Fundamental Performance Analysis of Ceramic Industry based on the year (2014-2018)

1. Fundamental Performance
Analysis of Ceramic industry
WELCOME TO THE PRESENTATION

2. Introduction
• Fundamental Performance analysis of Ceramic industry “The main objective
of this thesis paper is to show the comparative analysis of 4 different ceramic
companies and fundamental performances analysis This report assesses the ratios
of the companies;
• RAK Ceramic Limited, Standard company, Fuwang ceramic Ltd, and
Shinepukur ceramic Ltd, and performs a thorough comparison
• The calculation and interpretation of relevant ratios, interpretation of the
absolute figures of the working capitals and sensitivity analysis of the industry’s
Cash Conversion Cycle helped in the analysis of the Ceramic industry’s
performance based on previous available data.

3. Fu-Wang Ceramics Ltd.

4. Overview of Fu-Wang Ceramic Industry Limited
• Fu-Wang Ceramic Industry Limited, the pioneer ceramic manufacturer in
Bangladesh was established in May 1995 as a joint venture company.
• It has been operating as a public limited company with an authorized
capital of Tk. 5 billion and a paid-up capital of Tk. 1,239 million.
• Its effective and creative marketing campaign enabled the company to
establish its brand value in the tiles market in Bangladesh.
• Their mission is to continuously increase customer satisfaction by offering
products of the highest standards.

5. Liquidity Ratio of Fu-Wang Ceramic
Ratios 2014 2015 2016 2017 2018
Current Asset ratio 0.26 1.61 3.22 2.17 0.41
Quick Ratio 0.03 1.03 1.03 0.67 1.03
Cash Ratio 0.007 0.062 0.059 0.045 0.038
0.00
1.00
2.00
3.00
4.00
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
Liquidity Ratio
Current Asset ratio Quick Ratio Cash Ratio

6. CCC Ratio of Fu-Wang Ceramic
0.00
2.00
4.00
6.00
8.00
10.00
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
CCC Ratios
Inventory turnover Average Collection period Total asset turnover
Ratios 2014 2015 2016 2017 2018
Inventory turnover 1.67 1.20 1.22 0.44 0.49
Average Collection period 4.73 5.19 3.70 8.16 8.37
Total asset turnover 0.50 0.44 0.53 0.25 0.48

7. Profitability Ratio of Fu-Wang Ceramic
0.0000
10.0000
20.0000
30.0000
40.0000
50.0000
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
Profitability ratio Analysis
Gross profit margin Operating profit margin Net profit margin
Ratios 2014 2015 2016 2017 2018
Gross profit margin 23.70% 24.01% 28.99% 39.45% 35.67%
Operating profit margin 6.89% 5.74% 16.64% 26.53% 22.12%
Net profit margin 5.93% 5.08% 15.80% 15.37% 13.89%

8. RAK Ceramics LTD.

9. RAK Ceramics Ltd.
• RAK Ceramics (Bangladesh) Limited , a UAE-Bangladesh joint venture
company, was incorporated in1998.
• RAK Ceramics, UAE is officially recognized as world’s largest ceramics
manufacturer, which was established in 1991.
• Supplies to more than 160 countries across the world including Europe,
America and Australia.
• It holds about one-third of the ceramics market in Bangladesh
• Gained approval for book building IPO issued by the registar of joint stock
Companies in 2009.
• 90% held by RAK Ceramics PSC and it’s nominies and remaining 10% owned
by local investors mostly by the Managing Director, Mr. S.A.K. Ekramuzzaman.

10. • Local registered Office is situated in Uttara also running factory is in Gazipur
• RAK Ceramics (Bangladesh) Ltd. Diversified its businesss approach by investing
in mainly two subsidiaries namely RAK Pharmaceuticals Pvt. Ltd., RAK Power
PVT. Ltd.
• Incurring Loss on these investments, the Board of Directors has decided to sell
entire shareholding in 2014
• Spent tk. 2.9 million for CSR activities for education and medical purpose.
Continue of RAK Ceramics Ltd.

11. Ratios 2014 2015 2016 2017 2018
Current Asset ratio 2.16 1.59 1.62 1.57 1.64
Quick Ratio 1.56 1.04 1.02 1.04 1.02
Cash Ratio 0.470 0.248 0.169 0.286 0.164
0.00
0.50
1.00
1.50
2.00
2.50
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
Liquidity Ratio
Current Asset ratio Quick Ratio Cash Ratio
Liquidity Ratio of RAK Ceramics

12. Ratios 2014 2015 2016 2017 2018
Inventory turnover 1.78 1.38 1.36 1.76 1.50
Average Collection
period
41.37 43.94 38.73 29.45 45.06
Total asset turnover .51 0.48 .51 .60 .57
0.00
10.00
20.00
30.00
40.00
50.00
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
CCC Ratios
Inventory turnover Average Collection period Total asset turnover
CCC Ratio of RAK Ceramics

