Abstract: The report at hand manifests an in-depth analysis of the Financial Performance Analysis and valuation of Marico Bangladesh Limited. Marico Bangladesh Limited is a company that caters to the fast moving consumer goods (FMC! segment of the mar"et of Bangladesh. The company produces products such as hair oil# edi$le oil and soaps. The purpose of this report %as to sc scru ruti tini ni&e &e the the Financ inancia iall Perfo erform rman ance ce An Anal alys ysis is and and valu valuat atio ion n of the the company and 'ustify %hether prota$ility is su)cient enough to determine the performance of a company. This report comprises of a literature revie% %hich pro'ects the perceptions of di*erent authors a$out the di*erent ratios used to analyses the Financial Performance Analysis and valuation follo%ed $y the analysis of the Financial Performance Analysis and valuation using nancial ratios and ends %ith a $rief conclusion and recommendation. recommendation.
+
Table of Contents +., ntroduct ntroduction ion
Page +
+.+Bac"ground of the company + +. /ationale of the study ., Literature Literatu re /evie%
0
.+ Financial 1tatement (/atio! Analysis 0 .+.+ Li2uidity /atio 3 .+. Asset Management /atio 4 .+.0 5e$t Management /atio 6 .+.3 Prota$ility /atio
7
.+.4 Mar"et 8alue /atio 9 0., 5ata Analysis +, 0.+ Financial Financial 1tatement (/atio! Analysis of Marico Bangladesh Limited +, 0.+.+ Li2uidity /atios
+,
0.+. Asset Management /atios +0
Table of Contents +., ntroduct ntroduction ion
Page +
+.+Bac"ground of the company + +. /ationale of the study ., Literature Literatu re /evie%
0
.+ Financial 1tatement (/atio! Analysis 0 .+.+ Li2uidity /atio 3 .+. Asset Management /atio 4 .+.0 5e$t Management /atio 6 .+.3 Prota$ility /atio
7
.+.4 Mar"et 8alue /atio 9 0., 5ata Analysis +, 0.+ Financial Financial 1tatement (/atio! Analysis of Marico Bangladesh Limited +, 0.+.+ Li2uidity /atios
+,
0.+. Asset Management /atios +0
0.+.0 5e$t-Management /atio +: 0.+.3 Prota$ility /atios +6 0.+.4 Mar"et 8alue /atios 3., Conclusion
0
4., /ecommendation
3
:., List of /eferences
4
6., Bi$liography
:
Appendi;
6
List of Figures: Pages Fig.+ Types of Financial /atios 0 Fig. Current /atio Comparison +, Fig.0
+
Fig.3 nventory Turnover /atio Comparison +0 Fig.4 Fi;ed Asset Turnover Comparison +3 Fig.: Total Asset Turnover Comparison Comparis on +4 Fig.6 5e$t /atio Comparison Comparis on
+:
Fig.7 ross Margin /atio Comparison +6 Fig.9 =et Margin /atio Comparison Comparis on
+9 0
Fig.+, /eturn on >2uity Comparison , Fig.++ /eturn on Asset Comparison
+
Fig.+ Perception of 5i*erent ?sers of Financial Performance Analysis and valuation 0
3
1.0
Introduction
The main goal of all $usiness organi&ation is prot ma;imi&ation# ho%ever in order to pursue this goal the organi&ations need capital %hich can $e raised through de$t or e2uity. The nancial institutions are $eneted from providing loans and similarly shareholders are $eneted through shares. n order to decide %hether to invest in an organi&ation or not Financial Performance Analysis and valuation are very useful and to get a transparent and in-depth vie% of an organi&ations nancial position nancial ratio analysis is a very useful tool. Beasley and Brigham (,,7! suggested that nancial statement analysis may $e used to help predict the rm@s nancial position in the future and to determine e;pected earnings and dividends. Bull (,,6! further stated that nancial ratio analysis help managers to analyses control and improve organi&ations operations. Credit analysts can use it to determine the a$ility of an organi&ation to pay its de$ts and security analysts can use it to analyses an organi&ations a$ility to pay interests on its $onds.
