,119,912=2.32 times
851,020,420/277,285,485=3.30 times

Page

Year
2007
2008
2009
2010
2011

Account recevable turnover


3.5
3
2.5

Account recevable
turnover

2
1.5
1
0.5
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Account receivable turnover ratio were 2.98 times in Monno
fabrics limited. In the year 2011 Account receivable turnover ratio increase 3.30 times. So we
can say easily that company Account receivable turnover ratio increasing from the year of 2007.

6.Days sales outstanding=Days sales outstanding/ Account receivable

36

Monno fabrics ltd

365/2.98=122 days
365/3.15=116 days
365/2.80=130 days
365/2.32=157 days
365/3.30=111 days

Page

Year
2007
2008
2009
2010
2011

Days sales outstanding


160
140
120
100

Days sales outstanding

80
60
40
20
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Days sales outstanding ratio were 111 days in Monno fabrics
limited. In the year 2011 Days sales outstanding ratio increase 122 days. So we can say easily
that company Days sales outstanding ratio increasing from the year of 2007.

Page

Monno fabrics ltd

Year
2007
2008
2009
2010
2011

37

7.Fixed assets turnover=Sales /Fixed assets

1506857027/2090188451=0.72 times
1540870413/2044896725=0.75 times
15771133111/1979035508=0.79 times
857628009/1986095083=0.43 times
85102042/1972526382=0.04 times

Fixed assets turnover


0.8
0.7
0.6
0.5

Fixed assets turnover

0.4
0.3
0.2
0.1
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Fixed assets turnover ratio were 0.72 times in Monno fabrics
limited. In the year 2011 Fixed assets turnover ratio decrease 0.05 times. So we can say easily
that company Fixed assets turnover ratio decreasing from the year of 2007.

38

Monno fabrics ltd

Year
2007
2008
2009
2010
2011

1,506,857,027/1,080,617,450=
1,540,870,413/1,379,311,147=
1,577,11311/1662750762=
111914512/1491184436=
73749864/1407808351=

Page

8.Sales turnover=Sales/Total assets

1.39 times
11.17 times
0.09 times
0.07 times
0.05 times

Sales turnover in times


12
10
8

Sales turnover in times

6
4
2
0

2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Sales turnover ratio were 1.39 times in Monno fabrics limited.
In the year 2011 Sales turnover ratio decrease 0.05 times. So we can say easily that company
Sales turnover ratio decreasing from the year of 2007.

Year
2007
2008
2009
2010
2011

Monno fabrics ltd

39
Page

9.Gross profit margin=Gross profit/Sales

332,036,660/1,506,857,029=22.03%
365,423,069/1,540,870,413=23.71%
283,880,360/1,577,113,111=18.00%
153,515,413/857,628,009=17.89%
66,076,046/85,102,042=77.64%

Gross profit margin in %


80
70
60
50

Gross profit margin in %

40
30
20
10
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Gross profit margin ratio were 22.03% in Monno fabrics
limited. In the year 2011 Gross profit margin ratio increase 77.64%. So we can say easily that
company Gross profit margin ratio increasing from the year of 2007.

40
Page

10.Return on assets=Net income/Total assets


Monno fabrics ltd

Year
2007
2008
2009
2010
2011

70,009,150/3,170,805,901=2.20%
62,143,373/3,432,827,872=1.81%
44,486,614/3,581,786,270=1.24%
224,834,323/3,477,279,519=6.46%
411,980,784/3,380,334,733=12.18%

Return on assets in %
14
12
10
Return on assets in %

8
6
4
2
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Return on assets ratio were 2.20% in Monno fabrics limited. In
the year 2011 Return on assets ratio increase 12.18%. So we can say easily that company Return
on assets ratio increasing from the year of 2007.

41
Year
2007
2008
2009
2010
2011

Page

11.Return on equity=Net income/Total equity


Monno fabrics ltd

70009650/1517343430=4.61%
62143373/1510486803=4.11%
44486614/1408500189=3.16%
224834323/1183665866=18.99%
411980784/771685082=53.38%

Return on equity in %
60
50
40

Return on equity in %

30
20
10
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Return on equity ratio were 4.61% in Monno fabrics limited. In
the year 2011 Return on equity ratio increase 53.38%. So we can say easily that company Return
on equity ratio increasing from the year of 2007.

42
Page

12.Operating profit margin=Operating profit/Sales


Year
2007
2008
2009
2010
2011

Monno fabrics ltd

296,825,657/1,506,857,027=0.1669
325,125,818/1,540,870,413=0.1279
242,272,147/1,577,113,111=0.1536
111,914,512/857,628,009=0.1304
73,749,864/85,102,042=0.8666

Operating profit margin


0.9
0.8
0.7
0.6

Operating profit margin

0.5
0.4
0.3
0.2
0.1
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Operating profit margin ratio were 16.69% in Monno fabrics
limited. In the year 2011 Operating profit margin ratio increase 86.66%. So we can say easily
that company Operating profit margin ratio increasing from the year of 2007.

43
Page

13.Net profit margin=Net profit/Sales


Monno fabrics ltd

Year
2007
2008
2009
2010
2011

70,009,150/1,506,857,027=4.64%
62,143,373/1,540,870,413=4.03%
44,486,614/1,577,113,111=2.82%
224,834,323/857,628,009=2.62%
411,980,784/85,102,042=4.84%

Net profit margin in %


5
4.5
4
3.5
Net profit margin in %

3
2.5
2
1.5
1
0.5
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Net profit margin ratio were 4.64% in Monno fabrics limited. In
the year 2011 Net profit margin ratio increase 4.84%. So we can say easily that company Net
profit margin ratio increasing from the year of 2007.

