Report of various companies including ratios

8/10/2019 Report of various companies including ratios

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Content

No Details Page no1 Executive summary 32 Introduction 33 Interpretation and graphs4 Off balancing financing5 Investors decision based on 2013 financial

statements6 Rank of investment based on ratios

7 Project selection rank8 Conclusion


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Executive summaryThe following report is based on three companies financial analysis and their respectivecompany profile. The company profile includes some important information about thecompany. It also shows different performance of the computer. The report then shows 2013financial statement analysis and drawn graphs for each ratio comparing all the six companies2013 data. Based on the graphs a table was extracted ranking all the companies from one to sixat each ratio performance. Later the companies are ranked in terms of positive investmentopportunities of which Marico Bangladesh turned out to be the ideal one and Libra Infusion isconsidered the least selected for investment due to negative gross working capital turnoverratio. The conclusion was drawn based on the detailed analysis which includes all the sixcompanies efficient and inefficient performance and position.

IntroductionAftab Automobiles Limited , In 1981 the Company was converted into Public Limited Companywhich is the lone largest assembler-cum-progressive manufacturer of Toyota & Hino vehicles inthe private sector of Bangladesh. The Company is mainly a vehicle assembler and bodyfabricator but has been successfully assembling Toyota & Hino vehicles for Bangladesh market

since 1982.Libra Infusion Ltd , there was always a scarcity of Intravenous (I.V.) Fluid in the market as Govt.could not manufacture enough to fulfill the local demand. Before 1985, the major portion ofthe local demand was being covered by the imported I.V. Fluid. To overcome this situationLIBRA made its debut in February 1985 under the strong leadership of Dr. Roushon Alam with aview to provide quality products.

Quasem Drycells Limited is the largest dry cell manufacturing & first ISO certified company inBangladesh of its kind. The journey started in June 14, 1980, where the company brought a newera of modern battery manufacturing technology in Bangladesh . And now its representing as apioneer company in terms of Dry Cell Manufacturing, where it has successfully established itsSUNLITE brand as a leader in the dry cell Industry.

Rangpur Foundry Ltd group is a professionally managed, ISO 9001 certified organization. It isdedicated to serve the need of Cast Iron, PVC and plastic products in all the continents of theworld. RFL is a listed and blue chip company in few stock exchanges.RFL Cast Iron products are the result of 30 years extensive service to Agriculture and people tosupply pure drinking water at the most cheapest cost in the world. It is the largest cast Iron


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They had a ROA of 2% in 2008. It was their highest value till 2013. Though it was the highestROA of Libra Infusion but the fraction is very far away from the benchmark. Somehow this yearthey managed to reduce their expenses.Libra Infusion constantly performed very poor in terms of ROA. They had a very low

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

Rangpur Foundry Limited:

7.38% was the highest ROA of Rangpur Foundry in the year 2013. This year they got approachto reduce asset costs and increase income to keep their ROA high.5.8% was the lowest ROA of this company. Decreasing of revenue and increasing of asset costsleaded them to the lowest figure of ROA.

Marico:

In 2009 they had their highest ROAof 18.5%. Marico had a veryconstant growth of performancesince 2008 to 2013. It maintained aROA which was up to the

benchmark of 16.2%. They reducedtheir expenses and cost of assets in a adequate level which ranked up their ROA. During 2010 it had their lowest value of 12.3%. High expenditure cost and falling of revenuemove toward the lowest percentage of ROA.

Singer:

0

0.05

0.1

0.15

0.2

2013 2012 2011 2010 2009 2008

ROA

ROA

00.02

0.04

0.06

0.08

2013 2012 2011 2010 2009 2008

ROA

ROA


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During 2010 Singer had an outstanding ROA of 47%. It maintained a ROA which was up to thebenchmark of 16.2% this year. This year they reduced all of their expenditure cost to asatisfactory level which boosted up their ROA.In 2013 they had the lowest ROA of 9% only. Their ROA ratios were very inconsistent duringthese 6 years time span. High expenditure cost and falling of revenue move toward the lowestpercentage of ROA.

Return on Equity (ROE)Return on equity measures a corporation's profitability by revealing how much profit acompany generates with the money shareholders have invested. Benchmark: ROE of 12.98%

Aftab:

In 2009 Aftab had a ROE of 34%. Thecompany is increasing its ability to

generate profit without needing asmuch capital. In 2012 it had a ROE ratio of 7.6% which was the lowest since 2008. It happened because thevalue of the shareholders equity goes up in a surprising manner.

Quasem Drycell:

0

0.1

0.2

0.3

0.4

2013 2012 2011 2010 2009 2008

Return on equity

(ROE)

0

0.2

0.4

0.6

2013 2012 2011 2010 2009 2008

ROA

ROA
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During 2008 Marico had their highest ROE of 31.5%. They showed their best performance ofcontrolling shareholders equity to increase ROE. Later on their performance declined and got the lowest ROE of 20.3%. Though it was betterthan the benchmark but they deteriorated their performance of keeping their net income

higher than the shareholders equity.

Singer:

In 2010 Singer had their best ROE of 62%. They retained a very strong control over their netincome over shareholders equity.Last year ROE of Singer is the lowest of previous 5 years and it is only 9%. They had loosenedthe control over net income which eventually got a lower fraction of ROE.

Rangpur Foundry:

00.10.20.30.40.50.60.7

2013 2012 2011 2010 2009 2008

(ROE)

(ROE)


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In 2012 Rangpur Foundry had thehighest ROE of 15.5%. They had muchhigher net income than theshareholders equity than the previousyears.

