This report represents a short brief about two of the most renowned cement companies in Bangladesh from year (2016 - 2019). It was made with utmost care but as it was a simple university assignment it may have some shortcomings due to the lack of experience.

1. Report on Meghna Cement & Crown
Cement (2016 – 2019)
Introduction to Financial Management
Course: FIN 254
Section: 2
Submitted to:
Ms. Tanjina Shahjahan
Lecturer
BBA in Finance & Accounting, North South
University, Bangladesh
Email: tanjina.shahjahan@northsouth.edu
Room: NAC777

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Letter of Transmittal
13th
April, 2021
Ms. Tanjina Shahjahan
Department of Accounting & Finance
North South University.
Subject: Submission of final report of FIN 254
Dear Miss,
With due respect, it is our great pleasure to submit the formal report. The report is about two of
the most renowned cement companies of Bangladesh which are Meghna Cement & Crown
Cement. Our group members have left no stone unturned to collect data and other variable
statement that are significant. We have furnished almost everything that we have learnt during the
course. We hope this report will meet the standards of your judgment. We have tried our best to
make this report solid, informative and easy to understand.
Any mistakes or shortcomings in this report will be apologetically considered as our fault.
We, therefore, pray and hope that you would kindly accept our report and oblige us thereby.
Sincerely from,
Sakib-Ur-Rashid (Team Leader)
Md. Arafat Madbor
Md. Nasimul Haque Nasim
Md. Toslim Talukder
Marjuk Mahbub Bhuiyan

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Table of Content
Topics Page no
1. EXECUTIVE SUMMARY 3
2. GROUP INTRODUCTION 4
3. COMPANY PROFILE 5
4. RATIO ANALYSIS 6 - 22
Liquidity Ratio 6 - 10
a. Current Ratio 6 - 8
b. Quick Ratio 8 - 10
Activity Ratio 10 – 14
a. Inventory Turnover 10 - 12
b. Average Collection Period 12 - 14
Debt Ratio 14 – 18
a. Debt Ratio 14 - 16
b. Times Interest Earned Ratio 16 - 18
Profitability Ratio 18 – 20
a. Gross Profit Margin 18 - 20
Market Ratio 20 - 22
a. Market / Book Ratio 20 - 22
5. SUMMARY 23 - 24
6. RECOMMENDATION 25
7. CONCLUSION 25
8. REFERENCE 26

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Executive Summary
This report is made on the data collected over last 4 years (2016 – 2019) from 2 of the most
renowned companies of Bangladesh – ‘Meghna Cement’ & ‘Crown Cement’ which is collected
from liable sources through internet. This report contains the financial data based on cross-
sectional analysis & time series analysis with enough graphical representation for a better
understanding. Both companies were assessed and some of the ratios & information from our study
materials were covered by this report. Finally, the report will be presenting the fact of both
companies stand in terms of finance, where the 2 companies’ level when comparing against each
other & give recommendation according to the financial data.

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Group Introduction
This report is made upon liable sources & contains the financial data of both ‘Meghna Cement
Mills Ltd’ & ‘Crown Cement’ from the last 4 years (2016 – 2019). All of the report data was
collected from the official pages of both respected cement companies through internet & was made
by the following members:
1. Sakib-Ur-Rashid ID: 1813618630
2. Md. Arafat Madbor ID: 1811639030
3. Md. Nasimul Haque Nasim ID: 1812867030
4. Md. Toslim Talukder ID: 1831197630
5. Marjuk Mahbub ID: 1811700630
The financial data of year 2020 can’t be collected as of now because the end of that year wasn’t
not so long ago & it hasn’t been updated fully so the data in this report is from 2016 – 2019.

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Company Profile
Meghna Cement Mills Ltd (MCML):
Meghna Cement Mills Ltd is the first manufacturing unit of Bashundhara Group and it is one of
the largest cement industries in the country producing nearly 1 million metric tons a year. The
Meghna Cement Mills Ltd is an International Standard Organization (ISO 9001: 2008) certified
company having accreditation of manufacturing products for both domestic and international
markets. Their commercial operation has been started on 1996. The company is listed with both
Dhaka and Chittagong Stock Exchanges, the two bourses of the country since 1995 and 1996
respectively.
The company markets its product under the registered trade mark "King Brand Cement". At
present the production capacity of MCML is approximately 1.2 million MT/annum. Meghna
cement mills was established in 1992 in the Mongla industrial zone on 9.83 acres of land to produce
Portland cement. By choosing this location, they have excellent communication facility to
transport product all over the country through road and river.
Crown Cement:
M. I. Cement Factory Ltd., the parent company of Crown Cement Group, is also one of the leading
manufacturers of cement in Bangladesh. M. I. Cement Factory Ltd. is a public limited company
that commenced its adventurous journey in Bangladesh with the dedication of providing high
quality cement to the country on December 31, 1994. The Company has been listed on Dhaka and
Chittagong bourses in 2011 through initial public offering (IPO) by using the “book-building”
method in an effort to make a contribution to the development of the capital market.
Crown Cement’s vision is to make a contribution to the nation by creating opportunities in the
arena of industrial growth and development of Bangladesh, and to provide a solid foundation for
society’s future.
The mission of Crown Cement is to meet the needs of clients through innovative products &
services that create value for all our stakeholders as a modern cement company.

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Ratio Analysis
Liquidity Ratio
Liquidity ratios determine a company’s ability to pay off its current debt obligations without
raising external capital.
(https://www.investopedia.com/terms/l/liquidityratios.asp)
a. Current Ratio:
Current Ratio= Current Assets / Current Liabilities
Current ratio is a form of liquidity ratio. Current ratio indicates the company’s ability to cover its
short-term obligation. Current ratios increase and decrease can be effective. Like when current
ratio is low, it makes a high risk of distress & on the other hand if its high it means low risk. But
if it is very high compared to the peer group it means companies may not be using their assets
efficiently.
Company 2015-2016 2016-2017 2017-2018 2018-2019
1.28
1.21
1.15
1.09
1.06 1.05
1.12
0.80
2015-2016 2016-2017 2017-2018 2018-2019
Crown Meghna

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MEGHNA 1.06 1.05 1.12 0.80
CROWN 1.28 1.21 1.15 1.09
Time Series (Crown)
The following chart shows that Crown Cement has maintained a current ratio of over 1:1. But here
we can see a little bit of change. It’s a bit low compared to the company average. Company average
is 2:1. But that means company won’t face major industry issues. If the ratio is over 1:1 it indicates
that for every week TK 1 worth of short-term liability then it means the company can pay off its
short-term liabilities with its current asset quite easily.
Time Series (Meghna)
By the following chart Meghna Cement company has also maintained its stats like Crown Cement.
Their current ratio is over 1:1 which was maintained from the year of 2016-2019. But Meghna
Cement is a bit lower than Crown Cement in terms of industry average where industry average is
2:1. But it means that the company won’t face any risk. Like Crown Cement, Meghna Cement also
has over TK 1 worth of current asset. Meaning, the company can pay off its short-term liabilities
with its current asset.
But if we follow the Meghna Cements fiscal year 2018-2019, here Meghna Cement’s current ratio
is decreasing and its 0.80 which is lower than 1 & it indicates a bad sign. It means Meghna Cement
will have a hard time to pay off their debts compared to Crown Cement.
Cross Section
Following this chart Both cement companies’ current ratio looks almost same. It shows enough
asset where current ratio is above 1.
Crown Cement’s current ratio was decreasing day by day. But Meghna Cement’s current ratio was
increasing and decreasing & it’s also true that if we compare with the last fiscal year (2018 – 2019)
the ratio is decreasing for both companies every year. But according to the fiscal year of 2015 -
2018 crown cement was in a good position comparatively because of its higher ratio.

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If we follow the last year, Meghna Cement’s current ratio is 0.80 which is below 1. The gap is 0.20
& the Crown Cement’s is over 1. It means that Meghna Cement doesn’t have enough to pay for
short term obligation but the Crown Cement does. It means compared to the whole situation
crown cement is in a better position as it has more liquidity than Meghna Cement.
b. Quick Ratio:
Quick Ratio = Current Asset-Current inventories-prepaid expense/Current liabilities
The quick ratio is indicating the two things. First one is that it’s indicating the position of short-
term liquidity & second one is its measuring the company’s ability to meet the short-term
obligation with its most liquid asset. The quick ratio also indicates some other things. Like it
indicates companies’ ability to instant use for its near cash asset. It’s also called acid test ratio. It’s
called acid test ratio because it produces instant result and it’s a quick test.
Company 2015-2016 2016-2017 2017-2018 2018-2019
Meghna 0.52 0.66 0.69 0.44
Crown 1.05 1.00 0.97 0.91
1.05
1 0.97
0.91
0.52
0.66 0.69
0.44
0
0.2
0.4
0.6
0.8
1
1.2
2015-2016 2016-2017 2017-2018 2018-2019
crown Meghna

