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Welcome to the PresentationBangladesh University of Business & Technology (BUBT)
Company ProfileNAVANA CNG Limited a sister concern of NAVANA GROUP was formed in 2004, andhas quickly emerged itself as th...
Objectives of the Report1. General ObjectivesThe main key objective of the report is to partial fulfillment of MBA Progra...
Analyzing the Financial performance of NAVANA CNGLIMITED by calculating different financial ratios
Authorized Capital and Paid up CapitalYear   Authorized capital   Paid Up Capital   Reserve and Surplus2007          200  ...
Current Ratio                   NAVANA CNG LTD.Year   Current Assets   Current Liabilities   Current Ratio2007        440 ...
Current RatioGraphical Presentation:
Net Working capitalNet Working Capital=Total Current Assets-Total Current Liabilities                              NAVANA ...
Net Working capitalGraphical Presentation
Fixed Asset Turnover Fixed Asset Turnover=Sales/Net Fixed Asset                  NAVANA CNG LTD.Year      Sales      Net F...
Fixed Asset TurnoverGraphical Presentation
Total Asset Turnover       Total Asset Turnover=Sales/Total Asset                      NAVANA CNG LTD.Year        Sales   ...
Total Asset TurnoverGraphical Presentation
Debt-Total Asset Ratio       Debt Ratio=Total liabilities/Total assets                           NAVANA CNG LTD.Year   Tot...
Debt-Total Asset Ratio Graphical Presentation
Debt-Equity RatioDebt-equity Ratio =Long -term debt/stockholder’s equity                             NAVANA CNG LTD. Year ...
Debt-Equity RatioGraphical Presentation
Gross Profit MarginGross Profit Margin = (Sales-COGS)/Sales=Gross Profit/Sales X 100                              NAVANA C...
Gross Profit Margin Graphical Presentation
Operating Profit MarginOperating Profit Margin=Operating Profit/Sales X 100                          NAVANA CNG LTD.Year  ...
Operating Profit Margin   Graphical Presentation
Net Profit MarginNet Profit Margin=Net Profit after Tax/Sales X 100                                NAVANA CNG LTD.Year   N...
Net Profit MarginGraphical Presentation
Return on InvestmentReturn on Investment=Net Profit after Tax/Total Assets X 100                                    NAVANA...
Return on Investment Graphical Presentation
Return on Capital EmployedROCE= Net profit after taxes/ Total capital employed X100                                  NAVAN...
Return on Capital Employed    Graphical Presentation
Return on EquityReturn on Equity=Net Profit after Tax/stockholders equity X 100                                     NAVANA...
Return on EquityGraphical Presentation
Earning Per ShareEPS= Earnings available for common stockholders/Number of Shares of common stock outstanding             ...
Earning Per ShareGraphical Presentation
Interpretation•Liquidity Ratios:•Net Working capital: The NWC of Navana CNG is highly satisfactory level of 2007 to 2011.•...
FindingsRatio Analysis:Liquidity Ratios:     The net working capital (NWC) of NAVANA CNG is satisfactory position all the ...
Findings (Continued)Debt Ratios:     The debt ratio of NAVANA CNG indicates a little indebtedness and lower degree of     ...
ConclusionNAVANA CNG LTD is a sister concern of Navana Group is a trendbetter in the CNG Industry. The company is always t...
RecommendationNAVANA CNG Limited can take the following recommendations into consideration:NAVANA CNG Limited can increas...
BibliographyBooks:1. Lawrence J. Gitman “Principal of Managerial Finance”, 11th Edition (April2004) Pearson editionWebsite...
Financial Performance analysis of Navana CNG Limited ( A concern of Navana Group)
Financial Performance analysis of Navana CNG Limited ( A concern of Navana Group)
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Financial Performance analysis of Navana CNG Limited ( A concern of Navana Group)

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To analyze the financial statement of NAVANA CNG Limited.
To calculate the different financial ratios.
To understand the implications in analyzing and interpreting the financial ratios.
To identify the findings and raise possible recommendations for NAVANA CNG Ltd

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Transcript of "Financial Performance analysis of Navana CNG Limited ( A concern of Navana Group)"

  1. 1. Welcome to the PresentationBangladesh University of Business & Technology (BUBT)
  2. 2. Company ProfileNAVANA CNG Limited a sister concern of NAVANA GROUP was formed in 2004, andhas quickly emerged itself as the leading CNG service provider of Bangladesh. Itsyears of experience are the standard setter of CNG industry.NAVANA CNG Limited is the sole distributor of world famous CNG and LPGconversion kit manufacturer LANDIRENZO s.p.a. Italy. NAVANA CNG Limited solelyrepresents the renowned manufacturer of CNG Refueling Station Technology Safes.r.l.At present NAVANA CNG Limited is running 8 numbers of CNG conversion workshopand 20 numbers of CNG refueling stations located as major cities. So far, NavanaCNG Limited has sold more than 211 numbers of refueling stations all overBangladesh, which is more than 60% market share in the industry. NAVANA CNGLimited is an unlisted company. All unlisted companies are required to completecertain procedures to get listing at Dhaka Stock Exchange (DSE).