1.1 Background of the coman! Marico Bangladesh Limited (MBL! is the su$sidiary of Marico Limited# ndia (Marico!. MBL@s Products in Pure Coconut oil# >di$le il# air care and 1"in Care reach out to more than 4,,#,,, outlets in Bangladesh. MBL touches the lives of + out of every 0 Bangladeshi through its portfolio of $rands such as Parachute# 1a*ola# air Code# Aromatic# Camelia and Beliphool to name a fe%# most of %hich en'oy leadership positions (=o. + in coconut oil segment!# %ith
signicant
mar"et
shares
in
respective
categories.
MBL
%as
incorporated in the year +999 and holds a leadership position in the fast moving consumer goods (FMC! space in Bangladesh. MBL recorded a turnover of T". 4#047 Million (?15 60.3 Million! in + months ended on 0,th 1eptem$er# ,+, and T". #73: Million (?15 09 Million! in : months ended on 0+st March# ,++ (Marico$d.com# ,+!. +
1." #ationale of the stud! Marico Bangladesh Limited (MBL! has recorder high turnover in $oth ,+, and ,++# although it started its operations in +999 and %as in enlisted in 5ha"a stoc" e;change and Chittagong stoc" e;change in ,,9. The main o$'ective of this study is to determine the nancial position of this organi&ation. Bangladesh Brand forum had 'udged Parachute coconut oil@ the $est $rand in Bangladesh in ,++ (The 5aily 1tar# ,+!. The main rationale of this study is to determine all aspects of this organi&ation in terms of e)ciency# de$t management# li2uidity and prota$ility and to understand %hether high turnover is su)cient enough to pro'ect a strong nancial position of an organi&ation. igh turnover is al%ays a positive sign $ut nancial ratios can also help to ascertain possi$le areas of improvement.
".0
Literature #e$ie%
2.1 Financial Statement (Ratio) Analysis According to i$son (,+,! investors and other e;ternal users of nancial information %ill often need to measure the performance and nancial health of an organi&ation. This is done in order to evaluate the success of the $usiness# determine any %ea"nesses of the $usiness# compare current and past
performance#
standards.
and
Financially
compare
sta$le
current
organi&ations
performance are
%ith
desira$le#
industry
$ecause
a
nancially sta$le $usiness is one that successfully ensures its a$ility to generate income for investors and retain or increase value. Fi
i n 2 ua n d
i c
i
i ay
/ / a t a t o o
t
l i i s
g.1) Types of Financial Ratios There are many di*erent methods that can $e used alone or together to help investors assess the nancial sta$ility of an organi&ation. ne of the most common methods is nancial ratio analysis. The $asic ratios include ve 0
categoriesD prota$ility ratios# li2uidity ratios# de$t ratios# asset management ratios and mar"et- value ratios (1iddi2ui# ,,:!. /atio analysis involves the methods of calculating and interpreting nancial ratio in order to access the rm@s performance and status. The $asic inputs to ratio analysis are the rm@s income statement and $alance sheet for the periods to $e e;amined (Peterson and Fa$o&&i# ,+!.
".1.1 Li&uidit! #atio: Brigham and ouston (,,9! stated that li2uidity ratios measure the organi&ations a$ility to meet short-term o$ligations. These include the current ratio and the 2uic" ratio. This analysis that provides a 2uic"# easy method to measure of li2uidity $y relating the amount of cash and other current assets to the rm@s current o$ligations. These include the current ratio and the 2uic" ratio. Current Ratio: According to Megginson and 1mart (,,7! the current ratio is calculated $y ta"ing the total amount of current assets and dividing it $y the total amount of current lia$ilities. This ratio indicates the e;tent to %hich current lia$ilities are covered $y those assets e;pected to $e converted to cash in the near future. Current assets normally include cash# mar"eta$le securities# accounts receiva$les# and inventories. Current lia$ilities consist of accounts paya$le# short-term notes paya$le# current maturities of long-term de$t# accrued ta;es# and other accrued e;penses (principally %ages!. The formula used to calculate this ratio isD Current /atio E Current Assets Current Lia$ilities Current ratio sho%s a rm@s a$ility to cover its current lia$ilities %ith its current assets. n Pharmacy a current ratio of at least is considered
3
necessary to ensure that the rm has su)cient li2uid resource to meet its short term needs if sales should suddenly drop or e;penses increases.
