Assignment On Ration Analysis and Dividend Policy Of

Department: Faculty of Business

Bangas Ltd. Apex Foods Ltd. (Pran) Agricultural Marketing Company Ltd.

Presented to: Abdullah Al Masum Lecturer ASA University of Bangladesh Presented by: Section: 6F RinkuBiswas Saad Md. Kayes KamrulHasasnShovon SayedHossain Rubaiat-E-Jahan 091-12-0179 091-12-0191 091-12-0199 091-12-0340 091-12-0338

Course Title: Financial Management Course Code: FIN 332

Date of Submission: 21-112011

Letter of Transmittal 21th December, 2011 Abdullah Al Masum Lecturer Faculty of Business ASA University Bangladesh Subject: Letter of Transmittal for a Report on the Ratio Analysis and Dividend Policy. Dear Sir, Weare glad to submit this report on the Ratio Analysis and Dividend Policy. We have tried our best to work on it carefully and sincerely to make the report perfect. This report has enriched us with valuable experience in report writing. Now it is time to have an appraisal from you on this issue. We are very thankful to you for your sincere co-operation throughout the duration of this course. We would like to request you to accept our report and oblige thereby. Sincerely, Rinku Biswas Saad Md. Kayes Kamrul Hasan Shovon Sayed Hossain Tuhin Rubaiat-E-Jahan 091-12-0179 091-12-0191 091-12-0199 091-12-0340 091-12-0338

Introducti on

Financial statement analysis (or analyzing of financial statement) is the process of understanding the risk and profitability of a firm (business, sub-business or project) through analysis of reported financial information, particularly annual and quarterly reports. Financial statement analysis consists of; reformulating reported financial statements, analysis and adjustments of measurement errors, and financial ratio analysis on the basis of reformulated and adjusted financial statements. The two first steps are often dropped in practice, meaning that financial ratios are just calculated on the basis of the reported numbers, perhaps with some adjustments. Financial statement analysis is the foundation for evaluating and pricing credit risk and for doing fundamental company valuation. In other words, financial analysis is the selection, evaluation, and interpretation of financial data, along with other pertinent information, to assist in investment and financial decision-making. Financial analysis policies, and may be used internally to evaluate issues such as employee performance, the efficiency of operations, and credit externally to evaluate potential investments and the credit-worthiness of borrowers, among other things. Insights from financial statement analysis could be used to make forecasts and to evaluate credit risk and value the firm's equity. Here we analysis three different companys financial statement those are Apex foods Ltd, Bangas Ltd.,(Pran) Agricultural Marketing Co. Ltd. . The primary source is the data provided by the company itself in its annual report and required disclosures. The annual report comprises the income statement, the balance sheet, and the statement of cash flows and statement of shareholders equity as well as footnotes to these statements. Our whole report includes companys profile, financial analysis, comparison and other important features.

Corporate Profile Bangas Ltd.

Bangas Ltd is established in 1980.They arewell-known manufacturer and exporter of a wide array of delectable Biscuits, Noodles, chips etc. and also a public Limited company in Bangladesh. Presently they are exporting products to Asia, USA & Europe. In the year 2009, they have developed scientifically planned, state-of-the-art manufacturing unit, manned by skilled workers who ensure strict adherence to hygiene standards. They also have industries from Spinning Mills, Knit & Dyeing Mills - Finished Knit Garments and Electronic Media business etc.

Company Profile
Company Name Business Type Product/Services Employees Total Bangas Ltd Manufacturer , Exporter Biscuit , Noodles , Chips 101-500

Year of Establishing1981 Target Markets Quality Control Bangladesh,USA, Africa Internal

Company Website http://www.bangladesh-business.com

Apex Foods Ltd.

As a custom food manufacturer, Apex Food specializes in the development and production of a wide variety of food products, including dips, dressings, soups, pastas, sauces, gravies, marinades, bastings, salsas, spice blends, seasonings, salads and processed vegetables and cooked items, to name a few. Our core competencies include research, recipe and product development, ingredient sourcing, custom-packaging and merchandising expertise in serving our grocery, foodservice, chain restaurant, wholesale-club, convenience store and institutional clients. As a multifaceted manufacturer of food product, Apex Food supplies fresh, fresh-frozen and frozen foods, in a multitude of rigid and flexible packaging, as refrigerated and shelf-stable, according to client needs. Flexible, service-driven, with a proven record of performance, we blend our experience and industry knowledge with professional expertise and advanced technology, to deliver successful food solutions for the clients we serve.