In 2008 it had their lowest ROE of12.3%. The percentage was very much close to the benchmark but they failed to take the fullmanage of their net income over shareholders equity.

Leverage Debt to EquityThe debt-to-equity ratio is a measure of the relationship between the capital contributed bycreditors and the capital contributed by owners. It also shows the extent to which

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

Aftab:

It had their highest Leverage Debt to Equity ratio in 2008, the ratio was 26%. This higher debt-to-equity ratio indicates that Aftab was not able to generate enough cash to satisfy its debtobligations.

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

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

Rangpur Foundry:

0

0.5

1

1.5

2

2.5

3

2013 2012 2011 2010 2009 2008

Leverage (Debt to equity)

Leverage (Debtto equity)

0

0.05

0.1

0.15

0.2

2013 2012 2011 2010 2009 2008

(ROE)

(ROE)
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In 2012 the company had the maximum leverage debt to equity ratio of 1.14 and the lowest in2009 with a ratio of 1.009. The company had a very constant leverage debt to equity ratio since2008 to 2013. It was not varying significantly.

Singer:

In 2008, singer had a very high leverage ratio of 2.34 but later on they managed lowering theratio very well. In 2010 it had a leverage debt to equity ratio of 0.12. Lower debt to equity ratioattracts investors and creditors towards company that is why they controlled the ratio veryeffectively.

Marico:

0.9

0.95

1

1.05

1.1

1.15

1.2

2013 2012 2011 2010 2009 2008


Leverage (Debt toequity)

0

0.5

1

1.5

2

2.5

2013 2012 2011 2010 2009 2008




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In 2011 Marico had the highest leverage debt to equity ratio of 0.87. They had a tendency tolower the ratio but it did not vary significantly.In 2009, Marico had a leverage debt to equityratio of 0.614, which was the lowest in the 6 years time period (2008-2013).

Libra Infusion:

Libra Infusion had the highest leverage ratio of 3.92 in 2009. Later on they came up with lowerleverage debt to equity ratio. This higher debt-to-equity ratio point toward that Libra Infusionwas not able to generate enough cash to satisfy its debt obligations.

In 2010 they had the lowest leverage debt to equity ratio of 0.226. This implies that LibraInfusion was not taking advantage of the increased profits that financial leverage could bring.

Quasem Dry Cells:

0

0.2

0.40.6

0.8

1

2013 2012 2011 2010 2009 2008



0

1

2

3

4

5

2013 2012 2011 2010 2009 2008




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In 2010 the company had the maximum leverage debt to equity ratio of 0.789. Because thistime Quasem faced a hard situation of breeding enough cash to pay off its debt. And the lowest

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

Current RatioThe current ratio is a financial ratio that measures whether or not a firm has enoughresources to pay its debts over the next 12 months. It compares a firm's current assets to itscurrent liabilities.

Aftab:

In 2010 Aftab had their highest current ratio of 4.73. Afatb was capable to pay back its short-term liabilities with its short-term assets (cash, inventory, receivables). But their higher currentratio indicates idle usage of their assets.

00.10.20.30.40.50.60.70.8

2013 2012 2011 2010 2009 2008



0

1

2

3

4

5

2013 2012 2011 2010 2009 2008

Current Ratio

Current Ratio
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In 2008 it had their lowest current ratio of 1.2. Aftab had a shortage of their assets but it wasnot running out of assets and it was capable to pay off its debt by its current assets.

Marico:

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

In 2008 they have their lowest current ratio of 1.2. Though they had higher assets in terms ofdebt, but they were in risk of losing assets in terms of debt.

Libra Infusion:

During 2011 Libra Infusion had their peak current ratio of 1.33. Though this year they hadhigher assets than their debt but they were in the borderline of loosing assets. They employedmost of their assets which is not good for any company.

0

0.5

1

1.5

2

2.5

3

2013 2012 2011 2010 2009 2008

Current Ratio

Current Ratio

00.20.40.60.8

11.21.41.6

2013 2012 2011 2010 2009 2008

Current Ratio

Current Ratio


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During 2010 Libra Infusion had the lowest ratio of 0.53. Any company should have a currentratio of minimum 1, but in that year Libra had more debt to pay off, which is higher than theirtotal current asset value.

Rangpur Foundry:

In 2013 Rangpur Foundry had their maximum current ratio of 1.73 times. They had furthercurrent assets after paying off their debt, but they did not have scores of idle assets.

In 2010 they had their lowest current ratio of 1.48. In this year they were struggling to keep theratio in a minimum limit. They had a lot of debt to pay back by using their current assets.

Singer:

In 2010 Singer had their highest CR of 6.48. They had enough assets to pay off their debt but atthe same time they had a lot of current assets which they kept idle. Inoperative current assetswould affect companys future growth in the long run.

In 2008 the company experienced the lowest CR of 1.30 in the six years time span. They werecapable to pay off the debt but at the same time they did not have sufficient assets to run thecompany.

1.3

1.4

1.5

1.6

1.7

1.8

2013 2012 2011 2010 2009 2008

Current Ratio

Current Ratio

0

2

4

6

8

2013 2012 2011 2010 2009 2008

Current Ratio

Current Ratio


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Quasem Battery:

In 2011 Quasem had the highest CR of 1.12. . They had further current assets after paying offtheir debt, but they did not have scores of idle assets by which they could take ore loan toexpand the business.

