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  • Sistia Presentation: For The Year Ended June 30, 2017

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    Fahim
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    The document analyzes the financial statements of a company for the years ended June 30, 2017 and June 30, 2016. It calculates key financial ratios such as gross margin, net margin, debt to equity ratio, return on equity, and return on assets. For 2017, the debt to equity ratio of 0.565 indicates the company has debt that is fairly standard compared to its equity. While return on equity is good at 9.5%, net income is only 3.24%. For 2016, the debt to equity ratio increased to 0.61, and return on equity and net income decreased, in line with the higher debt level.

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    The document analyzes the financial statements of a company for the years ended June 30, 2017 and June 30, 2016. It calculates key financial ratios such as gross margin, net margin, debt to equity ratio, return on equity, and return on assets. For 2017, the debt to equity ratio of 0.565 indicates the company has debt that is fairly standard compared to its equity. While return on equity is good at 9.5%, net income is only 3.24%. For 2016, the debt to equity ratio increased to 0.61, and return on equity and net income decreased, in line with the higher debt level.

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    12 views3 pages

    Sistia Presentation: For The Year Ended June 30, 2017

    Uploaded by

    Fahim
    The document analyzes the financial statements of a company for the years ended June 30, 2017 and June 30, 2016. It calculates key financial ratios such as gross margin, net margin, debt to equity ratio, return on equity, and return on assets. For 2017, the debt to equity ratio of 0.565 indicates the company has debt that is fairly standard compared to its equity. While return on equity is good at 9.5%, net income is only 3.24%. For 2016, the debt to equity ratio increased to 0.61, and return on equity and net income decreased, in line with the higher debt level.

    Copyright:

    © All Rights Reserved
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    of 3

    Sistia presentation

    FOR THE YEAR ENDED JUNE 30, 2017

    SL Particular Formula Result In


    Value in BDT Percentage/Time
    s

    1 Gross Margin =Gross    =0.1012 10.12%


    Profit/Sales
    Revenue
    =473227190/467
    5975387

    2 Net Margin = Net =0.032 3.24%


    Income/Sales
    Revenue
    =
    151784872/4675
    975387

    3 Debt to Equity = Total Debt / =0.565 0.565times


    Total Equity
    =
    897091913/1585
    431338

    4 Return on =  Net Income/ =0.095 9.5%


    Equity Total Equity
    =
    151784872/1585
    431338

    5 Return on Asset =  Net Income/ =0.061 6.1%


    Total Asset
    =151784872/248
    2523251
    FOR THE YEAR ENDED JUNE 30, 2017

    SL Particular Formula Result In


    Value in BDT Percentage/Time
    s

    1 Gross Margin =Gross    =0.1012 10.12%


    Profit/Sales
    Revenue
    =473227190/467
    5975387

    2 Net Margin = Net =0.032 3.24%


    Income/Sales
    Revenue
    =
    151784872/4675
    975387

    3 Debt to Equity = Total Debt / =0.565 0.565times


    Total Equity
    =
    897091913/1585
    431338

    4 Return on =  Net Income/ =0.095 9.5%


    Equity Total Equity
    =
    151784872/1585
    431338

    5 Return on Asset =  Net Income/ =0.061 6.1%


    Total Asset
    =151784872/248
    2523251

    Above analysis of financial statements reveals that the company is managing its debt fairly
    in standard level as its debt to equity ratio is 0.565 which is below the standard benchmark of
    0.6, debt to equity ratio greater than 0.6 is considered to be risky. The ratio 0.565 implies for
    100 BDT of equity, the company has approximately 56 BDT of Debt. The company can pay
    off its debt about twice before its equity runs out of cash. Although return on equity is quite
    good about 9.5%, net income is not substantial which only 3.24% in 2017.
    FOR THE YEAR ENDED JUNE 30, 2016

    SL Particular Formula Result In


    Value in BDT Percentage/Time
    s

    1 Gross Margin =Gross    =0.1013 10.13%


    Profit/Sales
    Revenue
    451514255/4454
    028634

    2 Net Margin = Net =0.0246 2.46%


    Income/Sales
    Revenue
    =
    109940841/4454
    028634

    3 Debt to Equity = Total Debt / =0.61 0.61 times


    Total Equity
    =948366255/154
    3587307

    4 Return on =  Net Income/ =0.071 7.12%


    Equity Total Equity
    =
    109940841/1543
    587307

    5 Return on Asset =  Net Income/ =0.04441 4.41%


    Total Asset
    =109940841/249
    1953562

    The table above discloses that the company is financing its debt just higher than standard
    level as its debt to equity ratio was 0.61 which was just above the standard benchmark of 0.6,
    debt to equity ratio greater than 0.6 is considered to be risky. The ratio 0.61 implies for 100
    BDT of equity, the company had approximately 61 BDT of Debt. In 2016 the above Analysis
    shows that return on equity and net income decreased as the debt to equity ratio increased
    compare to 2017 which conforms the finding of this research.

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