Wednesday, December 24,

2014

Wednesday, December 24,

2014

Group members:
Class Serial
No

ID

NAME

Section

04

103200029

Md. Nazrul Islam

03

09

121200096

Md. Khalid Hossain

03

02

101200218

Md. Sadek Hossain

03

13

122200070

Md Tanvir Hossain

03

06

121200056

Tanvir Ahmed

03

Wednesday, December 24,

2014

Apex Foods Limited

Apex Foods Co., Ltd. is the subsidiary of Apex Group Co., Ltd.

established in 1994.

As a multi-faceted manufacturer of food product, Apex Food supplies

fresh, fresh-frozen and frozen foods, in a multitude of rigid and flexible

packaging, as refrigerated and shelf-stable according to client needs.

They are determine to deliver the best standard of production by

choosing good quality of raw materials and manufacturing all products
in high hygienic rooms.

Wednesday, December 24,

2014

Objective of the study:

Broad Objectives:

To determine the financial analysis performance of a company (Apex Foods

Limited).

Specific Objectives:
To know the earning capacity or profitability.
To know the liability of the company.
To get knowledge about the total asset of the company.
To identify their market and ratio analysis (Current, Quick, Cash and etc.)

Wednesday, December 24,

2014

METHODOLOGY
DATA COLLECTION METHOD :
Primary Data:
Secondary Data:

Limitations :
Non-availability of some latest data.
Shortage of knowledge.
Inadequate information of the companys web portal.
There is chance of having error in any stage of data collection,
data entry, data organizing, data presentation, interpretation of
result, etc.
Wednesday, December 24,
2014

SOWT Analysis of APEX Food

Strengths:
Apex Food also has a strong real estate portfolio. The companys outlets

are located in areas that are highly known for visibility, traffic volume
and ease of access.
Apex food also has exceptional brand recognition. This strong brand
recognition creates significant opportunities for the company.
Apex Food is able to generate more sales because of its brand
recognition.
Weaknesses:
Limited financial resources and funding sources.
Dependent on domestic market.
Lack of skills on leadership, advocacy.
Inadequate promotional activities, marketing.

Wednesday, December 24,

2014

Cont
Opportunities:
Apex Food also has the opportunity to advertise its less popular

products.
Dealing with key crops and products in the economy.
Political stability in most countries.
Trade liberalization leading to existence of domestic, regional and
international markets.
Threats:
Apex Foods keeps up with competitors through expensive promotional
campaigns which leads to limited margins to gain market share.
People are constantly trying to change their eating and drinking habits. This
could directly affect the sale of Apex Food products.

Wednesday, December 24,

2014

Year
2010
2011
2012
2013

a). Current ratio :

Current Assets
CR
Current Liabilities

CR
1.685121923
1.363335056
1.393054738
1.248392893

Current Ratio
2013

1.248392893

2012

1.393054738

2011

1.363335056

2010

1.685121923
0

0.2

0.4

0.6

0.8

1.2

1.4

1.6

1.8

The Current Ratio of Apex Food in 2010 is 1.68, 2011 is 1.36 and 2012 is
1.39. So Apex Food is higher Current Ratio in 2010. Here we can see that
Current asset increased than previous years but current liabilities
decrease as ratio is also deceased.
Wednesday, December 24,
2014

b) The Quick Ratio:

Current Assets Inventories

QR
Current Liabilities

Year
2010
2011
2012
2013

QR
0.677939263
0.387909983
0.577221931
0.472123008

Quick Ratio
2013

0.472123008

2012

0.577221931

2011

0.387909983

2010

0.677939263
0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

The Quick Ratio of Apex food in 2010 is 0.67, 2011 is 0.38 and 2012 is 0.57. So Apex Food
is higher Quick Ratio in 2010. Here Current Liabilities decreases than the previous year as
quick ratio also decreased.
Wednesday, December 24,
2014

10

Year
2010
2011
2012
2013

c) The Cash Ratio:

Cash Ratio over the period

CR
0.530894463
0.297965691
0.378378403
0.267174142

Cash Ratio
2013

0.267174142

2012

0.378378403

2011

0.297965691

2010

0.530894463
0

0.1

0.2

0.3

0.4

0.5

0.6

The Cash Ratio of Apex Food in 2010 is 0.53, 2011 is 0.29 and 2012 is 0.37.
So Apex Food is higher cash ratio in 2010.
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2014

11

D) Inventory Turnover Ratios

Year

Inventory
Turnover
Ratio (times)