In 2010 they had their least CR of 1.02. They were in the borderline of losing their currentassets. They took a lot of loan and were not concern about the total current assets value.

Cash conversion Cycle (CCC)The cash conversion cycle (CCC) measures the number of days a company's cash is tied up inthe production and sales process of its operations and the benefit it gets from payment terms

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

Formula:

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

Cash Conversion Cycle = Operating Cycle Days Payables Outstanding

Aftab:

0.95

1

1.05

1.1

1.15

201320122011201020092008

Current Ratio

Current Ratio


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In 2008 , Quasem drycell ltd. had the highest CCC ratio which was 124.342 because DIO andDSO were comparatively higher than other years which were respectively 122.3196641 and16.55882507. That means the company has high cash needs and it negates all the positiveliquidity qualities. In 2009 , Quasem drycell ltd had the lowest CCC ratio which was 85.1 becauseDIO was very low which was 79.83586675 compared to other years and DPO was high whichwas 5.91608565. That means they had greater liquidity, which translates into less of a need toborrow, more opportunity to realize price discounts with cash purchases for raw materials, andan increased capacity to fund the expansion of the business into new product lines andmarkets.

Rangpur foundry ltd

In 2009, Rangpur had the highest CCC ratio which was 158.02 because day payable outstandingis low. That means the company has high cash needs and it negates all the positive liquidityqualities. In 2008, Rangpur had the lowest CCC ratio which was 147.66 because day payable

142144

146148150152154156158160

2013 2012 2011 2010 2009 2008

CCC

CCC

0

20

40

60

80

100

120

140

2013 2012 2011 2010 2009 2008

CCC

CCC


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outstanding is high. That means they had greater liquidity, which translates into less of a needto borrow, more opportunity to realize price discounts with cash purchases for raw materials,and an increased capacity to fund the expansion of the business into new product lines andmarkets.

LIBRA INFUSION

In 2012 , Libra had the highest CCC ratio which was 88.392 because DIO and DSO werecomparatively high than other years which were respectively 69.85672424 and 69.85672424That means the company has high cash needs and it negates all the positive liquidity qualities.In 2009 , Libra had the lowest CCC ratio which was 22.736 because DIO was comparatively lowerthan other years which was 36.93316351. That means they had greater liquidity, which

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

Singer bd

0

20

40

60

80

100

2013 2012 2011 2010 2009 2008

CCC

CCC

020406080

100

120140160

2013 2012 2011 2010 2009 2008

CCC

CCC


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Rangpur foundry ltd

Total current asset to total asset ratio represent the Current Asset Intensity Ratio. This ratiomeasures the activity of a business. Rangpur Company had the highest total CA to TA ratio in2013 which was 0.86174, because the company had the high amount of total current assetswhich was 331698001 compared to other companies. In 2008 , Rangpur Company had thelowest total CA to TA ratio which was 0.7807, because the company had experiencedcomparatively lower amount of total current asset which was 274086279.

LIBRA INFUSION

Total current asset to total asset ratio represent the Current Asset Intensity Ratio. This ratiomeasures the activity of a business. Libra Fusion Company had the highest total CA to TA ratioin 2008 which was 0.35876, because the company had comparatively high amount of totalcurrent assets and total assets which was respectively 109,657,939 and 305,654,738. In 2010 ,Libra Fusion Company had the lowest total CA to TA ratio which was 0.059967, because thecompany had experienced comparatively higher amount of total assets which was2,404,338,076.

0.74

0.76

0.78

0.8

0.82

0.84

0.86

0.88

1 2 3 4 5 6

Total CA to TA ratio

Total CA to TAratio

0

0.1

0.2

0.3

0.4

2013 2012 2011 2010 2009 2008


Total CA to TAratio


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Singer bd

Total current asset to total asset ratio represent the Current Asset Intensity Ratio. This ratiomeasures the activity of a business. Singer Company had the highest total CA to TA ratio in 2010

which was 0.8396, because the company had comparatively high amount of total current assetsand total assets which was respectively 3458768635 and 4119072827. In 2009 , Singer Companyhad the lowest total CA to TA ratio which was 0.6341, because the company had experiencedlower amount of total current assets and total assets which was 1388597492 and 2189641761compared to other years.

Size (Total Assets)The sum of all cash, investments, furniture, fixtures, equipment, receivables, intangibles, and

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

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

Aftab

0

0.2

0.4

0.6

0.8

1

2013 2012 2011 2010 2009 2008



01,000,000,0002,000,000,0003,000,000,0004,000,000,0005,000,000,0006,000,000,0007,000,000,0008,000,000,000

Size(Total Asstes)

Size(TotalAsstes)


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In 2013 , total asset of Aftab was 7524216860 because at that time they had high amount ofnon-current asset and current asset which was respectively 1610047382 and 5009069522. In2008 , the total asset ratio was too low which was 2236319794 because the total current assetwas comparatively lower than other years which was 1,797,116,898. It indicates that thecompany is not using its asset base efficiently and effectively enough to generate adequate

sales.

Marico

In 2013 , total asset of Marico was 5183078478 because Marico had very high amount of totalcurrent asset at that period which was 4279126199. If the total asset ratio is high, then thecompany is using its assets efficiently to generate sales. In 2008 , the total asset ratio was toolow which was 1489486309 because the total current asset was too low among the other yearswhich was 1091158408. It indicates that the company is not using its asset base efficiently and

effectively enough to generate adequate sales.

