Liquidity Ratios

Current Ratio
Formula: Current Ratio = Current Assets ÷ Current Liabilites

Current Assets Current Liabilities

(Amount in USD)

2017 15889 19595 0.81

2018 16825 17860 0.94
2019 28124 31341 0.90

Quick Ratio
Formula: Quick Ratio = (Cash+AR) ÷ Current Liabilities

Year
Cash AR Current Liabilities
(Amount in USD)

2017 4017 8633 19595

2018 4150 9334 17860
2019 5418 15481 31341

Cash Ratio= Cash/ Current liabilities

Cash Current Liabilities

2017 4017 8633 0.465307540831692
2018 4150 9334 0.444611099207199
2019 5418 15481 0.349977391641367
 Efficiency ratios

Inventory Turnover
Formula: Inventory Turnover = Cost Of Goods Sold ÷ Inventory

Year
Cost Of Goods Sold Inventory
(Amount in USD)

2017 55137 1373 40.16

2018 59434 1392 42.70
2019 69570 1649 42.19

Inventory Days
Formula: Inventory Days= 360 ÷ Inventory Turnover

Year
Days in a Year Inventory Turnover
(Amount in USD)

2017 360 40.16 8.96

2018 360 42.70 8.43
2019 360 42.19 8.53

Receivable turnover
Formula: Receivale turnover= Sales/ account receivable

Year
Accounts Receivable Annual Sales Days in a Year
(Amount in USD)

2017 8633 55137 360

2018 9334 59434 360
2019 15481 69570 360

Receivable days
Formula: Receivable days= 360/ Receivable turnover

Year
Receivable turnover Days in a Year
(Amount in USD)

2017 6.39 360

2018 6.37 360
2019 4.49 360

Payable Turnover
Formula: Payable turnover=Purchase/AP

Year
Purchase AP
(Amount in USD)

2017 8633 8855 0.97

2018 9334 9479 0.98
2019 15481 17762 0.87

Paayable days
Payable days= 360/ Payable turnover

Days in a year Payable turnover

Amount is USD
2017 360 0.97 371.134020618557
2018 360 0.98 367.34693877551
2019 360 0.87 413.793103448276

Leverage Ratios

Debt Ratios
Formula: Debt Ratio = Total debt ÷ Total Assets
 Year
Total debt Total Assets
(Amount in USD)
2017 50785 95789 0.53
2018 45766 98598 0.46
2019 100095 193984 0.52

Operational leverage ratio

Formula: OLR= % change in EBIT/% change in sales

Year
% change in EBIT % change in sales
(Amount in USD)

2017 7.8 9.1 0.86

2018 7.71 1.07 7.21
2019 7.25 1.17 6.20

Financial leverage ratio

FLR= % change in NI/% change in EBIT

% change in NI % change in EBIT

2017 0.9536 7.8 0.12225641025641
2018 1.39 7.71 0.180285343709468
2019 0.89 7.25 0.122758620689655

Profitability Ratio

Gross Profit Margin

Formula: Gross Profit Margin = Gross Profit ÷ Sales

Year
Gross Profit Sales
(Amount in USD)
 2017 78 55137 0.14%
2018 601 59434 1.01%
2019 4357 69570 6.26%

Operating Profit Margin

Formula: Operating Profit Margin = EBIT ÷ Sales

Year
Operating Profits Sales
(Amount in USD)

2017 13788 55137 25.01%

2018 14729 59434 24.78%
2019 13944 69570 20.04%

Net Profit Margin

Formula: Net Profit Margin = Net profit ÷ Sales

Year
Net profit Sales
(Amount in USD)

2017 9366 55137 16.99%

2018 13066 59434 21.98%
2019 11584 69570 16.65%

Taxable income margin

Formula: TIM=EBT/Sales

Year
EBT Sales
(Amount in USD)

2017 78 55137 0.00

2018 601 59434 0.01
2019 4357 69570 0.06
 Return on total assets (ROA)
Formula: Return on total assets(ROA) = Net profit ÷ Total Assets

