Ratio Analysis

Current Ratio-

Formula 2015-16 2014-15 2013-14 2012-13 2011-12

Current Asset 8609003487 7754595168 7271045790 5572352660 5759451243

Current libilities 6721249003 5343980909 4393286081 2495306258 2551429759

= 1.28 times = 1.45 times = 1.65 times =2.33 times = 2.26 times

Comment :
To pay one taka of current liability the company has 1.28, 1.45, 1.65, 2.33, 2.26 taka of
current asset for the year 2015-16, 2014-15, 2013-14, 2012-13 and 2011-12 respectively.

Quick Ratio-

Formula 2015-16 2014-15 2013-14 2012-13 2011-12

Current Asset Inventory 7754595168 722240942

8609003487 797868489 7271045790 5572352660 432775981
5759451243
Current libilities 6721249003 5343980909
626525720 2495306258
442126977
4393286081 2551429759

= 1.16 times =1.31 times = 2.05 times

=1.51 times = 2.08 times

Comment
After deducting inventory form the current asset, to pay one taka of current liability the
company has 1.13, 1.31, 1.51, 2.05, 2.08 taka of current asset for the year 2015-16, 2014-15,
2013-14, 2012-13 and 2011-12 respectively.

Total debt ratio-

Formula 2015-16 2014-15 2013-14 2012-13 2011-12

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 Total AssetTotal
14159618877
equity 6724823855
120617029825879329648
11347005462 5675411007
9783395912 5594400355
9921478513 5400
Total Assets 14159618877 12061702982 11347005462 9783395912 9921478513

= 0.52 = 0.51 =0.49 =0.43 = 0.45

=52% =49% =43% = 45%
=51%

Comment
To finance the total asset the company has used 52%, 51%, 49%, % debt and 63%, 75%, 76.9%,
71.06% equity for the year 2008, 2009, 2010, 2011 respectively. So the company is quiet solvent
in the long run.

Equity Multiplier-

Formula 2015-16 2014-15 2013-14 2012-13 2011-12

14159618877 1261702982 11347005462 9783395912 9921478513

Total Asset 6724823855 5879329648 5675411007 5594400355 5400876238
Total Equity

= 2.10 = 2.05 =1.99 = 1.75 = 1.83

Comment

A. Time interest earned -

Formula 2008 2009 2010 2011

Earning before 2490035962 2908395181 3133930350 3441601381

income tax 443152833 397135963 308861107 268849071
Interest

= 5.62 times =10.15 = 12.8 times

= 7.323 times

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 Comment
To pay the interest obligation the company has 5.62, 7.323, 10.5, 12.8 times of earnings for the
year 2008, 2009, 2010, 2011 respectively.

B. Cash Coverage Ratio-

Formula 2008 2009 2010 2011

3133930350+ 524460492
3441601381+ 6261459
2490035962+ 490332648
2908395181+ 460431051 308861107 268849071
Earning before 443152833 397135963
income tax+ Depreciation
Interest = 11.84 times = 15.13 times
= 6.73 times = 8.482 times

Comment
After adding back depreciation, to pay the interest obligation the company has 6.73, 8.482,
11.84, 15.13 times of earnings for the year 2008, 2009, 2010, 2011 respectively.

Inventory Turnover-

Formula 2015-16 2014-15 2013-14 2012-13 2011-12

Costs of Goods Sold 7394547262 6886339298 6771289580 5732351902 4942272029

Inventory 797868489 722240942 626525720 432775981 9921478513

= 9.26 times = 9.53 times = 10.81 times = 13.24 times = 11.18 times

Comment

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 The company has sold off or turned over the entire inventory for 9.26, 9.53, 10.81, 13.24, 11.18
times for the year 2015-16, 2014-15, 2013-14, 2012-13 and 2011-12 respectively.

Days sales In inventory:

Formula 2015-16 2014-15 2013-14 2012-13 2011-12

365 365 365 365 365

365 9.26 9.53 10.81 13.24 11.18
Inventory Turnover

= 33.41 days = 33.77 days = 27.57 days = 32.65 days

= 38.30 days

Comment
To sell off the entire inventory once the company needs 33.41, 38.30, 33.77, 27.57 and 32.65
days for the year 2015-16, 2014-15, 2013-14, 2012-13 and 2011-12 respectively.

Receivable Turnover-

Formula 2015-16 2014-15 2013-14 2012-13 2011-12

Sales 9016548629 8264240985 7990642611 6829697132 5657601485

Accounts 1088458371 1192911814 1182873143 681 496005 753851554
Receivable

= 8.28 times = 6.92 times = 6.75 times = 10.2 times = 7.50 times

Comment
The company has collected the accounts receivable and re-loaned it for 8.28, 6.92, 6.75, 10.2 and
7.50 times for the year 2015-16, 2014-15, 2013-14, 2012-13 and 2011-12 respectively

Days Sales in Receivable

Formula 2008 2009 2010 2011

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 365 365 365 365 365
365 8.28 6.92 6.75 10.2 7.50
Account Receivable
Turnover
= 44.08 days = 52.74 days = 54.07 days = 35.78 days = 48.67 days

Comment
To collect the money after sale the company took 44,52,54,35 and 48 days for the year 2015-16,
2014-15, 2013-14, 2012-13 and 2011-12 respectively

Net Working Capital Turnover-

Formula 2008 2009 2010 2011

12024126035 11366597928 13279141757 15576487536

Sales 973559921 1202644301 2557566793 2354024414
Net Working
Capital
= 12.35 times = 5.19 times = 6.62 times
= 9.45 times

Comment
By using the net working capital the company has generated 12.35, 9.45, 5.19, 6.62 times of
sales for the year 2008, 2009, 2010, 2011 respectively.

A. Current Assets Turnover-

Formula 2008 2009 2010 2011

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 12024126035 11366597928 13279141757 15576487536
Sales 5506143431 3843512855 4774311194 7022213840
Current Assets

= 2.18 times = 2.78 times = 2.22 times

= 2.957 times

Comment
By using the current asset the company has generated 2.18, 2.957, 2.78, 2.22 times of sales for
the year 2008, 2009, 2010, 2011 respectively.

B. Gross Profit Margin-

Formula 2015-16 2014-15 2013-14 2012-13 2011-12

1659355117 1413691702 1258915200 1148 035491 746323618

Gross Profit 9016458629 8264240985 7990642611 6829697132 565761485
Sales

= 0.18 times = 0.17 times = 0.13 times

= 0.17 times = 0.16 times

Comment
After deducting all the expenses, the company has generated 0.18, 0.17, 0.16, 0.17 and 0.13 taka
of gross profit for every 100 taka of sales for the year 2015-16, 2014-15, 2013-14, 2012-13 and
2011-12 respectively
.

Net Profit Margin-

Formula 2015-16 2014-15 2013-14 2012-13 2011-12

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 744247825 648850994 674389464 665368662 565760597
Net Income 9016548629 8264240985 7990642611 6829697132 5657601485
Sales

= 0.082 = 0.097 = 0.100

= 0.078 = 0.084

Comment
After deducting all the expenses, the company has generated 0.082, 0.078, 0.084, 0.097 and
0.100 taka of net income for every 100 taka of sales for the year 2015-16, 2014-15, 2013-14,
2012-13 and 2011-12 respectively

A. Return on Assets-

Formula 2008 2009 2010 2011

1525621860 1890052929 2087871791 2624537639

Net Income 15058188280 13251242856 15029500278 19444409654
Total Assets

= 0.10 = 0.14 = 0.135

= 0.143
=14% = 13.5%
=10% = 14.3%

Comment
By using the total asset, the company has generated 10%, 14.3%, 14%, 13.5% of net income for
every 100 taka of sales for the year 2008, 2009, 2010, 2011 respectively.

B. Return on Equity-

Formula 2008 2009 2010 2011

1525621860 1890052929 2087871791 2624537639

Net income 9506932637 9949397634 11554379825 13817708990
Total Equity

= 0.16 = 0.18 = 0.19

= 0.1899
=16% = 18% = 19%
=18.99%

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 Comment
By investing their money the shareholders have received 16%, 19%, 18%,
19% of net income for every 100 taka of sales for the year 2008, 2009, 2010,
2011 respectively.

1. Market Value Measures

A. Price earnings Ratio

Formula 2008 2009 2010 2011

2935 3581 3272 2446.62

Price Per Share 170.61 156.56 138,36 129.07
Earnings Per Share

= 17.20 times = 23.65 times = 18.96 times

= 22.87 times

Comment
Company shares are selling 17.20, 22.87, 23.65, 18.96 times more than its
earnings for the year 2008, 2009, 2010, 2011 respectively.

B. Market to Book Ratio-

Formula 2008 2009 2010 2011

118 114.10 119.40 178.40

Market Value per Share 40.14 49.49 60.28 69.89
Book Value Per Share

= 2.94 times = 1.98 times = 2.55 times

= 2.31 times

Comment
The companys market values are 2.94, 2.31, 1.98, 2.55 times than its book
values for the year 2008, 2009, 2010, 2011 respectively.
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