(Pran)Agricultural Marketing Co Ltd.

PRAN is currently the most well-known household name among the millions of people in Bangladesh and abroad also. Since its inception in 1980, PRAN Group has grown up in stature and became the largest fruit and vegetable processor in Bangladesh. It also has the distinction of achieving prestigious certificate like ISO 9001:2000, and being the largest exporter of processed agro products with compliance of HALAL & HACCP to more than 70 countries from Bangladesh. PRAN is the pioneer in Bangladesh to be involved in contract farming and procures raw material directly from the farmers and processes through state of the art machinery at our several factories into hygienically packed food and drinks products. The brand PRAN has established itself in every category of food and beverage industry and can boost a product range from Juices, Carbonated Drinks, Confectionery, Snacks, and Spices to even Dairy products. Today, our consumers not only value PRAN for its authentic refreshing juice drinks products , but also for its mouthwatering quality confectionery products with high visual appeal and exciting texture. We intend to expand our presence to every corner of the world and strive to make PRAN a truly international brand to be recognized globally. PRAN Group is presently one of the corporate giant in Bangladesh. It has an extensive network of sales throughout the country even in the most remote areas. PRAN is exporting its product in nearly 75 countries in the world. Thus the company has received a global introduction.

Ratio Analysis
Liquidity Ratio (Bangas Ltd.) Particulars 1 Current Ratio 2004-05 1.15 Times 2005-06 1.03 Times 2007-08 1.06 Times 2008-09 1.04 Times 2009-10 1.12 Times Average 1.08 Times

Interpretation:Bangas Ltd. Having tk.1.15 in 2005, tk.1.03 in 2006, tk.1.06 in 2008, tk.1.04 in 2009 and tk.1.12 in 2010 of current asset against each taka of current liabilities. The companys liquidity position has decreased from 2005 to 2006 by current asset. But then, from 2006 to 2010 it has increased. 2 Quick asset ratio= 0.46 Times 0.29 Times 0.30 Times 0.33 Times 0.41 Times 0.35 Times

Interpretation:Bangas Ltd. Having tk.0.46 in 2005, tk.0.29 in 2006, tk.0.30 in 2008, tk.0.33 in 2009 and tk.0.41 in 2010 of quick asset against each taka of current liabilities. The companys liquidity position has decreased from 2005 to 2006 by quick asset. But then, from 2006 to 2010 it has increased. Asset Management Ratio (Bangas Ltd.) 3.17 2.90 Times 3.26 Times Times

1 Inventory turnover ratio

2.93 Times

2.11 Times

3.11 Times

Interpretation:Bangas Ltd. Converted their inventories 3.17 times in 2005, 2.90 times in 2006, 3.26 in 2008, 2.93 times in 2009 and 2.11 times in 2010 into cash. The companys ability to convert inventories into cash is deteriorated. 2 Average collection period 25.92 Days 9.16 Days 24.71 Days 42.73 Days 88.99 Days 32.78 Days

Interpretation: Average collection period of Bangas Ltd. was 25.92 days in 2005, 9.16 days in 2006, 24.71 days in 2008, 42.73 days in 2009 and 88.99 days in 2010. So, the firms average collection period is decreasing year by year. It indicates that the receivables management is not efficient. 3 Asset turnover ratio 1.15 Times 1.19 Times 1.49 Times 1.35 Times 0.88 Times 1.31 Times

Interpretation: The firms sales are 1.15 times in 2005, 1.19 times in 2006, 1.49 times in 2008, 1.35 times in 2009 and 0.88 times in 2010 of total assets. That means, the firms asset turnover ratio has increased from 2005 to 2009 but in 2010 is has decreased.

