Performance Indicators

Ratios

2021

2022

2023

2024

2025

Average

Current Ratio

10.01

13.71

16.27

17.20

15.47

14.53

Debt Ratio

0.30

0.23

0.19

0.18

0.20

0.22

ROA

(0.01)

0.01
0.09

0.19

0.22

0.10

ROE

(0.01)

0.01

0.11

0.23

0.28

0.12

Asset Turnover

Ratio

0.95

1.12

1.22

1.37

1.45

1.22

Sales to marketing

Ratio

2.92

2.98

3.33

3.66
3.90

3.36

Current ratio: It is a liquidity ratio that measures a company’s ability to pay short term obligations

or those due within one year. It is better to have a higher current ratio. 2:1 is considered as

benchmark for current ratio. It helps an investor to understand how a business can pay its short-

term debt with the current assets. The current ratio is calculated dividing total current assets by the

total liabilities. The formula of current ratio is as follows: Current Ratio= total current assets ÷

total current liabilities.

Interpretation: The graph portraits the current ratio for “Drop Off” for the upcoming 5 years.

From the graph we can see that current ratio for 2021 is almost 10.01 which means “Drop Off”

10.01

13.71

16.27

17.20

15.47

2021

2022

2023

2024

2025

Current Ratio

pg. 75

has 10.01 taka of current asset for its each 1 taka of current liability. As we know way

too higher current ratio indicates opportunity cost for holding excess current asset. But to avoid

complexity in the beginning period of the business we are not investing in financial market.
Therefore, our current ratios are increasing at an increasing rate over the period and we have an

uplifting current ratio.

Debt ratio: Debt ratio measures the extent of a company’s financial leverage it shows what

proportion of company’s assets are financed by debt. Potential creditors and investors are

interested to know this ratio as it shows how much borrowed fund a company is using in its

operation. A lower debt ratio is better and attractive to investors and creditors. It is calculated by

dividing total asset by total liabilities.

Interpretation: The graph portraits the debt ratio for the next 5 years of “Drop off”. In 2021 the

debt ratio is 0.30 from the graph it is evident that the debt ratio is decreasing over the period and

in 2025 it is 0.20.

Return on Asset (ROA): Return on asset or ROA is a measures effectiveness of management. It

measures how effectively a company is managing its available assets efficiently and generating