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9 KNIGHT RIDERS9 KNIGHT RIDERS

ABOUT ABOUT OURSELVESOURSELVES• MD.SHIPON HOSSAIN-3106MD.SHIPON HOSSAIN-3106

• MD.SOHEL RANA-3428MD.SOHEL RANA-3428

• FARZANA TONNI-3435FARZANA TONNI-3435

• MD.ASIF HASNAT-3264MD.ASIF HASNAT-3264

• SURAIYA SULTANA-3429SURAIYA SULTANA-3429

• ANNIE-3402ANNIE-3402

• MARIAM AKTER-3459MARIAM AKTER-3459

• MOTIOUR RAHMAN-3205MOTIOUR RAHMAN-3205

• BILLAL HOSSAIN-3359BILLAL HOSSAIN-3359

OURS TROPIXOURS TROPIX

RATIO ANALYSISRATIO ANALYSIS

DEFINATION OF RATIO DEFINATION OF RATIO ANALYSISANALYSIS

Ratio analysis is the starting point in Ratio analysis is the starting point in developing the information desired by the developing the information desired by the analyst analyst

MONNO JUTEX INDUSTRIES LTDMONNO JUTEX INDUSTRIES LTD.. RATIO ANALYSISRATIO ANALYSIS

For 2010,For 2010, Current Ratio=Current Assets/Current LiabilitiesCurrent Ratio=Current Assets/Current Liabilities = 87735596/66496446= 87735596/66496446 = 1.32 times= 1.32 timesFor 2011,For 2011, Current Ratio= Current Assets/ Current LiabilitiesCurrent Ratio= Current Assets/ Current Liabilities = 102914344/78562817= 102914344/78562817 = 1.31 times= 1.31 timesCurrent Ratio of MONNO JUTEX LTD for 2010 is 1.32 and Current Ratio of MONNO JUTEX LTD for 2010 is 1.32 and

2011 is 1.31. Both year current ratiois below the rate 2011 is 1.31. Both year current ratiois below the rate of thumble of current ratio 2. So its liquate position of thumble of current ratio 2. So its liquate position is somewhat weak. In this term current ratio is 2010 is somewhat weak. In this term current ratio is 2010 is letter than current ratio of 2011 in the monno is letter than current ratio of 2011 in the monno jutex ltd. jutex ltd.

MONNO JUTEX INDUSTRIES RATIO ANALYSISMONNO JUTEX INDUSTRIES RATIO ANALYSIS LIQUIDITY RATIO 2 LIQUIDITY RATIO 2

For 2010,For 2010, Quick Ratio= current Asset – inventory/Current LiabilitiesQuick Ratio= current Asset – inventory/Current Liabilities = 87735596-31246961/66496446= 87735596-31246961/66496446 = 56488635/66496446= 56488635/66496446 = .85times= .85timesFor 2011,For 2011, Quick Ratio= current assets-inventory/current LiabilitiesQuick Ratio= current assets-inventory/current Liabilities = 102914344-38071983/78562817= 102914344-38071983/78562817 = 0.83times= 0.83timesQuick ratio of 2010 is 0.85 and 2011 is 0.83 so both year quick ration Quick ratio of 2010 is 0.85 and 2011 is 0.83 so both year quick ration

is below the rule of thumble of quick ratio 1.2. both year liquidity is below the rule of thumble of quick ratio 1.2. both year liquidity position is fearly poor. In this term quick ratio of 2010 is better position is fearly poor. In this term quick ratio of 2010 is better than the Quick ratio of 2011than the Quick ratio of 2011

MONNO JUTEX INDUSTRIES RATIO ANALYSISMONNO JUTEX INDUSTRIES RATIO ANALYSIS ACTIVITY RATIO 1 ACTIVITY RATIO 1

For 2010,For 2010,

Inventory turnover Ratio=cost of goods sold/inventoryInventory turnover Ratio=cost of goods sold/inventory

= 78468348/31246961= 78468348/31246961

= 2.51times = 2.51times

For 2011,For 2011,

Inventory turnover Ratio= cost of goods sold/ inventoryInventory turnover Ratio= cost of goods sold/ inventory

= 90245129/38071983= 90245129/38071983

= 2.37times= 2.37times

Inventory turnover ratio indicates that in 2010 monnojutex produce Inventory turnover ratio indicates that in 2010 monnojutex produce 2.51 times in the year. On the other hand 2011 it produces 2.37 2.51 times in the year. On the other hand 2011 it produces 2.37 times. In times whole year. In 2010 monnojutex produces more times. In times whole year. In 2010 monnojutex produces more than 2011 from 2010 the production of the company gradually than 2011 from 2010 the production of the company gradually decreases.decreases.

For 2010,For 2010, Account Receivable= Net sales/ average receivableAccount Receivable= Net sales/ average receivable = 91548620/36929161= 91548620/36929161 = 2.48= 2.48 Collection prepaid day=360/2.48Collection prepaid day=360/2.48 =145days=145daysFor2011, For2011, Account Receivable= Net sales/ average receivableAccount Receivable= Net sales/ average receivable =107040995/37651850=107040995/37651850 = 2.84 = 2.84 Collection prepaid day=360/2.84Collection prepaid day=360/2.84 =126days=126days Monnojutex receive its accounts receivable money within 145 days in 2010 but Monnojutex receive its accounts receivable money within 145 days in 2010 but

it receive account receivable money within 127 days in 2011 in 2011 it receive account receivable money within 127 days in 2011 in 2011 monnojutex limited is more effective than in 2010monnojutex limited is more effective than in 2010



