Ratio Analysis

(BEXIMCO Synthetics Ltd.)

BEXIMCO SYNTHETICS LIMITED
BEXIMCO Synthetics Limited (the "Company") a
member of the BEXIMCO Group, was incorporated in
Bangladesh as a public limited company. It went for
public issue of shares and debentures in 1993 and
commenced commercial operation in July 1994.
RATIO ANALYSIS
Ratio analysis is a widely used tool of financial analysis.
It is defined as the systematic use of ratio to interpret the
financial statements so that the strength and
weaknesses of a firm as well as its historical performance
and current financial condition can be determined.
There are two kinds of uses of Financial Ratio
>> Internal uses
>> External uses
CATEGORIES OF FINANCIAL
RATIOS
Liquidity Ratios
Turnover Ratios
Leverage Ratios
Profitability Ratios
Market Value Ratios
 Liquidity Ratio
Current Ratio: 2010 2011
= 1.92 = 2.36

Strength : 2011 isCurrent

higherRatio then 2010
2.5 2.36

2 1.92

1.5 Current Ratio

0.5

0
2010 2011
 Acid Test: 2010 2011
= 0.76 = 1.12

Strength : Ratio of 2011 is higher.

Acid Test
1.2 1.12

0.8 0.76
Acid Test
0.6

0.4

0.2

0
2010 2011
Cash Ratio: 2010 2011
= 0.0072 = 0.02

Strength : Ratio of 2011 is higher.

Cash Ratio

0.02
0.02
0.02
0.01 Cash Ratio
0.01 0.02
0.01
0.01
0.01 0.01
0
0
0
2010 2011
 Leverage Ratios
Debt to Equity: 2010 2011
= 0.05 = 0.12

Strength : Ratio of 2011 is higher.

Debt to Equity

0.12
0.1 Debt to Equity
0.08 0.12

0.06
0.05
0.04
0.02
0
2010 2011
Debt to Total Assets: 2010 2011
=0.04 = 0.08

Strength : Ratio of 2011 is higher.

Debt to Total Assets

0.08
0.07
0.06 Debt to Total Assets
0.05 0.08

0.04
0.03 0.04

0.02
0.01
0
2010 2011
Equity Multiplier: 2010 2011
= 1.14 = 1.45

Strength : Ratio of 2011 is higher.

Equity Multiplier

1.6
1.4
1.2 Equity Multiplier
1 1.45
1.14
0.8
0.6
0.4
0.2
0
2010 2011
 Turnover Ratio
Receivable Turnover: 2010 2011
= 2.08 = 2.14

Strength : Ratio of 2011 is higher.

Receivable Turnover

100%
Receivable Turnover
80%
2.08 2.14
60%
40%
20%
0%
2010 2011
RT in days: 2010 2011
=175.48 = 170.56

Strength : Ratio of 2011 is lower.

RT in Days

176
175
174 RT in Days
173 175.48
172
171
170.56
170
169
168
2010 2011
Inventory Turnover : 2010 2011
= 1.04 = 1.52

Strength : Ratio of 2011 is higher.

Inventory Turnover

1.6
1.4
1.2 Inventory Turnover
1 1.52
0.8 1.04
0.6
0.4
0.2
0
2010 2011
IT in days: 2010 2011
= 350.96 = 240.13

Strength : Ratio of 2011 is lower.

IT in Days

400
350
300 IT in Days
250
350.96
200
240.13
150
100
50
0
2010 2011
Total Asset Turnover: 2010 2011
= 0.35 = 0.5

Strength : Ratio of 2011 is higher.

Total Asset Turnover

0.5
0.45
0.4
Total Asset Turnover
0.35
0.5
0.3
0.25 0.35
0.2
0.15
0.1
0.05
0
2010 2011
 Profitability ratio
Net Profit Margin: 2010 2011
= 0.02 = 0.07

Strength : Ratio of 2011 is higher.

Net Profit Margin

0.07 0.07
0.06
0.05
Net Profit Margin
0.04
0.03 0.02
0.02
0.01
0

2010
2011
Return on Asset: 2010 2011
= 0.007 = 0.035

Strength : Ratio of 2011 is higher.

ROA

0.04 0.04
0.03
0.03
0.02
0.02
0.01 0.01

0.01 ROA
0

2010
2011
Return on Equity : 2010 2011
= 0.009 = 0.05

Strength : Ratio of 2011 is higher.

ROE

0.05 0.05
0.05
0.04
0.04
0.03 ROE
0.03
0.02
0.02 0.01
0.01
0.01
0

2010

2011
Conclusion :
The year 2011 has been a successful year for your
Company. During the year under review, the Company
has achieved a sustainable growth in terms of
production, turnover and profitability. As a result, the
Company has earned a remarkable after tax profit of
Tk. 108.17 million which represents 293.77% growth
compared to last year.
 0.35 0.02 0.01 0.01 1.92 0.76 0.01 0.05 2010
0.041.14 2.08

175.48
Current Ratio
Acid Test
Cash Ratio
Debt to Equity
Debt to Total Assets
Equity Multiplier
Receivable Turnover
RT in Days
Inventory Turnover
IT in days
Tolal Asset Turnover
Net profit margin
Return on Assets
Return on Equity
350.96

1.04
 0.07 0.04 0.50.05 2.36 1.12 0.02 0.12 0.08 1.45
2011
2.14
Current Ratio
Acid Test
Cash Ratio
Debt to Equity
Debt to Total Assets
170.56
Equity Multiplier
Receivable Turnover
RT in Days
Inventory Turnover
IT in days
Tolal Asset Turnover
Net profit margin
240.13 Return on Assets
Return on Equity

1.52
Thank You