M E

C O
LL
W E
 Group Member

• Shibly Qureshi Tamim, Reg. No. 07202086

• Ahmed Ali Shojib, Reg. No.07202088

 
• Mashud Alam Rocky, Reg. No. 07202075

• Umma Kulsum Lima, Reg. No. 07202077

 
• Md. Jalal Uddin Rumi Reg. No. 07202904
 Ratio

• Ratio analysis is one of the techniques of financial

analysis to evaluate the financial condition and
performance of a business concern. Simply, ratio
means the comparison of one figure to other
relevant figure or figures.
 Advantages and Uses of Ratio Analysis

• To workout the profitability

• To workout the solvency
• Helpful in analysis of financial statement
• Helpful in comparative analysis of the performance
• To simplify the accounting information
• To workout the operating efficiency
• To workout short-term financial position
• Helpful for forecasting purposes
 Limitations of Ratio Analysis
• Limited Comparability
• False Results
• Effect of Price Level Changes
• Qualitative factors are ignored
• Costly Technique
• Misleading Results
• Absence of standard university accepted
terminology
 Textile Industry
• Maksons Spinning mills ltd.
• Delta Spinning mills ltd.
• Apex Spinning & Knitting mills ltd.

• Metro spinning mills ltd.

• R. N. spinning mills ltd.
 COMPANY PROFILE

YEAR OF INCORPORATION : September 25, 2003.

AUTHORIZED CAPITAL :
 Ordinary Share Tk.46,00,00,000.00
Preference Share Tk. 4,00,00,000.00
Tk.50,00,00,000.00
PAID-UP CAPITAL :
 Ordinary Share Tk.30,00,00,000.00
Preference Share Tk. 3,60,00,000.00
Tk.33,60,00,000.00
LEGALSTATUS: Public Limited Company - Listing with
Dhaka Stock Exchange Limited & Chittagong Stock
Exchange Limited on 1st January 2009.
YEAR TO YEAR CHANGE ANALYSIS
Name of the Ratio Year Year Year Company
2007 2008 2009 Average

(1) CURRENT 0.726 0.881 1.217 0.9413

(2) ACID-TEST 0.683 0.472 0.701 0.6187
(3) DEBT-TO-EQUITY 5.440 3.906 1.399 3.5815
(4) DEBT-TO-TOTAL ASSETS 1.184 0.796 0.583 0.8543

(5) RECIVEABLE TURNOVER 1.902 1.604 1.560 1.6887

(RT)

(6) RECIVEABLE TURNOVER 191.903 Days 227.556 Days 233.974 Days 217.811
IN DAYS Days

(7) INVENTORY TURNOVER 17.851 1.096 0.987 6.6447

(IT)

(8) INVENTORY TURNOVER 20.447 Days 333.029 Days 369.807 Days 241.0943 Days
IN DAYS

(9) TOTAL ASSET TURNOVER 0.653 0.450 0.353 0.4853

(10) NET PROFIT MARGIN 0.042 0.046 0.080 0.056

(11) RETURN ON INVESTMENT 0.028 0.021 0.028 0.0256

(ROI)

(12) RETURN ON EQUITY 0.178 0.103 0.068 0.1163

(ROE)
INDUSTRY ANALYSIS
No. Name of the Ratio APEX R.N. Delta Maksons Metro Industry
Spinning Spinning Spinners Spinning Spinning Average
Ltd. mills Ltd. Ltd. Mills Ltd. Ltd.

(1) CURRENT 1.111 1.084 1.52 1.217 1.52 1.290

(2) ACID-TEST 0.702 1.031 0.254 0.701 0.254 0.588
(3) DEBT-TO-EQUITY 1.280 3.551 2.461 1.399 1.860 2.110
(4) DEBT-TO-TOTAL ASSETS 0.560 0.780 0.711 0.583 0.650 0.657

(5) RECIVEABLE TURNOVER 6.185 2.920 17.402 1.560 4.775 6.568

(RT)

(6) RECIVEABLE TURNOVER 59.013 days 125 days 20.97 days 233.974 days 81.56 days 104.103 days
(IN DAYS)

(7) INVENTORY TURNOVER 7.480 3.116 1.411 0.987 0.689 2.737

(IT)

(8) INVENTORY TURNOVER 48.796 days 117.137 days 258.696 days 369.807 days 529.75 days 264.837 days
IN DAYS

(9) TOTAL ASSET TURNOVER 1.822 0.156 0.47 0.353 0.324 0.625

(10) NET PROFIT MARGIN 0.092 0.121 0.030 0.080 0.051 0.075

(11) RETURN ON INVESTMENT 0.168 0.019 0.014 0.028 0.016 0.049

(ROI)

(12) RETURN ON EQUITY (ROE) 0.384 0.086 0.471 0.068 0.047 0.211
 Explanation
of
Different Ratio
2007 2008 2009 Industry
average
0.726 0.881 1.217 1.290

CURRENT
RATIO
 ACID-TEST
RATIO
2007 2008 2009 Industry
average
0.683 0.472 0.701 0.588
 DEBT-TO-EQUITY RATIO

2007 2008 2009 Industry

average
5.440 3.906 1.399 2.110
 DEBT-TO-TOTAL ASSETS
2007 2008 2009 Industry
average
1.184 0.796 0.583 0.657
RECIVEABLE TURNOVER (RT)
2007 2008 2009 Industry
average
1.902 1.604 1.560 6.568
 RECIVEABLE TURNOVER

(IN DAYS)

2007 2008 2009 Industry

average
191.903 227.556 233.974 104.103 days
Days Days Days
INVENTORY TURNOVER (IT)

2007 2008 2009 Industry

average
17.851 1.096 0.987 2.737
 INVENTORY TURNOVER
(IN DAYS)

2007 2008 2009 Industry

average
20.447 Days 333.029 369.807 264.837
Days Days days
2007 2008 2009 Industry
average
0.653 0.450 0.353 0.625

TOTAL ASSET TURNOVER

NET PROFIT MARGIN

2007 2008 2009 Industry

average
0.042 0.046 0.080 0.075
RETURN ON INVESTMENT (ROI)

2007 2008 2009 Industry

average
0.028 0.021 0.028 0.049
 RETURN ON EQUITY

2007 2008 2009 Industry

average
0.178 0.103 0.068 .211
 RECOMMENDATION

After analyzing the ratio we can say for the

shareholder that it is a profitable site for
investment.