financial performance analysis and valuation of marico bangladesh ltd

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  • 8/9/2019 Financial Performance Analysis and Valuation of Marico Bangladesh Ltd

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    Abstract:

     The report at hand manifests an in-depth analysis of the Financial

    Performance Analysis and valuation of Marico Bangladesh Limited. Marico

    Bangladesh Limited is a company that caters to the fast moving consumer

    goods (FMC! segment of the mar"et of Bangladesh. The company produces

    products such as hair oil# edi$le oil and soaps. The purpose of this report %as

    to scrutini&e the Financial Performance Analysis and valuation of the

    company and 'ustify %hether prota$ility is su)cient enough to determine

    the performance of a company. This report comprises of a literature revie%

    %hich pro'ects the perceptions of di*erent authors a$out the di*erent ratios

    used to analyses the Financial Performance Analysis and valuation follo%ed$y the analysis of the Financial Performance Analysis and valuation using

    nancial ratios and ends %ith a $rief conclusion and recommendation.

    +

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    Table of Contents

      Page

    +., ntroduction +

    +.+Bac"ground of the company

    +

    +. /ationale of the study

    ., Literature /evie% 0

    .+ Financial 1tatement (/atio! Analysis0

    .+.+ Li2uidity /atio

    3

    .+. Asset Management /atio

    4

    .+.0 5e$t Management /atio

    6

    .+.3 Prota$ility /atio 7

    .+.4 Mar"et 8alue /atio

    9

    0., 5ata Analysis

    +,

    0.+ Financial 1tatement (/atio! Analysis of

    Marico Bangladesh Limited+,

    0.+.+ Li2uidity /atios +,

    0.+. Asset Management /atios

    +0

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    0.+.0 5e$t-Management /atio

    +:

    0.+.3 Prota$ility /atios

    +6

    0.+.4 Mar"et 8alue /atios

    3., Conclusion 0

    4., /ecommendation 3

    :., List of /eferences 4

    6., Bi$liography :

    Appendi; 6

    List of Figures:

    Pages

    Fig.+ Types of Financial /atios

    0

    Fig. Current /atio Comparison

    +,

    Fig.0

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    Fig.+, /eturn on >2uity Comparison

    ,

    Fig.++ /eturn on Asset Comparison +

    Fig.+ Perception of 5i*erent ?sers of Financial Performance Analysis andvaluation

    0

    3

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    1.0 Introduction

     The main goal of all $usiness organi&ation is prot ma;imi&ation# ho%ever in

    order to pursue this goal the organi&ations need capital %hich can $e raised

    through de$t or e2uity. The nancial institutions are $eneted from providing

    loans and similarly shareholders are $eneted through shares. n order to

    decide %hether to invest in an organi&ation or not Financial Performance

    Analysis and valuation are very useful and to get a transparent and in-depth

    vie% of an organi&ations nancial position nancial ratio analysis is a very

    useful tool. Beasley and Brigham (,,7! suggested that nancial statement

    analysis may $e used to help predict the rm@s nancial position in the future

    and to determine e;pected earnings and dividends. Bull (,,6! furtherstated that nancial ratio analysis help managers to analyses control and

    improve organi&ations operations. Credit analysts can use it to determine the

    a$ility of an organi&ation to pay its de$ts and security analysts can use it to

    analyses an organi&ations a$ility to pay interests on its $onds.

    1.1 Background of the coman!

    Marico Bangladesh Limited (MBL! is the su$sidiary of Marico Limited# ndia

    (Marico!. MBL@s Products in Pure Coconut oil# >di$le il# air care and 1"in

    Care reach out to more than 4,,#,,, outlets in Bangladesh. MBL touches the

    lives of + out of every 0 Bangladeshi through its portfolio of $rands such as

    Parachute# 1a*ola# air Code# Aromatic# Camelia and Beliphool to name a

    fe%# most of %hich en'oy leadership positions (=o. + in coconut oil segment!#

    %ith signicant mar"et shares in respective categories. MBL %as

    incorporated in the year +999 and holds a leadership position in the fast

    moving consumer goods (FMC! space in Bangladesh. MBL recorded a

    turnover of T". 4#047 Million (?15 60.3 Million! in + months ended on 0,th

    1eptem$er# ,+, and T". #73: Million (?15 09 Million! in : months ended

    on 0+st March# ,++ (Marico$d.com# ,+!.

