Financial Analysis of Pran Agricultural Marketing Co. lid

2. MD. MUWAS MIA

3. AGRICULTURAL MARKETING COMPANY LTD.

5. At a Glance
• Largest agro food processor and food exporter of Bangladesh.
• PRAN GROUP was born in 1980.
• 134 countries of the world PRAN Products are regularly being exported.
• PRAN is currently producing more than 400 food products under 10
different categories

6. Mission & Vision
• Mission
TO GENERATE EMPLOYMENT AND EARN DIGNITY & SELF RESPECT
• Vision
Improving Livelihood

7. PRODUCTS

8. Why Financial Ratio?
Company
A- Profit
20cr
Company
B- Profit
10cr
Which Company Choose to Invests
Based on Profit?
Suppose You Have Two Company to Invest

9. Why Financial Ratio?
• Company A- Profit 20cr, Sales- 200cr
• Company B- Profit 10cr, Sales- 50cr
Based of above information, which company would you like to invest?
You May Say Company- B
Profit Margin Two Company
Company Profit Margin
A 20/200*100 10%
B 10/50*100 20%

10. Financial Analysis Represent
• Assessment of firm’s past, present and future
financial conditions.
• Find out firm’s financial strengths and weaknesses.
• Comparison of financial ratios to past and present.

11. Porter's Five Forces
High Barriers
High
Low
Low
High

12. Financial Ratio
Liquidity Ratio Activity Ratio Leverage Ratio
Profitability
Ratio
Ability to cover current
obligation. Less than 1
years. How effectively firm
using resources
Ability to cover long
term debt obligation Profit relative to
amount of
resources

13. Liquidity Ratio
1.35
0.42
0.07
1.41
0.44
0.04
1.39
0.44
0.03
1.57
0.58
0.06
1.31
0.49
0.03
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
CURRENT RATIO QUICK RATIO CASH RATIO
LIQUIDITY RATIO
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

14. Leverage Ratio
0.2
0.17
0.49 0.49
0.6
0.07
0.47 0.47
0.56
0.04
0.57 0.57
0.67
0.12
0.61 0.61
0.31
0.05
0.57 0.57
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
debt ratio Debt equity ratio Time interest earned Fixed cost coverage ratio
LEVERAGE RATIO
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

15. Profitability Ratio
22%
14%
4%
6%
12%
22%
14%
4%
6%
12%
22%
11%
3%
6%
11%
21%
10%
3%
5%
11%
19%
9%
3%
5%
10%
0%
5%
10%
15%
20%
25%
gross pfofit margin operating profit margin net profit margin return on asset return on equity
PROFITABILITY RATIO
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

16. Activity Ratio
A/r Turnover
Average collection
period
Inventory Turnover
Inventory processing
period
A/P Turnover
Payable payment
period
2011-2012 24.9 14.49 2.15 167.1 339.93 1.06
2012-2013 26.8 13.46 2.20 163.7 389.28 0.92
2013-2014 23.0 15.62 2.62 137.2 357.58 1.01
2014-2015 22.7 15.87 2.79 129.0 144.80 2.49
2015-2016 17.7 20.36 2.96 121.7 339.91 1.06
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
ACTIVITY RATIO
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

17. Activity Ratio
operating cycle cash conversion period Total asset turnover current asset turnover fixed asset turnover equity turnover
2011-2012 181.60 180.54 1.27 1.90 3.80 3.46
2012-2013 177.15 176.23 1.37 1.95 4.64 3.40
2013-2014 152.78 151.77 1.58 2.29 5.05 3.55
2014-2015 144.86 142.38 1.25 2.23 2.87 3.65
2015-2016 142.10 141.05 1.43 2.29 3.84 3.84
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
ACTIVITY RATIO
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

18. THANK YOU
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