...FINAL PROJECT FINANCIAL MANAGEMENT | 2014 | LUCKY CEMENTS LIMITED | FINANCIAL ANALYSIS OF YEARS 2011, 2012 & 2013 | Prof. Tariq Abbasi Zoya Siddiqui (Group Lead) Jawad Zeb Ayesha Tiwanna Beenish Wazir MBA-(A) 2K13 NUST BUSINESS SCHOOL Table of Contents Introduction…………………………………………………………………….3 Aim of study……………………………………………………………………6 SWOT and PEST Analysis…………………………………………………….7 Ratio Analysis ………………………………………………………………...10 * Common Size Analysis * DuPont Analysis * Liquidity Ratios * Profitability Ratios * Debt Management Ratios * Asset Management Ratios * Market Ratios Financial Risk Analysis (Briefly)…………………………………………….. 28 Conclusion and Recommendations………………………………………….…30 Limitations …………………………………………………………………….32 References ……………………………………………………………………..34 Acknowledgement After thanking Allah Almighty for giving us the strength and potential to develop the project at hand, we would like to express our gratitude towards our parents, our Financial Management instructor Mr. Tariq Abbasi and group members for their full dedication; kind co-operation and encouragement that made possible for us to complete the research duly. Many thanks and appreciations go to my colleagues for their timely assistance and last but not least, the people who have helped us out. Introduction ...
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...Performance evaluation and ratio analysis of Pharmaceutical Company in Bangladesh Faruk Hossan Md Ahsan Habib Supervisor: José Ferraz Nunes Examiner: Bengt Kjellén Master‟s thesis in international Business 15 ECTS Department of Economic and Informatics University West Spring term 2010 0 ABSTRACT The thesis applies performance evaluation of pharmaceutical company in Bangladesh. It means evaluate how well the company performs. The main aim is achieved through ratio analysis of two pharmaceutical (Beximco and Square pharmaceutical) companies in Bangladesh. The main data collection from the annual financial reports on Beximco and square pharmaceutical companies in 2007 to 2008.Different financial ratio are evaluated such liquidity ratios, asset management ratios, profitability ratios, market value ratios, debt management ratios and finally measure the best performance between two companies. The mathematical calculation was establish for ratio analysis between two companies from 2007-2008.It is most important factors for performance evaluation. The graphical analysis and comparisons are applies between two companies for measurement of all types of financial ratio analysis. Liquidity ratio is conveying the ability to repay short-term creditors and it total cash. It determines perform of short term creditor of both pharmaceutical companies under the three categories such as current ratio, quick ratio and cash ratio. Asset management ratio is measurement how to effectively...
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...RATIO ANALYSIS Ratios are a very important part in our day to day lives. We need ratios while we cook food, we need ratios while deciding priorities in our life, we basically need ratios in every aspect of our lives. And for every business or financial decision, ratios and their analysis play a very vital role. RATIO ANALYSIS is a widely used tool for 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. The term ratio refers to the numerical or quantitative relationship between 2 variables. This relationship can be expressed as (i) percentages say net profits are 25% of sales (ii) fractions say net profit is one fourth of sales and (iii) proportion of numbers, say the relationship between net profit and sales 1:4. What the ratios do is that they reveal the relationship in a more meaningful way so as to enable the equity investors, management and lenders make better investments and credit decisions. The significance and importance of ratio analysis may be explained as follows: • It helps in evaluating the corporations performance: • It helps in inhume firm comparison: • It simplifies money statements http://www.nippur.nl/Services/BusinessPlanning/tabid/95/Default.aspx Basis of comparison: The use of ratios as a tool of financial analysis, involves their comparison , for a single...
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...Financial Management ------------------------------------------------- BUS508 Dr. Etido Akpan, Professor Financial Management Financial Statements and annual reports are crucial tools for evaluating a business and deciding whether or not to invest in that company. Google and Microsoft are two major corporations that lead Internet technology and information retrieval. Both corporations list their financial information on their respective websites (www.google.com and www.microsoft.com) on their Investor Relations pages for easy access. Google Incorporated (Google) was founded in 1998 by Larry Page and Sergey Brin and was incorporated on September 04, 2008. It was named as a play on the term “googol” which is the mathematical word for the number 10 followed by 100 zeros or 10 100. Google started primarily as a search engine, which is a website that searches the Internet for other websites based on terms entered by the user. Other lines of business include advertising, apps (such as Google Docs, Calendar, and email which Google calls Gmail), mobile and the Android operating system, Chrome (Google’s answer to the internet browser), along with various other products. There are approximately 32,400 full time employees with the majority split between research & development and sales & marketing, the remainder being in general or admin and operations ("Company," n.d.). Advertising is Google’s primary source of income, generating 96% of their 2011 revenue, with the...
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...Cango Financial CanGo Financial Analysis Report The success of a business depends on its ability to remain profitable over the long term, while being able to pay all its financial obligations and earning above average returns for its shareholders. This is made possible if the business is able to maximize on available opportunities and very efficiently and effectively use the resources it has to create maximum value for all involved stakeholders. One way the performance of a company can be measured on critical areas such as profitability, its ability to stay solvent, the amount of debt exposure and the effectiveness in resource utilization, is performing financial analysis where a set of ratios provides a snapshot of company performance and future prospects. Financial analysis is also a very useful technique that forms a basis for making key decisions about company operations. In addition to internal company members, these ratios are used by potential investors and shareholders to make investment decisions about the company. The investment ratios can be broken down into 4 key areas, efficiency, financial leverage, liquidity and profitability. Starting with efficiency, we have the inventory turnover and receivables turnover ratios. The inventory turnover ratio indicates how many times the company is able to turnover its inventory. In CanGo’s case, the ratio value is low, meaning that it is not effectively turning over its inventory, which also means it isn’t quickly and effectively...
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...various valuation approaches. The perspective of such a term paper is to make us familiar with the key factors of security market that affect the users in decision making. For this purpose we have used the annual reports of Bangladesh lamps ltd, and try to analyze and understand the overall capital market components according to our best effort. 1.2 OBJECTIVES OF TERM PAPER This term paper is based on “financial analysis & stock valuation of Bangladesh lamps ltd”. The objective of this term paper is to provide present situation of the Bangladesh lamps ltd, corporate structure, industry performance, stock valuation, SWOT analysis, ratio and risk analysis and financial statement analysis of the company. More precisely we can identify the objective of this report as follows: * To provide the overall industry performance within our selected industry * To acquire experience of a real organization to supplement theoretical knowledge. * To know about how the academic issues taught in our educational institutions come to practical ground in an organization. * To get familiar with the organizational structure and financial aspect of our selected company 1.3 METHODOLOGY For achieving the specific objective of this study, data were gathered from only secondary sources. Secondary Sources: * Company’s published annual reports * securities & exchange commission’s (SEC) Published annual report * Bangladesh lamps ltd Web site * Engineering...
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...traded company that you selected, indicating the significant factors driving your decision as a financial manager. As the financial manager, I have decided to recommend to my investor that they invest heavily in the stock of Apple Incorporated. There are several reasons why I am going to advise my investor to invest in Apple Incorporated. The first of these reasons that have caused me to recommend Apple as a good investment is because at the end of 2012 according to Bernstein analyst Toni Sacconaghi Apple alone was (2012) “responsible for seventeen percent of the gains of the entire Standard and Poor’s Five hundred. The next reason for my recommendation of investment in Apple is because of its long-term performance over the previous ten years. Since 2002 Apple’s stock has soared some 7,800 percent verse 54 percent for the S&P Five hundred. (Birger, 2012) In my opinion this strength over the past ten years shows that this stock is a reliable investment now and will continue to be a reliable investment well into the future. Furthermore while in the past Apple has been considered specifically a growth stock, currently I would consider it not only a growth stock but also a value play. The reason for this consideration is because according to Birger (2012) it has seen a “66 percent earnings growth over the prior four quarters as well as a 1.8 percent yield and a price/earnings ratio of 13, lower than the S&P 500’s 16 P/E”. All of these reasons show that even though Apple’s...