    +

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    1." #ationale of the stud!

    Marico Bangladesh Limited (MBL! has recorder high turnover in $oth ,+,

    and ,++# although it started its operations in +999 and %as in enlisted in

    5ha"a stoc" e;change and Chittagong stoc" e;change in ,,9. The main

    o$'ective of this study is to determine the nancial position of this

    organi&ation. Bangladesh Brand forum had 'udged Parachute coconut oil@ the

    $est $rand in Bangladesh in ,++ (The 5aily 1tar# ,+!. The main rationale

    of this study is to determine all aspects of this organi&ation in terms of 

    e)ciency# de$t management# li2uidity and prota$ility and to understand

    %hether high turnover is su)cient enough to pro'ect a strong nancial

    position of an organi&ation. igh turnover is al%ays a positive sign $ut

    nancial ratios can also help to ascertain possi$le areas of improvement.

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    ".0 Literature #e$ie%

    2.1 Financial Statement (Ratio) Analysis

    According to i$son (,+,! investors and other e;ternal users of nancial

    information %ill often need to measure the performance and nancial health

    of an organi&ation. This is done in order to evaluate the success of the

    $usiness# determine any %ea"nesses of the $usiness# compare current and

    past performance# and compare current performance %ith industry

    standards. Financially sta$le organi&ations are desira$le# $ecause a

    nancially sta$le $usiness is one that successfully ensures its a$ility to

    generate income for investors and retain or increase value.

    Fi

    g.1) Types of Financial Ratios

     There are many di*erent methods that can $e used alone or together to help

    investors assess the nancial sta$ility of an organi&ation. ne of the most

    common methods is nancial ratio analysis. The $asic ratios include ve

    0

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    categoriesD prota$ility ratios# li2uidity ratios# de$t ratios# asset management

    ratios and mar"et- value ratios (1iddi2ui# ,,:!.

    /atio analysis involves the methods of calculating and interpreting nancial

    ratio in order to access the rm@s performance and status. The $asic inputs

    to ratio analysis are the rm@s income statement and $alance sheet for the

    periods to $e e;amined (Peterson and Fa$o&&i# ,+!.

    ".1.1 Li&uidit! #atio:

    Brigham and ouston (,,9! stated that li2uidity ratios measure the

    organi&ations a$ility to meet short-term o$ligations. These include the

    current ratio and the 2uic" ratio. This analysis that provides a 2uic"# easy

    method to measure of li2uidity $y relating the amount of cash and other

    current assets to the rm@s current o$ligations. These include the current

    ratio and the 2uic" ratio.

    Current Ratio:

    According to Megginson and 1mart (,,7! the current ratio is calculated $y

    ta"ing the total amount of current assets and dividing it $y the total amount

    of current lia$ilities. This ratio indicates the e;tent to %hich current lia$ilities

    are covered $y those assets e;pected to $e converted to cash in the near

    future. Current assets normally include cash# mar"eta$le securities# accounts

    receiva$les# and inventories. Current lia$ilities consist of accounts paya$le#

    short-term notes paya$le# current maturities of long-term de$t# accrued

    ta;es# and other accrued e;penses (principally %ages!. The formula used to

    calculate this ratio isD

    Current /atio E Current Assets Current Lia$ilities

    Current ratio sho%s a rm@s a$ility to cover its current lia$ilities %ith its

    current assets. n Pharmacy a current ratio of at least is considered

    3

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    necessary to ensure that the rm has su)cient li2uid resource to meet its

    short term needs if sales should suddenly drop or e;penses increases.