Quick Ratio: The 2uic" ratio is calculated $y ta"ing the total amount of current assets and deducting the inventory and dividing it $y the total amount of current lia$ilities. This ratio indicates the rm@s li2uidity position as %ell. t actually refers to the e;tent to %hich current lia$ilities are covered $y those assets e;cept inventories. The formula used to calculate this ratio isD
".1." Asset 'anagement #atio: Measures ho% e*ectively the rm is managing its assets. These ratios are designed to ans%er the follo%ing 2uestion %hether the total amount of each type of asset as reported on the $alance sheet seem reasona$le# too high# or too lo% on vie% of current and pro'ected sales level (Lasher# ,+,!. Belo% are discussed four types of asset management ratioD
4
+. nventory Turnover /atio . The 5ays sales utstanding 0. Fi;ed Asset Turnover /atio 3. Total Asset Turnover /atio
Inventory Turnover Ratio (IT): The inventory turnover ratio is calculated $y ta"ing the total cost of goods sold and dividing it $y total inventory. The ratio is regarded as a test of e)ciency and indicates the rapidity %ith %hich the company is a$le to move its merchandise. The formula used to calculate this ratio isD nventory Turnover E Cost of oods 1old nventory nventory Turnover indicates the e*ectiveness of the inventory management practices of the rm (Bagad# ,,7!. Day sales outstanding (D!): Lee (,,:! stated that the average collection period ratio is calculated $y ta"ing the total accounts receiva$le and dividing it $y the average credit sales per day# %hich is the annual credit sales divided $y 0:4. The 5ays 1ales utstanding ratio sho%s $oth the average time it ta"es to turn the receiva$les into cash and the age# in terms of days# of a companyHs accounts receiva$le. The formula used to calculate this ratio isD :
5ay sales utstanding E (Accounts /eceiva$le Average 5aily 1ales! ; 0:4 This ratio is of particular importance to credit and collection associates. /eceiva$le turnover indicates the 2uality of receiva$le and ho% successful the rm is in its collections. Fi"ed #sset Turnover Ratio (F#T): The total asset turnover ratio is calculated $y ta"ing total sales and dividing it $y ;ed assets. The ;ed asset turnover ratio measures the e*ectiveness in generating net sales revenue from investments in net property# plant# and e2uipment $ac" into the company. The formula used to calculate this ratio isD Fi;ed Asser Turnover E 1ales =et Fi;ed Assets t evaluates only the investments. /eceiva$le Turnover indicates the 2uality of receiva$le and ho% successful the rm is in its collections (Mayo# ,,6!. Total #ssets Turnover Ratio (T#T): The Total Assets Turnover is similar to ;ed asset turnover since $oth measures a companyHs e*ectiveness in generating sales revenue from investments $ac" into the company. Total asset turnover evaluates the e)ciency of managing all of the companyHs assets. The formula used to calculate this ratio isD Total Asset Turnover E 1ales Total Assets Total asset turnover indicates ho% %ell a company has used its ;ed and current assets to generate sales (i$son# ,+,!.
".1.( )ebt 'anagement #atio: According to Ba"er and Po%el (,,9! de$t management ratios reveal +! The e;tent to %hich the rm is nanced %ith de$t and
6
! The li"elihood of defaulting on its de$t o$ligations. These ratios includeD De$t Ratio: 5e$t to Total Asset sho%s the percentage of the rms@ assets that are supported $y de$t nancing. The formula used to calculate this ratio isD 5e$t /atio E Total Lia$ilities Total Assets The de$t ratio generally called the de$t to total asset ratio# measures the percentage of funds provided $y the creditors (Bagad# ,,7!.
".1.* Pro+tabilit! #atios: According to Brigham and 5aves (,,9! prota$ility is the net result of a num$er of policies and decisions. These ratios provide information a$out the %ay the rm is operating. Prota$ility ratios sho% the com$ined e*ects of li2uidity# asset management and de$t on operating results. There are four important prota$ility ratios that %e are going to analy&eD +. =et Prot Margin . ross prot Margin 0. /eturn on Asset. 3. /eturn on >2uity %et &ro't argin on sales gives us the net prot that the $usiness is earning per dollar of sales. The formula used to calculate this ratio isD =et Prot Margin E =et Prot 1ales 7
ross &ro't argin on sales gives us the gross prot that the $usiness is earning per dollar of sales. The formula used to calculate this ratio isD ross Prot Margin E ross Prot 1ales
Return on *+uity (R!*): /eturn on >2uity measures the amount of net income earned $y utili&ing each dollar of total common e2uity. t is the most important of the IBottom lineJ ratio. This can compute the amount %hich the shareholders are going to get for their shares. The formula used to calculate this ratio isD /eturn on >2uity E =et income availa$le to common stoc"holders Common >2uity /> measures the return on the o%ners@ investment in the rm (Megginson and 1mart# ,,7!.
Return on Total #ssets (R!#): /eturn of total asset measures the amount of net income earned $y utili&ing each dollar of total assets. The formula used to calculate this ratio isD /eturn on Total Assets E =et ncome Total Assets /A means /eturn on Assets %hich reKects ho% %ell a manager has used all availa$le funds to generate prots including $oth e2uity de$t (Besley and Brigham# ,,7!.
".1., 'arket -alue #atio:
9
Mayo (,,6! stated that these ratios relate the rm@s stoc" price to its earnings and $oo" value per share. They give management an indication of %hat investors thin" of the company@s future prospects $ased on its past performance. &rice, *arnings (&,*): Price earnings ratio sho%s ho% much the investors are %illing to pay per dollar of reported prots. To compute the P> ratio# %e need to "no% the rm@s earnings per share (>P1! (Ba"er and Po%el# ,,9! The formula used to calculate this ratio isD Price>arning ratio E Mar"et price per share >arnings per share
(.0
)ata Anal!sis
3.1Financial Statement
(Ratio)
Analysis of Marico Bangladesh
Limited 1: -.1.1 i+uidity Ratios Current /atioD
+ +,
Current #atio Times/ .3 .0 . .+ +.9 +.7 Current /atio (Times!
Fig./) Current Ratio Co0parison n general if current ratio is greater than its industry average then it is good for the company. Current ratio sho%s a rm@s a$ility to cover its current lia$ilities %ith its current assets. From the analysis# %e can see that in ,+ the current ratio is .09 times of the Marico Bangladesh Ltd %hereas the ndustry average is .,+ times. t indicates that company current ratio is in a stronger position and the company has su)cient cash li2uidity to meet its short-term li2uidity. This sho%s that Marico Bangladesh@s current assets are rising faster than current lia$ilities. A higher current ratio is prefera$le.
++
*"i$it 1.1# (ource: arico 2anglades #nnual Report /31/)
*"i$it 1.12 (ource: arico 2anglades #nnual Report /31/)
*"i$it 1.1C (ource: arico 2anglades #nnual Report /31/) Further analysis of the nancial statement indicates that Marico Bangladesh decreased its current assets such as ;ed deposits and investments ( *"i$it 1.1#! reduced its short terms nances (*"i$it 1.12! in proper proportion# thus reducing current lia$ilities for %hich their performance of ,+ is $etter
+
than ,++. They also have a surplus of nancial assets over nancial lia$ilities (*"i$it 1.1C!
uick #atio Times/ .4 +.4 + ,.4 ,
Fig.-) Quick Ratio Co0parison n general# higher 2uic" ratio is prefera$le than lo%er ratio. From the data a$ove# the industry@s average 2uic" ratio is ,.9 times %hereas the Marico@s 2uic" ratio is +.: times.