Debt Ratio (Bangas Ltd.) 1 Total debt ratio 0.82 % 0.82 % 0.81 % 0.82 % 0.79 % 0.81 %

Interpretation:Bangas Ltd. has 0.82% debt in 2005, 0.82% in 2006, 0.81% in 2008, 0.82% in 2009 and 0.79% debt in 2010 of their total assets. From 2005 to 2009, their debt position was stable, but in 2010 their debt position has improved. 2 Interest coverage ratio 4.05 Times 6.04 Times 5.83 Times 5.59 Times 9.52 Times 5.66 Times

Interpretation: The firms ability to meet interest payments are 4.05 times in 2005, 6.04 times in 2006, 5.83 times in 2008, 5.59 times in 2009 and 9.52 times in 2010 from their operating income. The firms this ratio is unstable. Profitability Ratio (Bangas Ltd.) 1 Return on asset ratio 0.009 % 0.019 % 0.026 % 0.018 % 0.023 % 0.019 %

Interpretation: The firm earned 0.009% in 2005, 0.019% in 2006, 0.026% in 2008, 0.018% in 2009 and 0.023% in 2010 of their total assets. Their ROA is increasing. Particulars 2 Return on equity ratio 2006-07 0.071 % 2007-08 0.150 % 2008-09 0.138 % 2009-2010 0.170 % 2010-11 0.183 % Average 0.142 %

Interpretation:The firm earned 0.009% in 2005, 0.019% in 2006, 0.026% in 2008, 0.018% in 2009 and 0.023% in 2010 of their total assets. Their ROA is increasing. 3 Profit margin ratio 0.008 % 0.016 % 0.017 % 0.014 % 0.026 % 0.014 %

Interpretation: The firm earned 0.008% in 2005, 0.16% in 2006, 0.017% in 2008, 0.014% in 2009 and 0.026% in 2010 profit from their total sales. Their profit margin ratio is increasing. 4 Gross profit margin 0.198 % 0.184 % 0.197 % 0.217 % 0.263 0.194 %

Interpretation: The firm made 0.198% in 2005, 0.184% in 2006, 0.197% in 2008, 0.217% in 2009 and 0.263% in 2010 gross profit from their total sales. The firms gross profit margin is increasing. 5 Operating profit margin 0.022 % 0.023 % 0.025 % 0.023 % 0.018 % 0.021 %

Interpretation:Bangas Ltd. has generated 0.022% in 2005, 0.023% in 2006, 0.025% in 2008, 0.023% in 2009 and 0.018% in 2010 operating profit from their sales. From 2005 to 2008 the ratio has increased but from 2008 to 2010 it has decreased.

Market Ratio (Bangas Ltd.) 1 Earnings per share 7.07 14.97 22.51 17.02 18.26 15.39

Interpretation: The firm earned tk.7.07 in 2005, tk.14.97 in 2006, tk.22.51 in 2008, tk.17.02 in 2009 and in 2010 tk.18.26 per share by selling their common stock. EPS increased from 2005 to 2008, but from 2008 to 2010 it decreased. 1 Price to earnings ratio 33.72 Times 14.09 Times 17.90 Times 146.84 Times 125.30 Times 17325.60 Times

Interpretation: Here the price earnings ratio is unstable. It indicates an increasing degree of investor confidence in the firms future earnings potential. 2 Book value per share Interpretation: 3 Market Book Value Ratio 1.66 Times 1.44 Times 2.47 Times 15.16 Times 13.61 Times 7.17 Times 144.06 146.54 162.78 164.80 168.06 157.25

Interpretation: The investors paid tk.1.66 in 2005, tk.1.44 in 2006, tk.2.47 in 2008, tk.15.16 in 2009 and tk.13.61 in 2010 for each taka of book value of Bangas companys stock.

