PRAN Agricultural Marketing Co. LTD

Introduction
PRAN Agricultural Marketing Co. Ltd.

‘PRAN’ stands for Program for Rural Advancement Nationally. PRAN GROUP was born in
1980. Since then, over the years, we have diversified our activities. Today they are the largest
processors of fruits vegetables in Bangladesh. They have shown the way of contract farming in
Bangladesh for the first time and procure raw material directly from the farmers and processes
through high-tech machinery at their several factories into hygienically packed food and drink
products. As they are the largest contract manufacturer, they promote contract farmers and help
them produce quality crops with increased yields and to obtain fair prices. The head offices are
located at Dhaka. Their management is trendy and able to be tailored to our environmental
cultural change. Their largest asset is their competent team of hands-on mangers dedicated
employees.
PRAN is the largest agro food processor and agro food exporter of Bangladesh. Bangladesh has
an economy based on agriculture. So, their view is to enrich their agriculture sector. Keeping this
view in mind, they look forward to creating more demand for agro product made by their native
farmer and they help to produce more agro products by giving proper training and financial
support to our poor farmers. They want their contract farming to be larger to the largest. Again,
for processing this food, employment is created. By this way, their view is to create more
employment. Their view is to make this products available to every hook and corner of our
country so that every consumer gets the right to consume.
Rangpur Dairy & Food Products Limited

Rangpur Dairy and Food Products Limited is a Bangladesh-based dairy company. The Company
offers a range of milk and milk-based products. The Company's products include fresh milk,
such as RD Fresh Milk 500 milliliters and RD Fresh Milk 200 milliliters; flavored mango milk,
such as RD Flavored Mango Milk 200 milliliters and Mango Milk 200 milliliters (International
Packaging Institute (IPI) pack); flavored chocolate milk, such as RD Flavored Chocolate Milk
200 milliliters and Chocolate Milk 200 milliliters (IPI Pack); flavored banana milk, such as RD
Flavored Banana Milk 200 milliliters; ghee, such as RD Premium Ghee 450 grams; candy, and
flavored strawberry milk, such as RD Strawberry Milk 200 milliliters and Strawberry Milk 200
milliliters (IPI Pack). The prime raw material of the Company is raw milk and it is procured
mainly from greater Rangpur, Dinajpur, Pabna, Sirajgong and other districts in Bangladesh. Its
factory is located at Salaipur, Baldipukur, Rangpur in Bangladesh.
They are collecting the raw milk from the rural area of northern parts of Bangladesh. After
receiving they handled the raw milk in closed system to minimize the risk of infection and
chilled quickly to 4°C as soon as it is produced and kept at that temperature until processed.
Then they processed the raw milk employed UHT (Ultra High Temperature) treatment at 135--
140°C for 2--3 seconds, cooled and packed aseptically in 5 layers of packaging material to
ensure the safety and quality of milk for human consumption and to lengthen its shelf life 3--6
months without refrigeration.
Ratio Analysis
Debt Management Ratios
Debt Ratio
The debt ratio is a financial ratio that measures the extent of a company's leverage. The debt ratio
is defined as the ratio of total debt to total assets, expressed as a decimal or percentage. It can be
interpreted as the proportion of a company's assets that are financed by debt.
Debt ratio
Company name Formula 2019 2020
PRAN Total debt/Total assets
Agricultural
Marketing Co.
Ltd. 54.63% 53.82%
Rangpur Dairy & Total debt/Total assets
Food Products
Limited 16.88% 18.99%
Debt Ratio
60.00%
54.63% 53.82%
50.00%
40.00%
30.00%
20.00% 18.99%
16.88%
10.00%
0.00%
2019 2020
PRAN Agricultural Marketing Co. Ltd. Rangpur Dairy & Food Products Limited
PRAN Agricultural Marketing Co. Ltd.: Here, there have decreasing trend from 2019 to 2020.
Rangpur Dairy & Food Products Limited: Here, there have increasing trend from 2019 to
2020.
Comparing to ratios, Rangpur Dairy & Food Products Limited is doing good than PRAN
Agricultural Marketing Co. Ltd.
Times Interest Earned Ratio

The times interest earned (TIE) ratio is a measure of a company's ability to meet its debt
obligations based on its current income.

