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Ratio Analysis of Power Grid Bd

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Ratio Analysis of Power Grid Bd
Ratio Analysis:
Liquidity(Times):
| 2008 | 2007 | 2006 | Current Ratio | 4.11 | 3.65 | 2.95 | Quick Ratio | 3.92 | 3.44 | 2.73 | NWC to Asset Ratio | 0.17 | 0.15 | 0.13 | Cash Ratio | 3.23 | 2.70 | 2.03 | NWC to Sales Ratio | 1.71 | 1.43 | 1.04 | NWC($) | 9215702577.00 | 7220848206.00 | 5205523576.00 | Average Daily Cash Expenses | 7537175.82 | 7160555.21 | 6768509.99 | Interval Measure(in days) | 1270.94 | 1029.86 | 798.11 |

Interpretation: * According to current ratio from year 2006 to 2008, the current asset of the company has been increasing over current liability. * Quick ratio is increasing which indicates the monetary current asset or cash is increasing than current liabilities and this may indicate the good performance of the company. * NWC to Asset ratio is increasing which shows that NWC also increasing. * Cash ratio is increasing which specify that available of cash in company also increasing.
By analyzing above Liquidity ratios, we can easily assume that the company is performing well, however the company launched in 2006 at the stock market in Bangladesh and we can understand that this company is situating in growth stage.
Debt Management Ratios(Times) | 2008 | 2007 | 2006 | Debt ratio | 0.77 | 0.77 | 0.80 | Long term debt ratio | 0.71 | 0.72 | 0.73 | Long term debt to debt ratio | 0.93 | 0.93 | 0.92 | Debt equity ratio | 3.27 | 3.42 | 3.97 | LT Debt-Equity Ratio | 3.04 | 3.16 | 3.64 | TIE Ratio | 2.58 | 2.09 | 1.47 | Basic Earning Power(BEP) | 0.05 | 0.05 | 0.06 | Cash Coverage Ratio | 2.58 | 2.09 | 1.47 | Equity Multiplier | 4.27 | 4.42 | 4.97 |

Interpretation: * Debt ratio of the company is decreasing which indicate that the debt of the company is decreasing means Company is paying off the debt on time or regularly or company did not take more debt. * Long-term debt ratio is decreasing very slowly, because the maturity of long-term debt is very high. * Cash coverage


Bibliography: * Stock Bangladesh: Company News - POWERGRID. (2010). Retrieved August 12, 2010, from Stock Bangladesh: http://www.stockbangladesh.com * Power Grid Company of Bangladesh Ltd. Annual Report 2006, 2007 & 2008.
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