Quasem drycell

0

1E+09

2E+09

3E+09

4E+09

5E+09

6E+09

2013 2012 2011 2010 2009 2008

Size(Total Asstes)

Size(Total

Asstes)

0

500000000

1000000000

1500000000

2000000000

2500000000

2 0 1 3

2 0 1 2

2 0 1 1

2 0 1 0

2 0 0 9

2 0 0 8

Size(Total Asstes)

Size(TotalAsstes)


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In 2013 , total asset of Quasem was 2260399377 because current asset was comparatively highthan other years which was 531367645. If the total asset ratio is high, then the company isusing its assets efficiently to generate sales . In 2008 , the total asset ratio was too low whichwas 818321292 because current asset was lower comparatively than other years which was308786461. It indicates that the company is not using its asset base efficiently and effectively

enough to generate adequate sales.

Rangpur foundry ltd

In 2012, total asset of Quasem was 394330433 because in 2012 total asset is high If the totalasset ratio is high, then the company is using its assets efficiently to generate sales. In 2009, thetotal asset ratio was too low which was 345231675 because total asset is low in 2009. Itindicates that the company is not using its asset base efficiently and effectively enough togenerate adequate sales.

LIBRA INFUSION

In 2013 , total asset of Libra was 2757058025 because noncurrent and current asset both werecomparatively high than other years which were respectively 2556878954 and 200179071 If the

320,000,000330,000,000340,000,000350,000,000

360,000,000370,000,000380,000,000390,000,000400,000,000

1 2 3 4 5 6

Size(Total Asstes)

Size(Total Asstes)

0

500,000,000

1,000,000,000

1,500,000,000

2,000,000,000

2,500,000,000

3,000,000,000

2 0 1 3

2 0 1 2

2 0 1 1

2 0 1 0

2 0 0 9

2 0 0 8

Size(Total Asstes)

Size(Total Asstes)


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total asset ratio is high, then the company is using its assets efficiently to generate sales. In2008 , the total asset ratio was too low which was 305654738 because noncurrent assets wascomparatively low than other years which was 195996799 . It indicates that the company is notusing its asset base efficiently and effectively enough to generate adequate sales

Singer BD

In 2012, the total asset ratio was high which were 4489242680 because the amount of totalasset is high. If the total asset ratio is high, then the company is using its assets efficiently togenerate sales. In 2009, the total asset ratio was too low which was 2189641761 because theamount of total asset was low. It indicates that the company is not using its asset baseefficiently and effectively enough to generate adequate sales

Inventory turnover ratioInventory turnover ratio gives the frequency of conversion of inventory into cash in a givenfinancial year. Formula for Inventory Turnover Ratio:

0.0

1,000,000,000.0

2,000,000,000.0

3,000,000,000.0

4,000,000,000.0

5,000,000,000.0

1 2 3 4 5 6

Size(Total Asstes)

Size(TotalAsstes)


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Aftab

In 2012, aftab had highest inventory turnover ratio which is 3 because sales was quiet high inthat year than other years which was 3735217015. It means that the complete investment ininventory is sold 3 times a year .Normally, higher this ratio better is the inventory management.It would mean effective utilization of working capital funds. In 2011, Aftab had the lowestinventory turnover ratio which is 1 because the Sales were very low which was 178,097,695. Itsnot an expected ratio for any company. A very low turnover ratio of inventory will not utilizethe fixed interest cost incurred on investment in inventory

MARICO

In 2008 , Marico had highest inventory turnover ratio which is 15 because Sales revenue was2658852912 and inventory was 175874007. It means that the complete investment ininventory is sold 15 times a year. Normally, higher this ratio better is the inventorymanagement. It would mean effective utilization of working capital funds. In 2012 , Marico hadthe lowest inventory turnover ratio which is 3 because the amount of inventory was too highwhich was 1777938918 compared to the other years. Its not an expected ratio for anycompany. A very low turnover ratio of inventory will not utilize the fixed interest cost incurredon investment in inventory

0

1

2

3

4

2013 2012 2011 2010 2009 2008

Inventory turnover ratio

Inventoryturnover ratio

0

5

10

15

20

2013 2012 2011 2010 2009 2008




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Quasem drycell

In 2009 , Quasem had highest inventory turnover ratio which is 5 because sales was quiet highin that year and inventory was also high which were respectively 969204292 and 185830294. Itmeans that the complete investment in inventory is sold 5 times a year normally, higher thisratio better is the inventory management. It would mean effective utilization of working capitalfunds. In 2008 , Quasem had the lowest inventory turnover ratio which is 4 because the sales ofthe company was very low which was 640329379. Its not an expected ratio for any company. Avery low turnover ratio of inventory will not utilize the fixed interest cost incurred oninvestment in inventory

Rangpur:

In 2013, Rangpur had highest inventory turnover ratio which is 3 because in 2013 rangpur hadhigher revenue or sales compare to inventories. . It means that the complete investment ininventory is sold 3 times a year normally, higher this ratio better is the inventory management.It would mean effective utilization of working capital funds. In 2008, Rangpur had the lowestinventory turnover ratio which is 2.5 because in 2008 sales revenue is low compare to otheryear.. . Its not an expected ratio for any company. A very low turnover ratio of inventory willnot utilize the fixed interest cost incurred on investment in inventory