For 2010,For 2010,

Fixed assets turnover Ratio=Net sales/ fixed assetsFixed assets turnover Ratio=Net sales/ fixed assets

=91548620/96316802=91548620/96316802

=0.95times=0.95times

For 2011,For 2011,

Fixed assets turnover Ratio=Net sales/ fixed assets Fixed assets turnover Ratio=Net sales/ fixed assets

= 107040995/95055382= 107040995/95055382

= 1.13times= 1.13times

The fixed asset turnover ratio measures how effectively the The fixed asset turnover ratio measures how effectively the monnojutex limited uses it plant an equipment to help generate sales monnojutex limited uses it plant an equipment to help generate sales in 2010 the company can generate 0.95 in stead of fixed asset in in 2010 the company can generate 0.95 in stead of fixed asset in 2011 the company showing that 1.13 generate instead one of fixed 2011 the company showing that 1.13 generate instead one of fixed asset. So 2011 the company generate more. So it is better than 2010asset. So 2011 the company generate more. So it is better than 2010

For 2010,For 2010, Net profit margin=Net income/salesNet profit margin=Net income/sales =538428/91548620=538428/91548620 = 0.59%= 0.59%For 2011,For 2011, Net profit margin=Net income/salesNet profit margin=Net income/sales = 1875381/1017040995= 1875381/1017040995 = 1.75%= 1.75% Here in 2010 the profit rates of sales in 0.59% and 2011 the profit Here in 2010 the profit rates of sales in 0.59% and 2011 the profit rate of sales is 1.75% so in 2011 the company earn more profit than rate of sales is 1.75% so in 2011 the company earn more profit than 20102010

MONNO JUTEX INDUSTRIES RATIO ANALYSISMONNO JUTEX INDUSTRIES RATIO ANALYSIS PROFITABILITY RATIO 1 PROFITABILITY RATIO 1

MONNO JUTEX INDUSTRIES RATIO MONNO JUTEX INDUSTRIES RATIO ANALYSISANALYSIS PROFITABILITY RATIO 2 PROFITABILITY RATIO 2

For 2010,For 2010, Return on Total assets=Net income/Total assetsReturn on Total assets=Net income/Total assets = 538428/184052398= 538428/184052398 =0.29%=0.29%For 2011,For 2011, Return on Total assets=Net income/Total assetsReturn on Total assets=Net income/Total assets = 1875381/197969725= 1875381/197969725 =0.95%=0.95%Here in 2010 the company earn profit on total asset is 0.29% Here in 2010 the company earn profit on total asset is 0.29%

and 2011 the company earn profit on total asset is 0.95%. in and 2011 the company earn profit on total asset is 0.95%. in 2011 the company’s ROA is more than in 20102011 the company’s ROA is more than in 2010


For 2010,For 2010,

Return on common equity=Net income/ common equityReturn on common equity=Net income/ common equity

= 538428/116169437= 538428/116169437

= 0.46%= 0.46%

For 2011,For 2011,

Return on common equity=Net income/ common equityReturn on common equity=Net income/ common equity

=1875381/118024818=1875381/118024818

=1.59%=1.59%

In 2010 the company earn profit on shareholder common equity is In 2010 the company earn profit on shareholder common equity is 0.46% and in 2011 the company earn profit on shareholders common 0.46% and in 2011 the company earn profit on shareholders common equity is 1.59%equity is 1.59%


For 2010,For 2010,

Earning per share= Net income/Earning per shareEarning per share= Net income/Earning per share

= 2230/8.97= 2230/8.97

= 248.61times= 248.61times

For 2011,For 2011,

Earning per share= Net income/Earning per shareEarning per share= Net income/Earning per share

= 2230/26.05= 2230/26.05

=85.6times=85.6times

price earning ratio indicates how much investor are willing to pay per price earning ratio indicates how much investor are willing to pay per dollar of reported profit. By this ratio we can see that in 2010 the dollar of reported profit. By this ratio we can see that in 2010 the price earning ration was 248.61 times . but in 2010 the company price earning ration was 248.61 times . but in 2010 the company price earning ratio 85.6 times in 2011 the price earning ratio of the price earning ratio 85.6 times in 2011 the price earning ratio of the company decreases a lot. So now company is not good position company decreases a lot. So now company is not good position compared with 2010 compared with 2010

MONNO JUTEX INDUSTRIES RATIO ANALYSISMONNO JUTEX INDUSTRIES RATIO ANALYSIS COVERAGE RATIO COVERAGE RATIO

For 2010,For 2010,

Debt Ratio= Total Liabilities/ Total AssetsDebt Ratio= Total Liabilities/ Total Assets

= 67902961/184052398= 67902961/184052398

= 36.98%= 36.98%

For 2011,For 2011,

Debt Ratio= Total Liabilities/ Total AssetsDebt Ratio= Total Liabilities/ Total Assets

= 79944908/197969726= 79944908/197969726

= 40.38%= 40.38%

In 2010 monnojutex limited collect 36.89% of the firm’s asset In 2010 monnojutex limited collect 36.89% of the firm’s asset financed by the creditors on the other hand in 2011 it collected financed by the creditors on the other hand in 2011 it collected 40.38% of the firm asset financely the creditors. So in 2010 company 40.38% of the firm asset financely the creditors. So in 2010 company leaverage is more better than 2011leaverage is more better than 2011

AAny Questionny Question…… ……

“If your way is beautiful then see where it is goingbutif your destination is beautiful then don’t think about the way…”

accounting presentation

Education

debt ratio

bythis ratio

times quick ratio

tropix ratio analysis

term current ratio

term quick ratio

fixed assets turnover

times inventory turnover