  3. 3. Objectives of the Report1. General ObjectivesThe main key objective of the report is to partial fulfillment of MBA Program.2. Specific ObjectivesThere are some specific objectives also. This areTo Analyze Financial Performance of NAVANA CNG Limited.To analyze the financial statement of NAVANA CNG Limited.To calculate the different financial ratios.To understand the implications in analyzing and interpreting the financial ratios.To identify the findings and raise possible recommendations for NAVANA CNG Ltd.
  4. 4. Analyzing the Financial performance of NAVANA CNGLIMITED by calculating different financial ratios
  5. 5. Authorized Capital and Paid up CapitalYear Authorized capital Paid Up Capital Reserve and Surplus2007 200 51 123.042008 200 100 282.492009 500 300 327.162010 500 363 5552011 500 436 747
  6. 6. Current Ratio NAVANA CNG LTD.Year Current Assets Current Liabilities Current Ratio2007 440 206 2.142008 575 76 7.572009 466 196 2.382010 650 192 3.392011 892 235 3.80
  7. 7. Current RatioGraphical Presentation:
  8. 8. Net Working capitalNet Working Capital=Total Current Assets-Total Current Liabilities NAVANA CNG LTD. Year Current Assets Current Liabilities Net working Capital 2007 440 206 234 2008 575 76 499 2009 466 196 270 2010 650 192 458 2011 892 235 657
  9. 9. Net Working capitalGraphical Presentation
  10. 10. Fixed Asset Turnover Fixed Asset Turnover=Sales/Net Fixed Asset NAVANA CNG LTD.Year Sales Net Fixed Assets Fixed Asset Turnover2007 727 186 3.902008 984 287 3.422009 1236 587 2.102010 1368 548 2.502011 1392 576 2.42
  11. 11. Fixed Asset TurnoverGraphical Presentation
  12. 12. Total Asset Turnover Total Asset Turnover=Sales/Total Asset NAVANA CNG LTD.Year Sales Total Assets Total Asset Turnover2007 727 627 1.162008 984 879 1.122009 1236 1094 1.122010 1368 1235 1.102011 1392 1506 0.92
  13. 13. Total Asset TurnoverGraphical Presentation
  14. 14. Debt-Total Asset Ratio Debt Ratio=Total liabilities/Total assets NAVANA CNG LTD.Year Total Liabilities Total Assets Debt Ratio2007 452 627 0.722008 496 879 0.562009 467 1094 0.422010 317 1235 0.252011 323 1506 0.21
  15. 15. Debt-Total Asset Ratio Graphical Presentation
  16. 16. Debt-Equity RatioDebt-equity Ratio =Long -term debt/stockholder’s equity NAVANA CNG LTD. Year Long-term Debt Stockholders’ Equity Debt-equity Ratio 2007 452.50 174.04 260% 2008 497.23 382.49 130% 2009 464.09 627.16 74% 2010 321.3 918 35% 2011 319.41 1183 27%
  17. 17. Debt-Equity RatioGraphical Presentation
  18. 18. Gross Profit MarginGross Profit Margin = (Sales-COGS)/Sales=Gross Profit/Sales X 100 NAVANA CNG LTD. Year Gross Profit Sales Gross Profit Margin 2007 228 727 40.94% 2008 407 984 41.32% 2009 477 1236 38.58% 2010 601 1368 43.93% 2011 605 1392 43.44%
  19. 19. Gross Profit Margin Graphical Presentation
  20. 20. Operating Profit MarginOperating Profit Margin=Operating Profit/Sales X 100 NAVANA CNG LTD.Year Operating Profit Sales Operating Profit Margin2007 113 727 15.43%2008 209 984 21.18%2009 245 1236 19.80%2010 401 1368 29.31%2011 403 1392 28.98%
  21. 21. Operating Profit Margin Graphical Presentation
  22. 22. Net Profit MarginNet Profit Margin=Net Profit after Tax/Sales X 100 NAVANA CNG LTD.Year Net Profit After Taxes Sales Net Profit Margin2007 112 727 15.43%2008 208 987 21.18%2009 245 1236 19.80%2010 291 1368 21.27%2011 301 1392 21.62%
  23. 23. Net Profit MarginGraphical Presentation
  24. 24. Return on InvestmentReturn on Investment=Net Profit after Tax/Total Assets X 100 NAVANA CNG LTD. Year Net Profit After Taxes Total Assets Return on Investment 2007 112 440 25.45% 2008 208 575 36.17% 2009 245 466 52.57% 2010 291 650 44.76% 2011 301 892 33.74%
  25. 25. Return on Investment Graphical Presentation
  26. 26. Return on Capital EmployedROCE= Net profit after taxes/ Total capital employed X100 NAVANA CNG LTD. Year Net Profit After Taxes Total Capital Employed Return on Capital employed 2007 112 627 17.90% 2008 208 879 23.72% 2009 245 1094 22.36% 2010 291 1235 23.56% 2011 301 1506 19.98%
  27. 27. Return on Capital Employed Graphical Presentation
  28. 28. Return on EquityReturn on Equity=Net Profit after Tax/stockholders equity X 100 NAVANA CNG LTD. Year Net Profit After Taxes Stockholders’ Equity Return on Equity 2007 112 174.04 64.42% 2008 208 382.49 54.50% 2009 245 627.16 39.01% 2010 291 918 31.70% 2011 301 1183 25.44%
  29. 29. Return on EquityGraphical Presentation
  30. 30. Earning Per ShareEPS= Earnings available for common stockholders/Number of Shares of common stock outstanding NAVANA CNG LTD. Earnings available for Number of Shares of common Year common stockholders stock outstanding Earning Per Share 2007 112000000 20000000 5.60 2008 208000000 20000000 10.40 2009 244661587 36300000 6.74 2010 290789036 36300000 8.01 2011 300882758 43560000 6.91
  31. 31. Earning Per ShareGraphical Presentation