    Quick Ratio:

     The 2uic" ratio is calculated $y ta"ing the total amount of current assets and

    deducting the inventory and dividing it $y the total amount of current

    lia$ilities. This ratio indicates the rm@s li2uidity position as %ell. t actually

    refers to the e;tent to %hich current lia$ilities are covered $y those assets

    e;cept inventories. The formula used to calculate this ratio isD

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    +. nventory Turnover /atio

    .  The 5ays sales utstanding

    0. Fi;ed Asset Turnover /atio

    3.  Total Asset Turnover /atio

    Inventory Turnover Ratio (IT): 

     The inventory turnover ratio is calculated $y ta"ing the total cost of goods

    sold and dividing it $y total inventory. The ratio is regarded as a test of 

    e)ciency and indicates the rapidity %ith %hich the company is a$le to move

    its merchandise.  The formula used to calculate this ratio isD

    nventory Turnover E Cost of oods 1old nventory

    nventory Turnover indicates the e*ectiveness of the inventory management

    practices of the rm (Bagad# ,,7!.

    Day sales outstanding (D!):

    Lee (,,:! stated that the average collection period ratio is calculated $y

    ta"ing the total accounts receiva$le and dividing it $y the average credit

    sales per day# %hich is the annual credit sales divided $y 0:4.  The 5ays

    1ales utstanding ratio sho%s $oth the average time it ta"es to turn the

    receiva$les into cash and the age# in terms of days# of a companyHs accounts

    receiva$le. The formula used to calculate this ratio isD

    :

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    ! The li"elihood of defaulting on its de$t o$ligations. These ratios includeD

    De$t Ratio: 

    5e$t to Total Asset sho%s the percentage of the rms@ assets that are

    supported $y de$t nancing. The formula used to calculate this ratio isD

    5e$t /atio E Total Lia$ilities Total Assets

     The de$t ratio generally called the de$t to total asset ratio# measures the

    percentage of funds provided $y the creditors (Bagad# ,,7!.

    ".1.* Pro+tabilit! #atios:  According to Brigham and 5aves (,,9!

    prota$ility is the net result of a num$er of policies and decisions.   These

    ratios provide information a$out the %ay the rm is operating. Prota$ility

    ratios sho% the com$ined e*ects of li2uidity# asset management and de$t on

    operating results. There are four important prota$ility ratios that %e are

    going to analy&eD

    +. =et Prot Margin

    . ross prot Margin

    0. /eturn on Asset.

    3. /eturn on >2uity

    %et &ro't argin on sales gives us the net prot that the $usiness is earning

    per dollar of sales. The formula used to calculate this ratio isD

    =et Prot Margin E =et Prot 1ales

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    ross &ro't argin on sales gives us the gross prot that the $usiness is

    earning per dollar of sales. The formula used to calculate this ratio isD

    ross Prot Margin E ross Prot 1ales

    Return on *+uity (R!*):

    /eturn on >2uity measures the amount of net income earned $y utili&ing

    each dollar of total common e2uity. t is the most important of the IBottom

    lineJ ratio. This can compute the amount %hich the shareholders are going to

    get for their shares.  The formula used to calculate this ratio isD

    /eturn on >2uity E =et income availa$le to common stoc"holders

    Common >2uity

    /> measures the return on the o%ners@ investment in the rm (Megginson

    and 1mart# ,,7!.

     

    Return on Total #ssets (R!#):

    /eturn of total asset measures the amount of net income earned $y utili&ing

    each dollar of total assets. The formula used to calculate this ratio isD

    /eturn on Total Assets E =et ncome Total Assets

    /A means /eturn on Assets %hich reKects ho% %ell a manager has used all

    availa$le funds to generate prots including $oth e2uity de$t (Besley and

    Brigham# ,,7!.

    ".1., 'arket -alue #atio:

    9

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    Mayo (,,6! stated that these ratios relate the rm@s stoc" price to its

    earnings and $oo" value per share. They give management an indication of 

    %hat investors thin" of the company@s future prospects $ased on its past

    performance.