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...In order to make proper and informed decisions they must understand the financial information reported by companies. This report will be looking at two companies, PepsiCo and Coca-Cola and addressing their current ratios. We will discuss the best company to invest in based on the ratios described. Other non-financial elements that may help investors make a decision will also be discussed. Current ratios describe the relationship between the current assets and their liquidity and the current liabilities a company holds (Loth, R., 2010). This ratio is used as a way to evaluate a company’s ability to pay their current debt (their liabilities). In calculating the current ratio, the current assets are divided by the total current liabilities. Another name for the current ratio is Cash ratio. The Cash ratio states the purpose of the ratio; and many investors and lenders look at the current ratio in order to make financial decisions. PepsiCo’s current assets are $12,571, their current liabilities are $8,756, leaving them with a ratio of 1.436 (PepsiCo.,(2009). Coca-Cola’s current assets are $5,170 and their current liabilities are $4,588, leaving them with a ratio of 1.127 (Coca-Cola Enterprises, 2009). PepsiCo’s ratio is well above 1, which indicates that they are more than capable of paying short term debt. According to Kurtz (2010), a ratio of 2:1 is satisfactory, although a ratio of a company must be compared to the industry to get a feel for how the company...
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... 3144417 Microsoft Trend and Comparative Financial Analysis Liquidity Microsoft’s liquidity ratios depict that the company’s performance is aligned to meet its current obligations. The company has a Current Ratio of 2.50 which is on par with the industry average. This measure signifies that the company is operating at the same level as its competitors at maintaining short-term solvency. With regards to its Quick Ratio, Microsoft is currently showing a lower ratio than the industry average of 3.35. This lower ratio (2.45) is due to the increase in the company’s inventory during Q4. This increase can be attributed to the company anticipating a rise in sales for the Q1 and Q2 holiday season. Looking at Microsoft’s Q2 and Q3 quick ratio (3.17 and 3.22 respectively), it is evident that the company is performing at a level equivalent to its competitors in the industry. Asset Utilization Microsoft’s Asset Management Ratio’s predict that the company is not effectively and efficiently utilizing its assets. There is a large variance between the Fixed Asset Turnover ratio between Microsoft and the industry average. Microsoft Corp.'s inventory turnover deteriorated from Q2 2014 to Q3 2014 and from Q3 2014 to Q4 2014. The company is currently holding more in Fixed Assets than other competitors driving its ratio down to 3.12 (industry at 6.13). Holding a larger number of Fixed Assets can become detrimental to Microsoft...
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... Week 7 DQ 1 Corporate Ethics Tactics Week 7 DQ 2 Profit vs. Responsibility BUSN 460 Week 1 Team Name and Contract BUSN 460 Week 2 Analysis Report - Issues Report BUSN 460 Week 3 Individual Financial Analysis Report BUSN 460 Week 4 Analysis Report BUSN 460 Week 5 Analysis Report BUSN 460 Week 6 Analysis Report BUSN 460 Final Project Consulting CanGo Final Report BUSN 460 Senior Project Week 3 Individual Financial Analysis Report Individual Financial Analysis Report Conclude working on your Individual Financial Analysis Report, due this week. Note that this is not a team assignment. Be sure to include proper citations for all references you use. Go to the CanGo Intranet and pull the financial statements. Use these to fill out the table found in Doc Sharing labeled Financial Analysis Project, and submit to the Individual Financial Analysis Dropbox in Week 3 after making sure that you have added your last name at the beginning of the file name for your file. Your assignment is due by Sunday, end of week, 11:59 PM (Mountain Time). Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these Step-by-Step Instructions or watch this Dropbox Tutorial. Course Home – Financial Analysis...
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...Joe Tagliaboschi EMBA 222 Managerial Accounting November 3, 2013 Assessing a Company’s Future Financial Health SciTronics is a medical device company. This financial evaluation will cover the period from 2005 through December 31, 2008. The evaluation will include a review of the profitability, use of assets, and financial leverage metrics. This company appears to be financially healthy and has shown improvement in many of the metrics reviewed. The company has little long term debt, and adequate cash and owners’ equity balances. However, there are also some metrics that reveal that without some additional adjustments, the growth experienced in the past may not be sustainable. This evaluation will answer the following questions as well. * What is the assessment of the performance of SciTronics during the 2005-2008 period? * Has the financial strength and its access to external sources of finance improved or weakened? * What are the 2-3 most important questions you would ask management as a result of the analysis To evaluate the company’s performance the following evaluation criteria will be used. * Has the overall profitability increased or decreased during the period? * How well does the company deploy its assets? * How sound is the company financing? Profitability How profitable is the company? The company profit continues to grow; the Return on Sales has improved by 2.3% over the 2005 period and there was sales...