13. Ratios 2014 2015 2016 2017 2018
Gross profit margin 36.89% 39.85% 39.85% 36.15% 34.74%
Operating profit margin 16.44% 21.30% 23.37% 21.49% 18.35%
Net profit margin 11.76% 15.07% 16.39% 14.34% 13.05%
0.00
10.00
20.00
30.00
40.00
50.00
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
Profitability ratio Analysis
Gross profit margin Operating profit margin Net profit margin
Profitability Ratio of RAK Ceramics

14. Standard Ceramics LTD.

15. Overview of Standard Ceramic LTD.
• Standard Ceramic Industries Ltd., with an authorized capital of Tk. 100 million
was floated on 13.08.1984.
• The factory was designed by famous ceramist Mr. Kyoki Yamazaki of Sone
Ceramic, Japan.
• The factory went into commercial production on September 1st. 1993.
• The factory is located 10 Km from Dhaka International Airport.
• It has a working force of 600 people.
• Major Customers are Premier Housewares, Argos, GUS, (U.K.), Regalo Kasa
(Spain), KF (Sweden), OY Hobby Hall (Finland) etc.

16. Liquidity Ratio of Standard Ceramic LTD
0.00
0.20
0.40
0.60
0.80
1.00
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
Liquidity Ratio
Current Asset ratio Quick Ratio Cash Ratio
Ratios 2014 2015 2016 2017 2018
Current Asset ratio 0.91 0.95 0.90 0.86 0.89
Quick Ratio 0.61 0.55 0.43 0.44 0.30
Cash Ratio 0.075 0.074 0.093 0.142 0.193

17. Ratios 2014 2015 2016 2017 2018
Inventory turnover 5.92 5.30 4.83 5.40 3.44
Average Collection period 0.63 0.56 0.61 0.85 0.96
Total asset turnover 1.11 1.32 1.39 1.34 1.35
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
CCC Ratios
Inventory turnover Average Collection period Total asset turnover
CCC Ratio of Standard Ceramic LTD

18. Ratios 2014 2015 2016 2017 2018
Gross profit margin 20.16% 19.69% 20.21% 15.34% 22.66%
Operating profit margin 6.06% 4.94% 4.42% 0.08% 6.37%
Net profit margin 2.84% 2.53% 3.84% 0.77% 5.11%
0.00
5.00
10.00
15.00
20.00
25.00
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
Profitability ratio Analysis
Gross profit margin Operating profit margin Net profit margin
Profitability Ratio of Standard Ceramic LTD

19. Shinepukur Ceramics Ltd.

20. Overview of Shinepukur Ceramics
 Shinepukur Ceramics Limited (SCL) is a member of BEXIMCO Group.
 Shinepukur Ceramics was registered in Bangladesh in 1997 and the Plants were
commissioned in 1998.
 It is the Leader in Manufacturing and Marketing both of Bone China and
Porcelain tableware in Bangladesh.
 SCL is located in the BEXIMCO Industrial Park, near Dhaka Export Processing
Zone (DEPZ), 40 Km from Capital Dhaka City.
 Shinepukur Ceramics has launched its first ever 'Signature Showroom' at The
Westin Dhaka through an inauguration ceremony on May 27, 2012

21. Products
Bone China Porcelain

22. 0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
Liquidity Ratio
Current Asset ratio Quick Ratio Cash Ratio
Ratios 2014 2015 2016 2017 2018
Current Asset ratio 0.58 0.65 0.56 0.56 0.62
Quick Ratio 0.21 0.22 0.18 0.18 0.18
Cash Ratio 0.012 0.011 0.010 0.011 0.006
Liquidity Ratio of Shinepukur Ceramics LTD

23. 0.00
10.00
20.00
30.00
40.00
50.00
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
CCC Ratios
Inventory turnover Average Collection period Total asset turnover
Ratios 2014 2015 2016 2017 2018
Inventory turnover 1.87 1.67 2.61 1.75 1.58
Average Collection period 33.88 25.58 23.77 39.05 46.55
Total asset turnover 0.25 0.21 0.22 0.24 0.24
CCC Ratio of Shinepukur Ceramics LTD

24. 0.00
5.00
10.00
15.00
20.00
25.00
30.00
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
Profitability ratio Analysis
Gross profit margin Operating profit margin Net profit margin
Ratios 2014 2015 2016 2017 2018
Gross profit margin 25.29% 24.04% 22.67% 22.65% 22.20%
Operating profit margin 16.80% 17.40% 15.56% 15.46% 15.07%
Net profit margin 0.14% 0.43% 0.58% 4.03% 4.09%
Profitability Ratio of Shinepukur Ceramics LTD

25. `
Comparative (Cross Sectional) Analysis

28. Conclusions
 The calculation and comparison of ratios to assess liquidity, profitability
and solvency of the companies have enabled us to understand the
working capital condition of the industry as well as the companies.
 For investors, it helps them gauge the ability 48 for a company to get
through difficult financial periods.
 In context of the Ceramic Industry sufficient working capital ensures
regular supply of raw materials and continuous production as most of the
products are imported from foreign countries.
 It is very important for a company to keep enough working capital to
handle any unpredictable difficulties.