44
Page

14.Operating expense ratio=Operating expense/Sales


Monno fabrics ltd

Year
2007
2008
2009
2010
2011

35,211,003/1,506,857,027=2.34%
40,297,251/1,540,870,413=2.62%
41,600,901/1,577,113,111=2.63%
41,608,213/857,628,009=4.85%
7,673,818/85,102,042=9.01%

Operating expense in %
10
9
8
7
Operating expense in %

6
5
4
3
2
1
0
2007

Ratio analysis:

2008

2009

2010

2011

Page

45

In this graph we see that in 2007 Operating expense ratio were 2.34% in Monno fabrics limited.
In the year 2011 Operating expense ratio increase 9.01%. So we can say easily that company
Operating expense ratio increasing from the year of 2007.

15.Earning per share=Net income/Number of share


Year
2007
2008
2009
2010
2011

Monno fabrics ltd

70009150/11500000=6.09
62143373/1500000=5.40
44486614/1500000=-3.87
224834323/1500000=-19.55
711980784/1500000=-25.82

EPS
10
5
0
-5
-10
-15
-20
-25
-30

2007

2008

2009

2010

2011

EPS

46
Page

Ratio analysis:
In this graph we see that in 2007 EPS ratio were 6.09 in Monno fabrics limited. In the year 2011
EPS ratio decrease -25.82. So we can say easily that company EPS ratio decreasing from the
year of 2007.

Ratio Analysis
Saiham textile mills limited
S
N

Ratio Name

Formula

2011

2010

2009

2008

2007

Short-Term Solvency or Liquidity Ratio


01

Current Ratio

Current Asset/Current
Liabilities

1.44

1.13

1.19

1.19

1.12

02

Quick Ratio

Quick Asset/ Current Liabilities

0.38

0.43

0.32

0.19

0.37

03

Cash Ratio

Cash/ Current Liabilities

0.09

0.03

0.07

0.98

0.05

Asset Management or Turnover Ratio


01

Inventory
Turnover

Cost of Goods Sold / Inventory

1.48

1.78

2.05

1.16

2.06

02

Receivable
Turnover

Net Sales/ Accounts Receivable

9.11

4.26

16.90

12.89

7.07

03

Day sales
outstanding in
Receivable

360/ Receivable Turnover

40

86

22

28

52

04

Fixed Asset
Turnover

Net Sales/ Net Fixed Asset

2.26

1.51

1.21

1.36

1.16

05

Sales turnover

Sales revenue/Total asset

0.89

0.72

0.66

0.67

0.67

Profitability Ratio
01

Gross Profit
margin

Gross profit/ Net Sales

0.26

0.19

0.19

0.20

0.21

02

Return on assets
(ROA)

Net Income/ Total Assets

0.13

0.04

0.03

0.03

0.03

Return on equity
(ROE)

Net income/ Total equity

0.24

0.08

0.06

0.06

0.05

04

Operating profit
margin

Operating profit/Sales revenue

0.18

0.07

0.06

0.06

0.06

05

Net profit margin

Net profit/Sales

0.15

0.05

0.05

0.05

0.05

06

Operating expense
ratio

Operating expense/Sales

0.08

0.13

0.15

0.14

0.16

0.83

11.52

Page

47

03

Market value Ratio


01

Earnings per
Share(EPS)

Net Income/ No. of Share


Outstanding

3.31

12.61

11.22

48
Page

Time series analysis


Saiham textile mills limited
1.Current Ratio=CA/CL
Year
2011
2010
2009
2008
2007

Ratio
= 1.44%
= 1.13%
= 1.19%
= 1.19%
= 1.12%

Saiham textile mills limited


385,335,553/268,189,454
278,209,386/245,341,806
208,035,745/174,342,031
250,862,791/211,363,364
191,609,532/170,330,845

Current ratio
1.6
1.4
1.2
1

Current ratio

0.8
0.6
0.4
0.2
0
2007

Ratio analysis:

2008

2009

2010

2011

Page

49

In this graph we see that in 2007 Current ratio were 1.12times in Saiham textile mills limited. In
the year 2011 Current ratio increase 1.44. So we can say easily that company Current ratio
increasing from the year of 2007.

2.Quick ratio = CA-Inventory/CL


Year
2011
2010
2009
2008
2007

Ratio
= 0.38
= 0.43
= 0.32
= 0.19
= 0.37

Saiham textile mills limited


385,335,553-284,599,985/268,189,454
278,209,386-172,626,204/245,341,806
208,035,745-151,383,986/174,342,031
250,862,791-210,127,650/211,363,364
191,609,532-128,265,024/170,330,845

times
times
times
times
times

Quick Ratio
0.45
0.4
0.35
0.3

Quick Ratio

0.25
0.2
0.15
0.1
0.05
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Quick ratio were 0.37 times in Saiham textile mills limited. In
the year 2011 Quick ratio increase 0.38 times. So we can say easily that company Quick ratio
slightly increasing from the year of 2007.

50
Page

3.Cash Ratio=Cash/CL
Year
2011
2010
2009
2008
2007

Ratio
= 0.09%
= 0.03%
= 0.07%
= 0.98%
= 0.05%

Saiham textile mills limited


23,676,231/268,189,454
8,544,404/245,341,806
11,713,861/174,342,031
2,087,938/211,363,364
9,131,349/170,330,845

Cash Ratio
1
0.9
0.8
0.7
Cash Ratio

0.6
0.5
0.4
0.3
0.2
0.1
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Cash ratio were 0.05 times in Saiham textile mills limited. In
the year 2011 Cash ratio increase 0.09 times. So we can say easily that company Cash ratio
slightly increasing from the year of 2007.

51
Page

4.Inventory turnover= COGS/Avg. Inventory


Year
2011
2010
2009
2008
2007

Ratio
= 1.48
= 1.78
= 2.05
= 1.16
= 2.06

Saiham textile mills limited


420,758,690/284,599,985
310,205,865/172,626,204
310,938,968/151,383,986
243,496,695/210,127,650
264,342,515/128,265,024

Inventory turnover
2.5
2
Inventory turnover

1.5
1
0.5
0
2007

Ratio analysis:

2008

2009

2010

2011

Page

52

In this graph we see that in 2007 Inventory turnover ratio were 2.06 times in Saiham textile mills
limited. In the year 2011 Inventory turnover ratio decrease 1.48 times. So we can say easily that
company Inventory turnover ratio slightly decreasing from the year of 2007.

