ACI Limited

ACI or Advanced Chemical Industries is one of the largest Bangladeshi conglomerates. The

company operates through three reportable segments: Pharmaceuticals, Consumer Brands and
Agribusiness. ACI established as the subsidiary of Imperial Chemical Industries (ICI) in 1968. It
has been incorporated as ICI Bangladesh Manufacturers Limited on 24 January 1973 The
company was renamed as Advanced Chemical Industries Limited (ACI Limited) on 5 May 1992.
The company sold its insect control, air care and toilet care brands to SC Johnson & Son in
2015.

FINANCIAL ANALYSIS

Financial analysis (also referred to as financial statement analysis or accounting

analysis or Analysis of finance) refers to an assessment of the viability, stability, and profitability
of a business, sub-business or project. It is performed by professionals who prepare reports
using ratios and other techniques, that make use of information taken from financial
statements and other reports. These reports are usually presented to top management as one
of their bases in making business decisions.

PROFITABILITY RATIOS

Profitability Ratios measure the overall earnings performance of an institution and its efficiency
in utilizing assets, liabilities and equity. Profitability ratios show a company's overall efficiency
and performance.
 Current Ratio (CR)

Current Ratio is a relevant and useful measure of liquidity and short term (within the year) debt
paying of company. The ratio is mainly used to give an idea of the company’s ability to pay back
its short-term liabilities (debt and payables) with its short-term assets (cash, inventory,
receivables). Current ratio below 1 shows critical liquidity and ratio higher than 2.5 might
indicate existence of idle or underutilized resources in the company.

The formula is-

Current Ratio (CR) = Current Assets / Current Liabilities

Current Ratio
Year Current Assets Current Liabilities Ratio
2016 6,113 5,183 1.18
2017 6,793 5,741 1.18
2018 6,149 5,030 1.22
2019 6,250 5,153 1.12

Total
Total
1.22

1.18 1.18

1.12

2016 2017 2018 2019

DEBT MANAGEMENT RATIOS

Debt management ratios measure the extent to which a firm is using debt financing, or financial
leverage, and the degree of safety afforded to creditors. Debt Management ratios help to evaluate
a company's long-term solvency measuring the extent to which the company is using long-term
debt.

Debt Ratio

The ratio of total debt to total assets, generally called the debt ratio, measures the percentage of
funds provided by the creditors. The lower the ratio, the greater the protection afforded creditors.
The formula for calculating debt ratio is –

Debt Ratio = Total Debt / Total Asset

Debt Ratio
Year Total Debt Total Asset Ratio
2016 10,970 23,770 46.15%
2017 11,180 23,755 47.06%
2018 11,708 22,543 51.93%
2019 9,773 21,515 45.42%
 Total
Total

0.52

0.47
0.46
0.45

2016 2017 2018 2019

Return on Equity (ROE)

Return on equity measures a bank’s profitability which calculates how much net profit that bank
may generates with the money that shareholders have invested as equity. The Formula is-

Return on Equity (ROE) = Net Profit after Taxation / Equity

Return on Equity
Year Net Profit Equity Ratio
2016 (502) 1613 -31.12%
2017 (464) 1371 -33.84%
2018 46 1398 3.29%
2019 131 1451 9.02%
 Total
Total

0.09
0.03

2016 2017 2018 2019

-0.31
-0.34

Return on Assets (ROA)

The Return on Assets of a company determines its ability to utilize the assets employed in that
company efficiently and effectively to earn a good return. The formula is-

Return on Assets (ROA) = Net Profit after Taxation / Assets

Return on Asset
Year Net Profit Total Asset Ratio
2016 (502) 23770 -2.11%
2017 (464) 23755 -1.95%
2018 46 22543 0.20%%
2019 131 21515 0.61%
 Total
Total

0.01

0
2016 2017 2018 2019

-0.02
-0.02

Net Profit Margin Ratio

Net Profit Margin tells us the net profit that the business is earning per taka of sales. It measures
how much out of every taka of sales a company actually keeps in earnings. The formula is- .

Net Profit Margin Ratio = Net Profit / Sales

Net Profit Margin Ratio

Year Net Profit Sales Ratio
2016 (502) 58734 -0.80%
2017 (373) 59678 -0.62%
2018 46 59925 0.70%
2019 131 60535 0.21%
 Total
Total
0.01

2016 2017 2018 2019

-0.01
-0.01

MARKET VALUE RATIOS

Market value ratio is a set of ratio that relates the firm’s stock price to its earnings and book
value per share.