012345

6

2013 2012 2011 2010 2009 2008



2.2

2.4

2.6

2.8

3

3.2

201320122011201020092008


Inventoryturnoverratio


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LIBRA INFUSION

In 2008 , Libra had highest inventory turnover ratio which is 7 because sales revenue wascomparatively high than other years which was 413775857. It means that the complete

investment in inventory is sold 7 times a year. Normally, higher this ratio better is the inventorymanagement. It would mean effective utilization of working capital funds. In 2013 , Libra hadthe lowest inventory turnover ratio which is 2 because the amount of sales revenue was lowand inventories were high which were respectively 227319715 a nd 108443131. Its not anexpected ratio for any company. A very low turnover ratio of inventory will not utilize the fixedinterest cost incurred on investment in inventory

Singer bd

In 2009, Singer had highest inventory turnover ratio which is 6 because the amount ofinventories was low in 2009. It means that the complete investment in inventory is sold 6 timesa year normally, higher this ratio better is the inventory management. It would mean effectiveutilization of working capital funds. In 2012, Singer had the lowest inventory turnover ratiowhich is 3because the amount of inventories is high compare to sales in 2012 compare to otheryears. Its not an expected ratio for any company. A very low turnover ratio of inventory will notutilize the fixed interest cost incurred on investment in inventory

0

2

4

6

8

10



0

2

4

6

8

2013 2012 2011 2010 2009 2008




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Total CL to TA ratioTotal Current Liabilities to Total Asset Ratio is the ratio that represents the financial position ofthe company and the companys ability to meet its current financial requirements. It shows thepercentage of a companys assets that are financed with short term loan or other financialobligations that last less than a year. As this ratio is calculated yearly, decrease in the ratiowould denote that the company is doing well, and is less dependent on short-term debts fortheir business needs.

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

Aftab

Aftab had the lowest Total Current Liabilities to Total Asset Ratio in 2010 (0.14) which indicatesthat the company was in its best financial position among the six years (2008-2013) since theshort-term debt was much less relative to the total assets. The highest value of the ratio was in2008 (0.67), due to a high short-term debt compared to the total assets of that year. In 2008and 2009 the company was not in a good financial position but from 2009 to 2010 the currentliabilities reduced drastically from 1,533,364,403 to 556,620,384 which greatly lowered theratio.

0

0.2

0.4

0.6

0.8

2013 2012 2011 2010 2009 2008

Total CL to TA ratio

Total CL to TAratio


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MARICO

Marico had the lowest Total Current Liabilities to Total Asset Ratio in 2012 and 2009 (0.38)which indicates that the company was in a good financial position since the short-term debtwas much less relative to the total assets. The highest value of the ratio was in 2011 (0.46), dueto a large increase in the short-term debt compared to the total assets of that year whichlowered the companys financial position.

Quasem drycell

Quasem had the lowest Total Current Liabilities to Total Asset Ratio in 2011 (0.19) whichindicates that the company was in a good financial position since the short-term debt was muchless relative to the total assets. The highest value of the ratio was in 2010 (0.41), due to a largeincrease in the short-term debt compared to the total assets of that year which lowered thecompanys financial position.

0

0.1

0.2

0.3

0.4

0.5

2013 2012 2011 2010 2009 2008



0

0.05

0.1

0.15

0.2

0.25

0.3

0.350.4

0.45

2013 2012 2011 2010 2009 2008




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Rangpur foundry ltd

Rangpur Foundy had the lowest Total Current Liabilities to Total Asset Ratio in 2013 (0.497)since the short-term debt was much less relative to the total assets, which indicates that thecompany is currently in a better financial position than it was in previous years. The highestvalue of the ratio was in 2012 (0.538), due to an increase in the short-term debt compared tothe total assets of that year which lowered the companys financial position. The largestincrease in the ratio was from 2009 (0.500) to 2010 (0.527) which is due to a large increase incurrent liabilities including a fall in the total assets. The financial position of the companygreatly reduced within this one year and remained unhealthy up to 2012.

LIBRA INFUSION

Libra infusion had the lowest Total Current Liabilities to Total Asset Ratio in 2011 (0.05) whichindicates that the company was in its best financial position in that year among these six years(2008-2013) since the short-term debt was much less relative to the total assets. The highestvalue of the ratio was in 2009 (0.45), due to a large increase in the short-term debt comparedto the total assets of that year which lowered the companys financial position. From 2011 theratio is increasing constantly which is not a good sign for the company because it indicates thatthe co mpanys current liabilities are increasing relative to its total assets.

Singer bd

0.480.49

0.50.510.520.53

0.54

201320122011201020092008


Total CL to TAratio

0

0.1

0.2

0.3

0.40.5

2013 2012 2011 2010 2009 2008


Total CL to TAratio


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Singer had the lowest Total Current Liabilities to Total Asset Ratio in 2010 (0.13) which indicatesthat the company was in a good financial position since the short-term debt was much lessrelative to the total assets. The highest value of the ratio was in 2008 (0.55), due to a largeincrease in the short-term debt compared to the total assets of that year which lowered thecompanys financial position.

Tobin q

The Tobin's Q ratio is a measure of firm assets in relation to a firm's market value. The formulafor Tobin's Q is:

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

When the Tobin's Q ratio is between 0 and 1, it costs more to replace a firm's assets than thefirm is worth. A Tobin's Q above 1 means that the firm is worth more than the cost of its assets.

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

Aftab

Aftab Automobile Ltd company had the highest Tobins Q ratio in 2010 (19.0) due to a lowertotal asset value relative to the market value of the firm . The lowest value of the Tobins Q ratio

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the company had been in 2008 (1.5)) due to a large fall in the firms total market value. Theratio is always above 1.0 throughout the six years from 2008-2013, which means that the firmworth more than the cost of its assets, therefore the company is overvalued which is not goodfor the company.