5.Account receivable turnover=Sales/Account receivable


Year
2011
2010
2009
2008
2007

Ratio
= 9.11
= 4.26
= 16.90
= 12.89
= 7.07

Saiham textile mills limited


570,302,654/62,568,728
383,956,707/90,176,034
299,738,654/17,732,588
329,877,885/25,582,021
301,115,589/42,579,810

Account receivable
18
16
14
12

Account receivable

10
8
6
4
2
0
2007

Ratio analysis:

2008

2009

2010

2011

Page

53

In this graph we see that in 2007 Account receivable ratio were 7.07 times in Saiham textile mills
limited. In the year 2011 Account receivable ratio increase 9.11 times. So we can say easily that
company Account receivable ratio slightly increasing from the year of 2007.

6.Days sales outstanding=Day sales outstanding/ AR turnover


Year
2011

Saiham textile mills limited

2010
2009
2008
2007

365/4.26
365/16.90
365/12.89
365/7.07

Ratio
= 40.07
Days
= 85.68
= 21.60
= 28.32
= 51.63

365/9.11

Day sales outstanding


90
80
70
60

Day sales outstanding

50
40
30
20
10
0
2007

2008

2009

2010

2011

54
Page

Ratio analysis:
In this graph we see that in 2007 Day sales outstanding ratio were 51.63 days. In Saiham textile
mills limited. In the year 2011 Day sales outstanding ratio decrease 40.07 days. So we can say
easily that company Day sales outstanding ratio slightly decreasing from the year of 2007.

7.Fixed asset turnover=Sales revenue/Fixed assets


Year
2011
2010
2009
2008
2007

Ratio
= 2.26 times
= 1.51
= 1.21
= 1.36
= 1.16

Saiham textile mills limited


570,302,654/252,356,134
383,956,707/254,344,746
299,738,654/247,636,691
329,877,885/241,690,452
301,115,589/258,914,418

Fixed assets turnover


2.5
2
Fixed assets turnover

1.5
1
0.5
0
2007

2008

2009

2010

2011

55
Page

Ratio analysis:
In this graph we see that in 2007 Fixed assets turnover ratio were 1.16 times in Saiham textile
mills limited. In the year 2011 Fixed assets turnover ratio increase 2.26 times. So we can say
easily that company Fixed assets turnover ratio slightly increasing from the year of 2007.

8.Sales turnover=Sales/Total assets


Year
2011
2010
2009
2008
2007

Ratio
= 0.89 times
= 0.72
= 0.66
= 0.67
= 0.67

Saiham textile mills limited


570,302,654/637,691,687
383,956,707/532,554,132
299,738,654/455,672,436
329,877,885/492,553,243
301,115,589/450,523,950

Sales turnover
0.9
0.8
0.7
0.6

Sales turnover

0.5
0.4
0.3
0.2
0.1
0

2007

2008

2009

2010

2011

56
Page

Ratio analysis:
In this graph we see that in 2007 Sales turnover ratio were 0.67 times in Saiham textile mills
limited. In the year 2011 Sales Inventory turnover ratio increase 0.89 times. So we can say easily
that company Sales turnover ratio slightly increasing from the year of 2007.

9.Gross profit mrgin=Gross profit/Sales revenue


Year
2011
2010
2009
2008
2007

Saiham textile mills limited


149,543,964/570,302,654
73,750,842/383,956,707
56,241,959/299,738,654
65,535,370/329,877,885
64,506,991/301,115,589

= 0.26
= 0.19
= 0.19
= 0.20
=0.21

Gross prfit margin in%


0.3
0.25
0.2

Gross prfit margin in%

0.15
0.1
0.05
0
2007

2008

2009

2010

2011

57
Page

Ratio analysis:
In this graph we see that in 2007 Gross profit margin ratio were 0.21%. In Saiham textile mills
limited. In the year 2011 Gross profit margin ratio increase 0.26%. So we can say easily that
company Gross profit margin ratio slightly increasing from the year of 2007.

10.Return on assets=Net income/Total assets


Year
2011
2010
2009
2008
2007

Ratio
= 0.13
= 0.04
= 0.03
= 0.03
= 0.03

Saiham textile mills limited


82,755,175/637,691,687
20,838,686/532,554,132
14,405,842/455,672,436
15,756,254/492,553,243
14,028,046/450,523,950

Return on assets in %
0.14
0.12
0.1
Return on assets in %

0.08
0.06
0.04
0.02
0
2007

2008

2009

2010

2011

58
Page

Ratio analysis:
In this graph we see that in 2007 Return on assets ratio were 0.03% in Saiham textile mills
limited. In the year 2011 Return on assets ratio increase 0.13%. So we can say easily that
company Return on assets ratio slightly increasing from the year of 2007.

11.Return on equity=Net income/Total equity


Year
2011
2010
2009
2008
2007

Ratio
= 0.24
= 0.08
= 0.06
= 0.06
= 0.05

Saiham textile mills limited


82,755,175/343,607,608
20,838,686/260,852,433
14,405,842/254,185,569
15,756,254/281,189,879
14,028,046/280,193,105

Return on equity in %
0.25
0.2
Return on equity in %

0.15
0.1
0.05
0
2007

2008

2009

2010

2011

59
Page

Ratio analysis:
In this graph we see that in 2007 Return on equity ratio were 0.05% in Saiham textile mills
limited. In the year 2011 Return on equity ratio increase 0.24%. So we can say easily that
company Return on equity ratio slightly increasing from the year of 2007.

12.Operating profit margin=Operating profit/Sales revenue


Year
2011
2010
2009
2008
2007

Saiham textile mills limited


102,078,980/570,302,654
25,741,912/383,956,707
16,756,971/299,738,654
19,463,609/329,877,885
17,328,763/301,115,589

Ratio
= 0.18
= 0.07
= 0.06
= 0.06
= 0.06

60
Page

Operating profit margin in %


0.18
0.16
0.14
0.12

Operating profit margin in


%

0.1
0.08
0.06
0.04
0.02
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Operating profit margin ratio were 0.06% in Saiham textile
mills limited. In the year 2011 Operating profit margin ratio increase 0.18%. So we can say
easily that company Operating profit margin ratio slightly increasing from the year of 2007.