Earnings per Share (EPS)

The portion of a company's profit allocated to each outstanding share of common stock. Earnings
per Share are a widely used measure of profitability. The formula is-

Earnings per Share (EPS) = Net Profit / Common Equity Shares Outstanding

Earnings per Share

Yea
Net Profit Common Equity Share EPS BDT
r
2016 (502) 475 (1.06)
2017 (373) 479 (0.78)
2018 46 479 0.10
2019 131 479 0.27
 Total
Total
0.27
0.1

2016 2017 2018 2019

-0.78

-1.06

Income statement
Fiscal year is March-February. All values USD
Millions. 2020 2019 2018 2017 2016 5-year trend

58,73
Sales/Revenue 62,455 60,535 59,925 59,678
4

Sales Growth 3.17% 1.02% 0.41% 1.61% -

42,67
Cost of Goods Sold (COGS) incl. D&A 44,861 43,640 43,564 43,038
2

41,05
COGS excluding D&A 42,600 41,837 41,669 41,233
9

Depreciation & Amortization Expense 2,261 1,803 1,895 1,805 1,614

Depreciation 1,905 1,359 1,451 - 1,116

Amortization of Intangibles 356 444 444 - 498

COGS Growth 2.80% 0.18% 1.22% 0.86% -

16,06
Gross Income 17,594 16,895 16,361 16,641
2

Gross Income Growth 4.14% 3.26% -1.68% 3.60% -

Fiscal year is March-February. All values USD
Millions. 2020 2019 2018 2017 2016 5-year trend

Gross Profit Margin 28.17% - - - -

15,62
SG&A Expense 16,581 16,050 16,164 15,961
4

15,62
Other SG&A 16,581 16,050 16,164 15,961
4

SGA Growth 3.31% -0.71% 1.27% 2.15% -

EBIT 1,013 845 - 680 438

Unusual Expense 172 66 249 151 36

Non Operating Income/Expense 456 104 9 11 7

Interest Expense 698 831 875 1,004 951

Interest Expense Growth -15.98% -5.03% -12.85% 5.61% -

Gross Interest Expense 698 831 888 1,004 951

Interest Capitalized - - 13 - -

Pretax Income 599 52 (918) (464) (542)

1047.89
Pretax Income Growth 105.69% -97.91% 14.43% -
%

Pretax Margin 0.96% - - - -

Income Tax 133 (79) (964) (90) (40)

Income Tax - Current Domestic 136 2 81 - 51

Income Tax - Current Foreign 2 0 50 - -

Income Tax - Deferred Domestic (15) (82) (1,024) - (90)

Income Tax - Deferred Foreign 9 - (70) - -

Consolidated Net Income 466 131 46 (373) (502)

Fiscal year is March-February. All values USD
Millions. 2020 2019 2018 2017 2016 5-year trend

Net Income 466 131 46 (373) (502)

Net Income Growth 255.76% 183.15% 112.40% 25.67% -

Net Margin 0.75% - - - -

Net Income After Extraordinaries 466 131 46 (373) (502)

Net Income Available to Common 466 131 46 (373) (502)

EPS (Basic) 0.97 0.27 0.10 (0.78) (1.06)

EPS (Basic) Growth 255.72% 183.33% 112.40% 26.27% -

Basic Shares Outstanding 479 479 479 479 475

EPS (Diluted) 4.59 0.47 0.17 (1.17) (1.06)

EPS (Diluted) Growth 872.91% 184.96% 114.11% -11.03% -

Diluted Shares Outstanding 479 479 479 479 475

EBITDA 3,274 2,648 2,092 2,485 2,051

EBITDA Growth 23.62% 26.58% -15.80% 21.13% -

EBITDA Margin 5.24% - - - -

EBIT 1,013 845 - 680 438

Balance sheet

Assets
Fiscal year is March-February. All values USD Millions. 2020 2019 2018 2017 2016 5-year trend

Cash & Short Term Investments 492 991 705 1,241 593
Fiscal year is March-February. All values USD Millions. 2020 2019 2018 2017 2016 5-year trend

Cash Only 479 968 681 1,219 593

Short-Term Investments 14 23 25 22 -

40.48
Cash & Short Term Investments Growth -50.30% -43.16% 109.24% -
%

Cash & ST Investments / Total Assets 1.81% 4.61% 3.13% 5.22% 2.49%

Total Accounts Receivable 525 586 615 631 648

Accounts Receivables, Net 503 586 615 631 648

Accounts Receivables, Gross 503 586 615 631 648

Other Receivables 23 - - - -

Accounts Receivable Growth -10.39% -4.73% -2.49% -2.59% -

Accounts Receivable Turnover 118.89 103.27 97.39 94.58 90.67

Inventories 4,353 4,333 4,421 4,464 4,422

Finished Goods 4,353 4,333 4,421 4,464 4,422

Other Current Assets 361 340 407 457 451

Prepaid Expenses 255 316 369 345 362

Miscellaneous Current Assets 106 24 38 112 88

Total Current Assets 5,731 6,250 6,149 6,793 6,113

11,84
Net Property, Plant & Equipment 15,079 9,861 10,770 11,512
6

14,11
Property, Plant & Equipment - Gross 21,767 15,575 15,505 15,040
7

Buildings 4,720 4,968 5,408 5,638 5,611

Land & Improvements 2,119 2,383 2,625 2,783 2,924

 Fiscal year is March-February. All values USD Millions. 2020 2019 2018 2017 2016 5-year trend

