Financial Analysis on Bangladesh Cement Companies
EXECUIVE SUMMARY
This report is a compilation of ratio analyses of three major cement producing companies in Bangladesh, which are Aramit Cement Company, Confidence Cement Ltd. and Heidelberg Ltd. We have analyzed the ratios of 5 years starting 2007 to 2011. It can be seen from our analysis that these companies have been facing an upward trend in asset management ratios, liquidity ratios and profitability ratios from 207 to 2010. Afterwards the ratios started to fall. In our interpretations we have found out why such changes occurred. Moreover, we also calculated and tested the financial flexibility and financial liquidity positions of the companies in the respective years. Along with these ratios and tests we carried out ratio analysis t measure stock market ratios of the companies, such as EPS, Price-earnings ratio and so on. These help to identify the condition of the equity of the companies as well as how lucrative the stocks are. Overall, the report emphasizes on various aspects of the Cement companies’ financial scenarios and what their conditions were during the five years analyzed.
ARAMIT CEMENT LIMITED
Company Overview:
Aramit Cement limited was incorporated in 19th August 1995 as a public limited company and was established with technical collaboration of a Chinese company for producing ordinary Portland cement form the very beginning of its commercial production, which started on the 10th November 1999. The company has been maintain the quality of the product for which it has won the confidence of the customers. Company’s product carrying brand name Camel has already become highly popular among the consumers.
Ratio Analysis: | Formula | 2007 | 2008 | 2009 | 2010 | 2011 | Current Ratio | Current Assets/Current Liabilities | 0.47times | 0.55times | 0.68times | 0.73times | 0.69 times | Quick Ratio | (Current Assets -Inventory)/Current Liabilities | 0.35times | 0.39 times | 0.52 times | 0.51times | 0.57 times | Debt Ratio | Total
This report is a compilation of ratio analyses of three major cement producing companies in Bangladesh, which are Aramit Cement Company, Confidence Cement Ltd. and Heidelberg Ltd. We have analyzed the ratios of 5 years starting 2007 to 2011. It can be seen from our analysis that these companies have been facing an upward trend in asset management ratios, liquidity ratios and profitability ratios from 207 to 2010. Afterwards the ratios started to fall. In our interpretations we have found out why such changes occurred. Moreover, we also calculated and tested the financial flexibility and financial liquidity positions of the companies in the respective years. Along with these ratios and tests we carried out ratio analysis t measure stock market ratios of the companies, such as EPS, Price-earnings ratio and so on. These help to identify the condition of the equity of the companies as well as how lucrative the stocks are. Overall, the report emphasizes on various aspects of the Cement companies’ financial scenarios and what their conditions were during the five years analyzed.
ARAMIT CEMENT LIMITED
Company Overview:
Aramit Cement limited was incorporated in 19th August 1995 as a public limited company and was established with technical collaboration of a Chinese company for producing ordinary Portland cement form the very beginning of its commercial production, which started on the 10th November 1999. The company has been maintain the quality of the product for which it has won the confidence of the customers. Company’s product carrying brand name Camel has already become highly popular among the consumers.
Ratio Analysis: | Formula | 2007 | 2008 | 2009 | 2010 | 2011 | Current Ratio | Current Assets/Current Liabilities | 0.47times | 0.55times | 0.68times | 0.73times | 0.69 times | Quick Ratio | (Current Assets -Inventory)/Current Liabilities | 0.35times | 0.39 times | 0.52 times | 0.51times | 0.57 times | Debt Ratio | Total