13.Net profit margin=Net profit/Sales revenue


Year
2011
2010
2009
2008
2007

Saiham textile mills limited


82,755,175/570,302,654
20,838,686/383,956,707
14,405,842/299,738,654
15,756,254/329,877,885
14,028,046/301,115,589

Ratio
= 0.15
= 0.05
= 0.05
= 0.05
= 0.05

61
Page

Net Profit margin in %


0.16
0.14
0.12
0.1

Net Profit margin in %

0.08
0.06
0.04
0.02
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Net profit margin ratio were 0.05% in Saiham textile mills
limited. In the year 2011 Net profit margin ratio increase 0.15%. So we can say easily that
company Net profit margin ratio increasing from the year of 2007.

14.Operating expense=Operating expense/Sales revenue


Year
2011
2010
2009
2008
2007

Saiham textile mills limited


47,464,984/570,302,654
48,008,930/383,956,707
45,369,714/299,738,654
46,071,761/329,877,885
47,178,228/301,115,589

Ratio
= 0.08
= 0.13
= 0.15
= 0.14
= 0.16

62
Page

Operating expense in %
0.16
0.14
0.12
0.1

Operating expense in %

0.08
0.06
0.04
0.02
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 Operating expense ratio were 0.16% in Saiham textile mills
limited. In the year 2011 Operating expense decrease 0.08%. So we can say easily that company
Operating expense ratio decreasing from the year of 2007.

15.Earning per share=Net income/No of share


Year
2011
2010
2009
2008
2007

Saiham textile mills limited


82,755,175/25,001,563
20,838,686/25,106,851
14,405,842/1,260,507
15,756,254/1,249,505
14,028,046/1,250,271

Ratio
= 3.31
= 0.83
= 11.52
= 12.61
= 11.22

63
Page

EPS in %
14
12
10
EPS in %

8
6
4
2
0
2007

2008

2009

2010

2011

Ratio analysis:
In this graph we see that in 2007 EPS ratio were 11.22% in Saiham textile mills limited. In the
year 2011 EPS decrease 3.31%. So we can say easily that company EPS ratio decreasing from
the year of 2007.

Ratio Analysis
cMc textile mills limited
S
N

Ratio Name

Formula

2011

2010

Short-Term Solvency or Liquidity Ratio

2009

2008

2007

Current Asset/Current
Liabilities

3.52

0.61

0.44

0.89

0.87

02

Quick Ratio

Quick Asset/ Current Liabilities

2.89

0.08

0.12

0.14

0.37

03

Cash Ratio

Cash/ Current Liabilities

2.828

0.0606

0.0266

0.0099

0.0157

64

Current Ratio

Page

01

Asset Management or Turnover Ratio


01

Inventory
Turnover

Cost of Goods Sold / Inventory

2.95

3.84

2.18

2.31

4.73

02

Receivable
Turnover

Net Sales/ Accounts Receivable

59.53

16.55

20.37

35.91

10.5

03

Day sales
outstanding in
Receivable

360/ Receivable Turnover

22

18

10

35

04

Fixed Asset
Turnover

Net Sales/ Net Fixed Asset

0.5506

0.5445

0.5599

0.4437

0.5683

05

Sales turnover

Sales revenue/Total asset

0.3288

0.6038

0.6895

0.3688

0.4796

Profitability Ratio
01

Gross Profit
margin

Gross profit/ Net Sales

0.1453

0.1569

0.1423

0.1052

0.1048

02

Return on assets
(ROA)

Net Income/ Total Assets

0.0427

0.0506

0.0574

0.0749

0.0224

03

Return on equity
(ROE)

Net income/ Total equity

0.0443

0.0552

0.0870

0.1924

0.0587

04

Operating profit
margin

Operating profit/Sales revenue

0.39

0.91

0.94

0.61

1.57

05

Net profit margin

Net profit/Sales

0.1300

0.0838

0.0833

0.2031

0.0467

06

Operating expense
ratio

Operating expense/Sales

0.0861

0.0675

0.0499

0.0537

0.034

1.92

1.01

12.24

5.87

Market value Ratio


01

Earnings per
Share(EPS)

Net Income/ No. of Share


Outstanding

1.48

65
Page

Time series analysis


cMc Kamal textile ltd
1.Current ratio=Current assets/Current liabilities
Year
2007
2008
2009
2010
2011

cMc Kamal textile ltd

Ratio

70279506/79951091
74517380/82914655
100287110/227187752
141784226/234260441
775050635/220529224

0.87
0.89
0.44
0.61
3.52

66
Page

Current ratio
Current ratio

5
3.52

3
2
0.87 1

0.89
0.44

0.61

Ratio analysis:
In this graph we see that in 2007 current ratio were 0.87 times in cMc kamal textile mills
limited. In the year 2011 current increase 3.52 times. So we can say easily that company current
ratio increasing from the year of 2007.

2.Quick ratio=CA-Inventory/Current liabilities


Year
2007
2008
2009
2010
2011

cMc kamal textile mills ltd

Ratio

(70279506-40807506)/79951091

0.37

(74517380-62968100)/82914655
(100287110-81337627)/227187752

0.14

(141784226-95299788)/234260441
(775050635-135692738)/220529224

0.12
0.08
2.89

67

Quick ratio
3

Page

Quick ratio
4

2.89 5

1
0.37

0.14

0.12

0.08

Ratio analysis:
In this graph we see that in 2007 Quick ratio were 0.37 times in cMc kamal textile mills limited.
In the year 2011 Quick ratio increase 2.89 times. So we can say easily that company Quick ratio
increasing from the year of 2007.

3.Cash ratio=Cash/Current liabilities

Year
2007
2008
2009
2010
2011

cMc kamal textile mills ltd


1262648/79951091
827623/82914655
6049751/227187752
14199236/234260441
623871021/220529224

Ratio
0.0157
0.0099
0.0266
0.0606
2.828

68

Cash ratio
3

Page

Cash ratio

2.83

0.02

0.01

0.03

0.06

Ratio analysis:
In this graph we see that in 2007 Cash ratio were 0.0157 times in cMc kamal textile mills
limited. In the year 2011 Cash ratio increase 2.828 times. So we can say easily that company
Cash ratio increasing from the year of 2007.

4.Inventory turnover=Cogs/Inventory

Year
2007
2008
2009
2010
2011

cMc Kamal textile ltd


193272353/40807506
145841375/62968100
177912560/81337627
366068421/95299788
400161495/135692738

Ratio
4.73
2.31
2.18
3.84
2.95

69
Page

Inventory turnover
5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

Inventory turnover

Ratio analysis:
In this graph we see that in 2007 Inventory turnover ratio were 4.73 times in cMc kamal textile
mills limited. In the year 2011 Inventory turnover ratio decrease 2.95 times. So we can say easily
that company Inventory ratio decreasing from the year of 2007.

5.Account receivable=Sales/Account receivable

Year
2007
2008
2009
2010
2011

cMc kamal textile mills Ltd


216010260/20440125
162999801/4538333
207453709/10182282
434207010/26222248
468240190/7865104

Ratio
10.5
35.91
20.37
16.55
59.53

70
Page

A/R turnover
60
50
A/R turnover

40
30
20
10
0
1

Ratio analysis:
In this graph we see that in 2007 Account receivable turnover ratio were 10.5 times in cMc
kamal textile mills limited. In the year 2011 Account receivable turnover ratio increase 59.53
times. So we can say easily that company Account receivable turnover ratio increasing from the
year of 2007.

6.Day sales outstanding=360/AR turnover

Year
2007
2008
2009
2010
2011

cMc kamal textile mills ltd


360/10.5
360/35.91
360/20.37
360/16.55
360/59.53

Ratio
35
10
18
22
6

71
Page

Day sales outstanding


35
30
25

Day sales outstanding

20
15
10
5
0
1

Ratio analysis:
In this graph we see that in 2007 Day sales outstanding turnover ratio were 35 days in cMc
kamal textile mills limited. In the year 2011 Day sales outstanding turnover ratio decrease 6
days. So we can say easily that company Day sales outstanding ratio decreasing from the year of
2007.

7.Fixed assets turnover=Sales/Fixed assets

Year
2007
2008
2009
2010
2011

cMc kamal textile mills Ltd


216010260/380033738
162999801/367355385
207453709/370497374
434207010/797417772
468240190/850392682

Ratio
0.56835
0.4437
0.5599
0.5445
0.5506

72
Page

Fixed asset ratio


0.6
0.5
0.4

Fixed asset ratio

0.3
0.2
0.1
0
1

Ratio analysis:
In this graph we see that in 2007 Fixed assets turnover ratio were 0.5683 times in cMc kamal
textile mills limited. In the year 2011 Fixed assets turnover ratio decrease 0.5506 times. So we
can say easily that company Fixed assets turnover ratio slightly decreasing from the year of
2007.

8.Sales turnover=Sales/Total assets

Year
2007
2008
2009

cMc kamal textile mills Ltd


216010260/450313244
162999801/441872765
207453709/300850936

Ratio
0.4796
0.3688
0.6895

0.6038
0.3288

73

434207010/719041762
468240190/1423722190

Page

2010
2011

Sales turnover ratio


0.7
0.6
0.5

Sales turnover ratio

0.4
0.3
0.2
0.1
0
1

Ratio analysis:
In this graph we see that in 2007 Sales turnover ratio were 0.4796% in cMc kamal textile mills
limited. In the year 2011 Sales turnover ratio decrease 0.3288%. So we can say easily that
company Sales turnover ratio decreasing from the year of 2007.

9.Gross profit margin=Gross profit/Sales


Year
2007
2008

cMc kamal textile mills Ltd


22737907/216010260
17158426 /162999801

Ratio
0.1052
0.1052

Page

74

29541149/207453709
68138589/434207010
68078695/468240190

2009
2010
2011

0.1423
0.1569
0.1453

Gross profit Ratio


0.16
0.14
0.12
Gross profit Ratio

0.1
0.08
0.06
0.04
0.02
0
1

Ratio analysis:
In this graph we see that in 2007 Gross profit margin ratio were 0.1052% in cMc kamal textile
mills limited. In the year 2011 Gross profit margin ratio increase 0.1453%. So we can say easily
that company Gross profit margin ratio increasing from the year of 2007.

10.Return on assets=Net income/Total assets

Year
2007

cMc kamal textile mills Ltd


10097136/450313244

Ratio
0.0224

0.0749
0.0574
0.0506
0.0427

75

33096664/441872765
17295839/300850936
36420525/719041762
60896964/1423722190

Page

2008
2009
2010
2011

Return on assets ratio


0.08
0.07
0.06
Return on assets ratio

0.05
0.04
0.03
0.02
0.01
0
1

Ratio analysis:
In this graph we see that in 2007 Return on assets ratio were 0.0224% in cMc kamal textile mills
limited. In the year 2011 Return on assets ratio increase 0.0427%. So we can say easily that
company Return on assets ratio slightly increasing from the year of 2007.

12.Return on equity=Net income/Total equity

Year

cMc kamal textile mills Ltd

Ratio

0.0587
0.1924
0.087
0.0552
0.0443

76

10097136/172000000
33096664/172000562
17295839/198597986
36420525/660565182
60896964/13723695

Page

2007
2008
2009
2010
2011

Return on equity ratio


0.2
0.18
0.16
0.14
0.12
0.1
0.08
0.06
0.04
0.02
0

Return on equity ratio

Ratio analysis:
In this graph we see that in 2007 Return on equity ratio were 0.0587% in cMc kamal textile mills
limited. In the year 2011 Return on equity ratio decrease 0.0443%. So we can say easily that
company Return on equity ratio slightly decreasing from the year of 2007.

