Financial Performance Analysis and Valuation of Marico Bangladesh Ltd
Transcript of 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$ility /atio 7
.+.4 Mar"et 8alue /atio
9
0., 5ata Analysis
+,
0.+ Financial 1tatement (/atio! Analysis of
Marico Bangladesh Limited+,
0.+.+ Li2uidity /atios +,
0.+. Asset Management /atios
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0.+.0 5e$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
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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
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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$t /atioD
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,,.,4,.+
,.+4,.
,.4,.0
,.04,.3
,.34,.4
)ebt #atio
5e$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$ility Ratios
ross Margin /atioD
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,4
+,+4,
40,
2ross 'argin #atio 3/
ross Margin /atio (N!
Fig.9) ross argin Ratio Co0parison
The ratio a$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/)
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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 $y theincrease in assets %hich increases the non-current assets in turn decreasing
the overall ratio %ith the decreased net income acting as a catalyst.
-.1.5 arket ;alue Ratios
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Price>arning /atioD
*"i$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,
-
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
-
8/9/2019 Financial Performance Analysis and Valuation of Marico Bangladesh Ltd
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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 .: