2. Group Member list
Pritom Paul
M22010203162
Sumaiya Sultana
M22010203164
Ishrat Gafur
M22010203174
Pial Sha
M22010203179
Safiqul Islam
M22010203187
3. Introduction
• ACI LIMITED is a Bangladeshi conglomerate operating in pharmaceuticals,
agriculture, consumer brands, and retail. The company's pharmaceutical
division is a major player in the industry. ACI LIMITED's consumer brands
division includes well-known brands such as Savlon, ACI Pure, and ACI Aerosol.
This report will analyze the company's financial performance over the past
three years using revenue, profitability, liquidity, and solvency ratios.
5. Project Analysis
Operational Risks: This
refers to risks arising
from the company's
internal processes,
systems, and
procedures. For ACI
Limited, this can
include risks related to
supply chain
disruptions, production
failures, quality control
issues, and regulatory
compliance.
Financial Risks: This
includes risks related to
the company's financial
performance, such as
currency fluctuations,
interest rate changes,
credit risk, and liquidity
risk
Strategic Risks: These
are risks that arise from
the company's strategic
decisions, such as
entering new markets,
launching new
products, or making
acquisitions. These
risks can include
market saturation,
competition, and
changes in consumer
behavior.
Compliance and
Regulatory Risks: This
includes risks related to
non-compliance with
legal and regulatory
requirements, such as
environmental
regulations, labor laws,
and tax laws.
Reputational Risks: This
refers to risks that arise
from damage to the
company's reputation,
such as negative
publicity, customer
dissatisfaction, or social
media backlash.
6. FINANCIAL PERFORMANCE
ANALYSIS
A. Current Ratio: Current Asset / Current
Liabilities
Lorem ipsum dolor sit
amet, consectetur
adipiscing elit, sedo
eiusmod tempor
incididunt ut labore et
dolore magna aliqua.
1. Liquidity
Ratio:
Current
Ratio
2022 2021 2020 2019 2018
CA/CL 1.18 1.16 1.04 0.62 0.63
Therefore, based on this data, 2022 was the best year in terms of
the company's ability to cover its short-term debts with its
current assets.
7. B. Quick Ratio: Current Asset – Inventory / Current
Liabilities
Quick Ratio 2022 2021 2020 2019 2018
CA-inven/CL 0.61 0.22 0.58 0.64 0.69
Therefore, based on this data, the best year in terms of the company's
ability to cover its short-term liabilities using quick assets was
2018, with a quick ratio of 0.69.
C. Cash Ratio: Cash / Current Liabilities
Cash Ratio 2022 2021 2020 2019 2018
Cash/CL 0.06 0.08 0.07 0.06 0.06
However, the year with the highest cash ratio was 2021 at 0.08, which
suggests that the company had a slightly better cash position relative to
its current liabilities in that year.
8. D. Net working
capital: Current
Asset - Current
Liabilities / Total
Asset
Net working capital 2022 2021 2020 2019 2018
CA-CL/TA 10.86% 9.5% -21.14% -15.57% -9.5%
0.1086 0.095 -0.2114 -0.1557 -0.095
Looking at the data, we can see that in
2022 and 2021, the net working capital to
total asset ratio was 10.86% and 9.5%
respectively. This indicates that the
company had enough current assets to cover
its current liabilities in those years.
9. E. Interval
Measures:
Current Asset
/ Average
Daily Cost
(ADC)
Cash Ratio 2022 2021 2020 2019 2018
Cash/CL(Days) 841.84 836.44 218.18 236.28 191.05
Similarly, the company's performance was good in 2021,
with a cash ratio of 836.44 days, indicating that the
company had enough cash and cash equivalents to cover
its current liabilities for more than 2 years. However,
in 2020 and 2019, the cash ratios were relatively lower
10. E.1
Average
Daily
Cost
(ADC)
Average
Daily Cost
2022 2021 2020 2019 2018
CGS / 360 45,671,979.10 39,341,587.12 136,946,136.87 122,722,828.38 125,015,934.96
From the calculated values, we can see that the
average daily cost of goods sold has increased from
2018 to 2022. This indicates that the company is
spending more on producing goods, which could be a
sign of increased production or higher input costs.
11. 2. Long Term
Solvency
A. Total Debt Ratio: Total Asset- Total Equity/
Total Assets
Total Debt Ratio 2022 2021 2020 2019 2018
TA-TE / TA 0.629 0.619 0.881 0.849 0.802
In % 62.9% 61.9% 88.1% 84.9% 80.2%
Therefore, based on the total debt ratio, the company's performance was
relatively better in 2021 and 2022, as it had a lower level of debt
financing and higher equity financing, implying less financial risk.
12. B. Debt Equity Ratio: Total Debt / Total Equity
Debt Equity
Ratio
2022 2021 2020 2019 2018
CGS / 360 0.92 0.84 0.50 0.72 0.92
Therefore, based on the given Debt Equity Ratio values, the year 2020 has
the best performance as it has the lowest ratio of 0.50, indicating that
the company has a higher proportion of equity as compared to debt. The
other years have ratios above 0.50, with the highest being in 2018 and
2022, indicating a higher proportion of debt compared to equity, and thus
a higher financial risk.