12.Operation profit margin=Operation profit/Sales

77

cMc kamal textile mills Ltd


15371064/216010260
8405827 /162999801
19191057/207453709
38832018/434207010
27749119/468240190

Ratio
1.57
0.61
0.94
0.91
0.39

Page

Year
2007
2008
2009
2010
2011

Operating profit ratio


1.6
1.4
1.2
Operating profit ratio

1
0.8
0.6
0.4
0.2
0
1

Ratio analysis:
In this graph we see that in 2007 Operation profit margin ratio were 1.57% in cMc kamal textile
mills limited. In the year 2011 Operation profit margin ratio decrease 0.39%. So we can say easily
that company Operation profit margin ratio decreasing from the year of 2007.

13.Net profit margin=Net profit/Sales

78

cMc kamal textile mills Ltd


10097136/216010260
33096664/162999801
17295839/207453709
36420525/434207010
60896964/468240190

Page

Year
2007
2008
2009
2010
2011

Ratio
0.0467
0.2031
0.0833
0.0838
0.13

Net profit ratio


0.25
0.2
Net profit ratio

0.15
0.1
0.05
0
1

Ratio analysis:
In this graph we see that in 2007 Net profit margin ratio were 0.0467% in cMc kamal textile mills
limited. In the year 2011 Net profit margin ratio increase 0.13%. So we can say easily that
company Net profit margin ratio increasing from the year of 2007.

14.Operating expense ratio=Operating expense/Sales

Ratio
0.034
0.0537
0.0499
0.0675
0.0861

79

cMc kamal textile mills Ltd


7366843/216010260
8752599/162999801
10350092/207453709
29306571/434207010
40329576/468240190

Page

Year
2007
2008
2009
2010
2011

O E ratio
0.09
0.08
0.07
0.06
0.05
0.04
0.03
0.02
0.01
0
1

Ratio analysis:
In this graph we see that in 2007 Operating expense ratio were 0.034% in cMc kamal textile mills
limited. In the year 2011 Operating expense ratio increase 0.0861%. So we can say easily that
company Operating expense ratio increasing from the year of 2007.

15.Earning per share=Net income/No of share

Ratio
5.87
12.24
1.01
1.92
1.48

80

cMc kamal textile mills Ltd


10097136/9125
33096664/15245
17295839/17125
36420525/18970
60896964/41147

Page

Year
2007
2008
2009
2010
2011

EPS ratio
14
12
10

EPS ratio

8
6
4
2
0
1

Ratio analysis:
In this graph we see that in 2007 Earning per share were 5.87 in cMc kamal textile mills limited.
In the year 2011 Earning per share ratio decrease 1.48. So we can say easily that company Earning
per share ratio decreasing from the year of 2007.

Cross selection Analysis

81
Page

Current ratio
Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

2011
2.36
0.71
1.44
3.52

2010
1.92
0.92
1.13
0.61

2009
2.01
1.06
1.19
0.44

2008
2.09
1.13
1.19
0.89

2007
1.68
1.08
1.12
0.87

2025
2020

1
3.52

2015

1.44
0.71
2.36

2
0.61
1.13
0.92
1.92

3
0.44
1.19
1.06
2.01

2011

2010

2009

2010
2005
2000

4
0.89
1.19
1.13
2.09
2008

Year

Beximco ltd

Monno ltd

Saiham ltd

cMc kamal ltd

5
0.87
1.12
1.08
1.68
2007

In this graph we see that Beximco ltd Current ratio is better 2007-2011 then the other textile
mills ltd. Because, assets utilization then liabilities. Here, current ratio is lower Monno fabrics
ltd.

82

Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

2011
1.12
0.30
0.38
2.89

Page

Quick ratio
2010
0.77
0.43
0.43
0.08

2009
0.93
1.01
0.32
0.12

2008
0.98
0.59
0.19
0.14

2007
1.03
0.65
0.37
0.37

Quick ratio
Year

Beximco ltd

Saiham ltd

cMc kamal ltd

Monno ltd

1
2.89
0.38
0.3
1.12

2011

2
0.08
0.43
0.43
0.77

2010

3
0.12
0.32
1.01
0.93

2009

4
0.14
0.19
0.59
0.98

2008

0.37
0.37
0.65
1.03
2007

In this graph we see that Beximco ltd Quick ratio is better 2007-2011 then the other textile mills
ltd. Because, quick assets utilization then liabilities. Here, quick ratio is lower Saiham textile ltd.

83
Page

Cash ratio
Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

2011
0.0212
0.0221
0.09
2.828

2010
0.0072
0.0246
0.03
0.0606

2009
0.0055
0.0244
0.07
0.0266

2008
0.0025
0.0266
0.98
0.0099

2007
0.0065
0.0189
0.05
0.0157

Cash ratio
Year

Beximco ltd

Saiham ltd

cMc kamal ltd

Monno ltd

1
2.83
0.09
0.02

2
0.06
0.03
0.02
0.01

0.03
0.07
0.02
0.01
2011

0.01
0.98
0.03
0

0.02
0.05
0.01
2010

2009

2008

2007

Page

84

In this graph we see that cMc kamal mills ltd cash ratio is better 2007-2011 then the other textile
mills ltd. Because, cash assets utilization then liabilities. Here, cash ratio is lower Beximco
textile ltd.

Inventory turnover
Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

2011
1.52
0.78
1.48
2.95

2010
1.21
0.88
1.78
3.84

2009
0.87
1.60
2.05
2.18

2008
1.01
1.77
1.16
2.31

2007
0.93
2.73
2.06
4.73

Inventory turnover
Year

Beximco ltd

Saiham ltd

cMc kamal ltd

1
2.95
1.48
0.78
1.52

2
3.84
1.78
0.88
1.21

2011

2010

Monno ltd

5
3
2.18
2.05
1.6
0.87

4
2.31
1.16
1.77
1.01

2009

2008

4.73
2.06
2.73
0.93
2007

In this graph we see that cMc kamal mills ltd Inventory turnover ratio is better 2007-2011 then
the other textile mills ltd. Here, inventory turnover ratio is lower Beximco textile ltd.