*"i$it 1./ (ource: arico 2anglades #nnual Report /31/) The comparison $et%een the years ,++ and ,+ reveals that their 2uic" ratio has su$stantially decreased during the year. An in-depth analysis into the nancial statement sho%s that inventory has increased su$stantially +0
(*"i$it 1./! and in contrast to the current ratio# there is an overall reduction in the 2uic" ratio. 1o it indicates that if the 2uic" ratio is lo%er that means the industry@s prot margin %as not so high that they can ma"e some investments paying o* the lia$ilities that could result in an increase in assets and decrease in lia$ilities to ma"e the li2uidity position far $etter.
-.1./ #sset anage0ent Ratios nventory Turnover /atioD
In$entor! Turno$er #atio .Times/ 7 : 3 . , -nventory Turnover /atio (Times!
Fig.4) Inventory Turnover Co0parison n general higher turnover ratio is $etter than lo%er. nventory Turnover indicates the e*ectiveness of the inventory management practices of the rm.
*"i$it 1.-(ource: arico 2anglades #nnual Report /31/)
+3
From the analysis# it has clearly sho%s that Marico has relatively lo%er inventory turnover ratio than industry. t indicates that the inventory level is higher that may point to overstoc"ing or deciencies in the product line or mar"eting e*ort. igh inventory levels are unhealthy $ecause they represent an investment %ith a &ero rate of return in addition to the increased cost associated %ith maintaining those inventories. t also opens the company up to trou$le should prices $egin to fall. The comparison %ith the past years pro'ects a signicant reduction in this ratio. o%ever further analysis sho%s that they have increased levels of inventory (>;hi$it +.! %ith increased cost of sales (*"i$it 1.-! %hich in turn decreases the overall ratio. An assumption can $e suggested# that increase prices in the commodities of Bangladesh especially ra% materials may $e the cause of this increase. 5ay 1ales utstandingD The Financial Performance Analysis and valuation indicate that Marico Bangladesh Limited have no de$tors for %hich this ratio does not apply to them. Fi;ed Asset TurnoverD
Fied Asset Turno$er 4 , +4 +, 4 ,
Fi;ed Asset Turnover
Fig.5) Fi"ed #sset Turnover Co0parison +4
The ;ed asset turnover ratio indicates ho% e)ciently the ;ed assets are used to generate sales. n contrast to the performance of the previous year it can $e seen that the ;ed asset turnover ratio of Marico Bangladesh Limited has reduced.
*"i$it 1.4(ource: arico 2anglades #nnual Report /31/) A deeper analysis of the Financial Performance Analysis and valuation sho%s that the company has purchased many ;ed assets in ,+ ( *"i$it 1.4! and there also has $een su$stantial addition during the year. n contrast to the industry average the gures seem appropriate $ut it must increase its revenue to increase this ratio. Total Asset TurnoverD
Total Asset Turno$er +.7 +.: +.3 +. + ,.7 ,.: ,.3 ,. ,
Total Asset Turnover
+:
Fig.6) Total #sset Turnover Co0parison
The total asset turnover ratio sho%s ho% e)ciently the total assets of a company are used to generate sales. The data a$ove sho%s that the total asset turnover of Marico Bangladesh is a$ove the industry average. o%ever a further insight at the nancial reports and the other ratios clearly indicates that the increase of the ne% ;ed assets (*"i$it 1.4! has increased this ratio# %hich sho%s that their total assets have not $een e)cient enough to generate enough sales.
-.1.- De$t7anage0ent Ratio
5e$t /atioD
+6
)ebt #atio ,.4 ,.34 ,.3 ,.04 ,.0 ,.4 ,. ,.+4 ,.+ ,.,4 ,
5e$t /atio
Fig.8) De$t Ratio Co0parison
The de$t ratio of Marico Bangladesh is ,.07# %hich suggests that 07 percent of their total assets are their total lia$ilities. n contrast to their previous year@s ratio of ,.3:# this is a very positive sign for the company. Their ratio is also $etter than the industry average %hich is also good for the overall image of the company as this attri$ute increases the shareholder@s condence.
