Financial Statement Analysis of Three Companies of The Food Industry of Bangladesh

1. Financial Statement Analysis of Three Companies
of The Food Industry of Bangladesh
Name of the Student ID
Muhammad Kausar Hossain 41046
FALL 2020
Course Name: Financial Statement Analysis and Valuation
Course Code: F-603
Course Instructor: Dr. Gazi Mohammad Hasan Jamil,
University of Dhaka

2. Industry Overview
According to Bangladesh Bureau of Statistics (BBS),
2019 Statistical Year Book
• 7.7 Growth Rate percent per annum
• 8441 Manufacture of food products (10 BSIC Code)
• 19 percent of the industrial manufacturing workforce and
2.45 percent of the country's total labor force in
Bangladesh
• 2.37 percent GDP share.
• 4.5 billion US Dollar industry.
• $700 million worth of processed food and beverages
exported.

3. Overview of the Companies
• ACI Foods Limited
• Fu-Wang Foods Limited
• Apex Foods Limited

4. ACI Foods Limited
Established: 2006
Listed as ACI: 1997
Authorized Capital: Tk. 1,500 Million
Paid-up Capital Tk. 574 Million
Number of Common Shares: 5,73,72,955

5. Fu-Wang Foods Limited
Established: 1997
Listed in DSE&CSE: 2000
Authorized Capital: Tk. 1,500 Million
Paid-up Capital Tk. 1007.63 Million
Number of Common Shares: 40,00,000

6. Apex Foods Limited
Established: 1994
Listed in DSE&CSE: 1996
Authorized Capital: Tk. 150 Million
Paid-up Capital Tk. 57.2 Million
Number of Common Shares: 57,02,400

7. Limitations
Unavailability of Data
Unidentifiable Position in Stock Exchanges
Products are not that much similar to
compare properly
Differentiated Business Goals and
Objectives
Differentiated Markets and Consumer Base

8. Vertical Analysis
2017 2018 2019
Fu-Wang 12.6% 13.1% 12.7%
Apex 50.01% 47.03% 52.86%
ACI 28.61% 24.89% 25.20%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
Inventories
2017 2018 2019
Fu-Wang 0.9% 0.8% 1.1%
Apex 0.35% 0.40% 0.50%
ACI 5.66% 4.54% 4.07%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Cash and Cash Equivalents
2017 2018 2019
Fu-Wang 38.8% 36.6% 36.1%
Apex 21.90% 27.70% 25.30%
ACI 40.30% 43.80% 44.90%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
Total Non-Current Asset
2017 2018 2019
Fu-Wang 69.6% 69.6% 68.8%
Apex 37.09% 41.60% 42.14%
ACI -73.61% -65.81% -80.80%
-100.0%
-80.0%
-60.0%
-40.0%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
Total Shareholders Equity

9. Vertical Analysis
2017 2018 2019
Fu-Wang 28.5% 27.9% 26.6%
Apex 11.92% 10.91% 11.51%
ACI 12.89% 11.86% 13.96%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Gross Profit
2017 2018 2019
Fu-Wang 10.5% 10.3% 10.0%
Apex 0.54% 0.50% 0.69%
ACI -3.31% -7.67% -7.77%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
Profit After Tax

10. Horizontal Analysis
2018 2019
Fu-Wang 6.3% 8.7%
Apex 6.46% -10.15%
ACI 15.12% -1.02%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
Total Assets
2018 2019
Fu-Wang 6.4% 11.7%
Apex -1.17% -10.99%
ACI 9.95% 7.93%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
Total Liabilities
2018 2019
Fu-Wang 6.3% 7.4%
Apex 19.41% -8.98%
ACI 2.92% 21.53%
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Shareholers Equity
2018 2019
Fu-Wang -0.7% 40.9%
Apex 8.30% 22.27%
ACI 144.18% 5.11%
-20.0%
0.0%
20.0%
40.0%
60.0%
80.0%
100.0%
120.0%
140.0%
160.0%
Profit After Tax