PRAN EBIT/Interest expenses
Agricultural
Marketing Co.
Ltd. 0.53 0.56
Rangpur Dairy & EBIT/Interest expenses
Food Products
Limited 3.01 1.97
3.5
3.01
3
2.5
1.97
2
1.5
1
0.53 0.56
0.5
0
2019 2020
PRAN Agricultural Marketing Co. Ltd.: Here, there have increasing trend from 2019 to 2020.
Rangpur Dairy & Food Products Limited: Here, there have decreasing trend from 2019 to
2020.
Comparing to ratios, PRAN Agricultural Marketing Co. Ltd. is doing good than Rangpur Dairy
& Food Products Limited.
Profitability Ratios
Gross Profit Margin
Gross profit margin is a measure of profitability that shows the percentage of revenue that
exceeds the cost of goods sold (COGS).
Gross profit margin

PRAN Gross profit/sales
Agricultural
Marketing Co.
Ltd. 19.2% 18.7%
Rangpur Dairy & Gross profit/sales
Food Products
Limited 21.2% 18.6%
Gross profit margin

45.00%
21.20%
40.00% 18.60%
35.00%
30.00%
25.00%
19.20% 18.70%
20.00%
15.00%
10.00%
5.00%
0.00%
2019 2020
2020.
Comparing to ratios, No one is better. Both needs to be improve.
Operating Profit Margin

Operating margin measures how much profit a company makes on a dollar of sales after paying
for variable costs of production, such as wages and raw materials, but before paying interest or
tax. It is calculated by dividing a company's operating income by its net sales.
Operating profit margin

PRAN EBIT/sales 2.9% 2.7%
Agricultural
Marketing Co.
Ltd.
Rangpur Dairy & EBIT/sales
Food Products
Limited 6.9% 4.7%
Operating Profit Margin

12.00%
6.90%
10.00%
8.00% 4.70%
6.00%
4.00%
2.90% 2.70%
2.00%
0.00%
2019 2020
2020.
Net Profit Margin

The net profit margin is equal to how much net income or profit is generated as a percentage of
revenue. Net profit margin is the ratio of net profits to revenues for a company or business
segment.
Net profit margin

PRAN Net income/sales 2.1% 1.7%
Agricultural
Marketing Co.
Ltd.
Rangpur Dairy & Net income/sales
Food Products
Limited 5.2% 3.6%
Net profit margin

8.00%
5.20%
7.00%
6.00%
3.60%
5.00%
4.00%
3.00%
2.10%
2.00% 1.70%
1.00%
0.00%
2019 2020
2020.
Earnings per Share

Earnings per share (EPS) is calculated by determining a company's net profit and allocating that
to each outstanding share of common stock.
Earnings Per Share

PRAN Earnings available for common
Agricultural stockholder/Shares of Outstanding
Marketing Co.
Ltd. 7.3 5.7
Rangpur Dairy & Earnings available for common 0.46 0.31
Food Products stockholder/Shares of Outstanding
Limited
Earnings Per Share

9
0.46
87.3
7
0.31
6 5.7
0
2019 2020
2020.
Return on Asset (ROA)

Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets.
ROA gives a manager, investor, or analyst an idea as to how efficient a company's management
is at using its assets to generate earnings.
ROA
PRAN Net income/Total assets
Agricultural
Marketing Co.
Ltd. 4.2% 3.2%
Rangpur Dairy & Net income/Total assets
Food Products
Limited 2.6% 1.7%
ROA
8.00%
2.60%
7.00%
6.00%
1.70%
5.00%
4.20%
4.00%
3.20%
3.00%
2.00%
1.00%
0.00%
2019 2020
2020.

PRAN Agricultural Marketing Co. LTD

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

PRAN Agricultural Marketing Co. LTD

Uploaded by

Copyright:

Available Formats

Introduction

PRAN Agricultural Marketing Co. Ltd.

Rangpur Dairy & Food Products Limited

Times Interest Earned Ratio

Times Interest Earned Ratio

Gross profit margin

Gross profit margin

Comparing to ratios, No one is better. Both needs to be improve.

Operating Profit Margin

Operating profit margin

Operating Profit Margin

Comparing to ratios, No one is better. Both needs to be improve.

Net Profit Margin

Net profit margin

Net profit margin

Comparing to ratios, No one is better. Both needs to be improve.

Earnings per Share

Earnings Per Share

Earnings Per Share

Comparing to ratios, No one is better. Both needs to be improve.

Return on Asset (ROA)

Comparing to ratios, No one is better. Both needs to be improve.

You might also like