4.

Profitability Ratio:
• Gross Profit Margin = (Gross Profit/ Sales) *100
Details 2021 2020
Gross Profit Margin 51.77% 51.38%

Interpretation:
The Company generated 51.38% in gross profit when compared to their sales in 2020 and
The Company generated 51.77% in gross profit when compared to their sales in 2021.
Net Profit Margin = (Net Profit/Sales)*100
Details 2021 2020
Net Profit Margin 12.12% 6.81%

Interpretation:
The Company keeps 0.06 BDT for every 1 BDT in sales revenue in 2020 and the
company keeps 0.12 BDT for every 1 BDT in sales revenue in 2021.

Earnings Per Share (EPS) = earnings available to common stockholders/ number of

shares of common stock outstanding

Details 2021 2020

EPS 3.74 1.65
Interpretation:
In 2020, If the company distributed every BDT of income to its shareholders, each share
would receive 1.65 BDT and in 2021, If the company distributed every BDT of income to its
shareholders, each share would receive 3.74 BDT.

• Return on Assets (ROA) = Earnings available to common stockholders/ Total

assets

Details 2021 2020

ROA 10.11% 5.30%
Interpretation:
In 2020, the company generates 5.30% in returns through its assets and in 2021, the company
generates 10.11% in returns through its assets.

• Return on Equity (ROE) = Earnings available to common stockholders/total

common equity

Details 2021 2020

ROE 16.12% 8.22%

Interpretation:
In 2020, the company generates 8.22% in returns through its equity and in 2021, the
company generates 16.12% in returns through its equity.

• Financial Leverage Multiplier (FLM) = Total Asset/ Total common equity

Details 2021 2020
FLM 1.41% 1.54%
Interpretation:
The Company has 1.54% the total asset relative to common equity in 2020 and The Company
has 1.41% times the total asset relative to common equity in 2021.

5. Market Ratios:
• Price Earnings Ratio = Market Price Per Share/Earnings per Share
Details 2021 2020
Price Earnings Ratio 33.08 36.83

Interpretation:
In 2020, the shareholders are ready to pay a premium of 36 times greater than average
earnings and in 2021, the shareholders are ready to pay a premium of 33 times greater than
average earnings.

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6. DU Point Analysis:
Return on Asset (ROA) in 2020: (Net Profit Margin * Total Asser Turnover)
= (6.81% * 0.78) = 5.31%
Return on Asset (ROA) in 2021: (Net Profit Margin * Total Asser Turnover)
= (12.12% * 0.83) = 10.06%
Return on Equity (ROE) in 2020: (Return on Asset*Financial Leverage Multiplier)
= (5.31% * 1.55) = 8.23%
Financial Leverage Multiplier= (Total Assets/ Common Equity) = 1.55
Return on Equity (ROE) in 2021: (Return on Asset*Financial Leverage Multiplier)
= (10.06% * 1.59) = 15.9954
Financial Leverage Multiplier= (Total Assets/ Common Equity) = 1.59