Construction in Progress 669 652 579 551 365

Leases 883 971 1,037 1,053 1,045

Other Property, Plant & Equipment 7,509 6,600 5,856 5,016 4,173

Accumulated Depreciation 6,688 5,713 4,735 3,528 2,271

Total Investments and Advances 86 84 91 98 270

Other Long-Term Investments 86 84 91 98 270

Long-Term Note Receivable 44 41 62 50 -

Intangible Assets 3,271 4,018 4,326 4,666 5,014

Net Goodwill 1,183 1,183 1,183 1,168 1,131

Net Other Intangibles 2,087 2,835 3,143 3,498 3,883

Other Assets 524 522 414 637 527

Deferred Charges 35 - - 62 -

Tangible Other Assets 489 522 414 575 527

23,77
Total Assets 27,265 21,515 22,543 23,755
0

Assets - Total - Growth 26.73% -4.56% -5.10% -0.06% -

Asset Turnover 2.56 - - - -

Return On Average Assets 1.91% - - - -

Liabilities & Shareholders' Equity

All values USD Millions. 2020 2019 2018 2017 2016 5-year trend

ST Debt & Current Portion LT Debt 785 149 168 319 335

Short Term Debt 563 - - - -

All values USD Millions. 2020 2019 2018 2017 2016 5-year trend

Current Portion of Long Term Debt 221 149 168 319 335

Accounts Payable 2,891 2,919 2,833 3,035 2,780

Accounts Payable Growth -0.95% 3.03% -6.65% 9.17% -

Other Current Liabilities 2,229 2,085 2,028 2,388 2,068

Accrued Payroll 1,135 1,055 984 1,008 1,002

Miscellaneous Current Liabilities 1,094 1,031 1,044 1,380 1,066

Total Current Liabilities 5,904 5,153 5,030 5,741 5,183

Current Ratio 0.97 1.21 1.22 1.18 1.18

Quick Ratio 0.23 0.37 0.34 0.41 0.33

Cash Ratio 0.08 0.19 0.14 0.22 0.11

Long-Term Debt 13,896 10,438 11,708 12,019 11,892

Long-Term Debt excl. Capitalized Leases 7,910 9,773 11,708 11,180 10,970

Non-Convertible Debt 7,910 9,773 11,708 11,180 10,970

Capitalized Lease Obligations 583 665 - 839 922

Provision for Risks & Charges 784 - - - -

Deferred Taxes 614 561 580 1,480 1,513

Deferred Taxes - Credit 3,144 1,300 1,311 1,480 1,513

Deferred Taxes - Debit 2,530 738 731 - -

Other Liabilities 1,259 3,174 3,097 3,144 3,570

Other Liabilities (excl. Deferred Income) 1,259 3,129 3,038 3,144 3,570
All values USD Millions. 2020 2019 2018 2017 2016 5-year trend

Deferred Income - 45 59 - -

Total Liabilities 24,987 20,064 21,145 22,384 22,157

91.64 93.21
Total Liabilities / Total Assets 93.26% 93.80% 94.23%
% %

Common Equity (Total) 2,278 1,451 1,398 1,371 1,613

Common Stock Par/Carry Value 3 3 3 - -

Additional Paid-In Capital/Capital Surplus 1,827 1,814 1,773 1,999 1,968

Retained Earnings 592 (432) (569) (615) (242)

Cumulative Translation Adjustment/Unrealized For. Exch. Gain (1) (1) (1) (66) (46)

Other Appropriated Reserves (117) 93 192 53 (67)

Treasury Stock (26) (26) - - -

Common Equity / Total Assets 8.36% 6.74% 6.20% 5.77% 6.79%

Total Shareholders' Equity 2,278 1,451 1,398 1,371 1,613

Total Shareholders' Equity / Total Assets 8.36% 6.74% 6.20% 5.77% 6.79%

Total Equity 2,278 1,451 1,398 1,371 1,613

Liabilities & Shareholders' Equity 27,265 21,515 22,543 23,755 23,770