Ration analysis on Appollo Ispat Complex Limited, Bangladesh, Steel Re-Rolling Mills Limited, GPH Ispat Limited, S. Alam Cold Rolled Steels Limited. Those are steel manufacturing company.

1. Course: Introduction to Finance
Section: 5
Topic: Ratio analysis
Assignment No: 1
Submission Date: 16 March 2019
Submitted To: Mr. Shafayat Hossain Chowdhury
Submitted By:
Name ID
Abir Hasan Rahat 171011226
Md. Fazle Rabby Real 172011009
Mehbub Arefin Hawladar 172011079
Faizul Kaisar Chowdhury 172011024

2. 1. Current Ratio
The current ratio is a liquidity ratio that measures a company's ability to pay short-
term obligations or those due within one year.In 2015, all the company’s current ratio
is good.The current ratio was at least 1. Bangladesh Steel Re-Rolling Mills Limited was
1.06 times ,GPH Ispat Limited was 1.81 times and S. Alam Cold Rolled Steels Limited
is 1 times. However, Appollo Ispat Complex Limited is 2.52. More than 2 is considered
excess, but still it is good. In 2016, Appollo Ispat Complex Limited ratio decreased to
2.42 times. Company is properly utilizing its asset. In the same year, S. Alam Cold
Rolled Steels Limited decreased to 0.98 times which is almost 1. Less than 1
considered bad, company will face little problem paying its current debt. Bangladesh
Steel Re-Rolling Mills Limited and GPH Ispat Limited are doing great. In 2017, Appollo
Ispat Complex Limited decreased to 2.11 which is good. S. Alam Cold Rolled Steels
Limited is still less 1. Other companies are doing very good in 2017. GPH Ispat Limited
gradually decreased to 1.38 times. Bangladesh Steel Re-Rolling Mills Limited was
same.
Company 2015 2016 2017
Appollo Ispat
Complex Limited
2.51 2.42 2.11
Bangladesh Steel Re-
Rolling Mills Limited
1.06 1.10 1.10
GPH Ispat Limited 1.81 1.63 1.38
S. Alam Cold Rolled
Steels Limited
1 0.98 0.97

3. 2. Inventory Turnover
Inventory turnover is a ratio showing how many times a company has sold and
replaced inventory during a given period. In 2015, Inventory turnover of Bangladesh
Steel Re-Rolling Mills Limited was the highest with 4.69 times. Other companies are
doing good but S. Alam Cold Rolled Steels Limited was 0.86 times. The company is
holding excess stock. In 2016, Appollo Ispat Complex Limited increased to 1.69 times
so it improved. Bangladesh Steel Re-Rolling Mills Limited improved a lot with 7.12
times. However, GPH Ispat Limited and S. Alam Cold Rolled Steels Limited decreased
to 1.56 and 0.58 times respectively. They are not performing that much well. In 2017,
Appollo Ispat Complex Limited and GPH Ispat Limited increased to 2.22 times and 2.63
times respectively. However, Bangladesh Steel Re-Rolling Mills Limited and S. Alam
Cold Rolled Steels Limited decreased to 2.20 times and 0.35 times. they are not
performing well. GPH Ispat Limited performed very well as it was 2.63 times which
was highest than other companies
Company 2015 2016 2017
Appollo Ispat
Complex Limited
1.35 1.69 2.22
Bangladesh Steel Re-
Rolling Mills Limited
4.69 7.12 2.20
GPH Ispat Limited 2.25 1.56 2.63
S. Alam Cold Rolled
Steels Limited
0.86 0.58 0.35

4. 3. Total Assets Turnover
The asset turnover ratio can be used as an indicator of the efficiency with which a
company is using its assets to generate revenue.In 2016, Bangladesh Steel Re-Rolling
Mills Limited was 1.31 times which was the highest than others. Appollo Ispat Complex
Limited and S. Alam Cold Rolled Steels Limited was not good as it is less 1. GPH Ispat
Limited was 1.10 times which is good. Appollo Ispat Complex Limited was same till
2017 with 0.46 times which is not good as the company is not efficient enough to
generate revenue. Bangladesh Steel Re-Rolling Mills Limited improved to 1.53 times.
GPH Ispat Limited and S. Alam Cold Rolled Steels Limited reduced to 0.56 times and
0.02 times respectively. They should efficiently use their asset to generate income.In
2017, all the companies performance is lower than 1. Bangladesh Steel Re-Rolling Mills
Limited and GPH Ispat Limited was same of 0.61 times which is highest compare to
others. Companies should try to make more revenues. Unused asset can be sold.
Company 2015 2016 2017
Appollo Ispat
Complex Limited
0.46 0.46 0.46
Bangladesh Steel Re-
Rolling Mills Limited
1.31 1.53 0.61
GPH Ispat Limited 1.01 0.56 0.61
S. Alam Cold Rolled
Steels Limited
0.03 0.02 0.02