    &rice, *arnings (&,*): 

    Price earnings ratio sho%s ho% much the investors are %illing to pay per

    dollar of reported prots. To compute the P> ratio# %e need to "no% the

    rm@s earnings per share (>P1! (Ba"er and Po%el# ,,9!

     The formula used to calculate this ratio isD

    Price>arning ratio E Mar"et price per share >arnings per share

     

    (.0 )ata Anal!sis

    3.1Financial Statement (Ratio) Analysis of Marico Bangladesh

    Limited 1:

    -.1.1 i+uidity Ratios

    Current /atioD

    +

    +,

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    +.7+.9

    .+..0.3

    Current #atio Times/

    Current /atio (Times!

    Fig./) Current Ratio Co0parison

    n general if current ratio is greater than its industry average then it is good

    for the company. Current ratio sho%s a rm@s a$ility to cover its current

    lia$ilities %ith its current assets. From the analysis# %e can see that in ,+

    the current ratio is .09 times of the Marico Bangladesh Ltd %hereas the

    ndustry average is .,+ times. t indicates that company current ratio is in a

    stronger position and the company has su)cient cash li2uidity to meet its

    short-term li2uidity. This sho%s that Marico Bangladesh@s current assets are

    rising faster than current lia$ilities. A higher current ratio is prefera$le.

    ++

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    *"i$it 1.1# (ource: arico 2anglades #nnual Report /31/)

    *"i$it 1.12 (ource: arico 2anglades #nnual Report 

    /31/)

    *"i$it 1.1C (ource: arico 2anglades #nnual Report 

    /31/)

    Further analysis of the nancial statement indicates that Marico Bangladesh

    decreased its current assets such as ;ed deposits and investments (*"i$it 

    1.1#! reduced its short terms nances (*"i$it 1.12! in proper proportion#

    thus reducing current lia$ilities for %hich their performance of ,+ is $etter

    +

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    than ,++. They also have a surplus of nancial assets over nancial

    lia$ilities (*"i$it 1.1C!

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    (*"i$it 1./! and in contrast to the current ratio# there is an overall reduction

    in the 2uic" ratio. 1o it indicates that if the 2uic" ratio is lo%er that means

    the industry@s prot margin %as not so high that they can ma"e some

    investments paying o* the lia$ilities that could result in an increase in assets

    and decrease in lia$ilities to ma"e the li2uidity position far $etter.

    -.1./ #sset anage0ent Ratios

    nventory Turnover /atioD

    ,.3:7

    In$entor! Turno$er #atio .Times/

    -nventory Turnover /atio (Times!

    Fig.4) Inventory Turnover Co0parison

    n general higher turnover ratio is $etter than lo%er. nventory Turnover

    indicates the e*ectiveness of the inventory management practices of the

    rm.

    *"i$it 1.-(ource: arico 2anglades #nnual Report /31/)

    +3

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    From the analysis# it has clearly sho%s that Marico has relatively lo%er

    inventory turnover ratio than industry. t indicates that the inventory level is

    higher that may point to overstoc"ing or deciencies in the product line or

    mar"eting e*ort. igh inventory levels are unhealthy $ecause they represent

    an investment %ith a &ero rate of return in addition to the increased cost

    associated %ith maintaining those inventories. t also opens the company up

    to trou$le should prices $egin to fall. The comparison %ith the past years

    pro'ects a signicant reduction in this ratio. o%ever further analysis sho%s

    that they have increased levels of inventory (>;hi$it +.! %ith increased cost

    of sales (*"i$it 1.-! %hich in turn decreases the overall ratio. An assumption

    can $e suggested# that increase prices in the commodities of Bangladesh

    especially ra% materials may $e the cause of this increase.

    5ay 1ales utstandingD

     The Financial Performance Analysis and valuation indicate that Marico

    Bangladesh Limited have no de$tors for %hich this ratio does not apply to

    them.