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...losses continue to mount as airlines face increased security costs and lagging passenger counts. Investors are wary about the industry as financially strapped companies struggling to stay afloat by reducing the number of flights and value-added services, streamlining operating costs, laying-off thousands of employees, and restructuring debt labor force. Many companies have had to seek loans to meet operational expenses, resulting in the total debt load of the industry surging from $55 billion to $90 billion since 1999, towering nine times over equity. Several airlines have or are on the brink of filing bankruptcy protection. This paper examines the annual statements of three companies from the perspective of an investor and employs financial statement analyses as the basis for a recommendation of the most favorable investment choice. Company Background Continental Airlines Founded in 1934, Continental Airlines (Hawaiian) is the fifth largest U.S. airline, operating in its New York, Houston and Cleveland hubs. Expressjet is Continental's primary subsidiary, running mostly regional flights. Continental also operates in Europe, Canada, Mexico,...
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...Benchmarking Analysis of PepsiCo MGT 521 December 3, 2012 Watler Goodwyn Benchmarking Analysis of PepsiCo It is hard to tell what company to invest in until a person starts calculating their financial ratios. A company may have high revenues; however, that does not mean that they are fiscally responsible for those revenues. I was surprised to notice that just because the company may do good on the current ratio or earnings ratios that does not necessarily mean that they are financially stable. A person cannot look at one or even a few ratios to determine if a company is financially sound. Many ratios have are pulled to determine the financial stability of the company. I used a variety of ratios to use for analysis. I pulled a Current Ratio, Acid Ratio, Debt Ratio, Return on Sales, Return on Equity, Inventory Ratio, Cash Conversion Cycle and Net Income Per Share on the companies of Pepsi Co, Coca Cola, Dr. Pepper Snapple Group and Mondelez International. Because the company I had selected to analyze was PepsiCo, I know that I needed to diversify the companies I selected between food and beverage because the company covers both markets. Coca Cola is the top beverage distributor in the world, Pepsi Co is second and Dr. Pepper Snapple Group is the third. Mondelez International is a food company that is a recent spin-off from Kraft Foods. It has some familiar name brands of Nabisco...
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...Our talk is divided into 2 main parts: Ratio and Cash flow analysis. Firstly I will talk about how to measure and decompose ROE. Then Anuar and Kostas will look at another concepts of Ratio analysis and finally Min Xe going to explain cash flow analysis. And we will be glad to answer any questions that you may have at the end or during our presentation. Financial analysis is the examination of a business from a variety of perspectives in order to fully understand the financial situation and determine how best to strengthen the business. Financial involves examining historical data to gain information about the current and future financial health of a company. When looking at a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flow statement. There are two main tools of financial analysis: ratio analysis and cash flow analysis. Ratio analyses is used to evaluate relationships among financial statement items. it is Single and the most important technique of financial analysis in which quantities are converted into ratios for meaningful comparisons, with past ratios and ratios of other firms in the same or different industries. Ratio analysis determines trends and exposes strengths or weaknesses of a firm. Cash flow analysis - An examination of a company's cash inflows and outflows during a specific period. The analysis begins with a starting balance and generates an ending balance after accounting for all cash receipts and...
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...[pic] [pic] Assignment On “A Business Analysis of Square Pharmaceutical Ltd.” Course Title: Financial Statement Analysis Course code: ACT-513 Assignment on “Business Analysis of” (Square Pharmaceutical Ltd) Submitted to: Mr. Mohammed Sakhawat Hossain Assistant Professor Faculty of Business and Economics Daffodil International University Submitted by: Mujahed Hossin 113-14-588 Mortazur Rahman 113--14-587 S. M. Mahedi Hasan 121-14-688 Raihanul Haque 121-14-689 Submission date: August 23th, 2009 DAFFODIL INTERNATIONAL UNIVERSITY Letter of Transmittal August 13, 2012 Mr. Mohammed Sakhawat Hossain Assistant Professor Faculty of Business and Economics Daffodil International University 102, Sukrabad, Mirpur Road, Dhanmondi Dhaka-1207. RE: Submission of assignment on “A Business Analysis of Square Pharmaceutical Ltd. Dear Sir, With due earnest honor, we are the students of MBA, have the pleasure to completing and submitting the assignment on “Submission of assignment on “A Business Analysis of Square Pharmaceutical Ltd.”Here, we have analyzed how Square Pharmaceutical Ltd. Manage it’s working capital and use it by observing the low years annual reports. This exercise was interesting as well as source of huge practical knowledge for us. We got the great opportunity to contributing...
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