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TO OUR PRESENTATION

Presentation Ratio Analysis (Team Paper)

 DIRECTED BY

PROF. SUJIT R. SAHA( P.H. D)

Professor,
Department Of Business Administration
East West University
 PRESENTED BY

Serial Name ID NO.

01 Afrina Jui 2018-1-95-073

02 Md. Rezwan Arafin 2018-2-91-002

03 Suraiya Zabben 2017-1-95-123

 INDUSTRY OVERVIEW

single source of growth

source of foreign exchange earnings
80.7% of the total export earnings
12.36% of the GDP
SQUARE TEXTILE LTD.
Square Textile is a subsidiary company of Square Group. The Company was
incorporated as a public limited company in the year of 1994. . The operation
was started in 1997. It was enlisted in Dhaka Stock Exchange & Chittagong
Stock Exchange in 2002. Within a very short time of span the company
achieved some significance success. Square Textile receives Eko-Tex
standard 100 and ISO-9002 certificates in the year 2000. Authorized capital
of the company is tk. 1000 million. It’s paid- up capital is tk. 251.90 million.
1,223 employees are working in this organization. The business lines of
Square Textiles Limited are manufacturing and marketing of yarn. The Net
Profit after Tax is 413735692 BDT of Square Textile in March 2017.
SAIHAM TEXTILE MILLS LTD.

SAIHAM TEXTILE Mills Ltd. is the textile arm of Saiham Group. The
company has two manufacturing units located at Saiham Nagar,
Habiganj. . It is established in the domestic and export market with a
wide product range from 100% polyester and viscose spun yarns which
are used for knitting. It was established in 1982 and in 1988 it became a
public company. Its head office is located in Dhaka.
 OBJECTIVE OF REPORT

MEASURE OF PROFITABILITY
EVALUATION OF OPERATIONAL EFFICIENCY
ENSURE SUITABLE LIQUIDITY
OVERALL FINANCIAL STRENGTH
COMPARISON
FINANCIAL REPORT DATABASE – SQUARE
TEXTILE LIMITED
FINANCIAL REPORT DATABASE –
SAIHAM TEXTILE LTD
 RATIO ANALYSIS - CURRENT RATIO
Current Ratio
3.5

Years Current ratio of Square Current ratio of

3
Textile Ltd Saiham Textile Ltd
2.5
2015 2.73 1.51
2
2016 2.96 1.57
1.5
2017 2.04 1.41
1

0.5

0
1 2 3
 RATIO ANALYSIS - DEBT RATIO

Debt Ratio
25
Years Debt ratio of Square Debt ratio of Saiham
Textile Ltd Textile Ltd
20

2015 12.72% 48.15%

15
2016 18.89% 40.91%
2017 19.54% 43.88% 10

0
1 2 3
 RATIO ANALYSIS - DAYS SALES
OUTSTANDING
Days Sales Outstanding

120

Years Days Sales Outstanding Days Sales Outstanding 100

of Square Textile Ltd of Saiham Textile Ltd

80

60

2015 107.01 49.38 40

2016 71.72 126.59 20

2017 89.60 139.29 0

1 2 3
 RATIO ANALYSIS - INVENTORY
TURNOVER
Inventory Turnover Ratio
4.5

4
Years Inventory Turnover of Inventory Turnover of
3.5
Square Textile Ltd Saiham Textile Ltd
3

2.5
2015 3.31 1.29 2

2016 4.08 1.49 1.5

1
2017 3.55 1.00 0.5

0
1 2 3
 RATIO ANALYSIS - TOTAL ASSETS
TURNOVER
Total Asset Turnover Ratio
0.95

Years Total Assets Turnover of Total Assets Turnover

0.9
Square Textile Ltd of Saiham Textile Ltd
0.85
2015 0.89 0.39
2016 0.88 0.40 0.8

2017 0.76 0.35 0.75

0.7

0.65
1 2 3
 RATIO ANALYSIS - NET PROFIT
MARGIN
Net Profit Margin Ratio
12.00%

Years Net Profit Margin of Net Profit Margin of

Square Textile Ltd Saiham Textile Ltd 10.00%

8.00%
2015 10.62% 4.53%
6.00%
2016 8.96% 4.63%
4.00%
2017 5.29% 6.02%
2.00%

0.00%
1 2 3
 RATIO ANALYSIS - RETURN ON
ASSETS
Return on
Asset Ratio
Years Return on Assets of Return on Assets of
10.00%
Square Textile Ltd Saiham Textile Ltd
9.00%

8.00%

2015 9.41% 1.78% 7.00%

6.00%
2016 7.92% 1.88% 5.00%

4.00%
2017 4.04% 2.12% 3.00%

2.00%

1.00%

0.00%
1 2 3
 RATIO ANALYSIS - RETURN ON
COMMON EQUITY
Return on Common Equity Ratio
14.00%
Years Return on Common Return on Common
Equity of Square Textile Equity of BPL 12.00%

Ltd 10.00%

2015 12.60% 3.43% 8.00%

2016 10.08% 2.68% 6.00%

2017 5.60% 3.77% 4.00%

2.00%

0.00%
1 2 3
FORECASTING FOR SQUARE TEXTILE
LTD.
FORECASTING FOR SAIHAM TEXTILE
LIMITED.
 CONCLUSION

• In conclusion, it can be said that SQUARE TEXTILE Ltd. is in

a stable financial .On the other hand, SAIHAM TEXTILE Ltd.
is not in a good financial position.
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