  32. 32. Interpretation•Liquidity Ratios:•Net Working capital: The NWC of Navana CNG is highly satisfactory level of 2007 to 2011.•Current Ratios: The CR is positively increasing.•Activity Turnover•Fixed Asset Turnover: Navana CNG FAT is increasing decreasing trend it should be increase.•Total Asset Turnover: Total asset are not efficiently used to generate sales, so company should efficient to utilizing the company total assets.•Debt Ratios•Debt Ratio: It s shows greater indebtedness and high degree financial leverage to generate profit.•Debt-Equity Ratio: This indicates better condition.•Profitability Ratios•Gross Profit Margin: The cost of goods sold is efficiently manage by Navana CNG•Operating Profit Margin: The cost price effectiveness of the operation is positively increasing trends.•Net Profit Margin: Success to achieve the cost effectiveness of operations and has positive trends.•Return on Investment: It has increasing and decreasing trends so it should be done to positive by utilizing the company assets.• Return on Equity: Moderate level of ROE achieved from last five years.•Return on Capital Employed: The ROCE is better and has increasing trends.•Earnings per Share: They got very pessimistic EPS from Last years.
  33. 33. FindingsRatio Analysis:Liquidity Ratios: The net working capital (NWC) of NAVANA CNG is satisfactory position all the last five years from 2007 to 2011, because it showed a positive networking capital which indicates a huge liquidity reserve of the company. The short-term financial solvency of NAVANA CNG is strong.Activity Ratios: The capital turnover ratio of NAVANA CNG indicates that total capital was not efficiently managed and utilized throughout the period from 2007 to 2011. The average collection period is shorter which may discourage the credit sales. The fixed assets of NAVANA CNG are efficiently used to generate sales. The total asset turnover ratio of NAVANA CNG indicates that, total assets are efficiently used to generate sales throughout the period from 2007 to 2011, as they are acceptable limit.
  34. 34. Findings (Continued)Debt Ratios: The debt ratio of NAVANA CNG indicates a little indebtedness and lower degree of financial risk, to generate profits during 2007 to 2011. NAVANA CNG has adequate earnings to pay its interest charges.Profitability Ratios: NAVANA CNG is in the better condition regarding the operating efficiency during the last five years as it has produced the acceptable operating profit margin. NAVANA CNG has achieved an enough return on investment, which indicates the effective management in generating profits with its available assets. NAVANA CNG achieved a highly satisfying return on capital employed which indicates the effective management in generating profits with its total capital employed during 2007-2011. NAVANA CNG has got very optimistic Earning per Share (EPS) during 2007 to 2011.
  35. 35. ConclusionNAVANA CNG LTD is a sister concern of Navana Group is a trendbetter in the CNG Industry. The company is always trying for betterenvironment friendly energy solution. Keeping that in mind thecompany is expanding its operation in the Welding rod and uPVCindustry sector which the largest means for great achievement allover the country. This is a demand of time, being successful in thisproject will open a new window to save foreign currency. Getting listedDSE will bring this company closer to the mass people and clearer ofits operation.
  36. 36. RecommendationNAVANA CNG Limited can take the following recommendations into consideration:NAVANA CNG Limited can increase its current assets more by enhancing the accountsreceivable and can decrease its current liabilities by reducing its bank overdraft and short termloan. The company can try to increase its quick assets like-cash, accounts receivable andmarketable securities.It also can reduce inventory to improve its inventory turnover ratio.Company’s management should be more efficient in utilizing the company’s capital togenerate sales.NAVANA CNG Limited is supposed to offer attractive credit policy to its customers byextending credit period from 60 days to 90 days.The company should try to utilize its fixed assets more efficiently to accelerate sales.The company’s management should be more efficient in utilizing the company’s total assetsto generate sales. It should aim to achieve optimum capital structure by reducing debt capitalas well as by increasing equity capital to finance its total assets.The company ought to enhance its earnings by accelerating its sales as well as by minimizingits operating costs in order to get adequate earnings.
  37. 37. BibliographyBooks:1. Lawrence J. Gitman “Principal of Managerial Finance”, 11th Edition (April2004) Pearson editionWebsite:www.navanacng.comwww.navana.comAnnual Report:1. Navana CNG Ltd., 20072. Navana CNG Ltd., 20093. Navana CNG Ltd., 2011
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