-.1.4 &ro'ta$ility Ratios ross Margin /atioD +7
2ross 'argin #atio 3/ 0, 4 , +4 +, 4 ,
ross Margin /atio (N!
Fig.9) ross argin Ratio Co0parison
The ratio a$ove indicates the percentage of gross margin to sales. t is evident that the gross margin ratio of Marico Bangladesh Limited has reasona$ly decreased over the years. This ratio may $e $etter than the industry average $ut %ith comparison $et%een the years it is a $ad indication. The company has increased its revenue over the years $ut unfortunately it has not $een a$le to cope up %ith the costs (*"i$it 1.-! for %hich this ratio has $een decreasing.
*"i$it 1.5# (ource: arico 2anglades #nnual Report /31/)
+9
*"i$it 1.52 (ource: arico 2anglades #nnual Report /31/)
*"i$it 1.5C (ource: arico 2anglades #nnual Report /31/) Further analysis reveals that that the revenue has decreased in comparison to the previous year and the cost of sales has increased ( *"i$it 1.- and 1.5#!. n order to get a transparent vie%# a deeper analysis reveals that in their product segments there has $een su$stantial reduction in their soap and edi$le oil division (*"i$it 1.52!# though there has $een an increase in some of their segments. Their cost of sales has increased mainly due to salary and %ages# loading charges and factory rent (*"i$it 1.5C!. =et Margin /atioD
,
4et 'argin #atio 3/ +3 + +, 7 : 3 , =et Margin /atio (N!
Fig.) %et argin Ratio Co0parison The net margin ratio of Marico Bangladesh has drastically reduced and it comparatively lo%er than the industry average. n contrast to the gross margin ratio# this usually comprises of further non-manufacturing e;penses such as distri$ution and administration e;pense.
*"i$it 1.6# (ource: arico 2anglades #nnual Report /31/)
*"i$it 1.62 (ource: arico 2anglades #nnual Report /31/) This ratio has decreased mainly due to the increase in distri$ution e;penses such as $usiness promotion e;penses and mar"et research e;penses %hich
+
%as not a part of Marico Bangladesh during the previous year (*"i$it 1.6# and 1.62!.
/eturn on >2uity (/>!D
#eturn on 5&uit! 3/ 04 0, 4 , +4 +, 4 ,
/eturn on >2uity (N!
Fig.13) Return on *+uity Co0parison
n general return on e2uity is the rate of return on the share holder e2uity. igher return on >2uity is $etter than lo%er and vice versa. From the analysis# it sho%s that Marico@s has higher return on e2uity than industry. o%ever in contrast to the previous year the /> has drastically decreased and the possi$le cause of this occurrence is the lo%er net income of ,+.
Return on #sset (R!#):
#eturn on Asset 3/ 4 , +4 +, 4 ,
/eturn on Asset (N!
Fig.11) Return on #sset Co0parison
n general return on asset sho%s the overall investment earned $y the rm. igher return on asset is $etter for the company than lo%er. From the analysis# %e can assume that Marico is in a good position $ecause it is signicantly higher than industry. t indicates that the company@s assets are $eing utili&ed at a fair e)ciency. igher return on asset sho%s that company lo%er than average use of de$t and lo%er return on asset sho%s results from the company@s higher-than-average use of de$t. n contrast to the previous years the ratio is relatively lo%er %hich is caused $y the increase in assets %hich increases the non-current assets in turn decreasing the overall ratio %ith the decreased net income acting as a catalyst.
-.1.5 arket ;alue Ratios 0
Price>arning /atioD
*"i$it 1.8 (ource: arico 2anglades #nnual Report /31/)
The Price>arning ratio generally denotes the amount investors are %illing to pay per dollar of reported prots. The P> ratio of Marico Bangladesh is B5T .:# %hich is good. Although the earnings per share have decreased in contrast to the previous year (*"i$it 1.8!# $ased on the other ratios it can $e assumed that the ratios %ill improve over the ne;t years.