MARICO

Marico Ltd Company had the highest Tobins Q ratio in 2010 (6.68) due to a lower total assetvalue (2,883,380,640) relative to the market value of the firm (19265400000). The lowest valueof the Tobins Q ratio t he company had been in 2011 (2.66) due to a large fall in the firms totalmarket value (12269250000) as well as a large rise in the firms asset value ( 4,613,066,124). Theratio is always above 1.0 throughout the six years from 2008-2013, which means that the firmworth more than the cost of its assets, therefore the company is overvalued which is not goodfor the company.

.

Quasem drycell

Quasem had the lowest Total Current Liabilities to Total Asset Ratio in 2011 (0.19) whichindicates that the company was in a good financial position since the short-term debt was muchless relative to the total assets. The highest value of the ratio was in 2010 (0.41), due to a large

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

Rangpur foundry ltd

Rangpur Foundry Company had the highest Tobins Q ratio in 2013 (17.78) due to a lower totalasset value (384,915,360) relative to the market value of the firm (946000000). The lowestvalue of the Tobins Q ratio the company had been in 2008 (9.25) due to a low market value(712000000) and a high total asset value (351,045,980). The ratio are very high i.e. alwaysabove 1.0 throughout the six years from 2008-2013, which means that the firm theoreticallyworth more than the cost of its assets, therefore the company is highly overvalued and this maylead to misinterpretation of the companys financial condition.

LIBRA INFUSION

Libra Infusion C ompany had the highest Tobins Q ratio in 2011 (2.06) due to a lower total assetvalue relative to the market value of the firm . The lowest values of the Tobins Q ratio thecompany had been in 2010 and 2013 (0.10) due to a large fall in the firms total m arket value. In2011 only, the ratio is above 1 which theoretically indicates the company is overvalued in thatyear and therefore may lead to misinterpretation of the companys financial condition.

Singer bd

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Singer Bangladesh Company had the highest Tob ins Q ratio in 2010 (24.36) due to a lower totalasset value (4119072827) relative to the market value of the firm (16086246678). The lowestvalue of the Tobins Q ratio the company had been in 2008 (5.37) due to a large fall in the firms

total market value (4447895450) as well as a large rise in the firms asset value ( 2959862237).The ratio is always above 1.0 throughout the six years from 2008-2013, which means that thefirm worth more than the cost of its assets, therefore the company is overvalued which maylead to misinterpretation of the companys financial position.

GrowthGrowth ratio is sales percentage, which compares current sales to those of the previous year.Growth ratios can give an indication of how fast your business is growing. Different types of

industries have different benchmarks for rates of growth.Aftab

Aftab had the lowest Growth ratio in 2011 (-0.87) due to lower sales revenue in 2011 than thatin 2010. The highest value of the Growth ratio the company had been in 2012 (19.97) due to a

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large rise in the firms sales revenue in 2012 compared to the sales revenue in 2011. Except for2010, the company had very low growth rates throughout the six years (2008-2013) whichshows the company is not doing well.

MARICO

Marico Ltd Company had the lowest Growth ratio in 2010 (-0.299) due to lower sales revenue in2010 than that in 2009. The highest value of the Growth ratio the company had been in 2011(1.15) due to a large rise in the firms sales revenue in 2011 compared to the s ales revenue in2010. Except for 2010, the company had a positive growth rate throughout the sis years from2008 to 2013 which is good for the company.

Quasem drycell

Quasem Drycell Ltd Company had the lowest Growth ratio in 2008 (-0.24) due to lower salesrevenue in 2008 than that in 2007. The highest value of the Growth ratio the company hadbeen in 2009 (0.51) due to a large rise in the firms sales revenue in 2009 compared to the salesrevenue in 2008. The company had a high positive growth rates in 2009, 2011 and 2012 whichis good for the company but in 2008, 2010 and 2013 the company also had negative growthrates which is indicates the company is not doing well. The trends in the graph show that the

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growth rate of the company has fluctuated greatly within these six years (2008-2013) indicatingthat the company is quite unreliable.

Rangpur foundry ltd

Rangpur Foundry Ltd. Company had the lowest Growth ratio in 2013 (0.067) due to lowerchange in the sales revenue between 2012 and 2013 than that between previous years. Thehighest value of the Growth ratio the company had been in 2008 (0.14) due to a large rise in thefirms sales revenue in 2008 compared to the sales revenue in 2007. The company has positivegrowth rates throughout the six years from 2008-2013 which shows the company is continuingwell. However the trends in the graph show that the growth rate of the company is decreasingat a steadily especially in the recent years from 2011 to 2013 which is not a good sign for thecompany because it indicates the companys reliability and financial position is currentlydeclining. There was a slight increase in the growth rate only between year 2010 and 2011.

LIBRA INFUSION

Libra Infusion Company had the lowest Growth ratio in 2010 (-0.08) due to lower sales revenuein 2010 than that in 2009. The highest value of the Growth ratio the company had been in 2009

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(0.51) due to a large rise in the firms sales revenue in 2009 compared to the sales revenue in2008. The company had a high positive growth rates in 2009, 2011 and 2012 which is good forthe company but in 2008, 2010 and 2011 the company also had low growth rates which isindicates the company was not doing well. The trends in the graph show that the growth rate ofthe company has fluctuated greatly within these six years (2008-2013) which shows the

company is not reliable.