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Time Series (Crown)
If any companies’ quick ratio is high, it indicates some things. Like it indicates companies solid
top-line growth, it indicates how quickly converting receivable into cash and indicates how easily
company will be able to cover its financial obligation.
If we see the 2015-2016 fiscal year here, crown cement companies’ quick ratio was 1.05. which is
higher. It indicates it had a solid top-line growth. But if we follow the fiscal year of 2018-2019 it
decreased from 1.05 to 0.92 which is a bad sign. It shows that it became tough to cover up the
financial obligation.
Time series (Meghna)
Meghna cement Acid test ratio is only 0.53 which is very low. It’s very unhealthy acid test ratio
for Meghna Cement. Acid test ratio 0.53 means their current asset were less than current liabilities
where short-term inventory was considered. But their values moved down in recent years and then
moved up to 0.45 in 2019 which means it’s worse than it was in the previous years and it is worse
than Crown Cement. By discussing both sides Meghna cement is not in a good position compared
to Crown Cement.
Cross Section
If we are discussing about quick ratio, Meghna cement indicates a poor result. Meghna cements’
quick ratio is very low. Meghna cement is relying too much on inventory. Meghna cement has less
liquid current asset to cover their short-term debts as in recent years. By comparing Meghna
cement and Crown cement, Crown cement is in better position in terms of activity as they were
relying more on quick assets rather than current assets to pay off their short-term debts.
Between two companies Crown cement is in a better position. Crown cements’ quick ratio is good
& every graph Crown cement has, are in a better position. Whereas Meghna cement was lower
comparatively.
From year (2016-2019) Meghna cements quick ratio is less than 1 that means Meghna cement
doesn’t have enough current assets to pay for its current liabilities. Crown cement’s quick ratio is
0.95 which also less than 1 in 2018-19 fiscal year. So, crown cement has not enough current assets

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to pay for its current liabilities. But when we compare these two companies Meghna’s quick ratio
is lower than that of Crown cements. That’s why Crown Cement is in a better position than
Meghna Cement when compared side by side.
Activity Ratio
Activity ratio indicates how efficiently a company is leveraging the assets on its balance sheet, to
generate revenues and cash.
(https://www.investopedia.com/terms/a/activityratio.asp)
a. Inventory Turnover:
Inventory turnover means how efficiently the company is selling their inventory or how quickly
the company is selling their inventory.
Also it measures on average per period how many times the inventory is actually sold by the
company. The higher it is the better it is.
Calculation of Inventory turnover:
Inventory Turnover = Cost of goods sold / Inventory
Company 2015-2016 2016-2017 2017-2018 2018-2019
Meghna 4.197716786 9.386103913 7.462047879 14.33573243
Crown 11.3007955 9.62892347 11.92952596 11.27104086

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Time series Analysis (Crown):
A low turnover implies weak sales and possibly excess inventory; the inventory turnover had
fluctuated for Crown Cement. It decreased from 11.3007 to 9.6289 from 2015 to 2016 then
increased to 11.9295 in 2018. It is observed that in the year 2017-2018 and in 2018-19 it has
again decreased to 11.2710. Crown cement was not able to sell its goods quickly compared to
previous year.
Time series Analysis (Meghna):
A high ratio implies either strong sales or insufficient inventory over the four years; On the other
hand, Meghna Cement had an improving inventory turnover ratio. Their ratio went from 4.1977
(year 2015-2016) to 14.3357 (year 2018-2019). This means that as time progressed, they were
able to sell more quickly.
Cross Sectional Analysis:
The higher the Inventory Turnover is, the more capable the firm is to turn its’ least liquid asset.
Meghna Cement has shown significant improvement in their Inventory Turnover Rate and is
advised to keep continuing this performance. Crown Cement had a much better rate in 2018, but
11.3
9.62
11.92
11.27
4.19
9.38
7.46
14.33
0
2
4
6
8
10
12
14
16
2015-2016 2016-2017 2017-2018 2018-2019
CROWN MEGHNA