2011
2.14
3.30
9.11
59.53

2010
2.09
2.32
4.26
16.55

2009
1.50
2.80
16.90
20.37

2008
1.81
3.15
12.89
35.91

Page

Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

85

Account receivable turnover

2007
0.79
2.98
7.07
10.5

Account receivable
Year

Beximco ltd

Saiham ltd

cMc kamal ltd

Monno ltd

1
4

59.53
9.11
3.3
2.14

2
16.55
4.26
2.32
2.09

2011

2010

3
20.37

35.91

16.9
2.8
1.5

12.89
3.15
1.81

5
10.5
7.07
2.98
0.79

2009

2008

2007

In this graph we see that cMc kamal mills ltd Account receivalbe turnover ratio is better 20072011 then the other textile mills ltd. Here, account receivable ratio is lower Beximco textile ltd.

Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal
ltd

86

2011
171
111
40
6

Page

Day sales outstanding


2010
175
157
86
22

2009
243
130
22
18

2008
202
116
28
10

2007
462
122
52
35

Day sales outstanding


Year

Beximco ltd

Saiham ltd

cMc kamal ltd

Monno ltd

1
6
40
111
171

2
22
86
157
175

3
18
22
130
243

4
10
28
116
202

2011

2010

2009

2008

5
35
52
122
462

2007

In this graph we see that Beximco mills ltd Day sales outstanding ratio is better 2007-2011 then
the other textile mills ltd. Here, Day sales outstanding ratio is lower Saiham textile ltd.

87
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Fixed assets turnover


Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal
ltd

2011
1.064
0.04
2.26
0.5506

2010
0.6889
0.43
1.51
0.5445

2009
0.53
0.79
1.21
0.5599

2008
0.61
0.75
1.36
0.4437

2007
2.16
0.72
1.16
0.5683

Fixed assets turnover

1
0.55
2.26
0.04
1.06

2011

Year

Beximco ltd

Saiham ltd

cMc kamal ltd

2
0.54
1.51
0.43
0.69

2010

Monno ltd

3
0.56
1.21
0.79
0.53

2009

4
0.44
1.36
0.75
0.61
2008

0.57
1.16
0.72
2.16

2007

In this graph we see that Saiham textile mills ltd fixed assets ratio is better 2007-2011 then the
other textile mills ltd. Here, fixed assets ratio is lower Monno fabrics ltd.

88
Page

Sales turnover
Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

2011
0.5011
0.05
0.89
0.3288

2010
0.3530
0.07
0.72
0.6038

2009
0.2715
0.09
0.66
0.6895

2008
0.3121
11.17
0.67
0.3688

2007
0.3399
1.39
0.67
0.4796

Sales turnover
Year

Beximco ltd

Saiham ltd

cMc kamal ltd

Monno ltd

4
0.37
0.67

1
0.33
0.89
0.05
0.5

2011

2
0.6
0.72
0.07
0.35

2010

3
0.69
0.66
0.09
0.27

2009

11.17

0.31

0.48
0.67
1.39
0.34

2008

2007

In this graph we see that cMc kamal textile mills ltd sales turnover ratio is better 2007-2011 then
the other textile mills ltd. Here, sales turnover ratio is lower Monno fabrics ltd.

89
Page

Gross profit margin


Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

2011
0.15
0.7764
0.26
0.1453

2010
0.13
0.1789
0.19
0.1569

2009
0.16
0.18
0.19
0.1423

2008
0.14
0.2371
0.20
0.1052

2007
0.10
0.2203
0.21
0.1048

Gross profit margin


2014
2012
cMc kamal ltd

2010

Saiham ltd
Monno ltd

2008

Beximco ltd
Year

2006
2004
2002

In this graph we see that Monno fabrics textile mills ltd gross profit margin ratio is better 20072011 then the other textile mills ltd. Here, gross profit margin ratio is lower Beximco ltd.

90
Page

Return on assets
Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

2011
0.0380
0.1218
0.13
0.0427

2010
0.0096
0.0646
0.04
0.0506

2009
0.0039
0.0124
0.03
0.0574

2008
0.0063
0.0181
0.03
0.0749

2007
0.0153
0.0220
0.03
0.0224

Return on assets
2013
2012
2011
cMc kamal ltd

2010

Saiham ltd
Monno ltd

2009

Beximco ltd
2008

Year

2007
2006
2005
2004

Page

91

In this graph we see that cMc kamal textile mills ltd return assets ratio is better 2007-2011 then
the other textile mills ltd. Here, gross return assets ratio is lower Beximco ltd.

Return on equity
Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

2011
0.0509
0.5338
0.24
0.0443

2010
0.0136
0.1899
0.08
0.0552

2009
0.0057
0.0316
0.06
0.0870

2008
0.0093
0.0411
0.06
0.1924

2007
-0.0418
0.0461
0.05
0.0587

Return on equity
2500

2000
cMc kamal ltd
1500

Saiham ltd
Monno ltd
Beximco ltd

1000

Year
500

-500

In this graph we see that Monno fabrics mills ltd return equity ratio is better2007-2011 then the
other textile mills ltd. Here, gross return equity ratio is lower Beximco ltd.

92
Page

Operating profit margin


Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

2011
0.145
0.8666
0.18
0.39

2010
0.116
0.1304
0.07
0.91

2009
0.144
0.1579
0.06
0.94

2008
0.131
0.1279
0.06
0.61

2007
0.090
0.1669
0.06
1.57

Operatin profit margin

1
0.39
0.18
0.87
0.15

2011

Year

Beximco ltd

Saiham ltd

cMc kamal ltd

2
0.91
0.07
0.13
0.12

2010

Monno ltd

4
0.94
0.06
0.16
0.14

2009

0.61
0.06
0.13
0.13

2008

1.57
0.06
0.17
0.09

2007

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93

In this graph we see that cMc kamal textile mills ltd operating profit margin ratio is better 20072011 then the other textile mills ltd. Here, operating profit margin ratio is lower Saiham textile
mills ltd.