2010
2011
2012
2013

3.467091194
3.242854582
5.070499276
3.366224879

Inventory Turnover Ratio

2013

3.366224879

2012

5.070499276

2011

3.242854582

2010

3.467091194
0

Inventory Turnover Ratio of Apex Food in 2010 is 3.46, 2011 is 3.24 , 2012
is 5.07and 2013 is 3.3666. So Apex Food is higher Inventory Ratio in 2012.
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2014

12

E) Accounts Receivable Turnover Ratio:

Year

Accounts
Receivable
Turnover Ratio (times)

2010
2011
2012
2013

148.0386611
217.6057261
86.12100888
33.68034404

Accounts Recievable Ratio

2013

33.68034404

2012

86.12100888

2011

217.6057261

2010

148.0386611
0

50

100

150

200

250

Account Receivable Turnover Ratio of Apex Food In 2010 is 148.03, 2011 is

217.60 , 2012 is 86.12 and 2013 is 33.680. So Apex Food is higher Account
Receivable Turnover Ratio in 2011.
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2014

13

F). AVERAGE COLLECTION PERIOD:

Year

Avg.
Collection
Periods Ratio (days)

2010

2.43179719

2011

1.654368231

2012

4.180164686

2013

10.68872692

AVG Collection Periods

2013

10.68872692

2012

4.180164686
AVG Collection Periods

2011

1.654368231

2010

2.43179719
0

10

12

Average Collection Periods of Apex Food in 2010 is 2.43, 2011 is 1.65 ,

2012 is 4.18 and 2013 is 10.6887. So Apex Food is higher Average
Collection Periods in 2013.
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2014

14

G). Fixed Asset Turnover Ratio:

Net Sales
Fixed Asset Turnover
Net Fixed Assets

Year

Fixed Asset Turnover

Ratio (times)

2010

18.44430758

2011

14.78177127

2012

11.2688479

2013

9.442224895

Fixed Asset Turnover Ratio

2013

9.442224895

2012

11.2688479

Fixed Asset Turnover Ratio

2011

14.78177127

2010

18.44430758
0

10

12

14

16

18

20

Fixed Asset Turnover Ratio of Apex Food in 2010 is 18.44, 2011 is 14.78 , 2012 is
11.26 and 2013 is 9.44. So Apex Food is higher Fixed Asset Turnover Ratio in
2010.
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2014

15

H). Total Asset Turnover Ratio:

Net Sales
Total Asset Turnover
Total Assets

Year

Total
Turnover
(times)

2010

3.889959501

2011

2.159583155

2012

2.503059658

2013

1.879687198

Asset
Ratio

Total Asset Turnover Ratio

2013

1.879687198

2012

2.503059658

Total Asset Turnover Ratio

2011

2.159583155

2010

3.889959501
0

0.5

1.5

2.5

3.5

4.5

Total Asset Turnover Ratio of Apex Food in 2010 is 3.88, 2011 is 2.15, 2012
is 2.50 and 2013 is 1.87. So Apex Food is higher Total Asset Turnover Ratio
2010.
Wednesday, December 24,
2014

16

I. Leverage Ratio or Debt to asset ratio

Ratios

Total Liabilitie s
Total Debt Ratio
Total Assets

Year

Debt to Asset
Ratio (%)

2010
2011
2012
2013

0.292329409
0.727172755
0.649079844
0.70553628

Debt To Asset Ratio

2013

0.70553628

2012

0.649079844
Debt To Asset Ratio

2011

0.727172755

2010

0.292329409
0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

Debt to Asset Ratio of Apex Food in 2010 is 29.23%, 2011 is 72.71% ,

2012 is 64.90% and 2013 is 70.55%. So Apex Food is higher Debt to
Asset Ratio in 2011.
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2014

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J). The Debt to Equity Ratio:

Long-Term Debt/Liability
Debt to Equity Ratio = -------------------------------------------Total Equity

Debt To Equity Ratio

2013

Year

Debt To Equity
Ratio (%)

2010
2011
2012
2013

0.413086842
0.36960883
0.258413733
0.217240405

0.217240405

2012

0.258413733
Debt To Equity Ratio

2011

0.36960883

2010

0.413086842
0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

0.45

Debt to Equity Ratio of Apex Food in 2010 is 41%, 2011 is 36%, 2012 is
25% and 2013 is 21.7%. So Apex Food is higher Debt to Asset Ratio in
2010.

