Welcome To Our Presentation
“Ratio Analysis On Prime Textile
Spinning Mills Limited”
Prepared For
Mokta Rani Sarker
Lecturer, School of Business
University of Information Technology and Sciences (UITS).
Prepared By
• Shah Amanat Ullah
ID # 07510033
• Ziaul Hoque Shishir
ID # 08410007
Table of Contents
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Executive Summary
Orientation of the report
The Ratio Analysis
Prime Textile Spinning Mills Ltd (PTSML)
Working of the ratio
Conclusion
Executive Summary
The title of our term paper is “Ratio Analysis on
Prime Textile Spinning Mills Limited.” Prime
Textile Spinning Mills Ltd (PTSML) was
incorporated in 1989 in the name of Prime
textile spinning mills ltd. Under the company
act 1913. It is a public limited company.
Orientation of the report
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•
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Origin of the report
Objective of the report
Limitation of the report
Methodology
Benefit of the analysis
The Ratio Analysis
• Liquidity Ratios:
» Current Ratio
» Quick Ratio
» Inventory Turnover
» Receivable Turnover
» Average Collection Period
Liquidity Ratios Grap:
LIQUIDITY RATIO ANALYSIS
100.00
80.00
60.00
40.00
20.00
0.00
2005
2006
2007
2008
YEAR
current ratio
QR
IT
AR
ACP
2009
Operating Efficiency Ratios
• Fixed Asset Turnover
• Total Asset Turnover
2005 = 0.75
2006 = 0.86
2007 = 0.96
2008 = 1.00
2009 = 0.50
2005 = 0.55
2006 = 0.59
2007 = 0.67
2008 = 0.60
2009 = 0.37
Leverage Ratios:
– Debt Ratio
– Debt-to-Equity
– Total Debt to Total Capitalization
– Long-Term Debt to Total Capitalization
Leverage Ratios Graph:
100%
80%
60%
40%
20%
0%
2005
2006
2007
2008
2009
Debt Ratio
Debt-to-Equity
Total Debt to Total Capitalization
Long-Term Debt to Total Capitalization
Operating Profitability Ratios:
– Gross Profit Margin
– Operating Profit Margin
– Net Profit Margin
0.14
0.12
0.10
0.08
0.06
0.04
0.02
0.00
Gross Profit
Margin
Operating
Profit
Margin
Net Profit
Margin
Operating Profitability Ratios Graph:
2005
2006
2007
2008
2009
Profitability Ratios:
• Return on Total Assets
(ROA):
2005 = 0.01
2006 = 0.02
2007 = 0.02
2008 = 0.03
2009 = 0.01
• Return on Equity (ROE):
2005 = 0.02
2006 = 0.04
2007 = 0.05
2008 = 0.06
2009 = 0.02
Valuation Ratios:
• Earnings Per Share
(2005 = 7.00, 2006 = 11.19, 2007 = 15.99,
2008 = 21.9, 2009 = 12.46)
• Dividend per Share
(2005 =5.00, 2006 = 7.00, 2007 = 10.00,
2008 = 10.00, 2009= 10.00)
Valuation Ratios:
• Price/Earnings Ratio
(2005 = 40.56, 2006 = 25.70, 2007 =18.24,
2008 = 13.72, 2009 = 50.80)
• P/B (price to book) Ratio
(2005 = 1.00, 2006 = 1.00, 2007 = 1.00,
2008 =1.00, 2009 = 1.00)
Valuation Ratios:
• Dividend Payout Ratio
(2005= 0.71, 2006 = 0.66, 2007 = 0.72,
2008 =0.54, 2009 = 0.94)
Valuation Ratios Graph:
P/B Ratio
50.80
13.72
18.24
25.70
12.46
21.89
Earnings Per Share
10.00
Dividend per Share
10.00 15.99
40.56
10.00
11.19
7.00
5.00 7.00
Price/Earnings Ratio
1.00
0.94 1.00
0.54
0.72
0.66
0.71
Dividend Payout Ratio
0.00 20.00 40.00 60.00 80.00 100.0 120.0 140.0 160.0
0
0
2005 2006 2007 02008 0 2009
Growth Rates:
• EPS Growth Rate
(2006 = 59.5%, 2007 = 42.83%
2008 = 36.93%, 2009 = -43.10%) Basic year
2005.
• Dividend Growth Rate
(2006 = 40.00%, 2007 = 42.6%, 2008 = 0.00%,
2009 = 0.00%) Basic year 2005.
Growth Rates:
• Sales Growth Rate
(2006 = 12.11%, 2007 = 6.42%, 2008 = -0.96%,
2009 = -13.08%) Basic year 2005.
• EBIT Growth Rate
• (2006 = 59.85%, 2007 = 42.3%, 2008 = 36.93%,
2009 = -43.10%) Basic year 2005.
Growth Rates:
• Net Income Growth Rate
(2006 =51.60%, 2007 = 31.54%, 2008 =
33.25%, 2009 = -43.10%) Basic year 2005.
Company Profile:
• PTSML was incorporated in 1989 in the name
of Prime textile spinning mills ltd. Under the
company act 1913. It is a public limited
company. The company manufactures and
markets export quality knit and mixed yarn.
Address:
• Address: Head Office
Address: Sena Kalyan Bhaban, 8th floor,
Motijheel C/A, Dhaka
Telephone: +880-2-9564851-3, 7176013-4,
9564856
Fax: +880-2-9564857
Email: info@primegroup-bd.com
Website: www.primegroup-bd.com
• Major Client Name: Banker
Client Details: Bangladesh Shilpa Bank,
Janata Bank:
Manpower:
• Manpower Name: Officers and Staffs ,
Workers
Unit: 104, 1695.
Products:
• Product Name: Cotton yarn
Description: Produce export quality of cotton
yarn.
Working Days:
• Company Profile: June 1989
Conclusion :
• This term paper is based on real financial statements of
PRIME TEXTILES SPINNING MILL (PRIMET: Dhaka).
Through this term paper the changes in Prime Textile
Spinning Mills Ltd (PTSML) Company’s financial
position and performance are summarized and made
clearly visible in 2005 to 2009.
• Through this term paper our effort was to understand
the ratios and mass for them.