Professional Documents
Culture Documents
Agriculture Marketing Company Limited (PRAN) is a well known and leading food company in
Bangladesh. The purpose of this report is to analyze the financial condition of this company.
Financial statement analysis is important to boards, managers, payers, lenders, and others who
make judgments about the financial health of organizations. One widely accepted method of
assessing financial statements is ratio analysis, which uses data from the balance sheet and
income statement to produce values that have easily interpreted financial meaning. Most
companies routinely evaluate their financial condition by calculating various ratios and
comparing the values to those for previous periods, looking for differences that could indicate a
meaningful change in financial condition. Many companies also compare their own ratio values
to those for similar organizations, looking for differences that could indicate weaknesses or
opportunities for improvement.
In this report firstly have we developed different years income statement and balance sheet.
Then based on this financial statements information we have calculated five types of ratios for
different years. Now this report is free for boards, managers, payers, lenders, and others who
make further analysis on Agriculture Marketing Company Limited (PRAN)s financial condition
OBJECTIVE
We were instructed from our finance course lecturer Md. Al-Mamun to submit a financial report
on a public company that has a membership on Dhaka Stock Exchange (DSE).
We choose Agricultural Marketing Company Limited (PRAN) which fulfills all the demand of
our instructor, to make a financial analysis report on it. We had some objectives behind making
the report. These are
We believe that we were successful to fulfill most of our objectives. Thanks Allah to bless on us.
METHODOLOGY
Agriculture Marketing Company Limited (PRAN) is a well known and leading food company in
Bangladesh. So, to make a financial report on this company we have to give our full effort. It is
not an easy job to analyze AMCL (PRAN)s financial performance. We tried our best.
We collect information from website, reference book from Bangladesh, yearly annual report of
AMCL (PRAN) and from other sources.
To collect further information, we have to go to the head office of AMCL (PRAN). We tried to
meet with the head of finance department and head of accounting department. But they were too
busy on their job. Beside this, the head office didnt provide us such information that can help us
making the report.
We have to go to Dhaka Stock Exchange to collect the annual reports of AMCL (PRAN) and
after a lot of straggle we got that.
We take information from the book of Balance Sheet of Joint Stock Companies (2000-2004)
and (2005-2008) published by the Statistics Department of Bangladesh Bank.
We also have collected information from the PRAN GROUP website (www.pranfoods.net).
Besides this we have collected as many information we can collect from outside source.
LIMITATIONS
It would be a book if we start to narrate our problems and struggles. We have to face lots of
problem to complete this report. As the date of submission was too close when we learned a little
about make a financial report. We have to take preparation for our 2nd midterm exam with the
makings of report. We feel lack of latest financial and accounting information when we
constructing the report. We have to base on the old information in maximum time. But anyhow
we tried to attach latest information about AMCL (PRAN).
On the annual report got a lot of problem. The balance sheets were puzzled us. Besides this there
was not sufficient information to make further calculation. AMCL (PRAN)s website is not so
much informatics. They do not attach or upload any kind of information that can help us in
further financial calculation. The head office of AMCL (PRAN) was not supportive. They dont
give us any kind of information & instruction that can help us. We have to face a lot of hazards
on collecting information. But we believe that we have succeeded to make a standard report at
last.
SWOT ANALYSIS
Maximum products of Agricultural Marketing Company Limited (PRAN) are not at that quality
level which customers want. They should try to maintain the quality. A market research is
important to take decision about it.
DESCRIPTION
Net sales (credit)
account receivable(average)
Cost of goods sold
Inventory(average)
Total liabilities
stock holders ' equity
Earnings before interest and tax
Interest expense
Gross profit
Net income
Average stock holders ' equity
Preferred dividends
Common stock outstanding
Earnings per share
Market price per share
account receivable
inventory
Current Liabilities
long term debt
Cash
(Figure in taka)
2003
2004
2005
2006
2007
2008
752,710,227 775,131,774
22,588,655
556,668,499 574,352,080
474,942,235
659,353,090
293,913,711 309,015,238
112,564,325 117,230,905
66,414,159 75,577,947
196,041,728 200,779,694
44,386,931 40,309,163
301,464,475
0
0
800000
800000
55.484
50.386
595
15,220,740 29,956,569
456,605,572 493,278,897
464,013,742 503,199,292
185,979,959 156,153,798
479,893,670 465,169,036
797,683,342
36,229,016
592,870,264
492,443,473
665,569,485
330,037,953
120,088,857
77,553,914
204,813,078
28,947,713
319,526,596
0
800000
36.185
401
42,501,462
491,608,049
499,627,981
165,941,504
495,979,457
867,000,825
44,002,771
667,768,855
285,238,849
652,452,909
337,687,792
111,229,319
80,001,154
199,231,970
28,947,713
333,862,873
0
800,000
36
364
45,504,079
496,023,771
925,498,835
52,608,030
715,867,802
489,684,905
610,269,583
346,718,576
120,446,156
87723138
209,631,033
29,331,413
342,203,184
0
800,000
37
581
59,711,981
483,346,039
985,454,208
51,977,441
761,332,926
483,773,092
561,863,186
361,323,351
129,501,252
90,559,523
224,121,282
35,949,959
354,020,964
0
800,000
45
1,023
44,242,900
484,200,145
499860851
496269678
469374340
93291132
33184149
92771180
39484215
100749301
32660159
128644738
16173069
Particulars
Sales
COGS
Gross profit
Administrative &selling
expense
Contribution to worker's
participation welfare
funds
Profit before interest and
tax
2003
2004
2005
2006
2007
2008
2,192,260
2,238,681
1,643,588
1,722,264
2,049,564
Interest expenses
Net profit before taxation
Income tax
Net profit after taxationtransferred to Statement
of changes in
shareholders equity
66,414,159
46,150,166
1,763,235
44,386,931
75,577,947
41,652,958
1,343,795
40,309,163
77,553,914
42,534,943
1,763,186
28,947,713
80,001,154
31,228,165
2,280,453
28,947,713
87723138
32,723,018
3,391,605
29,331,413
90,559,523
38,941,729
3,355,444
35,949,959
55.4836638
50.3864538
36.1846413
36
37
45
800000
800000
800000
800,000
800,000
800,000
Particulars
2003
2004
2005
2006
2007
2008
234,925,685
Net Assets:
344,755,402
nvestments(at cost)
18,680,000
18,880,000
18,210,000
16,480,000
15,280,000
15,000,000
Fixed assets
249,925,685
nventory
484,200,145
15,220,740
29,956,569
42,501,462
45,504,079
59,711,981
44,242,900
90,619,101
76,235,298
93,291,132
92,771,180 100,749,301
128,644,738
18,026,597
22,781,135
33,184,149
39,484,215
Current Assets
32,660,159
16,173,069
673,260,852
45,625,000
50,102,521
21,709,923
409,262,567
46,533,312
44,209,923
8,276,626
13,609,529
10,816,582
12,891,489
12,723,372
12,666,636
16,246,147
20,263,963
8,413,189
6,304,038
7,339,692
8,618,255
3,443,926
5,210,687
4,471,647
817,653
364,776
109,713
76,119
169,468
15,850
31,244
2,238,681
2,582,715
3,534,006
4,937,086
nterest Payables
41,875,000
1,645,449
4,468,825
5,027,030
4,870,216
3,539,686
6,519,324
9,692,931
Unclaimed dividend
1,003,600
1,224,623
2,706,690
1,580,230
1,810,717
2,090,922
Current Liabilities
469,374,340
203,886,512
Total Assets
453,812,197
FINANCED BY :
Reserve &surplus
Proposed dividend
80,000,000
80,000,000
80,000,000
80,000,000
80,000,000
80,000,000
40,000,000
40,000,000
40,000,000
40,000,000
40,000,000
40,000,000
200,314,361
19,200,000
19,200,000
20,800,000
20,800,000
20,800,000
22,400,000
Shareholders Equity
361,323,351
92,488,846
453,812,197
Particulars
Net Sales in Taka
% of Sales
Growth
COG
% of COG
Growth
Gross Profit in
Taka
% of Gross Profit
Growth
Gross Profit to
Sales
Net Profit in
Taka
% of Net Profit
Growth
Net Profit to
Sales
2003
2004
2005
2006
2007
2008
752,710,2
27
775,131,7
74
797,683,3
42
2.98%
2.91%
867,000,8
25
8.69%
925,498,8
35
6.75%
985,454,2
08
6.48%
556,668,4
99
554,372,0
80
-0.41%
592,874,2
92 667,768,8 715,867,8 761,332,9
55
02
26
6.95%
12.63%
7.20%
6.35%
196,041,7
28
200,779,6
94
2.42%
204,813,0
78
2.01%
199,231,9
70
-2.72%
209,631,0
33
5.22%
224,121,2
82
6.91%
26.04%
25.90%
25.68%
22.98%
22.65%
22.74%
44,386,93
1
40,309,16
3
-9.19%
28,947,71
3
-28.19%
28,947,71
3
0.00%
29,331,41
3
1.33%
35,949,95
9
22.56%
5.90%
5.20%
3.63%
3.34%
3.17%
3.65%
Fixed Asset
Current Asset
Current
Liabilities
Share owners
equity
Return on Equity
Fixed Assets
Turnover (
Times)
Current Ratio
Quick Ratio
363,435,4
02
580,472,0
10
464,013,7
42
293,913,7
11
15.10%
2.07
346,116,4
29
622,251,8
99
503,199,2
92
309,015,2
38
13.04%
2.24
335,022,6
46
660,584,7
92
499,627,9
81
330,037,9
53
8.77%
2.38
316,861,4
09
673,783,2
45
499,860,8
51
319,812,8
85
9.05%
2.74
280,520,6
79
676,467,4
80
496,269,6
78
327,927,7
49
8.94%
3.30
249,925,6
85
673,260,8
52
469,374,3
40
342,714,3
61
10.49%
3.94
1.25
1.00
1.24
1.16
1.32
1.21
1.35
1.26
1.36
1.24
1.43
1.34
2004
2.98%
-0.41%
2.42%
2005
2.91%
6.95%
2.01%
2006
8.69%
12.63%
-2.72%
2007
6.75%
7.20%
5.22%
2008
6.48%
6.35%
6.91%
-9.19%
5.20%
13.04%
-28.19%
3.63%
8.77%
0.00%
3.34%
9.05%
1.33%
3.17%
8.94%
22.56%
3.65%
10.49%
Particulars
2003
% of Sales Growth
% of COG Growth
% of Gross Profit
Growth
% of Net Profit Growth
Net Profit to Sales
Return on Equity
5.90%
15.10%
30.00%
20.00%
Value
10.00%
0.00%
-10.00%
2003
2004
2005
2006
2007
2008
-20.00%
% of
Sales
Growth
-30.00%
-40.00%
Particulars
2003
2004
2005
2006
2007
2008
2.07
2.24
2.38
2.74
3.30
3.94
1.25
1.00
1.24
1.16
1.32
1.21
1.35
1.26
1.36
1.24
1.43
1.34
4.00
3.50
3.00
Value
2.50
Fixed Assets
Turnover ( Times)
2.00
Current Ratio
1.50
Quick Ratio
1.00
0.50
Quick Ratio
Current Ratio
Fixed Assets Turnover ( Times)
0.00
2003
2004
2005
2006
Year
2007
2008
RATIO ANALYSIS
As the definition of ratio analysis we know that it involves method of calculating and
interpreting financial ratios to analysis and monitor the firms performance. The basic inputs to
ratio analysis are the firms income statement and balance sheet. In this report, financial ratio
analyses are conducted for wishing and evaluating the operating performance of the company
AMCL (PRAN). We analyze the ratio under the following categories:-
A. Liquidity Ratio
Net working capital
Current ratio
Quick ratio
Liquidity Ratio
Net
working
capital
B. Activity Ratio
Account receivable turnover
Average collection period
Inventory turnover
Average age of Inventory
Operating cycle
Total asset turnover
Current
ratio
Quick ratio
Account
Receivable
Turnover
Average
Collection
Period
Total Asset
Turnover
Activity
Ratio
Operating
Cycle
Inventory
Turnover
Average
Age of
Inventory
C. Leverage
Debt ratio
Debt to equity ratio
Times interest earned
Debt to
Equity
Ratio
Debt
Ratio
Times
Interest
Earned
Leverage
D. Profitability
Gross profit margin
Profit margin
Return on total asset
Return on common stock
Profit
Margin
Gross
Profit
Margin
E. Market value
Earnings per share
Price to earnings ratio
Book value per share
Dividends yield
Dividend payout
A. Liquidity Ratio:
Return on
Total
Assest
Profitability
Retun on
Common
Stock
Fiscal years
2004
2005
Current Assets
622,251,899
Current Liabilities
503199292
119,052,607
2006
499627981
499860851
2007
2008
673,260,852
496269678
469374340
203,886,512
200,000,000
150,000,000
100,000,000
50,000,000
0
2004
2005
2006
Year
2007
2008
Comment: In 2004 AMCL (PRAN)s working capital was 119052607tk, in 2008 AMCL
(PRAN)s net working capital is 203886512tk and eventually the amount raises from2004-2008.
The increase in net working capital is a favorable sign.
Calculation of
of AMCL (PRAN):
This ratio, which is subject to seasonal fluctuations, is used to measure the ability of an
enterprise to meet its current liabilities out of current assets. Current Ration is a measure of
margin of safety to creditors. The formula for the calculation of current ratio is
Fiscal years
2004
2005
2006
2007
2008
Current Assets
622,251,89
9
660,584,79
2
673,783,24
5
676,467,48
0
673,260,85
2
Current Liabilities
503199292
499627981
499860851
496269678
469374340
1.24
1.32
1.35
1.36
1.43
Current ratio
Current ratio
Time
1.50
1.40
1.30
1.20
Current ratio
1.10
2004
2005
2006
2007
2008
Year
Comment: In 2004 the current ratio was 1.24 and it started to increase and became 1.43 in 2008.
It is good for the company because a high current ratio is needed when the firm has difficulty
borrowing on short notice.
Calculation of
of AMCL (PRAN):
The acid-test ratio or quick ratio is the ratio between quick current assets and quick
current liabilities. The term quick asset refers to current assets which can be converted
into cash immediately or at a short notice without diminution of value. The current
assets which are excluded are; prepaid expenses and inventory. The exclusion of
inventory is based on the reasoning that is it is not easily and readily convertible into
cash. The ratio is
Fiscal years
2004
Cash
2005
2006
2007
2008
22,781,135
33,184,149
39,484,215
32,660,159
16,173,069
76235298
93291132
92771180
100749301
128644738
Account receivable
29,956,569
42,501,462
45,504,079
59,711,981
44,242,900
Current Liabilities
503199292
499627981
499860851
496269678
469374340
0.26
0.34
0.36
0.39
0.40
Quick ratio
Quick ratio
0.50
Time
0.40
0.30
0.20
Quick ratio
0.10
0.00
2004
2005
2006
2007
2008
Year
Comment: In 2004 the Quick Ratio was .26. It started to increase and became .40 in the year
2008. The increase in Quick Ratio indicates that the company is in a good position.
B. Activity Ratio:
Activity ratio measures the speed with which various accounts are converted into sales
or cash inflows or outflows. Here we measure the firms activity with the help of some
major ratios.
Calculation of Account Receivable turnover of AMCL (PRAN):
Account Receivables ratios consist of the accountants receivable turnover ratio and the average
collection period. The accountants receivable turnover ratio gives the number of times accounts
receivable is collected during the year. It is founded by dividing net credit sales (if not available, then
total sales) by the average accountants receivable. Average accounts receivable is typically found by
adding the beginning and ending accounts receivable and dividing by 2. Although average accountants
receivable may be computed annually, quarterly or monthly, the ratio is most accurate when the shortest
period available is used. In general, the higher the accounts receivable turnover, the better since the
company is collecting quickly from customers and these funds can then be invested. However, an
excessively high ratio may indicate that the companys credit policy is too stringent, with the company
not tapping the potential for profit through sales to customers in higher risk classes. The ratio is
Fiscal years
2004
2005
2006
2007
2008
775,131,77
4
797,683,34
2
867,000,82
5
925,498,83
5
985,454,20
8
Average account
receivable
22588654.5
36229015.5
44002770.5
52608030
51977440.5
34.32
22.02
19.70
17.59
18.96
Account receivable
turnover
30.00
20.00
Account receivable
turnover
10.00
0.00
2004
2005
2006
2007
2008
Year
Comment: From the chart we can see that the Pran group had an Account Receivable turnover
ratio 34.32 in 2004 which gradually started to decrease and it became 18.96 in 2008. It indicates
a serious problem in collecting from customers. The company needs to reevaluate its credit
policy, which may be too lax, or its billing and collection practices or both.
Fiscal years
2004
Account receivable
turnover
Average collection
period(days)
2005
10.64
2006
16.58
2007
18.52
2008
20.75
19.25
30.00
20.00
10.00
Average collection
period
0.00
2004
2005
2006
2007
2008
Year
Comment: In 2004 the average collection period was 10.64 or 11 days and it became 19.25 or 19
days in 2008. It is a danger for the company because the customer balance may become
uncollectible.
Fiscal years
2004
2005
2006
2007
2008
574352080
592870264
667768855
715867802
761332926
Average inventory
474942235
492443473 471492523.2
489684905
483773092
Inventory turnover
1.21
1.46
1.57
1.20
1.42
Inventory turnover
2.00
Time
1.50
1.00
0.50
Inventory turnover
0.00
2004
2005
2006
2007
2008
Year
Comment: Holding excess inventory is not good for any firm as well as holding poor amount of
inventory is also bad. In 2004 the inventory turnover rate was 1.21 it reduced to 1.20 in 2005 and
after that it started to rise. It became 1.57 in 2008. The decline in inventory (in 2005) indicates
the stocking of goods. Having excess inventory means, the funds which could be invested
elsewhere are being tied up in inventory. But gradually inventory turnover has improved, which
is good for the organization.
Fiscal years
2004
Inventory turnover
2005
301.83
2006
303.17
2007
257.72
2008
249.68
231.93
300.00
200.00
Average age of
inventory
100.00
0.00
2004
2005
2006
2007
2008
Year
Comment: In 2004 the average age of inventory was 301.83 days and it was 303.17 in 2005. The
lengthening of the holding period shows a potentially greater risk of obsolescence.
Fiscal years
Average collection
period(days)
Average age of Inventory
Operating cycle
2004
2005
2006
2007
2008
Operating cycle
Days
400.00
200.00
Operating cycle
0.00
2004
2005
2006
2007
2008
Year
Comment: We know the operating cycle of a business is the number of days it takes to convert
inventory and receivables to cash. Hence, a short term operating cycle is desirable. Pran Group
had 312.46 days operating cycle in 2004 and it gradually started to decrease and became 251.18
in 2008. This is an unfavorable trend since an increased amount of money is being tied up in
noncash assets.
Fiscal years
2004
Net sales
2005
2006
2007
2008
472531353
480574247
493381630
475751142
457265339
1.64
1.66
1.76
1.95
2.16
3.00
2.00
1.00
0.00
2004
2005
2006
2007
2008
Year
C. Leverage Ratio:
Fiscal years
Total liabilities
Total assets
Debt ratio
2004
2005
659353090
2006
2007
665569485
652452909
465,169,036 495,979,457
490,783,803
1.42
1.34
1.33
2008
610269583
561863186
460,718,481 453,812,197
1.32
1.24
Debt ratio
Percentage
1.50
1.40
1.30
1.20
Debt ratio
1.10
2004
2005
2006
2007
2008
Year
Fiscal years
2004
Total liabilities
2005
659353090
Stockholders' equity
Debt/equity ratio
2006
2007
665569485
652452909
309,015,238 330,037,953
337,687,792
2.13
2.02
2008
610269583
561863186
346,718,576 361,323,351
1.93
1.76
2.50
2.00
1.50
1.00
0.50
0.00
Debt to equity ratio
2004
2005
2006
2007
2008
2.13
2.02
1.93
1.76
1.56
Comment: A high degree of debt in the capital structure may make it difficult for the company to
meet interest charges and principal payments at maturity. Also, excessive debt will result in less
1.56
financial flexibility since the company will have greater difficulty obtaining funds during a tight
money market. For Pran group the Debt/Equity ratio was 2.13 in 2004 and it gradually reduced
up to 1.56 in 2008. It is in a desirable position
Fiscal years
2004
117,230,905 120,088,857
Interest expense
2005
2006
2007
111,229,319
120,446,156 129,501,252
75,577,947
77,553,914
80,001,154
87723138
90,559,523
1.55
1.55
1.39
1.37
1.43
1.60
1.55
1.50
1.45
Time interest earned
1.40
1.35
1.30
1.25
2004
2005
2008
2006
2007
2008
Comment: Times interest earned ratio is a safety margin indicator in the sense that it shows how
much of a decline in earnings a company can absorb. . For Pran group the Time interest earned
was 1.55 in 2004 and it gradually reduced up to 1.43 in 2008. It is not a desirable position
D. Profitability Ratio
Fiscal years
2004
Gross profit
Net sales
2005
2006
2007
200,779,694 204,813,078
199,231,970
209,631,033 224,121,282
775,131,774 797,683,342
867,000,825
925,498,835 985,454,208
0.26
0.26
0.23
2008
0.23
0.28
0.26
0.24
0.22
0.20
2004
2005
2006
Year
2007
2008
0.23
Comment: Gross profit margin: From the above table and graph we got that the situation is quite
alarming. As the line of net profit margin of AMCL (PRAN), Year 2006, 2004, 2008 there is no
change in the net profit margin and this amount is less than the gross profit in2004.Which is not
good for the organization.
