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RATIO ANALYSIS
Submitted by: Group 11 Sharjil Haque, ZR 45 Nasim Ul Haque, ZR 54 Siffat Sarwar, RQ 56 Rashed Al Ahmed Tarique, ZR 61 Aumee Ahmed RQ 65 BBA 16th Batch Institute of Business Administration University of Dhaka May 06, 2010
Ratio Analysis
Inventory Turnover:
The inventory turnover was relatively low in 2003 and 2004 due to the low COGAS.
The fixed asset turnover had no real outliers, thought the ratio in 2008 was the lowest due to the highest fixed asset count.
Return on Investment:
The ROI of the company showed no real outliers, though the 2003 ratio indicated a relatively low operating income to an also low assets count. 2007 showed a relatively low ROI as well, due to the relatively low operating income to the higher asset count.
Return on Equity:
The 2005 ROE ratio indicated a very high total equity with comparison to the net income, giving it an outlying ratio of 7.17%. 2007 showed a lower outlier, with a relatively greater difference in the net income and total equity.
Times Interest Earned: The times interest earned showed an outlier in 2008, with a ratio of -4.001, due to the high
operating income of taka 998,794,848.
The price earning ratio showed outliers in 2005 and 2007. The price earning ratio was highest in 2007 due to the low EPS, where as it was very low in 2005 due to the highest EPS.
Debt-Equity Ratio: The debt equity ratio maintained a high ratio in 2003 and 2004, where it fell
slightly in 2005. From 2006 to 2008, however it maintained a lower average ratio. This is because of the increasing equity of the firm.
Debt-Asset Ratio: The debt asset ratio of the firm showed only one outlier in 2008, where the ratio
fell to 0.295, due to having the highest asset count.
Dividend Payout Ratio: The dividend payout ratio had two very distinct outlier in 2005 and 2004, where
the high dividend per share caused the ratios to become 1.934 and 3.635.
Dividend Yield: The dividend yield saw similar outliers in 2005 and 2004 where the high
dividends caused the ratios to increase to 0.213 and 0.186 respectively.
Retention Ratio:
Retention ratio is the ratio of the firm thats retrieved in the company. The retention ratio showed two moderate outliers in 2005 and 2004. During 2005 the difference in net income and retained earning was highest, where as it was lowest in 2004.