It is part of our financial management course.

2. FINANCIAL ANALYSIS
OF
*RAHIM TEXTILE*
(2009-2013)

3. 1. Hossain, Mohammad Sazzad ID: 12-21618-2
2. Haque, Nadia ID: 12-21865-2
3. Islam, Shafiqul ID: 12-21987-2
*FINANCIAL MANAGEMENT*
TEACHER: ABEDIN,MD
JOYNAL
SECTION: D

4.  To evaluate the firm’s financial performance.
 To compare the strength and weakness of
various company .
 To measure the company productivity.
 To identify the opportunity and risk in the
company performance.
 To review the financial performance
 Provide the key information regarding the
companies financial performance .
 Help to take the decision to invest the money.

5.  Chairman - A. Matin Chowdhury.
 Incorporate - December 31, 1981( as Private
Limited Company)
 Commercial Operation - July 1, 1987
 Convert into Public Limited Company -
March 28, 1988 .
 Listing in stock exchange - 29 March 1988
 Number of share holder - 1723
 Main Products - High quality knit & woven
dyed and printed fabric.

6.  There are four types of Ratio
1. Liquidity Ratio
2. Leverage Ratio
3. Turnover Ratio
4. Profitability Ratio

7. Liquidity ratio:
There are three types of Liquidity Ratio
I. Current Ratio
II.Quick Ratio
III.Cash Ratio
Current ratio
Formula: current asset/current liabilities

8. 0.7118
0.552
0.7402
1 1
0
0.2
0.4
0.6
0.8
1
1.2
2009 2010 2011 2012 2013

9. Formula:
current asset-inventories/current liabilities.

10. 0.5716 0.5996
0.5363
0.7416
0.6823
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
2009 2010 2011 2012 2013

11. formula: cash + cash equivalent /current
liabilities

12. 0.0892
0.079 0.0791
0.1129
0.158
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
2009 2010 2011 2012 2013

13.  Debt to equity ratio
Formula: Total Debt/ shareholder equity

14. 3.4685 3.4904
3.2937
1.9998
1.4449
0
0.5
1
1.5
2
2.5
3
3.5
4
2009 2010 2011 2012 2013

15. Formula: earnings before interest and
tax/interest expense

16. 0.4145
0.055
0.2031
0.1121
0.3571
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0.4
0.45
2009 2010 2011 2012 2013

17. formula: Total Debt/shareholders equity

18. 0.7763 0.7773 0.7671
0.6666
0.591
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2009 2010 2011 2012 2013

19. Formula: (short term debt + long term
debt) / total asset

20. 0.7762 0.7773 0.7671
0.6666
0.591
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
2009 2010 2011 2012 2013

21.  There are four ratio in the turnover ratio.
 1. Receivable turnover ratio
 2. Receivable turnover in days
 3. Inventory turnover ratio
 4. Inventory turnover ratio in days
 Receivable turnover ratio=sales/
account receivable

22. 3.6299
3.229
4.7498 4.7421
8.7343
0
1
2
3
4
5
6
7
8
9
10
year2009 tear2010 year2011 year2012 year2013
Receivable turnover
Series 1

23. 100.5531
113.0389
76.8446 76.1573
41.7892
0
20
40
60
80
100
120
year2009 year2010 year2011 year2012 year2013
Receivable turnover in days
Series 1

24. Inventory turnover ratio: cogs/inventory

25. 9.5606
8.7914
7.2482
8.7727
11.049
0
2
4
6
8
10
12
year2009 year2010 yar2011 year2012 year2013
Invntory turnover
Series 1

26. 38.1775
41.518
50.3575
41.6064
33.0346
0
10
20
30
40
50
60
year 2009 year2010 year2011 year2012 year 2013
Inventory turnover in days
Series 1

27.  Total asset turnover: Net sales/total assets

28. 0.5224
0.5907
0.6461
1.0598
1.5008
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
year 2009 year2010 year2011 year2012 year2013
Total asset turnover
Series 1

29. Profitability ratio has four ratio
I. Gross Profit Margin
II. Net Profit Margin
III. Return On Equity
IV. Return On Asset
Gross profit margin ratio = (sales-
cogs)/sales

30. 17.07
16.89 16.81
14.49 14.51
13
13.5
14
14.5
15
15.5
16
16.5
17
17.5
year 2009 year2010 year 2011 year 2012 year 2013
gross profit margin
gross profit margin

31.  Net profit margin ratio= Net income
/sales

32. 3.26
0.55
1.87
0.94
2.23
0
0.5
1
1.5
2
2.5
3
3.5
year 2009 year2010 year2011 year2012 year 2013
Net profit margin

33.  Return on equity= Net profit after tax/
total equity

34. 7.61
1.47
5.19
2.99
8.2
0
1
2
3
4
5
6
7
8
9
yrar 2009 year2010 year2011 year 2012 year2013
Return on equity

35.  Return on asset=Net profit after tax / total
asset .

36. 1.7
0.33
1.21
3.35
0
0.5
1
1.5
2
2.5
3
3.5
4
year2009 year2010 year2011 year2012
Return on assest

37.  The current ratio of the company in 2009-2011 was not very but in
2012 and 2013 they are improving.
 The quick ratio of the company is not very good.
 The cash ratio of the company is very good.
 In year of 2009-2011 debt to equity of the company was very bad but
they are trying to improving but still they are not in well position.
 Company’s debt to total asset was very good.
 The interest coverage ratio of the company was very poor.
 Debt to capitalization of the company was good.
 Receivable turnover of the company was not excellent but they are
trying to improve themselves.
 Company’s receivable turnover in days in 2009 and 2010 was very bad
in recent years they have improved but still in bad position.
 Inventory turnover is doing up down but in good position for company.
 The profitability ratios of the company are very good

38.  We know that the progress of a company
depend on appropriate financing and
keeping statement. Rahim textile
company should have analysis their
performance to overcome their problems.