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gradually decreased to lower than Meghna Cement’s rate in 2019. In this case, we can say that
Meghna Cement’s Inventory Turnover was better than crown Cement.
b. Average Collection Period:
Average collection period is the calculation process which is also a ratio that comes from the
receivable turnover ratio.
This ratio talks about in average how long it will take for a company to collect its due money
from the receiver. The lower the value of this ratio the better it will be for the company.
Calculation of Average Collection Period:
Average Collection Period = Accounts Receivable / Average Sales Per Day = Accounts
Receivable / (Annual Sales / 365)
COMPANY 2015-2016 2016-2017 2017-2018 2018-2019
MEGHNA 107.5940746 97.30382119 90.85966285 53.78790214
CROWN 46.16031637 69.6614268 77.49003185 89.80031313

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Time Series Analysis (Meghna):
We calculated the Meghna cement company’s average collection period. Their average
collection period in fiscal year 2015-2016 was 107.59 days, in 2016-2017 was 97.30 days, in
2017 2018 was 90.85 days & in 2018-2019 that was 53.78 days. We see that Meghna cement is
following a decreasing trend year by year in average collection period which is great.
Time Series Analysis (Crown):
As we see Crown Cement company’s avg. collection period, we found that in year 2016 it was
46.16 days, in 2017 it was 69.66 days, in 2018 was 77.49 days & in 2019 it was 89.80 days.
From this scenario we can say that Crown’s average collection period is following increasing
trend which means they collect their due money in late.
Cross Sectional Analysis:
The less the average collection period of a company the better for that company in their
collection of which is due. All companies want to collect their money which is due to their
customer because if they collect their money early, they can invest it in many other profitable
46.16
69.66
77.49
89.8
107.59
97.3
90.85
53.78
0
20
40
60
80
100
120
2016 2017 2018 2019
CROWN MEGHNA

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sectors to earn more assets. If we take a look at Meghna Cement company’s average collection
period statistics, we can see that first they take more time to collect but gradually they improve &
collects their faster. In contrast, if we see at the Crown Cement company, we can see that first
they take less time but as time passes by they take more time to collect their due money which is
not good for them. Evidently, we can say that crown cement has to improve their collection
period.
Debt Ratio
a. Debt Ratio:
Debt ratio measures the extent of a company’s leverage. It can be interpreted as the proportion of
a company’s assets that are financed by debt.
(https://www.investopedia.com/terms/d/debtratio.asp)
Debt ratio= total debt/ total asset
The asset ratio is a soluble ratio that measures the percentage of liability as a percentage of a firm's
total assets. In a sense, debt-to-debt ratio refers to a company's ability to pay its debts with its
assets. In other words, it shows how many assets the company has to sell to pay off all the
liabilities.
Company 2015-2016 2016-2017 2017-2018 2018-2019
Meghna 0.8257 or 82.57% 0.8235 or 82.35% 0.8746 or 87.46% 0.8987 or 89.87%
Crown 0.5250 or 52.50% 0.6039 or 60.39% 0.6386 or 63.86% 0.6284 or 62.84%

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Time Series (Meghna):
Meghna's debt ratio in 2015-201 was .52.57%, 201 fiscal-1. This rate was 822.3 %% in FY, in the
third year it increased to 7.4.66% and lastly it increased to 89.87%. Overall, the Meghna has
followed a growing trend.
Time Series (Crown):
In the first three financial years, the crown maintained a growing trend. In the first year, the ratio
was 52.50%, in the second year it was 60.39% and in the third year the ratio increased to 633.38%
but in the following year it decreased to 62.84%.
Cross Section:
The lower the debt ratio of an organization, the lower the solvent. When we look at the Meghna
ratio, we see that it had a higher ratio from the first financial year and they also had a growing
trend. We got a good ratio value in the crown compared to Meghna. TN ratio indicates how much
52.50%
60.39%
63.86% 62.84%
82.57% 82.35%
87.46%
89.87%
2015-2016 2016-2017 2017-2018 2018-2019
Crown Meghna

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debt the company has against its assets. From the calculations of both the companies, we know
that Meghna has about 80% of its assets and the crown has an average of 61%. From this, it is
understood that Meghna has as much wealth as it has and the crown has a decent amount compared
to Meghna. We can say that Crown Cement has the advantage in this case as well.
b. Times Interest Earned Ratio
“The times interest earned (TIE) ratio is a measure of a company's ability to meet its debt
obligations based on its current income. The formula for a company's TIE number is earnings
before interest and taxes (EBIT) divided by the total interest payable on bonds and other debt.”
Time interest earned ratio= EBIT/ Interest Expense
The interest-earnings ratio is often called the interest coverage ratio, it is a coverage ratio that
measures the proportion of income that can be used to cover future interest expenses. In some
cases, the interest ratio is considered as a solvency ratio because it measures the ability to provide
interest and debt services.
Company 2015-2016 2016-2017 2017-2018 2018-2019
Meghna 1.30 1.35 1.34 1.45
Crown 2.61 2.54 1.38 1.27

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Time Series (Meghna):
Meghna had an almost constant interest-earnings ratio in four fiscal years and it was also
advantageous. In 2015-2016 it was 1.3 times the time interest earnings ratio and it increased
slightly to 1.35 times in 2016-2017 and 1.34 times in 2017-2018. And last year it increased 1.45
times.
Time Series (Crown):
From 2015 to 2019 the crown had a convenient time interest reduction ratio in it. At first it had a
larger proportion value. In 2015-201, the ratio was 2.16, in 2016-201, it was 2.54 times and in the
last two years, it has decreased by 1.38 and 1.27 times respectively.
Cross Section:
As we all know that the higher the time-to-earnings ratio than the interest, the higher the solvent
company pays interest to the creditors. Knowing this, we compare the two companies with the
ratio of interest earned over time and we see that both companies are solvent to pay interest but
there is a difference and it is less solvent than the Meghna crown. From the beginning the crown
2.61
2.54
1.38
1.27
1.3 1.35 1.34
1.45
0
0.5
1
1.5
2
2.5
3
2015-2016 2016-2017 2017-2018 2018-2019
Crown Meghna

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was more solvent to them but as time went on, they became less solvent but did not reach the point
where we can say that the company could not pay the expected interest to the credit payers. So, we
can say that both companies are solvents in paying their interest.
Profitability Ratio
Profitability ratios are used to assess a business's ability to generate earnings according to its
revenue, expense, assets, or shareholders' equity over time, using data from a specific point in time.
(https://www.investopedia.com/terms/p/profitabilityratios.asp)
a. Gross Profit Margin
“Gross profit margin is metric analysts use to assess a company's financial health by calculating
the amount of money left over from product sales after subtracting the cost of goods sold (COGS).
Sometimes referred to as the gross margin ratio, the gross profit margin is frequently expressed as
a percentage of sales.”
Gross profit margin = Gross profit /Net sales
The firm makes a gross profit in the form of a percentage of the sales dollar after paying for its
sold goods. This ratio shows how good an organization is at producing a good product or providing
a service to its competitors. The higher the gross profit, the better.
Company 2018-2019 2017-2018 2016-2017 2015-2016
Crown 0.1319 or 13.19% 0.1308 or 13.08% 0.1706 or 17.06% 0.1840 or 18.4%
Meghna 0.1015 or 10.15% 0.1028 or 10.28% 0.1099 or 10.99% 0.1161 or 11.61%

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Time series (Crown)
From a one-time series point of view, the crown had a total profit margin of 201 in 2011 and it
declined to 1% in 2013 and the percentage was 1.0.06% but the reputation of the currency for the
next two periods of 2018 was 13.08% and it was very Poor than three periods. In 2019 it grew by
only 0.11%.
Time series (Meghna)
From a consistent perspective of time, Meghna had a gross profit margin in 201 in and it decreased
by 0.62% in 2017. The ratio was 10.99% but a really interesting thing happened. In 2018 and 2019
the ratio gradually decreased and the ratio was 10.28% and 10.15%. From time to time, Meghna
was not able to capture its effectiveness and it had a certain percentage of it from each sale after
the given cost of the products sold.
Cross section
Cross-section defines comparisons between two organizations. The crowns of the two companies
mentioned here and Meghna had their own separate gross profit margins. In the first period of
18.40%
17.06%
13.08% 13.19%
11.61%
10.99%
10.28% 10.15%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2015-2016 2016-2017 2017-2018 2018-2019
CROWN MEGHNA

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2015-2016 and 2016-2017 crowns, the gross profit margin is more gross than Meghna (18.4% -
11.61%) = 6.79% and (17.06% -10.99%) = 6.07%. The crown proves the skill of gaining in a better
way than Meghna. In the last two periods of the 2017 and 2018 crowns, total profit margins have
come down slightly but not less than Meghna. The total profit margin of Crown type cement in
2017-2018 was 13.08% and in 2018-2019 it was slightly higher and the percentage was 13.19%
where the total profit of Meghna Cement was 10.28% and in 2018-2019 it decreased slightly and
the percentage was 10.15%. In these two cases, the crown profit type of cement, the total profit
margin was also higher than that of Meghna Cement. Crown type cement maintains a higher profit
ratio than Meghna because the cost of crown type cement sold was slightly lower than that of
Meghna. Putting all the data at desk, it is clear that Crown Cement has performed better
than Meghna and its ratio was higher than Meghna most of the time although it was slightly
lower in 2018 and 2019.
Market Ratio:
Market value ratio is used to evaluate the current share price of a commonly held company's stock
& this ratio is employed by current and potential investors to determine whether a company's
shares are over-priced or under-priced. There are many market ratios such as – book value per
share, dividend yield, earnings per share, market value per share, price/earnings ratio.
(https://www.accountingtools.com/articles/market-value-ratios.html)
a. Market / Book Ratio:
“The book-to-market ratio is one indicator of a company's value. The ratio compares a firm's book
value to its market value. ... A firm's market value is determined by its share price in the stock
market and the number of shares it has outstanding, which is its market capitalization.”
Market / Book Ratio = Market Price / Book Value

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The market-to-book ratio simply compares the market price with the book price of a given firm.
In other words, it suggests how much the investors are paying against the dollar value of the book
on the balance sheet. Also known as price-to-book value, this ratio tries to establish a relationship
between the price of the book published on the balance sheet and the actual market value of the
stock. Mathematically, this is the ratio of market value to book value.
Company 2015-2016 2016-2017 2017-2018 2018-2019
Meghna 26.64 25.58 23.53 27
Crown 1.65 1.95 1.69 1.41
Time Series (Meghna):
In year 2015-2016 m/b ratio was 26.64 times, it was 25.58 times in 2016-2017 fiscal year. In third
year, it had been decreased by 23.53 times and Meghna came back in 2018-2019 fiscal year with
27 times m/b ratio.
1.65 1.95 1.69 1.41
26.64
25.58
23.53
27
0
5
10
15
20
25
30
2015-2016 2016-2017 2017-2018 2018-2019
Crown Meghna

23. 22 | P a g e
Time Series (Crown):
Crown in year 2015-2016 its m/b ratio was 1.65 times. Second year it was 1.95 times. In last two
years the m/b ratio had been decreased by 1.69 and 1.41 times respectively which implies an
undervaluation of the share in the market.
Cross Section:
In general, the higher the M / B ratio of a company, the better for investors. This is the ratio that
calculates whether the shares of a company are relatively worthless or worthless compared to other
companies. Since we all know that this ratio is calculated from the investor’s point of view,
investors will choose the best option for them. They will choose Meghna to invest their money
because it is more valuable than the crown and its growth is considered to be a consistently
higher rate as our calculated m / b ratio.

24. 23 | P a g e
Company
Data
Summary
Crown Cement Meghna Cement
Ratios 30 June
2019
30 June
2018
30 June
2017
30 June
2016
30 June
2019
30 June
2018
30 June
2017
30 June
2016
Current ratio 1.09 1.15 1.21 1.28 0.80 1.13 1.05 1.07
Quick Ratio 0.91 0.97 1.00 1.05 0.45 0.69 0.66 0.53
Inventory
Turnover
11.27 11.92 9.62 11.30 14.33 7.46 9.39 4.19
Receivable
Turnover
4.06 4.71 5.23 7.90 6.79 4.01 3.75 3.39
Average
Collection Period
89.80 77.49 69.66 46.16 53.78 90.85 97.30 107.59
Average Payment
Period
15.56 16.81 25.17 36.85 72 79.49 69.61 61.51
Total Asset
Turnover
0.75 0.63 0.52 0.63 0.95 0.804 1.06 0.65
Fixed Asset
Turnover
1.81 1.61 2.00 1.82 8.95 5.78 5.42 2.89
Debt Ratio 0.62 0.63 0.60 0.52 0.89 0.874 0.82 0.82

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Times Interest
Earned
1.27 1.38 2.54 2.61 1.448 1.33 1.35 1.30
Net Profit Margin 0.017 0.025 0.07 0.08 0.009 0.014 0.013 0.012
Gross Profit
Margin
0.131 0.130 0.17 0.18 0.10 0.102 0.109 0.116
Operating Profit
Margin
0.08 0.079 0.11 0.13 0.015 0.019 0.017 0.017
Basic Earning
Power
0.06 0.050 0.06 0.08 0.014 0.015 0.018 0.01
Return on Asset 0.013 0.016 0.03 0.05 0.008 0.011 0.013 0.008
Return on Equity 0.04 0.044 0.09 0.11 0.087 0.094 0.079 0.048
Earnings Per
Share
1.69 2.12 4.45 5.01 2.92 3.29 2.91 3.42
Price Earnings
Ratio
40.20 38.15 20.95 14.96 30.68 27.41 32.27 25.43
Market-Book
Ratio
1.41 1.69 1.95 1.65 26.99 23.52 25.58 24.64

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Recommendation
After analyzing all the ratios & its sub categories we’ve found out that both Meghna Cement &
Crown Cement companies have done their utmost but also lacked in certain areas. From the
liquidity ratio analysis (current and quick ratio), Meghna had lowers current assets than required
so in that case Meghna should focus more on their current assets to cover up their current liabilities
for the business to progress otherwise they can’t earn profits if the assets are equally diminished
by the liabilities or if the assets are lower. For activity ratio, Meghna Cement came out pretty good
in all aspects but in terms of average payment aspect Crown Cement was far better. On the basis
of solvency, Crown Cement’s performance has no gap but it would be good if Meghna Cement
reduced their amount of leverage and improved the solvency of return on interest of creditors
which will affect the profit of the company. If we see at the profitability ratio, Meghna Cement
will have to work on it by managing all of its profit generating tools and by updating its shortage.
Last but not least is the market ratio in which Meghna Cement has come out as the winner
compared to Crown Cement as Crown Cement needs its EPS in accordance with its market value.
Conclusion
After all the discussion from above, we have come to conclude that, Crown Cement has a better
record shown from the graphical representations. It seems that Crown Cement won’t face much of
a liquidity crisis as it would affect Meghna Cement. However, Meghna Cement’s inventory
turnover is better than Crown Cement due to Meghna Cement’s increasing trend. Crown Cement
also has a better and more profitability prospects than Meghna Cement in terms of net profit
margin, gross profit margin, return on equity, earnings per share etc. We can also see that Meghna
Cement has more current liabilities than its assets to make actual profits after paying off their debts
whereas Crown Cement is in a better position but we can say one thing for sure that both of the
companies are solvent in their payment of interest. In short, investors are much more likely to
invest in Crown Cement company due to its better profitability records over the past few years
(2016 – 2019).

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Reference
1. Accounting CPE Courses & Books. (2020, 12, 17). Retrieved from Accounting Tools:
https://www.accountingtools.com/articles/market-value-ratios.html
2. Ltd., M. C. (n.d.). Meghna Cement Mills Ltd. Retrieved from
http://www.meghnacement.com/
3. Cement, C. (n.d.). Crown Cement. Retrieved from https://crowncement.com/
4. Hayes, A. (2021, 3, 31). Retrieved from Investopedia:
https://www.investopedia.com/terms/l/liquidityratios.asp
5. Hayes, A. (2021, 3, 30). Retrieved from Investopedia:
https://www.investopedia.com/terms/d/debtratio.asp
6. Hayes, A. (2021, 4, 9). Retrieved from Investopedia:
https://www.investopedia.com/terms/p/profitabilityratios.asp
7. Kenton, W. (2020, 10, 18). Retrieved from Investopedia:
https://www.investopedia.com/terms/a/activityratio.asp