Dividend of (Bangas Foods Liquidity Ratio (ApexLtd.) Particulars 2004-05 2005-06 Ltd.) 2007-08 Total 1,170,000 1,350,000 Particulars 1,125,000 2006-07 2007-08 2008-09 Dividend(Cash=Stock) 636,498 1.47 1,347,409 times times 1.47 2,025,477 1Net Income 1.42 Current Ratio times No. of share outstanding 90,000 90,000 90,000

2008-09 2009-10 1,350,000 2,250,000 2009-2010 2010-11 Average 1,531,625 2.23 times 90,000 1.03 1,643,195 1.47 times times 90,000

Interpretation:Apex Dividend Payout RatioFoods Ltd. Having tk.1.47 in 2007, tk.1.47 in 2008, tk.1.42 in 2009, tk.2.23 in 2010 and tk.1.03 in 2011of current asset against each taka of current liabilities. The companys liquidity position has 177% 87% 67% 88% 137% unstable from 2007 to 2009 by current asset. But then, in 2010 it has increased and in 2011 it has highly decreased. Share 2Dividend Per ratio= 0.72 times (2.68) (1.73) 1.22 times 0.06 (0.43) Quick asset 13 13 times 15 15 25 times times times Interpretation: This firm is declaring dividend as mixed of dividend per share as well as percentage ofin 2010 and Interpretation: Apex Foods Ltd. Having tk.0.72 in 2007, tk.(2.68) in 2008, tk.(1.73) in 2009 tk.1.22 their total income. in 2011of quick asset against each taka of current liabilities. The companys liquidity position is unstable tk.0.06 and from 2007 to 2010 it has highly decreased. Asset Management Ratio (Apex Foods Ltd.) 6.25 1.00 times 1.00 times times

1 Inventory turnover ratio

3.85 times

3.53 times

1.83 times

Interpretation: Apex Foods Ltd. Converted their inventories 6.25 times in 2007, 1.00 times in 2008, 1.00 in 2009, 3.85 times in 2010 and 3.53 times in 2011 into cash. The companys ability to convert inventories into cash is unstable. 2 Average collection period 39.26 Days 14.02 Days 1.90 Days 3.29 Days 1.04 Days 12.91 Days

Interpretation: Average collection period of Apex Foods Ltd. was 39.26 days in 2007, 14.02 days in 2008, 1.90 days in 2009, 3.29 days in 2010 and 1.04 days in 2011. So, the firms average collection period is decreasing year by year. It indicates that the receivables management is not efficient. 3 Asset turnover ratio 5.93 times 5.16 times 4.27 times 1.53 times 2.73 times 2.80 times

Interpretation: The firms sales are 5.93 times in 2007, 5.16 times in 2008, 4.27 times in 2009, 1.53 times in 2010 and 2.73 times in 2011 of total assets. That means, the firms asset turnover ratio has decreased. Debt Ratio (Apex Foods Ltd.) 1 Total debt ratio 1.28% 1.00 % 1.00 % 0.51 % 0.93 % 0.83 %

Interpretation: Apex Foods Ltd. has 1.28% debt in 2007, 1.0% in 2008, 1.0% in 2009, 0.51% in 2010 and 0.93% debt in 2011 of their total assets. Their debt position has decreased from year by year.

2 Interest coverage ratio

1.72 times

1.93 times

1.03 times

1.32 times

1.54 times

1.47 times

Interpretation: The firms ability to meet interest payments are 1.72 times in 2007, 1.93 times in 2008, 1.03 times in 2009, 1.32 times in 2010 and 1.54 times in 2011 from their operating income. The firms this ratio is increasing from 2009. Profitability Ratio (Apex Foods Ltd.) 0.053% 0.053 % (0.021) %

1 Return on asset ratio

0.006 %

0.009%

0.014 %

Interpretation: The firm earned 0.053% in 2007, 0.053% in 2008, (0.021) % in 2009,0.006% in 2010 and 0.014% in 2011 of their total assets. Their ROA is decreasing. The firm did not earn in 2009 from their assets. Particulars 2 Return on equity ratio 2006-07 0.376 % 2007-08 0.415% 2008-09 (0.023) % 2009-2010 0.150% 2010-11 0.189% Average 0.089%

Interpretation: The firm earned 0.376% in 2007, 0.415% in 2008, (0.023) % in 2009, 0.150% in 2010 and 0.189% in 2011of their equity. Their ROE is decreasing and in 2009 it faced loss from their equity. 3 Profit margin ratio 0.009% 0.010% (0.005) % 0.004 % 0.003 % 0.005 %