Year
Net profit Total Assets
(Amount in USD)

2017 9366 95789 9.78%

2018 13066 98598 13.25%
2019 11584 193984 5.97%

Return on common equity (ROE)

Formula: Return on common equity(ROE) = Net profit/ Total equity

Year
Net profit Total Equity
(Amount in USD)

2017 9366 45004 20.81%

2018 13066 52832 24.73%
2019 11584 93889 12.34%

Market
Earning per share
EPS= EACS/ # of CS outstanding

EAFCS No of CS outsatnding
2017 9366 1707 5.48681898066784
2018 13066 1661 7.86634557495485
2019 11584 1597 7.25360050093926

Price Earning (P/E) Ratio

Formula: Price Earning (P/E) Ratio =Price per share ÷ Earnings per share

Year
 Price Per share Earnings Per Share
(Amount in USD)

2017 107.57 18.7505810170122 5.74

2018 109.65 18.4040127678979 5.96
2019 144.63 13.9597593860195 10.36
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Balance Steet FOR 2019

Assets

Non-current assets:
Property Plant & Equipment 62,396,558
Intangible asstets 2,274,803
Right-of-use assets 58,028,533
Contract cost 4,480,157
Other non-current assets 555,200
Total non-current assets 127,735,251

Current assets
Inventories 225,441
Trade receivable and others 7,013,053
Cash and cash equivalents 13,760,677
Total current assets 20,999,171
Total assets 148,734,422

Equity and liabilities

Shareholder's equity
Share capital 13,503,000
Share premium 7,840,226
Capital reserve 14,446
Deposit from shareholders 1,880
Retained earnings 5,199,641
Total equity 38,347,405

Non-current liabilities
Lease liabilities 13,484,106
Loans and borrowings
Deferred tax liabilities 5,216,029
Employee benefits 936,703
Other non-current liabilities 323,957
Total non-current liabilities 19,960,795

Current liabilities
Trade payable and others 22,676,406
Provisions 18,839,102
Lease liabilities 7,349,549
Loans and borrowings 2,934,284
Current tax liabilities 28,137,225
Other current liabilities 10,489,656
Total current liabilities 90,426,222
Total equity and liabilities 148,734,422
Shares 21,343,226

Total Equity 38,347,405

Total Debt 23,767,939

Total interest bearing loans 23,767,939

Income Statement

Revenue
Cost of material and traffic charges
Salaries and personnel cost
Operation and maintainance
Sales, marketing and commisions
Revenue sharing, spectrum charges and licence fees
Other operating (expense)/Income
Depreciation and amotisation

Operating profit

Finance (Expense)/income
Foreign exchange (loss)/gain

Profit before tax

Income tax expense

Profit after tax

Other comprehensive income item that will not be reclassified subsequently to profit or loss
remeasurement of defined benefit plan
Related taxes

Total comprehensive income for the year

Earning per share

Basic earning per share (per value BDT 10 each in BDT)
FOR 2019

143,656,271
(8,465,283)
(9,437,578)
(5,898,863)
(13,480,018)
(10,107,313)
(6,164,349)
(23,451,039)
(77,004,443)
66,651,828

(2,523,060) Interest Expense

(229,809)
(2,752,869) Income tax expense
63,898,959

(29,382,199)
34,516,760

127,659
(51,063)
76,596
34,593,356

25.56
2,523,060

46%
Statement of cash flows

Cash flows from operating activities

Cash receipts from customers

Payroll and other payments to employees
Payments to suppliers, contractors and others
Interest received
Interest paid
Income tax paid

Net cash generated from operating activities

Cash flows from investing activities

Payment for acquisition of property, plant and equipment, Right-of-use and intangible assets
Proceeds from sale of property, plant and equipment
Net cash used in investing activities

Cash flows from financing activities

Payment of long-term loan

Payment of dividend
Payment of lease liabilities
Net cash used in financing activities