Fiscal years
2004
2005
Net income
40,309,163
28,947,713
Net sales
775,131,774 797,683,342
Profit margin
0.05
2006
2007
28,947,713
867,000,825
0.04
2008
29,331,413
35,949,959
925,498,835 985,454,208
0.03
0.03
Percentage
Profit margin
0.06
0.04
0.02
Profit margin
0.00
2004
2005
2006
2007
2008
Year
Comments: For Pran group the Profit margin ratio was 0.05 in 2004 and it fluctuating over the
years and it is 0.04 in 2008. It signifies not a good position.
0.04
Fiscal years
2004
2005
Net income
40,309,163
28,947,713
2006
472531353 480574246.5
0.09
2007
2008
28,947,713
29,331,413
35,949,959
493381630
475751142
457265339
0.06
0.06
0.08
0.06
Percentage
0.00
2004
2005
2006
2008
Year
Comment: In 2008 the company was in the upward situation considering the last three years. So
the situation is satisfactory.
Earnings per share indicate the amount of earnings for each common share held. When
preferred stock is included in the capital structure, net income must be reduced by the
preferred dividends to determine the amount applicable to common stock.
Fiscal years
2004
2005
Net income
40,309,163
28,947,713
0.13
2006
2007
28,947,713
0.09
0.09
2008
29,331,413
35,949,959
342203184 354020963.5
0.09
Percentage
2008
Year
Comment: From the above data table and line chart, we can say that the company has a
fluctuating situation. So the company should try to improve it.
E. Market Value
A group of ratios relates the firms stock price to its earnings (or book value) per share. It also
includes dividend related ratios. They are summarized below
Calculation of Earnings per Share of AMCL (PRAN):
0.10
Earnings per share indicate the amount of earnings for each common share held. When
preferred stock is included in the capital structure, net income must be reduced by the
preferred dividends to determine the amount applicable to common stock.
Fiscal years
2004
2005
Net income
40,309,163
28,947,713
Common stock
outstanding
2006
2007
2008
28,947,713
29,331,413
35,949,959
800000
800000
800000
800,000
800,000
Preferred dividends
50
36
36
37
45
100
50
0
2004 2005
2006 2007
2008
Year
Comments: For Pran group the Earning per share was 50 in 2004 and it fluctuating over the years
and goes up to 45 in 2008. The decline in Earnings per share should be of concern to investors.
Some ratios evaluate the enterprises relationship with its stockholders. The often quoted
price/earnings ratio is equal to the market price per share of stock divided by the earnings per
share. A high P/E multiple is good because it indicates that the investing public considers the
company in a favorable light. The ratio is
Fiscal years
2004
2005
595
2006
2008
364
581
1,023
37
45
15.85
22.76
401
2007
11.81
11.08
10.06
Time
2004
2005
2006
2007
2008
Year
Comments: The ratio was 11.81 in 2004 and it has increased to 22.76 in 2008. So the rise in the
Price to earnings ratio indicates that the stock market has a favorable opinion of the company.
Book value per share is net assets available to common stockholders divided by shares
outstanding, where net assets are stockholders equity minus preferred stock. Comparing book
value per share with market price per share gives another indication of how investors regard the
firm. The ratio is
Fiscal years
2004
2005
Stockholders' equity
309,015,238 330,037,953
Preferred dividends
2006
2007
2008
337,687,792
346,718,576 361,323,351
Common stock
outstanding
800000
800000
800000
800,000
800,000
386.27
412.55
422.11
433.40
451.65
500.00
450.00
400.00
350.00
2004
2005
2006
2007
2008
Year
Comments: The book value of the shares has been increasing since 2005, so we can say that the
companys stock is favorably regarded by investors.
Fiscal years
2004
2005
2006
2007
2008
595
401
364
581
1,023
24
26
26
26
28
0.04
0.06
0.07
0.04
0.03
Year
Dividends yield
2008
2007
2006
2005
2004
Dividends yield
0.00
0.02
0.04
0.06
0.08
Percentage
Comment: From2004-2006 Dividend Yield was increasing, but after 2006 it is decreasing. So a
decline in these ratios signals a concern to both the stockholders and management.
Fiscal years
2004
2005
24
2006
2008
26
26
28
37
45
0.71
0.62
Dividend payout
26
2007
0.48
0.72
0.72
Year
Dividend payout
2008
2007
2006
2005
2004
Dividend payout
0.00
0.20
0.40
0.60
0.80
Percentage
Comments: In 2007 the dividend payout ratio was 0.71 and in 2008 the ratio was 0.62. In 2007
dividend yield ratio was 0.04 and in 2008 the ratio was 0.03. So a decline in these ratios signals a
decline in the value of dividends and it will cause concern to both the stockholders and
management.