    Fi;ed Asset TurnoverD

    ,4

    +,+4,4

    Fied Asset Turno$er

    Fi;ed Asset Turnover

    Fig.5) Fi"ed #sset Turnover Co0parison

    +4

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     The ;ed asset turnover ratio indicates ho% e)ciently the ;ed assets are

    used to generate sales. n contrast to the performance of the previous year it

    can $e seen that the ;ed asset turnover ratio of Marico Bangladesh Limited

    has reduced.

    *"i$it 1.4(ource: arico 2anglades #nnual Report /31/)

    A deeper analysis of the Financial Performance Analysis and valuation sho%s

    that the company has purchased many ;ed assets in ,+ (*"i$it 1.4! andthere also has $een su$stantial addition during the year. n contrast to the

    industry average the gures seem appropriate $ut it must increase its

    revenue to increase this ratio.

     Total Asset TurnoverD

    ,,.,.3,.:,.7

    ++.+.3+.:+.7

    Total Asset Turno$er

     Total Asset Turnover

    +:

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    Fig.6) Total #sset Turnover Co0parison

     The total asset turnover ratio sho%s ho% e)ciently the total assets of a

    company are used to generate sales. The data a$ove sho%s that the total

    asset turnover of Marico Bangladesh is a$ove the industry average. o%ever

    a further insight at the nancial reports and the other ratios clearly indicates

    that the increase of the ne% ;ed assets (*"i$it 1.4! has increased this

    ratio# %hich sho%s that their total assets have not $een e)cient enough to

    generate enough sales.

    -.1.- De$t7anage0ent Ratio

    5e$t /atioD

    +6

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    ,,.,4,.+

    ,.+4,.

    ,.4,.0

    ,.04,.3

    ,.34,.4

    )ebt #atio

    5e$t /atio

    Fig.8) De$t Ratio Co0parison

     The de$t ratio of Marico Bangladesh is ,.07# %hich suggests that 07 percent

    of their total assets are their total lia$ilities. n contrast to their previous

    year@s ratio of ,.3:# this is a very positive sign for the company. Their ratio is

    also $etter than the industry average %hich is also good for the overall

    image of the company as this attri$ute increases the shareholder@s

    condence.

     

    -.1.4 &ro'ta$ility Ratios

    ross Margin /atioD

    +7

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    ,4

    +,+4,

    40,

    2ross 'argin #atio 3/

    ross Margin /atio (N!

    Fig.9) ross argin Ratio Co0parison

     The ratio a$ove indicates the percentage of gross margin to sales. t is

    evident that the gross margin ratio of Marico Bangladesh Limited has

    reasona$ly decreased over the years. This ratio may $e $etter than the

    industry average $ut %ith comparison $et%een the years it is a $ad

    indication. The company has increased its revenue over the years $ut

    unfortunately it has not $een a$le to cope up %ith the costs (*"i$it 1.-! for

    %hich this ratio has $een decreasing.

    *"i$it 1.5# (ource: arico 2anglades #nnual Report /31/)

    +9

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    *"i$it 1.52 (ource: arico 2anglades #nnual Report /31/)

    *"i$it 1.5C (ource: arico 2anglades #nnual Report /31/)

    Further analysis reveals that that the revenue has decreased in comparison

    to the previous year and the cost of sales has increased ( *"i$it 1.- and

    1.5#!. n order to get a transparent vie%# a deeper analysis reveals that in

    their product segments there has $een su$stantial reduction in their soap

    and edi$le oil division (*"i$it 1.52!# though there has $een an increase in

    some of their segments. Their cost of sales has increased mainly due to

    salary and %ages# loading charges and factory rent (*"i$it 1.5C!.

    =et Margin /atioD

    ,

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    ,3:7

    +,++3

    4et 'argin #atio 3/

    =et Margin /atio (N!

    Fig.) %et argin Ratio Co0parison

     The net margin ratio of Marico Bangladesh has drastically reduced and it

    comparatively lo%er than the industry average. n contrast to the gross

    margin ratio# this usually comprises of further non-manufacturing e;penses

    such as distri$ution and administration e;pense.

