Chapter Four: Findings of the Study

4.1Introduction
2.3 Liquidity ratio
A. Current Ratio
Table 1: Current Ratio
Calculation

(Tk. in thousand)

Year
2010

6191667 2513157

Ratio
2.46:1

Standard Value
2:1

2011

7148462 2648161

2.70:1

2:1

2012

8197421 3064944

2.03:1

2:1

2013

8903422 4382581

2.03:1

2:1

Average
Source: Calculated from Annual Report

2.47:1

2:1

Table 1 reveals that current ratio was the highest in 2011 at 2.70 and lowest in2013at 2.03 The
average ratio of the company is2.47 This average ratio is above the standard norm. It is quite
satisfactory as compared with standard norm (2:1).
B. Quick Ratio
Table 2: Quick Ratio
Year
2010

Calculation

( Tk. in thousand)

5332264 2513157

Ratio
2.12:1

Standard Value
1:1

2011

4955039 2648161

1.87:1

1:1

2012

5171038 3064944

1.68:1

1:1

2013

58877039 4382581

1.34:1

1:1

1.75

1:1

Average
Source: Calculated from Annual Report

Table 1 reveals that Quick ratio was the highest in 2010 at 2.12 and lowest in 2013 at 1.34 The
average ratio of the company is1.75 This average ratio is above the standard norm. It is quite
satisfactory as compared with standard norm (1:1).

2.4 Activity Ratio

A. Inventory Turnover Ratio

Table 3: Inventory Turnover Ratio

( Tk. in thousand)

Year
2010

Calculation
3317640 1983809

Ratio
2 times

Standard Value
8 times

2011

4103709 2137827

2 times

8 times

2012

4899713 236295

3 times

8 times

2013

5651898 2422934

2 times

8 times

2.25 times

8 times

Average
Source: Calculated from Annual Report

Table 1 reveals that Inventory turnover ratio was the highest in 2013at 3 and lowest in 2010 at 2
The average ratio of the company is 2.25 This average ratio is below the standard norm. It is
quite dissatisfactory as compared with standard norm (8 times).
B. Asset Turnover Ratio
Table 4: Asset Turnover Ratio

(Tk. in thousands)

Year
2010

Calculation
6490847 21372399

Ratio
0.30

Standard Value
2 times

2011

7890241 23033340

0.34

2 times

2012

9289115 24589810

0.38

2 times

2013

10490699 27470751

0.38

2 times

0.35

2 times

Average
Source: Calculated from Annual Report

Table 4 reveals that Asset turnover ratio was the highest in 1013at.38and lowest in2010 at .30 the
average ratio of the company is .35 This average ratio is below the standard norm. It is quite
dissatisfactory as compared with standard norm (2 times).

C. Accounts Receivable Turnover Ratio

Table 5: Accounts Receivable Turnover Ratio

( Tk. in thousand)

Year
2010

Calculation

6490847
821356

Ratio
8 times

Standard Value
4-6 times

2011

7890241 899790

9 times

4-6 times

2012

9289115 1070314

9 times

4-6 times

2013

10490699 1205919

9 times

4-6 times

8.75 times

4-6 times

Average
Source: Calculated from Annual Report

Table 5 reveals that Account receivable turnover ratio was the highest in 2010 at 9 and lowest in
2010 at 8 the average ratio of the company is 8.75. This average ratio is above the standard norm.
It is quite satisfactory as compared with standard norm (4-6 times).
2.5 Profitability Ratio
A. Gross Profit Margin Ratio
Table 1: Gross Profit Margin Ratio
Year
2010

Calculation

( Tk. in thousand)

3173207 6490847

Ratio
48%

Standard Value
20-30%

2011

3786532 7890241

48%

20-30%

2012

4389401 9289115

47.25%

20-30%

2013

4838800 10490699

46.12%

20-30%

47.23%

20-30%

Average
Source: Calculated from Annual Report

Table 1 reveals that Gross profit margin ratio was the highest in 2010 at 48 and lowest in 2013 at
46.12 The average ratio of the company is 47.23. This ratios is above the standard norm. It is
quite satisfactory as compared with standard norm (2.30%).

B. Net Profit Margin Ratio

Table 1: Net Profit Margin Ratio

( Tk. in thousands)

Year
2010

Calculation

1051648
6490847

Ratio
16%

Standard Value
5%-10%

2011

1198525 7890241

15%

5%-10%

2012

1349389 9289115

14%

5%-10%

2013

1404762 10490699

13%

5%-10%

14.5%

5%-10%

Average
Source: Calculated from Annual Report

Table 1 reveals that Net profit margin ratio was the highest in 2010 at 16% and lowest in 2013 at
13% The average ratio of the company is 14.5%. This ratios is above the standard norm. It is
quite satisfactory as compared with standard norm (5-10%).
C. Return on Assets
Table 1: Return on Assets

( Tk. in thousands)

Year
2010

Calculation

1051648
21372399

5%

Standard Value
10%-12%

2011

1189525 23033340

5.20%

10%-12%

2012

1319389 24589810

5.36%

10%-12%

2013

1404762 27470751

5.11%

10%-12%

5.17%

10%-12%

Average
Source: Calculated from Annual Report

Ratio

Table 1 reveals that Return on Assets ratio was the highest in 2012 at 5.36% and lowest in 2010
at 5% The average ratio of the company is 5.17% This average ratio is below the standard norm.
It is quite dissatisfactory as compared with standard norm (10-12%).

2.6 . Leverage Ratio

A. Debt-equity
Table 1: Debt-equity

(Tk. in thousands)

Year
2010

Calculation

3542211
15974086

Ratio
0.22:1

Standard Value
2:1

2011

3532290 17128128

0.20:1

2:1

2012

2996070 1840861

0.16:1

2:1

2013

3927666 19775552

.19:1

2:1

.19:1

2:1

Average
Source: Calculated from Annual Report

Table 1 reveals that Debt equity ratio was the highest in 2010 at .22 and lowest in 2013 at .19
The average ratio of the company is .19 This average ratio is below the standard norm. It is quite
dissatisfactory as compared with standard norm (2:1).
B. Debt to Asset Ratio
Table 1: Debt to Asset Ratio
Year
2010

Calculation

(Tk. in thousands)

3542111 21372399

Ratio
17%

Standard Value
50%

2011

35322290 23033340

15%

50%

2012

2996070 24589810

12%

50%

2013

3927666 2747071

14%

50%

14.5%

50%

Average
Source: Calculated from Annual Report

Table 1 reveals that Debt to assets ratio was the highest in 2010 at 17% and lowest in 2013 at
14% The average ratio of the company is 14.5 This average ratio is below the standard norm. It
is quite dissatisfactory as compared with standard norm (50%).
4.3 Conclusion