Financial Analysis of Heidelberg Cement of Bangladesh

2. SHAHREEN IVITA
ID: 151-11-4411

3. Sustainability Commitments 2030
Key topics and core principles of the
future sustainability strategy at
HeidelbergCement.
No 1- in Aggregates production,
number 2- in cement
number 3- in ready mixed concrete. 740
mining sites, 3000 plants worldwide.

4. About HeidelbergCement…
Meets 13% of the Bangladesh demand for
cement from two plants located at Dhaka &
Chittagong
Merged with Chittagong Cement
Clinker Grinding Co. Limited In
2003.
In 1998, HeidelbergCement Group
established in the port of Chittagong
The company produce 1.5 million
tones annual cement in Bangladesh

5. Mission
• Building on local responsibility for international success.
• Building business knowledge of people.
• Building customer satisfaction.
• Building on quality products to build reputation.

6. PRODUTS

7. PORTER‘S FIVE FORCES ANALYSIS
High Barrier
Moderate
Low
Low
High

8. What is Ratio?
Logical relationship between number which help us to understand past,
present & Future performance of company
It also help to know the strength and weakness of company.

9. Classification of Ratio
Liquidity Ratio
Efficiency &
Activity Ratio
Profitability
Ratio
Leverage Ratio

10. Liquidity Ratio
• Firms ability to meet short term expenses/ obligations
• Asset should be greater than liability of short time period
• Liquidity Ratio are
Quick, cash, current

11. LIQUIDITY RATIO
2.64
3.02
1.62
2.91
2.64
2.08
2.33
2.98
1.57
1.96
1.77
1.28
1.73
1.07 1
0
0.5
1
1.5
2
2.5
3
3.5
Current Ratio Quick Ratio Cash Ratio
LIQUIDITY RATIO
2012 2013 2014 2015 2016

12. Activity Ratio
Activity ratios measure a firm's ability to convert different accounts
within its balance sheets into cash or sales.

13. ACTIVITY RATIO
A/r Turnover
Average
collection
period
Inventory
Turnover
Inventory
processing
period
A/P
Turnover
Payable
payment
period
operating
cycle
cash
conversion
period
Total asset
turnover
current
asset
turnover
fixed asset
turnover
equity
turnover
2012 11.86 40.7 7.41 48.61 4.6 77.65 89.3 11.7 1.2 1.93 3.1 1.73
2013 11.51 31.3 6.98 51.57 3.6 100.48 82.9 17.6 0.9 1.42 2.7 1.33
2014 10.57 34.1 8.28 43.49 3.4 104.42 77.6 26.9 1.0 1.63 2.8 1.61
2015 10.35 34.8 8.84 40.72 3.0 120.81 75.5 45.3 1.7 1.95 2.9 18.14
2016 9.26 38.9 5.25 48.51 2.2 122.41 87.4 53.0 1.0 1.59 3.0 1.90
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
ACTIVITY RATIO
2012 2013 2014 2015 2016

14. Leverage Ratio
How much capital comes in the form of debt (loans), or assesses the
ability of a company to meet its financial obligations.

15. LEVERAGE RATIO
2.7
1.002
1.2
1.98
2.5
1.001
1.9
1.68
1.8
1.0019
1.5
1.79
1.3
1.0022
0.09
0.97
1.8
1.0023
0.89
0.8
0
0.5
1
1.5
2
2.5
3
DEBT RATO DEBT EQUITY RATIO TIME INTEREST RATIO FIXED COST COVERAGE RATIO
LEVERAGE RATIO
2012 2013 2014 2015 2016

16. Profitability Ratio
Business's ability to generate earnings compared to its expenses and
other relevant costs incurred during a specific period of time.

17. PROFITABILITY RATIO
19%
14%
12%
14%
17%
23%
17%
15%
14%
13%
19%
12%
11%
12%
16%
24%
16%
13%
16%
18%
26%
18%
14%
15%
19%
0%
5%
10%
15%
20%
25%
30%
GROSS PROFIT MARGIN OPERATING PROFIT MARGIN NET PROFIT MARGIN RETURN ON ASSET RETURN ON EQUITY
PROFITABILITY RATIO
2012 2013 2014 2015 2016

18. Thank You
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