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2014

18

k. Gross Profit Margin Ratio

Gross Pr ofit( Sales Re venue CGS )
Net Sales

Year

Gross Profit Margin

Ratio (%)

2010

0.000098
0.000008
0.000077
0.108108

2011
2012
2013

2013

2012

GPM

2011

2010

0.02

0.04

0.06

0.08

0.1

0.12

Gross Profit Margin Ratio of Apex Food in 2010 is 9.8 %, 2011 is 8.2% , 2012 is 7.7%
and 2013 is 1.08%. So Apex Food is higher Gross Profit Margin Ratio in 2010.
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2014

19

Year
2010
2011
2012
2013

L. Operating Profit Margin Ratio:

OPM (%)
0.0000005
0.000002
0.000004
0.00625

2013
OPM

2012
2011
2010

0.001

0.002

0.003

0.004

0.005

0.006

0.007

Operating Profit Margin Ratio of Apex Food in 2010 is 5.2%, 2011 is 2.8%, 2012 is 4.6%
and 2013 is 6.25%. So Apex Food is higher Operating Profit Margin Ratio in 2013.We can
observe the bar chart the operating profit margin ratio in 2013 is more than .006, but in
2010, 2011, and 2012 in less than .001. Because it can coverage less net income. In 2013
has high net operating income so, it has high OPM.
Wednesday, December 24,
2014

20

Year
2010
2011
2012
2013

M). Net Profit Margin Ratio:

Net Income
NPM
Sales

NPM (%)
0.000003
0.000004
0.000003
0.00438

2013
2012
NPM

2011
2010
0

0.0005

0.001

0.0015

0.002

0.0025

0.003

0.0035

0.004

0.0045

0.005

Net Profit Margin Ratio of Apex Food in 2010 is 3.8%, 2011 is 3.4%, 2012 is 3.9% and
2013 is 4.38%. So Apex Food is higher Net Profit Margin Ratio in 2013.We can observe
the bar chart the net operating profit in 2013 is more than .004, but in 2010, 2011, and
2012 in less than .001. Because it can coverage less net income.

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2014

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N). Return on Total Assets (ROA)

Year
2010
2011
2012
2013

Net Income
ROA
TotalAssets

ROA (%)
0.000015
0.000007
0.000009
0.00824

2013

2012
ROA
2011

2010
0

0.001

0.002

0.003

0.004

0.005

0.006

0.007

0.008

0.009

ROA of Apex Food in 2010 is 1.5%, 2011 is 7.3% , 2012 is 9.8% and 2013 is 8.24%.
So Apex Food is higher ROA in 2012.We can observed the bar chart the return on
Asset in 2013 is more than .008, but in 2010 is more than .001 , IN 2011,2012 in
less than .001. because it can coverage less net income in 2011,2012, in 2013 is
high net income ,for this reasons it can coverage high ROA
Wednesday, December 24,
2014

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O). Return on Equity (ROE):

Year

Return
on
Equity Ratio (%)

2010

0.0000213

2011

0.000027

2012

0.000028

2013

0.0279883

2013
2012
ROE
2011
2010
0

0.005

0.01

0.015

0.02

0.025

0.03

ROE of Apex Food in 2010 is 2.1%, 2011 is 2.7 %, 2012 is 2.8% and 2013 is 2.799%.
So Apex Food is higher ROE in 2012.We can observe the bar chart the return on equity
in 2013 is more than .025, but in 2010, 2011, and 2012 in less than .005. Because it can
coverage less net income.
Wednesday, December 24,
2014

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Findings:
Apex Food Ltd. Company has a huge number of capitals.
They are designed their products and services luxury

and elegance.
Their product price is high than other competitors.
The ability of the company to meet its current obligation
is not very good.
It has big amount turn over.
Times Interest Earned Ratio is good.
The Debt to Equity Ratio is low.
Return on Equity (ROE) is very low.
Low Liquidity Ratio
High Debt Burden
Wednesday, December 24,
2014

24

Conclusion:
Going through report on Apex Food Limited we have

finally come to some points that this company has lot of

opportunities to become a successful and profitable
company in the business market of Bangladesh very
particularly in the sector of food.
Ratio analysis and graphical presentation shows that Apex

food company has a huge turn over which is very much

positive for this company.
This company needs to work on publicity to explore its

product to the customers. Over all this is to remark that

this company has a chance to grab the food market of
Bangladesh.
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2014

25

Wednesday, December 24, 2014

26