*.0
:Conclusion 3
The data analysis reveals some valua$le ndings pertinent to the Financial Performance Analysis and valuation of Marico Bangladesh Limited. t can $e o$served that overall the ratios may have declined to some e;tent $ut they can surely $e improved. The li2uidity ratios have decreased in general $ut the current ratio has improved due to decrease in current assets. The e)ciency ratios have decreased as %ell due to the increase in ;ed assets and the prota$ility ratios has declined overall due to increased e;penditures in the plant and distri$ution e;penses. ence is can $e stated that high turnover does not generally indicate a good nancial position.
6sers
Percetion
Basis of 7udgment
In$estors
ood
>P1# Price>arning /atio
Credit Anal!sts
ood
Current
/atio#
5e$t
/atio
'anagers
mprovement /e2uired
Prota$ility /atios
Fig.1/) &erception of Di
An analysis from di*erent vie% points sho%s that from the vie% of an investor the performance is good $ased on the >arnings per share (>P1!# from the vie% point of the credit analysts# the performance is also reasona$le $ased on their current ratio# $ut from the vie% point of a manager# there are some areas for improvement. Although this company has %on praises and received a%ards and recorded high turnovers# it can $e said that only high
4
turnover does not signify that a company is performing %ell. There is al%ays scope for improvement.
,.0
#ecommendation
Marico Bangladesh Limited must control costs and increase their e)ciency. The distri$ution e;penses must $e decreased and some of their product lines must $e scrutini&ed for improvement. They should spend more e)ciently in their mar"eting in order to increase their customer $ase. They should focus more on the products %hich have a declining mar"et. Their products compete in a highly competitive mar"et and hence a slight loss of mar"et share can cause massive damages to their Financial Performance Analysis and valuation. n order to cope up in the FMC segment of the mar"et Marico must spend more on their mar"eting and promotion activities.
:
8.0 List of #eferences Boos: • •
•
•
•
•
•
•
• •
•
•
•
Bagad# 8.1. (,,7! Management and Finance. Technical Pu$lications. Ba"er# .O. and Po%ell# . (,,9! ?nderstanding Financial ManagementD A Practical uide. ohn Qiley and 1ons. Besley# 1. and Brigham# >.F. (,,7! >ssentials of Managerial Finance. +3th >dition. Thompson igher >ducation. Brigham# >.F. and 5aves# P./. (,,9! ntermediate Financial Management. +,th >dition. Cengage Learning. Brigham# >.F. and ouston# .F. (,,9! Fundamentals of Financial Management. +th >dition. Cengage Learning. Bull# /. (,,6! Financial /atiosD o% to use nancial ratios to ma;imi&e value and success for your $usiness. >lsevier. i$son# C.. (,+,! Financial /eporting and AnalysisD ?sing Financial Accounting nformation. +th >dition. Cengage Learning. Lasher# Q./. (,+,! Practical Financial Management. : th >dition. Cengage Learning. Lee# C.F. (,,:! >ncyclopedia of Finance. 1pringer. Mayo# .B. (,,6! nvestmentsD An ntroduction. 9 th >dition. Cengage Learning. Megginson# Q.L. and 1mart# 1.B. (,,7! ntroduction to Corporate Finance. nd >dition. Cengage Learning. Peterson# P.P. and Fa$o&&i# F.. (,+! Analysis of Financial Performance Analysis and valuastion . nd >dition. ohn Qiley and 1ons. 1iddi2ui# 1.A. (,,:! Managerial >conomics and Financial Analysis. =e% Age nternational.
9ebsites:
6
•
•
(,+! /9 top $rands >in accolades? The 5aily 1tar# +4 uly ,+# R?/LD httpD%%%.$angladeshne%s3.comthedailystar,+,6+47-top$rands-%in-accolades-6+7:.htmS (accessedD , =ovem$er ,+!