5. 4.Days Sales Outstanding (DSO)
Days sales outstanding (DSO) is a measure of the average number of days that it takes
a company to collect payment after a sale has been made.In 2017, Bangladesh Steel
Re-Rolling Mills limited get their payment after 41 days which is lowest among the
others. GPH Ispat Limited got their payment 53 days which is also good. They have
lowest payment time than others. Appollo Ispat Complex Limited and S. Alam Cold
Rolled Steels Limited get their payment after 134 days and 135 days respectively. In
2016, Bangladesh Steel Re-Rolling Mills limited still had lowest payment time of 40
days. other companies payment time gradually increased. Appollo Ispat Complex
Limited, S. Alam Cold Rolled Steels Limited and GPH Ispat Limited had payment time
of 164 days, 211 days and 69 days respectively. DSO of Bangladesh Steel Re-Rolling
Mills limited further reduced to 32 days in 2017 where as other companies DSO
increased. Appollo Ispat Complex Limited, S. Alam Cold Rolled Steels Limited and
GPH Ispat Limited had payment time of 184 days, 215 days and 81 days respectively.
Bangladesh Steel Re-Rolling Mills limited had been getting money quicker than
others.Those with high DSO rate will face serious cash flow problem. DSO is reduced
through lightning fast invoicing. Keeping a credit card number on file is an easiest way
to charge their credit card.
Company 2015 2016 2017
Appollo Ispat
Complex Limited
134 164 184
Bangladesh Steel Re-
Rolling Mills Limited
41 40 32
GPH Ispat Limited 53 69 81
S. Alam Cold Rolled
Steels Limited
135 211 215

6. 5) Debt to total assets ratio
Bangladesh Steel Re-Rolling Mills Limited had 67.4% of its asset with borrowed money
which was highest in 2016. More than 60% considered as financial risk. Lower debt
ratio survive better. Appollo Ispat Complex Limited was actually in good condition
with 36.22%. S. Alam Cold Rolled Steels Limited and GPH Ispat Limited was 65.94% and
57.1% respectively. Appollo Ispat Complex Limited decreased to 34.08% in 2016 which
was also good. Bangladesh Steel Re-Rolling Mills Limited increased to 68.2% which was
highest in the year. GPH Ispat Limited decreased to 53.18% which was good. S. Alam
Cold Rolled Steels Limited increased to 60.5%. In 2017, Appollo Ispat Complex Limited
increased to 37.23% which is well for company. However, other companies debt ratio
is more than 60%. GPH Ispat Limited increased to 66.86% which is highest among
them. Appollo Ispat Complex Limited performed well as debt ratio was 37.23% in
2017.The company with higher ratio should try to issue new or additional stock, or
can make a debt holder an equity shareholder. The company can sell its assets and
then lease them back. This will induce a cash flow that can be used to pay off some
debts. Also companies should try to increase the sales.
Company 2015 2016 2017
Appollo Ispat
Complex Limited
36.22 34.08 37.23
Bangladesh Steel Re-
Rolling Mills Limited
67.4 68.2 63.00
GPH Ispat Limited 65.94 53.18 66.86
S. Alam Cold Rolled
Steels Limited
57.1 60.5 65.1

7. 6) Net Profit Margin
Appollo Ispat Complex Limited generated 9.90% profit from revenue which was highest
compare to others in 2015. S. Alam Cold Rolled Steels Limited was 2.88% which was
the lowest. Bangladesh Steel Re-Rolling Mills Limited and GPH Ispat Limited was 6.44%
and 4.83% respectively. In 2016, Appollo Ispat Complex Limited increased to 14.20%
which was the highest. The company performed very well. GPH Ispat Limited and S.
Alam Cold Rolled Steels Limited increased to 4.95% and 3.68% respectively.
Bangladesh Steel Re-Rolling Mills Limited reduced to 5.93%. Appollo Ispat Complex
Limited decreased to 8.48%, it decreased a lot but still it was highest in 2017. GPH
Ispat Limited and S. Alam Cold Rolled Steels Limited again increased to 7.81% and
4.33% respectively. Bangladesh Steel Re-Rolling Mills Limited again decreased to
5.43%. The performance of S. Alam Cold Rolled Steels Limited increased through out
the year but it was not performing well like other companies. Other companies
increased their net profit margin but still Appollo Ispat Complex Limited was the
highest in 2017.
Company 2015 2016 2017
Appollo Ispat
Complex Limited
9.90 14.20 8.38
Bangladesh Steel Re-
Rolling Mills Limited
6.44 5.93 5.43
GPH Ispat Limited 4.83 4.95 7.81
S. Alam Cold Rolled
Steels Limited
2.88 3.68 4.33

8. 7. Return on Assets (ROA)
Return on Assets measure how much profit the company had made relative to its
assets. Bangladesh Steel Re-Rolling Mills Limited was 8.41% which was highest in 2015.
Appollo Ispat Complex Limited and GPH Ispat Limited was 4.63% and 4.86%
respectively. S. Alam Cold Rolled Steels Limited was 0.99% which was the lowest.
Appollo Ispat Complex Limited increased to 6.60% which was the highest compare to
others in 2016. GPH Ispat Limited also increased to 5.66%. However, Bangladesh Steel
Re-Rolling Mills Limited and S. Alam Cold Rolled Steels Limited decreased to 4.55%
and 0.88% respectively. Bangladesh Steel Re-Rolling Mills Limited decreased a lot. In
2017, Appollo Ispat Complex Limited, GPH Ispat Limited and S. Alam Cold Rolled
Steels Limited decreased to 3.83%, 4.44% and 0.75% respectively. Bangladesh Steel
Re-Rolling Mills Limited improved to 5.05%, the company performed well. S. Alam Cold
Rolled Steels Limited did not perform well and not efficient enough like others.The
company should try to reduce asset cost, increase revenue and reduce expense.
Company 2015 2016 2017
Appollo Ispat
Complex Limited
4.63 6.60 3.83
Bangladesh Steel Re-
Rolling Mills Limited
8.41 4.55 5.05
GPH Ispat Limited 4.86 5.66 4.44
S. Alam Cold Rolled
Steels Limited
0.99 0.88 0.75

9. 8. Return on Equity (ROE)
ROE is considered a measure of how effectively management is using a company’s
assets to create profits. Bangladesh Steel Re-Rolling Mills Limited was 22.92% in 2016
which was the highest compare to others. GPH Ispat Limited and Appollo Ispat
Complex Limited were 14.30% and 7.26% respectively, they performed well. S. Alam
Cold Rolled Steels Limited was 6.2% which was lowest compare to others. in 2016,
Bangladesh Steel Re-Rolling Mills Limited decreased to 14.01% still it was highest in
the year. Appollo Ispat Complex Limited also did good as it increased to 10%. GPH
Ispat Limited and S. Alam Cold Rolled Steels Limited decreased to 6.00% and 5.4%
respectively. GPH Ispat Limited decreased a lot in 2016. it decreased almost 58.04%.
In 2017, Bangladesh Steel Re-Rolling Mills Limited, GPH Ispat Limited and S. Alam Cold
Rolled Steels Limited increased to 15.93%, 11.34% and 5.5% respectively. However,
Appollo Ispat Complex Limited decreased to 6.10%. Bangladesh Steel Re-Rolling Mills
Limited performed well.
Company 2015 2016 2017
Appollo Ispat
Complex Limited
7.26 10 6.10
Bangladesh Steel Re-
Rolling Mills Limited
22.92 14.01 15.93
GPH Ispat Limited 14.30 6.00 11.34
S. Alam Cold Rolled
Steels Limited
6.2 5.4 5.5

10. Conclusion:
Through the comparison, we can see that Appollo Ispat Complex Limited and
Bangladesh Steel Re-Rolling Mills Limited were very competitive in these years. GPH
Ispat Limited was also competitive but it was not enough. S. Alam Cold Rolled Steels
Limited performed not that well compare to others. The company needs
improvement. Overall, Bangladesh Steel Re-Rolling Mills Limited is in first position.
The company did very well in most of the ratios. The company should improve total
asset turnover which was lower than 1.The profitability ratios were very good than
others. Appollo Ispat Complex Limited is in second position. GPH Ispat Limited took
third position. Finally, S. Alam Cold Rolled Steels Limited is in last.