13. C. Equity
Multiplier:
Total Asset
/ Total
Equity
Equity
Multiplier
2022 2021 2020 2019 2018
1.69 1.63 7.44 5.65 4.04
Therefore, in terms of financial risk, the year 2018 had
the best performance, as it had the lowest Equity
Multiplier. However, it's important to note that other
financial ratios and factors should also be considered
when evaluating a company's overall financial
performance and health.
14. D. Long Term
Debt Ratio:
Long Term Debt
/ Total Asset
Long
Term
Debt
2022 2021 2020 2019 2018
0.049 0.054 0.206 0.214 0.245
Based on the given values, we can see that
the Long-Term Debt Ratio has decreased
from 2018 to 2022, which is generally a
positive trend. The best performance can
be determined by looking at the lowest
ratio.
Therefore, in this case, the year 2022 has
the best performance with a Long-Term Debt
Ratio of 0.049, indicating that the
company has relatively low long-term debt
compared to its total assets
15. E. Time Interest Earn Ratio: EBIT / Interest
Time
Interest Earn
Ratio
2022 2021 2020 2019 2018
8.305 8.752 -0.140 0.053 0.758
A higher Time Interest Earned (TIE) ratio indicates that the company is
generating sufficient earnings to cover its interest expense, which is
generally considered favorable. Therefore, in this case, the best TIE ratio is
the highest one, which is 8.752 in 2021.
16. 3. Asset Utilization Ratio:
A. Inventory Turnover: Cost of Goods Sold /
Inventory
Inventory Turnover 2022 2021 2020 2019 2018
10.11 8.46 9.91 16.06 17.55
Therefore, based on the data provided, the inventory turnover for the year
2018 is the best as it has the highest value of 17.55, indicating that the
company was able to sell and replace its inventory quickly during that period.
17. B. Day’s sale in Inventory:
360 / Inventory Turnover
Day’s sale in
Inventory
2022 2021 2020 2019 2018
36.15 20.79 22.73 36.80 43.12
Therefore, based on the data provided, the best year in terms of Days Sales
in Inventory is 2021 with a DSI of 20.79, indicating that the company was
able to sell its inventory more quickly during that period
18. C. Fixed Asset Turnover: Sales
/ Fixed Asset
Fixed Asset
Turnover
2022 2021 2020 2019 2018
1.124 1.039 1.323 2.173 1.906
Comparing the ratios from the given years, we can see that the Fixed Asset Turnover
ratio for the year 2019 (2.173) is the highest, followed by 2018 (1.906), 2022
(1.124), 2020 (1.323), and 2021 (1.039). Therefore, the year 2019 appears to be the
best year in terms of using fixed assets efficiently to generate sales. However,
it's important to consider other factors and not base decisions solely on this
ratio.
19. D. Receivable Turnover: Sales
/ Account Receivable
Fixed Asset
Turnover
2022 2021 2020 2019 2018
3.16 2.96 3.77 6.61 5.58
Comparing the ratios provided, in 2019, the company had the
highest Receivable Turnover Ratio of 6.61, indicating that
it was collecting payments quickly. However, in the same
year, it had a relatively low Fixed Asset Turnover ratio of
6.07, suggesting that it could have used its fixed assets
more efficiently.
20. 4. Profitability Ratio
A. Gross Profit Margin: Gross Profit / Sales
Gross Profit
Margin
2022 2021 2020 2019 2018
59.09% 59.25% 32.97% 33.06% 32.30%
The best year in terms of gross profit margin is 2021, with a margin of
59.23%, followed closely by 2022 with a margin of 59.05%. These years have
significantly higher gross profit margins than the earlier years, indicating
that the company has been able to increase its profitability over time.
21. B. Net Profit Margin: Net Profit
/ Sales
Net Profit
Margin
2022 2021 2020 2019 2018
2.21% 1.19% 5.31% 1.78% 1.73%
From the calculations above, we can see that the year with the highest net
profit margin is 2020, with a margin of 5.31%.
22. C. Return on Asset
(ROA): Net Income /
Total Asset
• From the calculations, we
can see that the year 2020
had the highest ROA of
2.79%, indicating that the
company was able to
generate more profits from
its assets during that year
compared to the other
years.
Return
on Asset
2022 2021 2020 2019 2018
1.60% 0.88% 2.79% 0.87% 0.77%
23. D. Return on Equity (ROE):
Net Income / Total Equity
Return
on
Equity 2022 2021 2020 2019 2018
4.3% 2.3% 6.6% 5.8% 3.9%
Based on the ROE figures above, 2020 had the highest ROE at
6.6%. This indicates that the company was able to generate a
significant amount of profit compared to the amount of
equity invested during that year.
24. 24
Project Analysis
However, it's important to note that a high ROE does not necessarily mean that the company is performing
well, as there may be other factors to consider such as debt levels, industry trends, and market conditions.
Therefore, it's important to look at ROE in conjunction with other financial metrics and qualitative factors
when evaluating the performance of a company.
5,980,650.32