Singer bd

Singer Bangladesh Company had the lowest Growth ratio in 2009 (-0.01) due to lower salesrevenue in 2009 than that in 2008. The highest value of the Growth ratio the company hadbeen in 2008 due to a large rise in the firms sales revenue in 2008 compared to the salesrevenue in 2007. Except for 2009 and 2013, the company had quite growth rates throughoutthe six years (2008-2013) which shows the company was doing well but from 2012 the growthrate again dropped similar to the way it did from 2008 to 2009, which is again not a good sign

for the company.

Gross working capital turnover ratioGross working capital turnover ratio is a measurement comparing the depletion of workingcapital to the generation of sales over a given period. This provides some useful information asto how effectively a company is using its working capital to generate sales.

A company uses working capital (current assets - current liabilities) to fund operations andpurchase inventory. These operations and inventory are then converted into sales revenue forthe company. The working capital turnover ratio is used to analyze the relationship betweenthe money used to fund operations and the sales generated from these operations. In a general

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sense, the higher the working capital turnover, the better because it means that the company isgenerating a lot of sales compared to the money it uses to fund the sales.

Aftab

Aftab had the highest gross working capital turnover ratio (6.19) in 2008 due to the lowestworking capital (298,947,675) to generate quite high amount of sales (1,851,769,411) whichindicates that the company was doing well. However, from 2008 the ratio of the companydrastically dropped and reached its lowest value in 2011 (0.074) due to a large fall in the salesrevenue. In 2011 the company generated lowest amount of sales (178,097,695) whereas theworking capital was higher than the sales revenue which indicates that the company wasunable to generate enough sales compared to it uses money to fund sales. From 2011 the ratiois rising gradually which is a good sign for the company.

MARICO

Marico had the highest gross working capital turnover ratio (5.78) in 2008 due to the lowestworking capital (460,038,276) to generate quite high amount of sales (2,658,852,912) which

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indicates that the company was doing well. However, from 2008 the ratio of the companydrastically dropped and reached its lowest value in 2010 (1.95) due to a large fall in the salesrevenue. From 2010 to 2011 the ratio increased slightly and recently has maintained a stableratio above 2.0 which is a good sign for the company because it means that the company isgenerating sales more than two times the money it uses to fund sales

Quasem drycell

Quasem Drycell had the highest gross working capital turnover ratio (96.5) in 2010 due to thesecond lowest working capital (9,685,157) to generate quite high amount of sales (935,094,525)which was a good sign for the company. However, from 2010 the ratio dropped rapidly andreached its lowest value in 2011 (23.3) due to the highest working capital (49,351,352) togenerate sales. In recent years from 2012 to 2013 the ratio is rising again which shows thecompany is recovering its position. The ratios are quite high throughout the six years (2008-2013) which indicates that the company is generating a high amount of sales compared to themoney it uses to fund the sales and therefore the efficiency of the company is very high.However, the trends in the graph show that the ratio of the company has fluctuated throughoutthese six years which means the company is also quite unstable.

Rangpur foundry ltd

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Rangpur foundry had the lowest gross working capital turnover (5.27) in 2008 due to the lowestamount of sales (502,499,414) generated by a quite high working capital (95,409,182). The ratioof the company increased and reached its peak in 2010 (6.54) due to the lowest working capital(93,929,606) to generate high amount of sales (613,959,750) which indicates the efficiency andposition of the company improved. The ratio is more or less stable throughout the six years

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

LIBRA INFUSION

Libra infusion had the lowest gross working capital turnover ratio (5.78) in 2008 (-19.69) due toa low negative working capital (-21,010,352) to generate high amount of sales (413,775,857)which indicates that the company was not doing well because it had negative gross workingcapital turnover ratios. In 2011 the company had the highest gross working capital ratio due toa positive working capital ( 4,368,609) to generate quite high amount of sales ( 351,429,516)which was a good sign for the company. However the ratio again reduced to negative value in

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

Singer bd

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Singer Bd had the highest gross working capital turnover ratio (8.83) in 2008 due to the lowestworking capital (502201985) to generate quite high amount of sales (4281291373) whichindicates that the company was doing well. However, from 2008 the ratio of the companydrastically dropped and reached its lowest value in 2010 (1.65) due to a large rise in theworking capital (2,925,512,635) to generate almost same amount of sales (4,693,875,115).

From 2010 to 2011 the ratio increased slightly and recently has maintained a stable ratio whichis a good sign for the company because it means that the company is generating sales morethan two times the money it uses to fund sales.

Z ScoreA Z-Score is a statistical measurement of a score's relationship to the mean in a group of scores.A Z-score of 0 means the score is the same as the mean. A Z-score can also be positive ornegative, indicating whether it is above or below the mean and by how many standard

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

If Z


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MARICO

In 2010 Marico has the highest Z score ratio of 12.848 because in 2010 market value equity washigher than other years and Marico unlikely to fail. In 2008 Marico has the lowest Z core 3.754because in 2008 market value of equity is 0 and Marico unlikely to fail.

Quasem drycell

In 2010 Quasem has the highest Z score ratio of 6.0405 because in 2010 market value equitywas higher than other years and Quasem unlikely to fail. In 2008 Quasem has the lowest Z core2.676 because in 2008 net working capital was low.

