Financial Performance Analysis and Valuation of Marico Bangladesh Ltd

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

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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

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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:

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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/)

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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.


+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 1.62 (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

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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

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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

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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,


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0+


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#ppendi" @2


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#ppendi" 7 C

CalculationsD

Current /atio E3,772,368,319

1,580,629,566

E .09 Times


38/39

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 .:

Financial Performance Analysis and Valuation of Marico Bangladesh Ltd

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