Assignment of fin 501 (3)

WELCOME

TO OUR PRESENTATION

2

PRESENTED TO

Y. A. M. Rafiqul Haq Course Title: Managerial Finance

Department of Business Administration

THE UNIVERSITY OF ASIA PACIFIC

PR

ES

EN

TED

BY

Mahfuza Akter ID : 10206038Chand SultanaID : 12106018Dilshad JahanID : 12106009Nahida RefayatID : 11106012Azma Jahan NoorID : 11106001

Topics:

Comparative analysis of financial statement between two Company’s

Why We Chose Textile Company For Analysis The Comparison ?

In our country textile companies are doing very well business. So many competitors are in this sector. Lots of new companies entered this market. From all of them we choose two cement company for our report.

Saiham Textile Mills Ltd

&Ashraf Textile Mills LtdWe collect their financial statement & analyze them & we identify their comparative advantage

Analysis

we had to follow a particular method for collecting data to complete the report accurately. At first we make Income Statement, Balance Sheet & Cash Flow on a excel sheet. Than we analysis the Income Statement & the Balance Sheet using the common sizing & indexing method. Finally we used the eleven financial ratios for our ratio analysis.

Financial Statement Analysis By Ratio

A comparison of relationship among account balances. The term accounting ratio is used to describe significant relationship between figures shown on a balance sheet, profit and loss account or in any other part of accounting organization.

For the performance measurement of Ashraf textile & Saiham textile mills Ltd. In below we are going to analysis about the two companies financial statement using ratio analysis. Here are belongs

Shiham Textile Mills Ltd.

Asheaf Textile Mills Ltd.

00.5

11.5

22.5

2.16

0.971.35 1.54

20092008

Current ratio = Current Liabilities/Current Assets

Quick ratio =(Current Asset -Inventory )/Current Liabilities



00.5

11.5

22.5 2.06

0.931.23 1.38

20092008

Debt/equity ratio =Total liabilities/ shareholders 'equity

1.34

2.54

1.71

3.05

Shiham Textile Mills Ltd.Asheaf Textile Mills Ltd.

Account receivable turn over= Net sales / average account receivables



050

100150200 131.69

26.53

177.08

51.27

20092008

Inventory turn over = Cost of good / average inventory



0

50

100

150

63.86 79.34

70.21 61.46

20082009

Total asset turn over =Net sales / Average total assets

0.28

0.46 0.54

0.39 Shiham Textile Mills Ltd.Asheaf Textile Mills Ltd.

Gross profit margin =Grossprofit / Netsales

0.00% 20.00% 40.00% 60.00% 80.00%

18.56%

38.01%

31.52%

32.26%

20092008

Ashraf Textile Mills Ltd


Net profit margin = Netincone / Netsales

Series1

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

11.66%

17.94%

18.66%

13.68%

20092008


Ashraf Textile Mills Ltd

Conclusion

We examine the analysis of Ashraf textile & Saiham textile mills ltd. We see that the liquidity position is nit good both of the company.The industry average is better than the both companies because almost every ratio of the industry is high with comparison to the company in case of liquidity, leverage, asset management, profitability and market value measure is better of textile industry, industry performance is better and improving every year, in conclusion company and industry is doing well and in future growth is take place which increase the revenues and dividends and it better for the country.

Recommendatio

n Saiham Textile Mills Ltd & Ashraf Textile Mills Ltd Which are profitable companies, but both of the companies need to increase their liquidity and asset management position. On the other hand they should pay their liabilities as soon as they can, and increase its owner’s equity than its liabilities. Cost and expenses should be reduced so the company can generate more profit. Company should sale their shares on the high market rates and pay more dividend to their investors.

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THANK YOU

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Questio

ns

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Documents

Assignment of fin 501 (3)