Rangpur foundry ltd

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In 2010 Rangpur foundry ltd has the highest Z score ratio of 6.42 because in 2010 market valueequity was higher than other years and rangpur foundry ltd unlikely to fail. In 2008 Rangpurfoundry ltd has the lowest Z core 4.416578649 because in 2008 retained earnining was low and

Rangpur foundry ltd unlikely to fail.

LIBRA INFUSION

In 2011 Libra infusion has the highest Z score ratio of 6.0102 because in 2011 market valueequity was higher than other years and Libra infusion unlikely to fail. In 2013 Libra infusion hasthe lowest Z core 0.28478 because in 2013 Sales revenue was low and Libra infusion likely tofail.

Singer bd

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In 2010 singer bd has the highest Z score ratio of 28.603 because in 2010 market value equitywas higher than other years and singer bd unlikely to fail. In 2008 singer bd has the lowest Zcore 3.505 because in 2008 EBIT & was low and singer bd unlikely to fail.

Off-Balance-Sheet FinancingIt is a form of financing in which large capital expenditures are kept off of a company's balancesheet through various classification methods. Companies will often use off-balance-sheetfinancing to keep their debt to equity (D/E) and leverage ratios low, especially if the inclusion ofa large expenditure would break negative debt covenants. Examples may include joint ventures,research and development partnerships, and operating leases (rather than purchases of capitalequipment).

Types of Off-Balance-Sheet Financing

1) Operating Leases: The lease payments appear as operating expenses instead.Operating leases, which are popular in industries that use expensive equipment, aredisclosed in the footnotes of the company's published financial statements.

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

3) Securitizations: Banks and other financial organizations often hold assets--like creditcard receivables--that third parties might be willing to buy. To distinguish the assets itsells from the ones it keeps, the company creates a Special purpose entity (SPE). The SPEpurchases the credit card receivables from the company with the proceeds from a bondoffering backed by the receivables themselves. The SPE then uses the money received

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


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Rank of investment based on ratios

Ratio Rank(1) Rank(2) Rank(3) Rank(4) Rank(5) Rank(6)ROA (Returnon Asset)

MaricoBangladesh

SingerBangladesh

RangpurFoundry Ltd

AftabAutomobiles

QuasemDrycells

Libra Infusion

ROE(Returnon Equity)

MaricoBangladesh

RangpurFoundry Ltd

SingerBangladesh

AftabAutomobiles

QuasemDrycells

Libra Infusion

LeverageDebt toquity)

RangpurFoundry Ltd

AftabAutomobiles

MaricoBangladesh

SingerBangladesh

Libra Infusion Quasem Drycells

CurrentRatio

SingerBangladesh

MaricoBangladesh

AftabAutomobiles

RangpurFoundry Ltd

QuasemDrycells

Libra Infusion

CashConversionCycle

AftabAutomobiles

RangpurFoundry Ltd

SingerBangladesh

MaricoBangladesh

QuasemDrycells

Libra Infusion

Total CA toTA ratio

RangpurFoundry Ltd

MaricoBangladesh

SingerBangladesh

AftabAutomobiles

QuasemDrycells

Libra Infusion

Size(TotalAssets)

AftabAutomobiles

MaricoBangladesh

SingerBangladesh

Libra Infusion QuasemDrycells

Rangpur Foundry L

nventoryurnoveratio

MaricoBangladesh

SingerBangladesh

QuasemDrycells

RangpurFoundry Ltd

AftabAutomobiles

Libra Infusion

Total CL toTA ratio

RangpurFoundry Ltd

MaricoBangladesh

AftabAutomobiles

QuasemDrycells

SingerBangladesh

Libra Infusion

Tobin q RangpurFoundry Ltd

SingerBangladesh

AftabAutomobiles

MaricoBangladesh

QuasemDrycells

Libra Infusion

Growth Libra infusion RangpurFoundry Ltd

SingerBangladesh

MaricoBangladesh

QuasemDrycells

Aftab Automobiles

Grossworkingapital

urnoveratio

Quasemdrycells

RangpurFoundry Ltd

MaricoBangladesh

SingerBangladesh

AftabAutomobiles

Libra Infusion

Z Score MaricoBangladesh

SingerBangladesh

RangpurFoundry Ltd

AftabAutomobiles

QuasemDrycells

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Project Selection Rank:1) Marico Bangladesh

2) Singer Bangladesh

3) Rangpur Foundry Ltd

4) Aftab Automobiles

5) Quasem Drycells

6) Libra Infusion

ConclusionBy considering various ratios the 6 companies investments were ranked. The ratios provide aclear picture about the risk, profitability, liquidity position and performance of the companies.Marico Bangladesh could be an ideal investment opportunities as it has a comparatively betterReturn on asset, return on equity, inventory turnover ratio and z-score. Singer Bangladesh canbe the next best option as it showed an immense performance in terms of current ratio andsecondly on inventory turnover, Tobin q, return on asset and z-score. Rangpur Foundry Ltd isthe next option to go as its performance in terms leverage to debt, total current asset to total

asset ratio, current liability to total asset and Tobin q are very impressive however it carries athreat in terms of size(total asset). Aftab automobiles is very efficient in terms of cashconversion cycle and very much secured in terms of risk as it has the highest back up of assetscomparatively. Quasem Drycells is also good in terms of growth working capital and thirdly oninventory turnover . Libra Infusion would be least preferred in this scenario as the z- score,return on asset, return on equity, current ratio, cash conversion ratio, current asset to totalasset turnover ratio, inventory turnover, gross working capital turnover ratio, current liability tototal asset, Tobin q but has the highest comparative gr


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Report of various companies including ratios

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