    *"i$it 1.6# (ource: arico 2anglades #nnual Report /31/)

    *"i$it 1.62 (ource: arico 2anglades #nnual Report /31/)

     This ratio has decreased mainly due to the increase in distri$ution e;penses

    such as $usiness promotion e;penses and mar"et research e;penses %hich

    +

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    %as not a part of Marico Bangladesh during the previous year (*"i$it 1.6#

    and 1.62!.

    /eturn on >2uity (/>!D

    ,4

    +,+4,40,04

    #eturn on 5&uit! 3/

    /eturn on >2uity (N!

    Fig.13) Return on *+uity Co0parison

    n general return on e2uity is the rate of return on the share holder e2uity.

    igher return on >2uity is $etter than lo%er and vice versa. From the

    analysis# it sho%s that Marico@s has higher return on e2uity than industry.o%ever in contrast to the previous year the /> has drastically decreased

    and the possi$le cause of this occurrence is the lo%er net income of ,+.

    Return on #sset (R!#):

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    ,

    4

    +,

    +4

    ,

    4

    #eturn on Asset 3/

    /eturn on Asset (N!

     

    Fig.11) Return on #sset Co0parison

    n general return on asset sho%s the overall investment earned $y the rm.

    igher return on asset is $etter for the company than lo%er.

    From the analysis# %e can assume that Marico is in a good position $ecause

    it is signicantly higher than industry. t indicates that the company@s assets

    are $eing utili&ed at a fair e)ciency. igher return on asset sho%s that

    company lo%er than average use of de$t and lo%er return on asset sho%s

    results from the company@s higher-than-average use of de$t. n contrast to

    the previous years the ratio is relatively lo%er %hich is caused $y theincrease in assets %hich increases the non-current assets in turn decreasing

    the overall ratio %ith the decreased net income acting as a catalyst.

    -.1.5 arket ;alue Ratios

    0

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    Price>arning /atioD

    *"i$it 1.8 (ource: arico 2anglades #nnual Report 

    /31/)

     The Price>arning ratio generally denotes the amount investors are %illing to

    pay per dollar of reported prots. The P> ratio of Marico Bangladesh is B5T.:# %hich is good. Although the earnings per share have decreased in

    contrast to the previous year (*"i$it 1.8!# $ased on the other ratios it can $e

    assumed that the ratios %ill improve over the ne;t years.

    *.0 :Conclusion

    3

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     The data analysis reveals some valua$le ndings pertinent to the

    Financial Performance Analysis and valuation of Marico Bangladesh

    Limited. t can $e o$served that overall the ratios may have declined to

    some e;tent $ut they can surely $e improved. The li2uidity ratios have

    decreased in general $ut the current ratio has improved due to decrease

    in current assets. The e)ciency ratios have decreased as %ell due to the

    increase in ;ed assets and the prota$ility ratios has declined overall

    due to increased e;penditures in the plant and distri$ution e;penses.

    ence is can $e stated that high turnover does not generally indicate a

    good nancial position.

    6sers Percetion Basis of 7udgment

    In$estors ood >P1# Price>arning /atio

    Credit Anal!sts ood Current /atio# 5e$t

    /atio

    'anagers mprovement /e2uired Prota$ility /atios

    Fig.1/) &erception of Diarnings per share (>P1!#

    from the vie% point of the credit analysts# the performance is also reasona$le

    $ased on their current ratio# $ut from the vie% point of a manager# there are

    some areas for improvement. Although this company has %on praises and

    received a%ards and recorded high turnovers# it can $e said that only high

    4

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    turnover does not signify that a company is performing %ell. There is al%ays

    scope for improvement.

    ,.0 #ecommendation

    Marico Bangladesh Limited must control costs and increase their e)ciency.

