Name of the Company: British American Tobacco Bangladesh Company Limited

Computation of Ratios:
1. Liquidity ratios:
Ratio Formula 2019 2018 2017

Current 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡 16537884 + 2609916 + 3684485 + 5393764 30059642 25499348

Ratio 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦 17014375 22922858 19597386
=1.7 =1.31 = 1.30

Acid test 𝐶𝑎𝑠ℎ + 𝑀𝑘𝑡. 𝑠𝑒𝑐 + 𝐴/𝑅 5393764 + 2609916 1633605 + 4174125 2315457 + 978169
ratio 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠 17014375 22922858 19597386
= 0.47 =0.25 =0.33

Days to 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 (16537884 + 19429201)/2 (19429201 + 17469089)/2

(17469089 + 13979180)/2
Sell 𝐶𝑂𝐺𝑆/360 29972780/360 27096297/360 27180742/360
Inventory
=216 days = 245Days =208Days

Collection 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝐴/𝑅 (2609916 + 4174125)/2 (4174125 + 2315457)/2 (2315457 + 1062450/2

Period 𝑆𝑎𝑙𝑒𝑠/360 269854574/360 233118187/360 204139715/360
= 4.52days = 5.01days = 2.98days

Comment: Current ratio standard 2:1. Here This company current ratios is increasing every year. It is positive trend for the company. Acid
test ratio standard is 1:1. Here it is below then 1 in every year. It is not good for the company. Days to sells inventory are increasing in every
year. It is harmful for the company. It takes more time. In collection period its bad position 2017 it has 2.98days in 2018 it was increased 5.01
days and again 2019 it was decreased in 4.52days.
2. Capital Structure And Solvency Ratio:
Ratio Formula 2019 2018 2017
Total debt equity 𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦 23636782 27014375 23302070
𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝑒𝑞𝑢𝑖𝑡𝑦 59430237 56543229 464145085
= 0.397 or 40% =0.477 or 48% = 0.50 or 50%

Long term Debt equity 𝐿𝑜𝑛𝑔 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦 6622407 4091517 3704684

𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝑒𝑞𝑢𝑖𝑡𝑦 59430237 56543229 46414508
= 0.111 =0.0723 = 0.0798

Times Interest earned 𝐸𝐵𝐼𝑇 17403927 + 471367 19314324 + 473916 16759519 + 185291
𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝐸𝑥𝑝𝑒𝑛𝑠𝑒 471367 473916 185291
=37.92 times = 41.75 times = 91.44 times

Comment: total debt equity are decreasing in every years it is not good for the company. Long term debt equity are increasing in every year.
It is good position for the company. Times interest earned are decreasing company can handle it.
3. Return on Investment ratio:
Ratio Formula 2019 2018 2017

Return on total 𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 9264601 10016416 7829856

59430237+56543229
assets 𝐴𝑣𝑒𝑟𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡 2 56543229 + 464145085 46414508 + 35347883
=0.159 or 16% 2 2
=0.194 or 19.4% =0.192 or 19.2%

Return on common 𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 9264601 10016416 7829856

equity 𝐴𝑣𝑒𝑟𝑔𝑒 𝑠ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟 𝑒𝑞𝑢𝑖𝑡𝑦 35793455 + 29528854 29528854 + 23112438 23112438 + 18882582
2 2 2
= 0.38 or 38% =0.37 or 37%
=0.28 or 28%

Comment: ROA and ROI are not good for the company. Every year it is decreasing .
4. Operating performance ratio:
Ratio Formula 2019 2018 2017
Gross profit Margin 𝑆𝑎𝑙𝑒𝑠 − 𝐶𝑂𝐺𝑆 269854574 − 29972780 233118187 − 27096297 204139715 − 27180742
𝑆𝑎𝑙𝑒𝑠 269854574 233118187 204139715
= 0.889 or 89.9% = 0.883 or 88.3% = 0.866 or 86.6%

Operating profit 𝐼𝑛𝑐𝑜𝑚𝑒 𝑓𝑟𝑜𝑚 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑜𝑛 18766993 20819780 24783001

margin 𝑆𝑎𝑙𝑒𝑠 269854574 233118187 204139715
= 0.069 or 6.9% =0.089 or 8.9% = 0.121 or 12.1%

Pre-tax profit margin 𝐼𝑛𝑐𝑜𝑚𝑒 𝑏𝑒𝑓𝑜𝑟𝑒 𝑡𝑎𝑥 17403927 19314324 16759519

𝑆𝑎𝑙𝑒𝑠 269854574 233118187 204139715
= 0.064 or 6.4% = 0.083or 8.3% =0.082 or 8.2%

Net profit margin 𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 9264601 10016416 7823856

𝑆𝑎𝑙𝑒𝑠 269854574 233118187 204139715
=0.034 or 3.4% = 0.043 or 4.3% = 0.038 or 3.8%

Comment: Gross profit margins are increasing in every year in this company. Company profitability is good. Operating profit margin are
decreasing in every year. Pre-tax profit margin are decreasing, It is good for the company. Net profit margin are decreasing in every year it is
bad position for the company.
5. Asset utilization ratios :
Ratio Formula 2019 2018 2017
Cash 𝑆𝑎𝑙𝑒𝑠 269854574 233118187 204139715
Turnover 𝐴𝑣𝑒𝑎𝑟𝑔𝑒 𝑐𝑎𝑠ℎ 5393764 + 1633605 1633605 + 978169 978169 + 1564600
2 2 2
=76.80 = 178.52 =160.56

Account 𝑆𝑎𝑙𝑒𝑠 269854574 233118187 204139715

Receivabl 𝐴𝑣𝑒𝑎𝑟𝑔𝑒 𝐴/𝑅 2609916 + 4174125 4174125 + 2315457 2315457 + 1062450
e 2 2 2
Turnover =79.56 =71.84 = 12.09
Inventory 𝐶𝑂𝐺𝑆 29972780 27096297 27180742
Turnover 𝐴𝑣𝑒𝑎𝑟𝑔𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 16537884 + 19429201 19429201 + 17469089 17469089 + 13979180
2 2 2
= 1.67 =1.47 =1.73

Working 𝑆𝑎𝑙𝑒𝑠 296854574 233118187 204139715

Capital 𝐶𝑢𝑟𝑟𝑒𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠 − 𝑐𝑢𝑟𝑒𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑦 28226049 − 17014375 30059642 − 22922858 25499348 − 19597386
Turnover = 24.07 =32.66 =34.59
Fixed 𝑆𝑎𝑙𝑒𝑠 269854574 233118187 204139715
Assets 𝐴𝑣𝑒𝑎𝑟𝑔𝑒 𝑓𝑖𝑥𝑒𝑑 𝑎𝑠𝑠𝑒𝑡𝑠 31204188 + 26483587 26483587 + 20915160 20915160 + 15411873
Turnover 2 2 2
=9.36 =9.84 =11.24

Total 𝑆𝑎𝑙𝑒𝑠 269854574 233118187 204139715

Assets 𝐴𝑣𝑒𝑎𝑟𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠 59430237 + 56543229 56543229 + 46414508 46414508 + 35347583
Turnover 2 2 2
= 2.56 =2.26 =2.50

Comment: Cash turnover 2017 was 160.56 then in 2018 it was increasing to 178.52 then again 2019 it was decreasing 76.80 it is bad for the
company. Account receivables are increasing in every year. It is good for the company. Inventory turnover is good for the company. Working
capital are increasing for the company. Fixed assets are decreasing for the company it is harmful for the company. Total Asstes turnover ids
good for the company are also good .
6. Market measures:
Ratio Formula 2019 2018 2017
Price-to-earnings ratio 𝑀𝑎𝑟𝑘𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 970 3542 3402
𝐸𝑃𝑆 51.37 166.87 130.50
= 18.88 = 21.23 =26.07

Earnings yield 𝐸𝑃𝑆 51.37 166.87 130.50

𝑀𝑎𝑟𝑘𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 970 3542 3402
= 0.052 or 5.2% = 0.047 or 4.7% = 0.038 or 3.8%

Dividend yield 𝐶𝑎𝑠ℎ 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑡 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 40 50 60

3402
𝑀𝑎𝑟𝑘𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 970 3542 = 0.017 or 1.7%
= 0.041 or 4.1% = 0.014 or 1.4%
Dividend payout ratio 𝐶𝑎𝑠ℎ 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑡 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 40 50 60
𝐸𝑃𝑆 51.37 166.87 130.50
= 0.778 or 77% = 0.29 or 29% = 0.45 or 45%

Price-to-book ratio 𝑀𝑎𝑟𝑘𝑒𝑡 𝑝𝑟𝑖𝑐𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 970 3542 3402

𝐵𝑜𝑜𝑘 𝑣𝑎𝑙𝑢𝑒 𝑝𝑒𝑟 𝑠ℎ𝑎𝑟𝑒 10 15.30 12.77
= 97 =231.50 =266.41

Comment: Price to earnings ratio are decreasing in every year. In 2017 it was 26.07 then 2018 it was 21.23 and 2019 it decrease in 18.88. It is
not good for the company. Earning yield are increasing in every year. Company can be profitability. Dividend yield are also increasing in
every year 2017 to 2019 .Dividend payout ratio also increasing. Price to book ratio are decreasing in every year.2017 it was 266.41, 2018 it
was 231.50 and 2019 it goes down to 97.It is not good for the company.
Annual report for 2017: Balance of the company
2017- Income statement of the company
Annual report 2018: Balance for the company
2018- Income statement of the company
Annual report 2019: Balance for the company
2019- Income statement of the company