Interpretation: The firm earned 0.009% in 2007, 0.010% in 2008, (0.005)% in 2009, 0.004% in 2010 and 0.005% in 2011profit from their total sales. Their profit margin ratio is decreasing and in 2009 it has faced loss. 4 Gross profit margin 0.087 % 0.098 % 0.094 % 0.099 % 0.083% 0.091 %

Interpretation: The firm made 0.087% in 2007, 0.098% in 2008, 0.094% in 2009, 0.099% in 2010 and 0.083% in 2011 gross profit from their total sales. The firms gross profit margin is unstable. 5 Operating profit margin 0.010 % 0.013 % (0.008) % 0.001 % 0.003 % 0.005 %

Interpretation:Bangas Ltd. has generated 0.010% in 2007, 0.013% in 2008, (0.008) % in 2009, 0.001% in 2010 and 0.003% in 2011 operating profit from their sales. Their earning from total sales has decreased and in 2009 it has faced loss.

Market Ratio (Apex Foods Ltd.) 1 Earnings per share 37.60 41.51 -15.66 15.01 18.93 19.61

Interpretation: The firm earned tk.37.60 in 2007, tk.41.51 in 2008, tk. (15.66) in 2009, and tk.15.01 in 2010 and in 2011 tk.18.93 per share by selling their common stock. In 2009 they have no EPS and then it has slightly increased. 1 Price to earnings ratio 15.19 times 29.51 times (64.62) times 67.69 times 50.82 times 48.80 times

Interpretation: Here the price earnings ratio is increasing from 2007 to 2008 and in 2009 it got negative sign and then it is increasing from 2010 to 2011. It indicates an increasing degree of investor confidence in the firms future earnings potential 2 Book value per share 707.97 731.49 695.82 703.63 710.56 709.89

Interpretation: Apex share holder got tk.707.97, tk.731.49, tk.695.82, tk.703.63, tk.710.56 if the company liquated from2007 to 2011. 3 Market Book Value Ratio 0.81 1.67 1.45 1.44 1.35 1.35

Interpretation: The investors paid tk.0.81 in 2007, tk.1.67 in 2008, tk.1.45 in 2009, tk.1.44 in 2010 and tk.1.34 in 2011 for each taka of book value of Apex Foods stock.

Dividend of (Apex Foods Ltd.) Liquidity Ratio(Pran) Particulars 20006-07 2007-08 2008-2009 Particulars 9,123,840 2006-07 2007-08 11,404,800 2008-09 Total 10,264,320 Dividend(Cash=Stock) 1 Current Ratio 1.42 1.41tk Net Income 21,438,757 1.36 23,672,984 tk - 8,930,907 tk

2009-10 2010-2011 2009-2010 2010-11 Average 6,842,880 6,842,880 1.36tk 1.47tk 8,559,275 1.17tk 10,794,736

No. of share 570,240 570,240 570,240 570,240 570,240 outstanding Pran having (1.36,1.42,1.41,1.47,1.17)tk of current asset against their each Taka of current Interpretation: Dividend liabilities. Payout Ratio 43% 43% -128% 80% 63% Here the current ratio has increased from 2006 to 2009. From 2009 to 2010 there current ratio decreased. But from 2006 to 2011 average ratio is stable that means pranmanage efficient liquidity. 2 Quick asset ratio= 0.39 tk 0.39 tk 0.40 0.51 times 0.30 0.40 times Dividend Per Share 16 18 times 20 12 times 12 Interpretation: Pran having Ltd. Is declaring dividend asof quick asset share also as each dollar of their total Interpretation:Apex Foods (0.39.0.39,0.40,0.51,0.30)tk dividend per against their percentage of quick liabilities. income. Here the quick ratio has remained stable from 2006 to 2008.IN 2009 quick ratio has increased but 2010 has decreased. But average ratio is better. Asset Management Ratio(Pran) 1 Inventory turnover ratio 1.91 times 2.04 times 2.30 times 2.45 times 2.56 times 2.15