11. Ratio Analysis
2017 2018 2019
Fu Wang Foods Ltd 2.52 2.57 2.47
Apex Foods Ltd 1.63 1.78 1.81
ACI Foods Ltd 0.35 0.36 0.31
0
0.5
1
1.5
2
2.5
3
Current Ratio
2017 2018 2019
Fu Wang Foods Ltd 2.00 2.04 1.98
Apex Foods Ltd 0.82 0.95 0.85
ACI Foods Ltd 0.18 0.20 0.17
0.00
0.50
1.00
1.50
2.00
2.50
Quick Ratio
2017 2018 2019
Fu Wang Foods Ltd 242.43 214.97 136.55
Apex Foods Ltd 48.96 38.93 25.73
ACI Foods Ltd 41.47 85.11 40.55
0.00
50.00
100.00
150.00
200.00
250.00
300.00
Average Collection Period
2017 2018 2019
Fu Wang Foods Ltd 1.48 1.67 2.63
Apex Foods Ltd 7.35 9.25 13.99
ACI Foods Ltd 8.68 4.23 8.88
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
Receivables Turnover

12. Ratio Analysis
2017 2018 2019
Fu Wang Foods Ltd 2.11 1.95 1.73
Apex Foods Ltd 1.65 1.95 1.93
ACI Foods Ltd 5.84 6.23 6.29
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
Inventory Turnover
2017 2018 2019
Fu Wang Foods Ltd 170.94 184.39 131.408
Apex Foods Ltd 218.80 185.08 186.90
ACI Foods Ltd 61.67 57.82 57.27
0.00
50.00
100.00
150.00
200.00
250.00
Inventory Period
2017 2018 2019
Fu Wang Foods Ltd 413.37 399.36 267.96
Apex Foods Ltd 267.76 224.01 212.63
ACI Foods Ltd 103.14 142.93 97.82
0
50
100
150
200
250
300
350
400
450
Total Operating Cycle
2017 2018 2019
Fu Wang Foods Ltd 379.47 374.05 247.85
Apex Foods Ltd 252.80 205.59 182.38
ACI Foods Ltd 49.66 113.67 80.20
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
400.00
Cash Conversion Cycle

13. Ratio Analysis
2017 2018 2019
Fu Wang Foods Ltd 0.37 0.35 0.47
Apex Foods Ltd 0.93 1.03 1.13
ACI Foods Ltd 1.92 1.76 1.84
0.00
0.50
1.00
1.50
2.00
2.50
Total Asset Turnover
2017 2018 2019
Fu Wang Foods Ltd 10.62 14.22 17.90
Apex Foods Ltd 24.06 19.54 11.90
ACI Foods Ltd 6.73 12.31 20.43
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Account Payable Turnover
2017 2018 2019
Fu Wang Foods Ltd 33.90 25.31 20.12
Apex Foods Ltd 14.96 18.42 30.24
ACI Foods Ltd 53.48 29.26 17.62
0.00
10.00
20.00
30.00
40.00
50.00
60.00
Payable Deferred Period
2017 2018 2019
Fu Wang Foods Ltd 30% 30% 31%
Apex Foods Ltd 55% 58% 73%
ACI Foods Ltd 174% 166% 181%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
Debt Ratio

14. Ratio Analysis
2017 2018 2019
Fu Wang Foods Ltd 38.19% 43.66% 51.83%
Apex Foods Ltd 169.63% 140.40% 137.31%
ACI Foods Ltd 235.85% 251.95% 223.76%
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
Debt to Equity Ratio
2017 2018 2019
Fu Wang Foods Ltd 10.53% 10.31% 9.97%
Apex Foods Ltd 0.54% 0.50% 0.69%
ACI Foods Ltd 8.51% 7.67% 3.03%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
Net Profit Margin
2017 2018 2019
Fu Wang Foods Ltd 3.91% 3.65% 4.73%
Apex Foods Ltd 0.51% 0.52% 0.78%
ACI Foods Ltd 16.31% 13.48% 5.58%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
Return on Asset (ROA)
2017 2018 2019
Fu Wang Foods Ltd 4.91% 5.24% 7.85%
Apex Foods Ltd 1.37% 1.24% 1.67%
ACI Foods Ltd 22.16% 20.48% 6.90%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
Return on Equity (ROE)

15. Q&A
• Thank You!