     The distri$ution e;penses must $e decreased and some of their product lines

    must $e scrutini&ed for improvement. They should spend more e)ciently in

    their mar"eting in order to increase their customer $ase. They should focus

    more on the products %hich have a declining mar"et. Their products

    compete in a highly competitive mar"et and hence a slight loss of mar"et

    share can cause massive damages to their Financial Performance Analysis

    and valuation. n order to cope up in the FMC segment of the mar"et Marico

    must spend more on their mar"eting and promotion activities.

    :

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    8.0 List of #eferences

    Boos:

    • Bagad# 8.1. (,,7! Management and Finance. Technical Pu$lications.

    • Ba"er# .O. and Po%ell# . (,,9! ?nderstanding Financial

    ManagementD A Practical uide. ohn Qiley and 1ons.

    • Besley# 1. and Brigham# >.F. (,,7! >ssentials of Managerial Finance.

    +3th >dition. Thompson igher >ducation.

    • Brigham# >.F. and 5aves# P./. (,,9! ntermediate Financial

    Management. +,th >dition. Cengage Learning.

    • Brigham# >.F. and ouston# .F. (,,9! Fundamentals of Financial

    Management. +th >dition. Cengage Learning.

    • Bull# /. (,,6! Financial /atiosD o% to use nancial ratios to ma;imi&e

    value and success for your $usiness. >lsevier.

    • i$son# C.. (,+,! Financial /eporting and AnalysisD ?sing Financial

    Accounting nformation. +th >dition. Cengage Learning.

    • Lasher# Q./. (,+,! Practical Financial Management. :th >dition.

    Cengage Learning.• Lee# C.F. (,,:! >ncyclopedia of Finance. 1pringer.

    • Mayo# .B. (,,6! nvestmentsD An ntroduction. 9th >dition. Cengage

    Learning.

    • Megginson# Q.L. and 1mart# 1.B. (,,7! ntroduction to Corporate

    Finance. nd >dition. Cengage Learning.

    • Peterson# P.P. and Fa$o&&i# F.. (,+! Analysis of Financial Performance

    Analysis and valuastion . nd >dition. ohn Qiley and 1ons.

    • 1iddi2ui# 1.A. (,,:! Managerial >conomics and Financial Analysis. =e%

    Age nternational.

    9ebsites:

    6

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    • (,+! /9 top $rands >in accolades? The 5aily 1tar# +4 uly ,+# R?/LD

    httpD%%%.$angladeshne%s3.comthedailystar,+,6+47-top-

    $rands-%in-accolades-6+7:.htmS (accessedD , =ovem$er ,+!

    • (,+! ndustry Comparison of Marico Bangladesh Limited# R?/LD

    httpDinvesting.$usiness%ee".comresearchstoc"snancialsratios.asp

    tic"erEMBLDB5S (accessedD nd =ovem$er ,+!

    .0 Bibliograh!

    Boos:

    • Bagad# 8.1. (,,7! Management and Finance. Technical Pu$lications.

    • Ba"er# .O. and Po%ell# . (,,9! ?nderstanding Financial

    ManagementD A Practical uide. ohn Qiley and 1ons.

    • Besley# 1. and Brigham# >.F. (,,7! >ssentials of Managerial Finance.

    +3th >dition. Thompson igher >ducation.

    • Brigham# >.F. and 5aves# P./. (,,9! ntermediate Financial

    Management. +,th >dition. Cengage Learning.

    • Brigham# >.F. and ouston# .F. (,,9! Fundamentals of Financial

    Management. +th >dition. Cengage Learning.

    • Bull# /. (,,6! Financial /atiosD o% to use nancial ratios to ma;imi&e

    value and success for your $usiness. >lsevier.

    i$son# C.. (,+,! Financial /eporting and AnalysisD ?sing FinancialAccounting nformation. +th >dition. Cengage Learning.

    • Lasher# Q./. (,+,! Practical Financial Management. :th >dition.

    Cengage Learning.

    • Lee# C.F. (,,:! >ncyclopedia of Finance. 1pringer.