Net change in cash and cash equivalents

Cash and cash equivalents as at 01 january

Effect of exchange rate fluctuations on cash held
Cash and cash equivalents as at 31 December
FOR 2019

144,125,682
(9,961,845)
(44,161,847)
597,542
(2,530,502)
(30,675,929)
(86,732,581)
57,393,101

(14,457,903)
194,606
(14,263,297)

(5,848,364)
(26,301,675)
(3,157,864)
(35,307,903)

7,821,901

5,932,292
6,484
13,760,677
Total Equity 38,347,405
Total Debt 23,767,939

Weight of Debt 38%

Interest Expense 2,523,060

Cost of Debt 11%

After tax Cost of debt 6%

Weight of Equity 62%

Risk Free Rate 5.19%

FDR rate/ Market rate 6.50%
Beta 1.15

Tax Rate 46%

Cost of Equity 7%

WACC 6%
 2019 2020
Operating Cash Flow
Net Income Before Taxes 63,898,959 72,563,212.74
Less Taxes 29,382,199 33366220.51568
Add Depreciation 23,451,039 26630836.53459
Operating Cash Flow 57,967,799 65827828.75586

Net Capital Spending

Ending Balance of net fixed assets 62,396,558 70857096.62669
Less Beginning Balance of net fixed assets 69,775,619 79236706.89768
Add Depreciation 23,451,039 26630836.53459
Net Capital Spending 16,071,978 18251226.2636

Net Working Capital

Ending Balance of NWC:
Current Assets 20,999,171 23846512.31286
Current Liabilities 90,426,222 102687387.8178
Ending Balance of NWC -69,427,051 -78840875.50491

Beginning Balance of NWC:

Current Assets 13,368,698 15181400.32594
Current Liabilities 82,963,383 94212639.83356
Beginning Balance of NWC -69,594,685 -79031239.50762

Net Working Capital 167,634 190364.0027054

Free Cash Flow of the Firm 41,728,187 47386238.48956

Free Cash Flow of the Firm BDT 41,728,187 47386238.48956

WACC 6%

PV of FCF 225009983.63154
Terminal Value 6389132392.89187

Total Valuation 6614142376.52341

No. of shares outstanding 21,343,226

Enterprise Fair Value Per Share BDT 309.89

Market Value BDT 331.00 (Overvalued)

 2021 2022 2023 2024
82402278.9277 93575454 106263633.692 120672242.216
37890447.5972 43028128.36 48862442.8389 55487849.7249
30241792.4652 34342368.87 38998954.8655 44286941.4888
74753623.7957 84889694.47 96400145.7187 109471333.98

80464825.3573 91375295.18 103765148.709 117834980.073

89980652.4108 102181402 116036488.451 131770228.005
30241792.4652 34342368.87 38998954.8655 44286941.4888
20725965.4117 23536261.95 26727615.1228 30351693.5559

27079933.2739 30751783.59 34921511.2406 39656624.9107

116611082.312 132422733 150378332.936 170768587.386
-89531149.038 -101670949 -115456821.7 -131111962.48

17239892.4605 19577501.79 22232074.6604 25246589.1216

106987217.534 121493939 137967670.819 156675125.935
-89747325.074 -101916437 -115735596.16 -131428536.81

216176.035446 245488 278774.462826 316574.338115

53811482.3486 61107944.52 69393756.1331 78803066.0859

53811482.3486 61107944.52 69393756.1331 78803066.0859

Calculation of Growth Rates:
Net Income 34,516,760
Total Assets 148,734,422
Total Equity 38,347,405
Retained Earnings 5,199,641

ROA 0.23
ROE 0.90

SGR 13.56%
IGR 3.50%

Growth rate taken for Forecasting SGR

Perpetual Growth rate taken for Terminal Value 5% (as instructed)

No. of shares outstanding 21,343,226

Total Dividends paid 29,317,119
Dividend Paid Per share 1.37360298766456
Dividend Payout Ratio 85%
Retention Ratio 15%