Interpretation: The company increases its inventory turnover ratio last five years. It refers that the company is increased its efficiency on inventory management. It also indicates that the business is expanding. 2 Average collection period 23.23 16.16 day 12.13 day 12.33 day 15.23 day 16.25 day day Interpretation :Thepran company takes {23.23,16.16,12.13,12.33,15.23)days to collect an account receivable. Their 2006 average collection period is not so good then from 2007 to 2010. 3 Asset turnover ratio 0.97 times 1.07 times 1.10 times 0.83 times 1.19 times 0.97 times

Interpretation: Pran company having (0.97,1.07,1.10,0.83,1.19)times per day to generate sales. Higher the ratio is better for the company. By the mean time the company is stable its fixed assets and current assets as well. But decreased in 2009. Debt Ratio(Pran) 1.16 % 0.61 % 0.61 %

1 Total debt ratio

0.49 %

0.71 %

0.69 %

Interpretation:pran company has provided (1.16%,0.61%,0.61%,0.49%,.71%) of total asset by the creditor. Lower ratio is better, that means the equity holders will bear lower liability. In 2006 debtraio is more than from 2007 to 2010. 2 Interest coverage ratio 0.39 0.45 times 0.51 0.52 times 0.51 0.47 times times times times

Interpretation:Pran company has(0.39,0.45,0.51,0.52,0.51)times ability to pay their interest.2006 ICR is not good then 2007 to 2010. Profitability Ratio(Pran) 0.031 % 0.039 % 0.040 %

1 Return on asset ratio

0.030 %

0.041 %

0.034 %

Interpretation: pran generates (.031,0.039,0.040,0.030,.041)% net income from each taka of sale. PRAN had high ROA in 2008 but then it has decreased in 2009 and PRAN had lowest ROA in year 2006 which means PRAN could not utilize asset properly to generate profit. 2 ------------------------------------------------------Particulars 2 Return on equity ratio

2006-07 0.367 %

2007-08 0.449 %

2008-09 0.111 %

2009-2010 0.545 %

2010-11 0.569 %

Average 0.286 %

Interpretation: Pran stock holder returns(.367,0.449,0.111,0.545,0.569)% profit from each taka of investment.

3 Profit margin ratio

0.032 %

0.036 %

0.036 %

0.036 %

0.035 %

0.035

Interpretation: pranhad(0.32,0.36,0.36,o.36,0.35)% net profit from each taka of sale.2007 to 2009 net profit was stable.2006 net profit was low then 2007 to 2010. 4 Gross profit margin 0.227% 0.227 % 0.224 % 0.224 & 0.218 % 0.235%

Interpretation: pranhad(0.227,0.227,o.224,o.224,0.218)% gross profit from each taka of sale.2006 to 2010 GPM is nearest same. 5 Operating profit margin 0.037 0.042 0.045 0.046 0.044 0.045

Interpretation: pran had(0.037,0.042,0.045,0.046,0.044)% operating profit from each taka of sale.2006 OPM is low rather then 2007 to 2010.it indicate pran gradually increasing it OPM. Market Ratio(Pran) 36.66 44.94 49.96

1 Earnings per share

54.49

56.86

46.51

Interpretation: Pran has earned (36.66,44.94,49.96,54.49,56.86)tk from the sale of common stock. High rate EPS is better for the company. 2006 EPS is not better. 1 Price to earnings ratio 10.44 tk 25.41 tk 27.28 tk 30.42 tk 26.85 tk 26.11 tk

Interpretation: investor will pay (10.44,25.41,27.28,30.42,26.85)tk for each taka of current earning. Low price is better for the company. 2 Book value per share 409.91 428.39 449.96 475.10 501.66 453.01

Interpretation: pran got(409.91,428.39,449.96,475.10,501.66)tk if the company liquated from 2006 to 2010 3 Market Book Value Ratio 0.93 2.67 3.03 3.49 3.04 2.68

Interpretation:The investors paid tk.0.93 in 2006, tk.2.67, in 2007, tk.3.03 in 2009, tk.3.49 in 2009 and tk.2.68 in 2010 for each taka of book value of pran stock.

Particulars 20006-07 Total 20,800,000 Dividend(Cash=Stock) Net Income 29,331,413 No. of share 800,000 outstanding Dividend Payout Ratio 71%

Dividend of (Pran) 2007-08 2008-2009 22,400,000 23,200,000 35,949,958 800,000 62% 39,969,803 800,000 58%

2009-10 24,000,000 43,593,724 800,000 55%

2010-2011 24,800,000 45,490,177 800,000 55%

Dividend Per Share

26

28

29

30

31

Interpretation: (Pran) Agricultural Marketing Co Ltd is tends to pay their shareholder as constant dividend per share of their total net income.

Liquidity Ratios
Particulars Quick Asset Ratio Industry Average 0.58 times Bangas Limited 2010
0.41 times

Apex Ltd. 2011

0.06 times

Pran 2011
0.30 times

Comparison: With compare industry average (0.58), all three companies Bangas Limited, Apex Ltd., and Pran lower position of quick assets against their current liabilities.

Liquidity Ratios
Particulars Current Ratio Industry Average 1.11 times Bangas Limited 2010 1.12 times Apex Ltd. 2011 1.17 times Pran 2011 1.03 times

Comparison: With compare industry average (1.11), Bangas Limited having same amount, Apex Ltd. having almost same and Pran having inferior current assets against their current liabilities.

Asset Management Ratios

Particulars Inventory Turnover Ratio Industry Average 2.73 times Bangas Limited 2010
2.11 times

Apex Ltd. 2011

3.53 times

Pran 2011
2.56 times

Comparison: With compare industry average (2.73), Bangas Limited and Pran is not efficient in inventory management. But Apex Ltd. is very much efficient in inventory management.

Asset Management Ratios

Particulars Asset Turnover Ratio Industry Average 1.11 times Bangas Limited 2010 1.12 times Apex Ltd. 2011 1.17 times Pran 2011 1.03 times

Comparison: With compare industry average (1.11), Bangas Limited and Apex Ltd. has average performance in assets management. But Pran is inefficient in inventory management.

Debt Management Ratios

Particulars Debt Ratio Industry Average 0.81 times Bangas Limited 2010
0.79 times

Apex Ltd. 2011

0.93 times

Pran 2011
0.71 times

Comparison: With compare industry average (0.81), all three companies are using almost same amount of debt as industry average.

Debt Management Ratios

Particulars Interest Coverage Ratio Industry Average 2.61 times Bangas Limited 2010
4.78 times

Apex Ltd. 2011

1.54 times

Pran 2011
1.51 times

Comparison: With compare industry average (2.61), Apex Limited and Pran are facing potential debt service problem. But Bangas Ltd. is very much efficient in interest payment.

Profitability Ratios
Particulars Return on Assets(ROA) Industry Average 0.22 times Bangas Limited 2010
0.023 times

Apex Ltd. 2011

0.009 times

Pran 2011
0.41 times

Comparison: With compare industry average (0.22), both Bangas Limited and Apex Ltd. have lower return from their assts. But Pran has higher return from their assets.

Profitability Ratios
Particulars Return on Equity(ROE) Industry Average 0.31 times Bangas Limited 2010
0.183 times

Apex Ltd. 2011

0.189 times

Pran 2011
0.569 times

Comparison: With compare industry average (0.0.31), both Bangas Limited and Apex Ltd. having lower return from their investment. But Pran having higher return from their investment.

Market Value Ratios

Particulars Earnings per Share(EPS) Industry Average 31.35 times Bangas Limited 2010
18.26

Apex Ltd. 2011

18.93

Pran 2011
56.86

Comparison: With compare industry average (31.35), Pran earned much higher amount by selling their common stock. That means, they are having higher performance as industry average. But, both Apex and Bangas earned lower amount indicate that their performance is lower as industry average.

Market Values Ratios

Particulars Price-Earnings Ratio(P/E) Industry Average 67.66 times Bangas Limited 2010
125.30 times

Apex Ltd. 2011

50.82 times

Pran 2011
26.85 times

Comparison: With compare industry average (67.66), Bangas Limited has very good R/E ratio. But, both Apex and Pran has lower R/E ratio.