    • Mayo# .B. (,,6! nvestmentsD An ntroduction. 9th >dition. Cengage

    Learning.

    • Megginson# Q.L. and 1mart# 1.B. (,,7! ntroduction to Corporate

    Finance. nd >dition. Cengage Learning.

    • Peterson# P.P. and Fa$o&&i# F.. (,+! Analysis of Financial Performance

    Analysis and valuastion . nd >dition. ohn Qiley and 1ons.• 1iddi2ui# 1.A. (,,:! Managerial >conomics and Financial Analysis. =e%

    Age nternational.

    9ebsites:

    7

    http://www.bangladeshnews24.com/thedailystar/2012/07/15/28-top-brands-win-accolades-7186.htmhttp://www.bangladeshnews24.com/thedailystar/2012/07/15/28-top-brands-win-accolades-7186.htmhttp://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=MBL:BDhttp://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=MBL:BDhttp://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=MBL:BDhttp://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=MBL:BDhttp://www.bangladeshnews24.com/thedailystar/2012/07/15/28-top-brands-win-accolades-7186.htmhttp://www.bangladeshnews24.com/thedailystar/2012/07/15/28-top-brands-win-accolades-7186.htm

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    • (,+! /9 top $rands >in accolades? The 5aily 1tar# +4 uly ,+# R?/LD

    httpD%%%.$angladeshne%s3.comthedailystar,+,6+47-top-

    $rands-%in-accolades-6+7:.htmS (accessedD , =ovem$er ,+!

    • (,+! ndustry Comparison of Marico Bangladesh Limited# R?/LD

    httpDinvesting.$usiness%ee".comresearchstoc"snancialsratios.asp

    tic"erEMBLDB5S (accessedD nd =ovem$er ,+!

    Aendi

     #ppendi" 7#

    9

    http://www.bangladeshnews24.com/thedailystar/2012/07/15/28-top-brands-win-accolades-7186.htmhttp://www.bangladeshnews24.com/thedailystar/2012/07/15/28-top-brands-win-accolades-7186.htmhttp://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=MBL:BDhttp://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=MBL:BDhttp://www.bangladeshnews24.com/thedailystar/2012/07/15/28-top-brands-win-accolades-7186.htmhttp://www.bangladeshnews24.com/thedailystar/2012/07/15/28-top-brands-win-accolades-7186.htmhttp://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=MBL:BDhttp://investing.businessweek.com/research/stocks/financials/ratios.asp?ticker=MBL:BD

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    (ource: arico 2anglades #nnual Report /31/)

    0,

  • 8/9/2019 Financial Performance Analysis and Valuation of Marico Bangladesh Ltd

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    (ource: arico 2anglades #nnual Report /31/)

    0+

  • 8/9/2019 Financial Performance Analysis and Valuation of Marico Bangladesh Ltd

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     #ppendi" @2

    (ource: arico 2anglades #nnual Report /31/)

    0

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     #ppendi" 7 C

    CalculationsD

    Current /atio E3,772,368,319

    1,580,629,566  

    E .09 Times

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      E +.33

     Total Asset Turnover,++ E6,124,079,239

    4,613,066,124  

    E +.0

    5e$t /atio,+ E1,599,437,266

    4,202,631,482

      E ,.07

    5e$t /atio,++ E2,150,468,795

    4,613,066,124  

    E ,.3:

    ross Margin /atio E1,498,505,659

    6,036,260,121  

    E ,.370 or 3.70N

    =et Margin /atio E535,619,787

    6,036,260,121  

    E ,.,76 or 7.76N

    /eturn on Asset E535,619,787

    4,202,631,482  

    E ,.++4 or +.+4N

    /eturn on >2uity,+ E535,619,787

    2,603,194,216  

    E ,.,46 or ,.:N

    /eturn on >2uity,++ E770,628,693

    2,462,597,329  

    E ,.0+ or 0+.N

    03

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    Price>arning /atio E384.30

    17  

    E .: