2.

Company profile,

ACI Limited

A British multinational Imperial Chemical Industries established a branch in then east Pakistan. It was
converted to a company after liberation by the name of ICI Bangladesh Manufacturers Limited. 1992,
its name was changed to Advanced Chemical Industries ( ACI) Limited. ACI Limited is one of the
largest conglomerates in Bangladesh with a multinational heritage and operates across the country
through its four diversified strategic business units. 'ACI Pharmaceuticals is dedicated to improving
the health of the people of Bangladesh. ACI Consumer Brands is providing consumers its Toiletries,
Home Care, Hygiene, Electrical, Electronics, Mobile, Salt, Flour, Foods, Rice, Tea, Edible Oil, Paints,
and International Businesses. ACI Agribusinesses is the largest integrator in Bangladesh in
Agriculture, Livestock, Fisheries, Farm Mechanization, Infrastructure Development Services, and
Motorcycle. 'ACI Retail Chain' is the largest retail chain in Bangladesh. It is operating through its 144
SHWAPNO outlets which also include 34 newly opened express outlets across the country. The
Company contributed Taka 5,318 million to the National Exchequer during FY 2021-2022 in the form
of corporate tax, customs duty, and value-added tax.

3. Ratio Analysis

The current ratio: Which is also called the working capital ratio, compares the assets a company can
convert into cash within a year with the liabilities it must pay off within a year. A current ratio of less
than 1 could be an indicator the company will be unable to pay its current liabilities. In the year 2017,
the current ratio of ACI pharmaceuticals was 1.29. In 2018 and 2019 this ratio was 1.176 and 1.128
respectively which is good.

Quick ratio: The quick ratio is an indicator of a company’s short-term liquidity position and measures
a company’s ability to meet its short-term obligations with its most liquid assets. A quick ratio greater
than or equal to "1" indicates a company has enough liquid assets to meet its short-term obligations.
But In 2017, 2018, and 2019 the ratio was respectively 0.917, 0.924, and 0.915. So the liquidity is not
good for ACI pharmaceuticals.

The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is managed by
comparing the cost of goods sold with average inventory for a period. The inventory turnover of ACI
in the years 2017, 2018, and 2019 was 4.177, 4.309, and 4.116 which is pretty decent.

The average age of inventory: The average age of inventory is calculated by taking the average
inventory balance and dividing it by the cost of goods sold (COGS) for the period and then
multiplying it by 365 days. The average age of inventory is calculated over one year. The best average
age of inventory is between 60 and 90 days. Here, the ratio is 158, 149, and 162 which is not good at
all.

Average collection period: Most businesses require invoices to be paid in about 30 days but in ACI
the three years Average collection period is 56, 70, and 83 which is not good.

There is not much data to calculate the average payment period.

Total assets turnover ratio: In the retail sector, an asset turnover ratio of 2.5 or more could be
considered good. But the in ACI the ratio is 0.76, 0.68, and 0.56 which is way worse than normal.

Debt Ratio: In general, many investors look for a company to have a debt ratio between 0.3 and 0.6.
In ACI however, the ratio is 0.52 and 5.9 in the year 2017 and 2018. In 2019 the ratio is 6.54 which is
slightly bigger than normal.

Time interest earned ratio: From an investor or creditor's perspective, an organization that has at times
an interest earned ratio greater than 2.5 is considered an acceptable risk. In ACI in 2017, 2018, 2019
the ratio is 8.69, 3.95, and 1.47. So, in 2019 the expected result has not been met.

Gross profit margin: A gross profit margin ratio of 65% is considered to be healthy. In ACI the ratios
are 44.77%, 43.21%, 45.36%. So not any year expected result has appeared.

Operating profit margin: for most businesses the considerate margin is 15%. In ACI however, the
ratios are 8.69, 7.84, and 7.62. So not any year expected result has appeared.

Net profit margin: A net profit margin ratio of 10% is considered to be healthy. In ACI the ratios are
2017, 2018, and 2019 is 6%. So not any year expected result has appeared.

Return on equity:  An ROA of 5% or better is typically considered good. In ACI however, in 2017,
2018, and 2019 is 5%, 4%, and 1%. So, in 2018 and 2019 the expected result has not been met.

Price-earnings ratio: Investors tend to prefer using forward P/E, though the current PE is high, too,
right now at about 23 times earnings. In ACI however, in 2017, 2018, and 2019 is 12, 8, and 14 times.
So not any year expected result has appeared.

Book value per share of common stock: Traditionally, any value under 1.0 is considered a good P/B
value, indicating a potentially undervalued stock. In ACI however, in 2017, 2018, and 2019 is 270,
287, and 288. Which is way better than expected.
MB ratio: Generally, the results of your book-to-market ratio should be around 1. In ACI however, in
2017, 2018 and 2019 1.14, 0.78, 0.54. So, in 2017 the result was good but after that things get
deteriorated.