Fin201report (Recovered).docx - Group Members 1 Fariha...

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Group Members: 1. Fariha Shamrin-1520007 2. Dilruba Yeasmin-1410327 3. Afroza Akter Jhuma-1410347 4. Avijit Dey-1521645 5. Tanveer Ahsan-1521625 Instructor: Mr. G. M. Wali Ullah Course: Fin 201: Introduction to Finance Section: 6 Spring 2017 Date: 30 th March 2017 Table of Contents Introduction ..................................................................................................... 6 Company Background: ..................................................................................... 7 “Saiham Textile Mills Ltd” ............................................................................. 7
Company Background: ..................................................................................... 8 “Envoy Textiles Ltd” ...................................................................................... 8 Ratio Analysis: ................................................................................................. 9 Profitability Ratio: Year 2011 ......................................................................... 9 Interpretation: ........................................................................................... 9 Asset Utilization Ratio: Year 2011 ................................................................. 9 Interpretation: ......................................................................................... 10 Liquidity Ratio: Year 2011 ........................................................................... 10 Interpretation: ......................................................................................... 10 Debt Utilization Ratio: Year 2011 ................................................................ 10 Interpretation: ......................................................................................... 11 Earnings per share EPS: Year 2011 ............................................................. 11 Interpretation: ......................................................................................... 11 Profitability Ratio: Year 2012 ....................................................................... 11 Interpretation: ......................................................................................... 11 Asset Utilization Ratio: Year 2012 ............................................................... 12 Interpretation: ......................................................................................... 12 Liquidity Ratio: Year 2012 ........................................................................... 12 Interpretation: ......................................................................................... 13 Debt Utilization Ratio: Year 2012 ................................................................ 13 Interpretation: ......................................................................................... 13 Earnings per share EPS: Year 2012 ............................................................. 13 Interpretation: ......................................................................................... 13 Profitability Ratio: Year 2013 ....................................................................... 14 Interpretation: ......................................................................................... 14 Asset Utilization Ratio: Year 2013 ............................................................... 14 Interpretation: ......................................................................................... 15 Liquidity Ratio: Year 2013 ........................................................................... 15 Interpretation: ......................................................................................... 15 Debt Utilization Ratio: Year 2013 ................................................................ 15 Interpretation: ......................................................................................... 16 2 | P a g e
Earnings per share EPS: Year 2013 ............................................................. 16 Interpretation: ......................................................................................... 16 Profitability Ratio: Year 2014 ....................................................................... 16 Interpretation: ......................................................................................... 17 Asset Utilization Ratio: Year 2014 ............................................................... 17 Interpretation: ......................................................................................... 17 Liquidity Ratio: Year 2014 ........................................................................... 18 Interpretation: ......................................................................................... 18 Debt Utilization Ratio: Year 2014 ................................................................ 18 Interpretation: ......................................................................................... 18 Earnings per share EPS: Year 2014 ............................................................. 19 Interpretation: ......................................................................................... 19 Profitability Ratio: Year 2015 ....................................................................... 19 Interpretation: ......................................................................................... 19 Asset Utilization Ratio: Year 2015 ............................................................... 20 Interpretation: ......................................................................................... 20 Liquidity Ratio: Year 2015 ........................................................................... 20 Interpretation: ......................................................................................... 21 Debt Utilization Ratio: Year 2015 ................................................................ 21 Interpretation: ......................................................................................... 21 Earnings per share EPS: Year 2015 ............................................................. 21 Interpretation: ......................................................................................... 21 Trend Analysis: ............................................................................................... 22 Earnings per Share: .................................................................................... 22 Interpretation: ......................................................................................... 22 Profit Margin: .............................................................................................. 23 Interpretation: ......................................................................................... 23 Return on Asset (ROA): ............................................................................... 24 Interpretation: ......................................................................................... 24 Return on Equity (ROE): .............................................................................. 25 Interpretation: ......................................................................................... 25 3 | P a g e
Receivable Turnover: .................................................................................. 25 Interpretation: ......................................................................................... 26 Average Collection Period: .......................................................................... 26 Interpretation: ......................................................................................... 27 Inventory Turnover: ..................................................................................... 27 Interpretation: ......................................................................................... 28 Fixed Asset Turnover: .................................................................................. 29 Interpretation: ......................................................................................... 29 Total Asset Turnover: ................................................................................... 30 Interpretation: ......................................................................................... 30 Current Ratio: ............................................................................................. 31 Interpretation: ......................................................................................... 31 Quick Ratio: ................................................................................................ 32 Interpretation: ......................................................................................... 32 Debt to Asset: ............................................................................................. 33 Interpretation: ......................................................................................... 33 Times Interest Earned: ................................................................................ 34 Interpretation: ......................................................................................... 34 Fixed Charge Average: ................................................................................ 35 Interpretation: ......................................................................................... 35 Conclusion: .................................................................................................... 36 Reference: ...................................................................................................... 36 4 | P a g e
Introduction For this assignment, we were given to calculate and analyze all the different ratios of the 2 textile companies “Saiham Textile Mills Ltd” & “Envoy Textiles Ltd” for latest 5 years (2011-2015). And compare how the business is doing on the basis of these found ratios. From this assignment we learnt how to compare different companies using ratios, how to compute ratios and draw related graphs We were given 2 textile companies. 1. Saiham Textile Ltd 2. Envoy Textiles Ltd. We computed different ratios to compare the 2 companies. Overall these 2 companies performed well in their financial year, revenues earned was fairly enough in compared to the investment and expenses incurred. Yearly fluctuations were there like every business firm.

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