A PRESENTATION ON

RATIO ANALYSIS OF APEX FOODS LIMITED

WELCOME TO MY PRESENTATION
 INTRODUCTION
Apex Foods Limited (AFL) was
• Incorporated on 21.03.1979 under the Companies Act 1913 (Repealed in 1994)
• 100% export oriented value-added shrimp processing Company
• The single largest processor & exporter of frozen seafood in Bangladesh
• Its high-quality products are well known in the international seafood market
• received numerous commendations and trophies for product quality and export
turnover
• The products of the Company are exported to the markets in North America, EU
countries, Australia and Russia.
 PROFITABILITY RATIO
•   Net Profit Margin ratio= × 100

 For the year 2020,

× 100= - 0.45%
 For the year 2019,
× 100= -3.42% 
Comment: Improvement in Net profit margin ratio of 2020 compared to 2019 indicating the
company faced profit in 2020 compared to 2019.
 PROFITABILITY RATIO
•   Gross profit Margin ratio=
 For the year 2020, × 100= 8.7%  

 For the year 2019, × 100= 11.51%

Comment: Gross profit of 2019 is more than the gross profit of 2020. This calculation indicates that
the company did bad in 2020 compared to 2019 in terms of earning gross profit. It is not good for
the company.
 LIQUIDITY RATIO
•   Current Ratio=
 For the year 2020, = 1.33

 For the year 2019, = 1.35

Comment: Current ratio of 2020 is bit less than 2019 but more than 1 in both years which is
actually good for the company.
 LIQUIDITY RATIO
•   Quick ratio=  
 For the year 2020,  = 0.41

 For the year 2019, = 0.39

 

Comment: Here the quick ratio of both years is less than 1, which is not good.
 MANAGEMENT EFFICIENCY RATIO
•   Inventory Turnover Ratio=  
 For the year 2020, = 2.21

 For the year 2019, = 1.70 

Comment: Inventory turnover ratio for 2020 indicates that the company sold goods more quickly
than the year 2019 because the ratio of 2020 is greater than the year 2019.
 MANAGEMENT EFFICIENCY RATIO
•  Assets turnover ratio=  
 For the year 2020, = 1.3
 
 For the year 2019, = 1.2

Comment: Here Assets turnover ratio of 2020 increased compared to its previous year. It indicates
that the company made good revenues in this year.
 MANAGEMENT EFFICIENCY RATIO
•Fixed
  assets turnover ratio=  

 For the year 2020, = 5.5

 For the year 2019, = 4.02

Comment: Here it can be seen that Fixed assets turnover ratio of 2020 is greater than that of 2019. It
indicates that the company generated good sales from its fixed assets in 2020.
 LEVERAGE RATIO
• 
Debt-to-equity ratio= × 100
For the year 2020, ×100= 1.49 or 149.23%

For the year 2019, × 100= 1.37 or 137.3%

Comment: Here it can be seen that debt-to-equity ratio of 2020 is higher than that of
2019. It indicates that the company is at higher risk in 2020 than 2019.  
 
 LEVERAGE RATIO
•Debt-to-
  assets ratio=

 For the year 2020, = 0.59

 For the year 2019, = 0.57

 Comment: Here it can be seen that the company has debt assets ratio less than 1 in both years. It
indicates that they had more assets than debt in both years which is good for the company.
 LEVERAGE RATIO
•Debt-to-
  Capital ratio =  

 For the year 2020, = 0.59

 
 For the year 2019, = 0.57 

 
Comment: Debt-to- capital ratio of 2020 is higher than that of 2019. It indicates that the company is at more
risk in the year 2020 compared to 2019.
 RECOMMENDATION AND CONCLUSION

I would like to conclude my report by giving some recommendation to Apex

foods Limited
• They need to increase the revenue and decrease Costs of goods sold increase the
gross profit.
• Their current ratio is good in both years. They need to make it sure that it does not
go below 1
• They also need to increase the amount of Quick ratio as it is less than 1 in both
years
• They need to decrease the value of debt-to-equity ratio in the next following years
• They also need to decrease the value of Debt-to-capital ratio as it was higher in
2020 than 2019
ANY QUESTION?
THANK YOU