Performance Analysis

1. Performance Analysis of
United Leasing Company Ltd.
Northern University
Bangladesh

2. Presented by Errorgroup:
 Khaladha Nasrin Mitu {ID:160170991}
 Al Mamun {ID:160170993}
 Sumaiya Binta Siddiqua {ID:160170995}
 Md.Rahad Kabir {ID:160171015}
 Khaled Md.Saifullah {ID:160171031}
Submitted to:
Alrafa Akter (Nitu) Lecturer
Department of Business
Administration

3. This report will give a clear idea about the
financial performance (2011 – 2015) of United
Leasing Company Limited (ULC).
This paper divided 3 part
 Firstly, the introduction, objective, methodology and limitation,
 Secondly the Analysis part &
 finally finding, recommendation, conclusion & references of ULC
have been discussed.

4. United Leasing Company Ltd.
ULC was established on 27 April, 1989
ULC was set up as a joint venture with participation from
 Asian Development Bank (ADB),
 Commonwealth Development Corporation (CDC)
 Duncan’s parent Company in the U.K.
 Local investors were Duncan Brothers,
 United Insurance Company,
 National Brokers of Chittagong.

5. 1.2 Objective:
Specific Objectives
 To know the financial performance of United Leasing Company Ltd.
Methodology:
 Secondary Data Sources:
The following methods were used to collect the required information for the study:
 Annual Reports of ULC.
 Official website of ULC.
 National Foot Print (official database of ULC).
 Process of data collection

6. Year 2011 2012 2013 2014 2015
Current Asset 574273595 2038780320 3266709310 3713504286 5274750728
Current
Liabilities
6208963070 7497613270 9237390171 10668317436 13655592406
Current Ratio 0.09249106
3
0.27192391
1
0.35363985
4
0.348087157 0.38627037
Current Ratio:
Current Ratio = Current Assets / Current Liabilities
Evaluates the ability of a company to pay short-term obligations using current assets
(cash, marketable securities, current receivables, inventory, and prepayments).
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
0
1E+09
2E+09
3E+09
4E+09
5E+09
6E+09
7E+09
8E+09
9E+09
1E+10
year 2011 2012 2013 2014 2015
Current Ratio
LiquidityRatio
The Interpretation:
United Leasing Company Ltd. (2011-2015) of Current Ratio will grow day by day.
That means this company Current Ratio increased (0.092 — 0.386). This position of
Current Ratio better it is.

7. Year 2011 2012 2013 2014 2015
Leverage
Ratio
EBIT 4043400
51
3840152
43
5384979
51
5849888
41
5530361
78
Interest 1166501
656
1439757
246
1776485
792
1856154
710
1821707
023
Time Interest
earned ratio
0.34662
6213
0.26672
2216
0.30312
5391
0.315161
682
0.30358
1295
Time Interest earned ratio
Time Interest earned ratio = EBIT / Interest
The times interest earned ratio is an indicator of a company’s ability to meet the
interest payments on it is debt. The times interest earned calculation is a corporation’s
income before interest and income tax expense, divide by interest expense.
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0
500000000
1E+09
1.5E+09
2E+09
Year 2011 2012 2013 2014 2015
Time Interest earned ratio
Leverage Ratio
The Interpretation:
United Leasing Company Ltd. (2011-2015) of Time Interest earned ratio will up & down
day by day. That means this company Time Interest earned ratio Decreased (0.34 — 0.30)
in this time. The position of Time Interest earned ratio not good it is.

8. Year 2011 2012 2013 2014 2015
Leverage
Ratio
Total Liabilities 850994007
9
986221600
5
117636450
19
13421163549 1667636867
5
Total Asset 103046222
02
118166133
71
139290177
91
15846568044 1937489267
5
Debt Ratio 0.82583717
4
0.83460596
5
0.84454232
1
0.846944494 0.86072057
Debt Ratio
Debt Ratio = Total Liabilities / Total Asset.
0
0.2
0.4
0.6
0.8
1
0
5E+09
1E+10
1.5E+10
2E+10
2.5E+10
Year 2011 2012 2013 2014 2015
Debt Ratio
Leverage Ratio
The Interpretation:
United Leasing Company Ltd. (2011-2015) of Debt Ratio will grow day by
day. That means this company Debt Ratio increased (0.82 — 0.86) in this
time. This position of Debt Ratio not good it is.

9. Year 2011 2012 2013 2014 2015
Profitability
Ratio
Net Income 21334005
1
22901524
3
26641540
6
323787723 343251105
Total Equity 25693212
3
19543973
66
21653727
72
2425404495 269852400
0
Return On
Equity
83% 12% 12% 13% 13%
Return on Equity
Return on Equity = Net Income / Total Equity
83%
12% 13% 13%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
0
500000000
1E+09
1.5E+09
2E+09
2.5E+09
3E+09
1 2 3 4 5
Return On Equity
Year
Net Income
Total Equity
The Interpretation:
United Leasing Company Ltd. of Return on Equity ratio the year 2011-2012 Decreased &
2012 – 2015 will grow day by day. That means this company Return on Equity ratio Decreased
(83% - 12%) & increased (12% - 13%) in this time. This position of Return on Equity ratio is
not good for the first year & good for the last year. Because we know that higher the Return on
Equity ratio better it is.

10. Year 2011 2012 2013 2014 2015
Profitability
Ratio
Net Income 213340051 229015243 266415406 323787723 343251105
Total Asset 103046222
02
118166133
71
139290177
91
1584656804
4
193748926
75
Return On
Asset
2% 2% 2% 2% 2%
Return on Asset
Return on Asset = Net Income / Average Total Asset
In financial analysis, it is the measure of the return on investment. ROA is used
in evaluating management's efficiency in using assets to generate income.
0
2%
2% 2%
2%
2%
0
0.005
0.01
0.015
0.02
0.025
0
5E+09
1E+10
1.5E+10
2E+10
2.5E+10
Year 2011 2012 2013 2014 2015
Return On Asset
Profitability Ratio
The Interpretation:
United Leasing Company Ltd. of Return on Asset ratio the year 2011 increased 0.021
& (2012-2015), (0.019 - 0.018 ) decreased day by day. That means this company
Return on Asset ratio Decreased .This position of Return on Asset is not good Because
we know that higher the Return on Asset ratio better it is.

11. Year 2011 2012 2013 2014 2015
Profitability
Ratio
Net Profit 2133400
51
2290152
43
26641540
6
323787723 343251105
Sales 6330928
14
6464344
96
83635083
3
943868517 952621047
Net Profit
Margin
34% 35% 32% 34% 36%
Net Profit Margin
Net Profit Margin = Net Profit / Sales
0
34%
35%
32%
34%
36%
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0
200000000
400000000
600000000
800000000
1E+09
1.2E+09
Year 2011 2012 2013 2014 2015
Net Profit Margin
Profitability Ratio
The Interpretation: United Leasing Company Ltd. of Net Profit Margin ratio
the year 2011-2012 Increased & Decreased in 2013, last two years 2014 – 2015 will
grow day by day. That means this company Net Profit Margin better it is.

12. Findings:
 Liquidity ratio of the firm is better liquidity position in over the five years. It shows that
the firm had sufficient liquid assets.
 Leverage ratio of the firm is not better leverage position in over the five years.
 The Activity ratio of the firm has in increased in 2011 and it decreased in the next 3years
continuously in 2013-15.
 Profitability ratio of the firm is better profitable position because (Net profit margin, return
on equity) is better. It shows that the firm had sufficient Profitable ratio.

13.  Recommendations:
 . Financial institutions are doing a good business: It is clear that the modern people are
more concerned about securing their valuable assets and get high-quality and timely services.
 Competitive world: this sector has trenched its wings wide enough to cover any kind of financial
services anywhere in this world.
 Organize credit approval process: United Leasing Company has to organize credit approval
process according to the need of the market.
 All uninterrupted network system: It should be ensured. It is mentioned that the network
systems of the branches are not up to the mark.
 Improve the existing process: Leasing Company should adopt some of the practices that are not
practiced currently.

14. Conclusion:
The financial environment has become hyper competitive as the number of nonbanking financial
institutions are increasing.. The study found that the performance of United Leasing Company is
satisfactory. But, in order to maintain and attract more depositors and borrowers ULC should improve
their strategy and service quality; it should also concentrate in minimizing the credit approval process
time which in turn will give more quick service to its clients. The market still offers huge opportunities
for the leasing business. Those NBFIs that can set objectives in order to gain access to the opportunities
by using vision and back-up resources might be able to survive and will becoming the best operator in the
market. So, we hope that United Leasing Company will be the one of them.

15. Thank You Every one