(,+! ndustry Comparison of Marico Bangladesh Limited# R?/LD httpDinvesting.$usiness%ee".comresearchstoc"snancialsratios.asp tic"erEMBLDB5S (accessedD nd =ovem$er ,+!
.0 Bibliograh! Boos: • •
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•
•
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•
Bagad# 8.1. (,,7! Management and Finance. Technical Pu$lications. Ba"er# .O. and Po%ell# . (,,9! ?nderstanding Financial ManagementD A Practical uide. ohn Qiley and 1ons. Besley# 1. and Brigham# >.F. (,,7! >ssentials of Managerial Finance. +3th >dition. Thompson igher >ducation. Brigham# >.F. and 5aves# P./. (,,9! ntermediate Financial Management. +,th >dition. Cengage Learning. Brigham# >.F. and ouston# .F. (,,9! Fundamentals of Financial Management. +th >dition. Cengage Learning. Bull# /. (,,6! Financial /atiosD o% to use nancial ratios to ma;imi&e value and success for your $usiness. >lsevier. i$son# C.. (,+,! Financial /eporting and AnalysisD ?sing Financial Accounting nformation. +th >dition. Cengage Learning. Lasher# Q./. (,+,! Practical Financial Management. : th >dition. Cengage Learning. Lee# C.F. (,,:! >ncyclopedia of Finance. 1pringer. Mayo# .B. (,,6! nvestmentsD An ntroduction. 9 th >dition. Cengage Learning. Megginson# Q.L. and 1mart# 1.B. (,,7! ntroduction to Corporate Finance. nd >dition. Cengage Learning. Peterson# P.P. and Fa$o&&i# F.. (,+! Analysis of Financial Performance Analysis and valuastion . nd >dition. ohn Qiley and 1ons. 1iddi2ui# 1.A. (,,:! Managerial >conomics and Financial Analysis. =e% Age nternational.
9ebsites: 7
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(,+! /9 top $rands >in accolades? The 5aily 1tar# +4 uly ,+# R?/LD httpD%%%.$angladeshne%s3.comthedailystar,+,6+47-top$rands-%in-accolades-6+7:.htmS (accessedD , =ovem$er ,+!
(,+! ndustry Comparison of Marico Bangladesh Limited# R?/LD httpDinvesting.$usiness%ee".comresearchstoc"snancialsratios.asp tic"erEMBLDB5S (accessedD nd =ovem$er ,+!
Aendi #ppendi" 7#
9
(ource: arico 2anglades #nnual Report /31/)
0,
(ource: arico 2anglades #nnual Report /31/)
0+
#ppendi" @2
(ource: arico 2anglades #nnual Report /31/)
0
#ppendi" 7 C CalculationsD
3,772,368,319
Current /atio E
1,580,629,566
E
.09 Times
3,772,368,319 −1,777,938,918
E E
1,580,629,566
+.: Times
4,357,734,462
nventory Turnover E E
1,777,938,918
0.,6 Times
6,036,260,121
Fi;ed Asset Turnover,+ E E
430,263,163
+3
6,124,079,239
Fi;ed Asset Turnover,++ E
278,328,750
E
6,036,260,121
Total Asset Turnover,+ E
4,202,631,482
00
E +.33 6,124,079,239
Total Asset Turnover,++ E
4,613,066,124
E +.0 1,599,437,266
5e$t /atio,+ E
4,202,631,482
E ,.07 2,150,468,795
5e$t /atio,++ E
4,613,066,124
E ,.3: 1,498,505,659
ross Margin /atio E
6,036,260,121
E ,.370 or 3.70N 535,619,787
=et Margin /atio E
6,036,260,121
E ,.,76 or 7.76N 535,619,787
/eturn on Asset E
4,202,631,482
E ,.++4 or +.+4N 535,619,787
/eturn on >2uity,+ E
2,603,194,216
E ,.,46 or ,.:N 770,628,693
/eturn on >2uity,++ E
2,462,597,329
E ,.0+ or 0+.N
03