Net profit margin


Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

2011
0.070
0.0484
0.15
0.1300

2010
0.0272
0.0262
0.05
0.0838

2009
0.0147
0.0282
0.05
0.0833

2008
0.0202
0.0403
0.05
0.2031

2007
-0.0450
0.0464
0.05
0.0467

Net profit margin


Year

Beximco ltd

Saiham ltd

cMc kamal ltd

Monno ltd

0.07
0.05
0.15
0.13
1

2
0.08
0.03
0.05

3
0.08
0.01
0.03
0.05

4
0.05
0.02
0.04
0.2

5
0.05

2011

2010

2009

2008

2007

-0.05
1

94
Page

In this graph we see that cMc kamal textile mills ltd net profit margin ratio is better 2007-2011
then the other textile mills ltd. Here, net profit margin ratio is lowerBeximco synthetic mills ltd.

Operating expense ratio


Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

2011
0.0126
0.0901
0.08
0.0861

2010
0.0157
0.0485
0.13
0.0675

2009
0.0166
0.0263
0.15
0.0499

2008
0.0142
0.0262
0.14
0.0537

2007
0.0156
0.0234
0.16
0.034

Opetating expense ratio


Year

Beximco ltd

Saiham ltd

cMc kamal ltd

1
0.09
0.08
0.09
0.01

Monno ltd

2
3
4

0.07
0.13
0.05
0.02

5
0.05
0.15
0.03
0.02
0.05
0.14
0.03
0.01

2011

0.03
0.16
0.02

2010
2009
2008

2007

95
Page

In this graph we see that Beximco synthetic mills ltd operating expense ratio is better 2007-2011
then the other textile mills ltd. Here, operating expense ratio is high Saiham textile mills ltd.

Earnings per share


Year
Beximco ltd
Monno ltd
Saiham ltd
cMc kamal ltd

2011
1.58
-25.82
3.31
1.48

2010
4.61
-19.55
0.83
1.92

2009
2.10
3.87
11.52
1.01

2008
3.92
5.40
12.61
12.24

2007
-8.11
6.09
11.22
5.87

EPS ratio
Year

Beximco ltd

Saiham ltd

cMc kamal ltd

Monno ltd

1
1.48
3.31
1.58

2
1.92
0.83
4.61

3
1.01
11.52
3.87
2.1

4
12.24
12.61
5.4
3.92

5
5.87
11.22
6.09

2011

2010

2009

2008

2007

-25.82

-19.55

-8.11
3

96
Page

In this graph we see that Saiham mills ltd EPS ratio is better 2007-2011 then the other textile
mills ltd. Here, EPS ratio is not good Monno fabrics mills ltd.

Opportunities:
Wide network of our country & world.
Experienced managers of our textile mills.
Work at huge population of our textile mills.
Usage of efficient worker.

Threats:
Similar products are offered by other textile mills
Industrial downward trend
Employer salary problem increase day by day

Findings

Textile mills is also amongst the middle in the world in per capita terms. Healthcare
expenditures consist of only 2.35% of GDP.

The industry contributes about 1% of the total GDP. There are about 220 licensed textile
mills in the country; however, currently a little over 100 companies are in operation.

. It is highly concentrated as top 20 companies produce 85% of the revenue. According to


a US-based market research firm, the retail market size is estimated to be around BDT 84
billion as on 2011.

About 65% of the cloth sold in Bangladesh are generics and 35% are cloth - the structure
differs significantly from the international market. Branded cloth represent about 25% on
average of worldwide garments cloth sales; however, given the popularity in emerging

Page

the total sales within a decade.

97

markets like China, India , midlist and Latin America, branded cloth may well dominate

Recommendation:
1. Liquidity refers to the ability of the concern to meet its current obligations as and when
these become due. The companies should improve its liquidity position.
2. The companies should make the balance between liquidity and solvency position of the
company.
3. The cost of goods sold is high in every year so the company should do efforts to control
it.
4. The short term financial position of the company is not very good so it should pay a little
attention to short term solvency of the company.

98

Conclusion

Page

The conclusion chapter is directly connected to the purpose. The analysis will be summarized in
order to answer the research questions and fulfill the purpose of the thesis.
This thesis is based on four main research questions. First, we analysis of liquidity measures
indicates that current ratio is bed condition for both companies .Quick and asset measures is
found that the same position of previous ratio and cash ratio measures the Beximco company is
little bit better than the cMc kamal company. So we notice that the Beximco synthetic company
is better condition of liquidity position compare that other textile mills ltd. Second, we analysis is
all efficiency measures ,account receivable turnover, inventory turnover, fixed assets turnover,
total asset turnover .The cMc kamal mills company are significant increase in account receivable
turnover and compare than the Monno fabrics. The Monno fabrics company also increases some
measure and decreases some measures but increasing point is not betters then the Saiham textile
Company. We ensure that the Beximco synthetics is standards position for asset management
measure. Third, we analysis is profitability measures indicates the different kind of ratio. The
cMc kamal mills company compare are more profitable from the Beximco company in net profit
margin, gross profit margin, return on assets (ROA), return on equity (ROE), operating profit
margin. Overall, net profit margin is found rising for Beximco synthetics company and
plummeting for the Saiham

company during 2007-2011.Gross profit margin of Beximco

Company are found to increase than it return of asset to increase. Whereas, the opposite the
Monno fabrics company is decrease day by day. Return in Equity and operating profit margin is
found increase during 2007-2011 in cMc kamal company. On the other, Monno fabrics is fall. So
we ensure that the cMc kamal textile mills company is better condition for profitable.

www.google.com
www.Beximco textile.co.
www.cMc kamal.com
www.Monnofabrics.com
www.Saihamtextile.com
Annual report:
Beximco synthetic (2007-2011)
Monno fabrics
(2007-2011)
Saiham textile
(2007-2011)
cMckamal textile (2007-2011)

99
Page

Reference: