Professional Documents
Culture Documents
Executive Summary
We were given to do the project on Beximco Limited. In the beginning of the report we have
prepared all the common size statements for 2007-2011 from the information given in the annual
reports of the company. Beximco Limiteds financial position has been analyzed calculating
Liquidity Ratio, Assets Management Ratio, Debt Management Ratio, Profitability Ratio and
Stock Market Ratio and has interpreted those ratios. We use various ratio analysis and financial
calculations learnt in Finance 440 to understand Beximcos current financial position and future
growth compared. This is done by comparing Beximcos financial position to companies such as
Aramit Limited., Berger Paints, GQ Ball Pen, and Bangladesh Shipping Corporation (BSC), all
of which belong to the miscellaneous industry. We also have constructed a representative
industry average of the Miscellaneous Sector of Dhaka Stock Exchange for cross-sectional
analysis of Beximco Limited. The report also contains the graphical representation of those
ratios. We also have calculated the ROA and ROE using the Du-Pont and Extended Du-Pont
equation respectively. Then we have analyzed the risk, return, and the WACC of Beximco
Limited. In addition, we have analyzed the market returns for the period, of the company and
represent them in the tables and added necessary explanation. The optimum capital structure is
calculated. Intrinsic share price have been also calculated. At the end of the report there is a brief
discussion about the dividend policy of the company
One limitation to our project was that Beximcos financial calendar is from January 1 st to
December 31st. Three of the four companies that we worked with had the same financial years,
except for BSC. The financial year for BSC begins in July and ends in June.
Introduction
Beximco Limited is the largest conglomerate in Bangladesh, with interests in textile,
pharmaceuticals, real estate, trading, information and communication technologies, ceramics and
construction. It is also the parent company of GMG Airlines and Independent TV. Beximco also
has stakes on Unique Hotels and Resorts which on The Westin Hotel in Bangladesh.
What began as a commodities trading company, by brothers Ahmed Sohail Fasiur Rahman and
Ahmed Salman Fazlur Rahman in 1970, has now evolved into a diversified group of industries
that contributes nearly 75% of Bangladesh GDP. Beximcos products are sold domestically and
internationally. It is the largest employer in the private sector of Bangladesh, employing 48000
people.
The Group consists of four publicly traded and seventeen privately held companies. The publicly
traded companies Bangladesh Export Import Company Limited, Beximco Pharmaceuticals
Limited, Shinepukur Ceramics Limited and Beximco Synthetics Limited have a combined
market capitalization of approximately $550.96 million. The Group had total revenues of $834
million in the year ended December 31, 2010. The Groups global clients include some of the
worlds best known brands including BT, BASF, Chevron, Calvin Klein, H&M, JC Penney,
Macys, Zara, UNICEF, Royal Doulton and Villeroy & Boch.
Beximcos Corporate Social Responsibility (CSR) includes:
Proyash: A specialized institute that works for the holistic development of children with
special educational needs through different programs. Works of this program involve
Include early childhood development programs (ECD), special schooling, therapeutic
interventions, medical and neuro-developmental assessment, leisure time and cocurricular activities, training for the teachers, parents and integrated services.
10
provides free health screening for Beximco Pharmaceuticals and Beximco Antibiotics
Industries employees.
Beximco was also the sponsor of the Bangladesh National Cricket team for the ICC
Cricket World Cup in 2011.
Through these activities, Beximco generates a goodwill that further strengthens its image and
consequently adds to its future growth.
2012
62901881746
-34860222863
97762104609
-3107352958
-2924937501
-163544892.5
-18870564.52
94654751651
-3219854322
91434897328.7
0
-855465591.7
90579431736.9
6
-7626788152
82952643584.7
2013
134855344274.27
-74736831796.80
209592176071.08
-6661854007
-6270773509
-350623895.1
-40456603.28
202930322063.93
-3219854322
199710467741.93
-1834032682
197876435059.80
-16087354170
181789080889.44
0
-181157419.4
82771486165.2
8
16297877560
182415457.1
99251779182.6
1
8.79
-388383391.5
181400697497.93
34941019701
391080498.4
216732797697.78
6.
69
2012
63844671351.63
56884253318.07
5180683914.75
26256011.00
817891743
97202510007.29
12407103345.79
47811862586.33
36427824948.18
555719126.99
161047181358.92
2013
136876590910.77
121954150688.61
11106868245
56290261.97
817891743
208392461204.63
26599588863.04
102503852198.83
78097613906.41
1191406236.36
345269052115.40
136442785704.34
3535208570
23625786188
109298840454.34
1350281988
334955247772.85
3535208570
23625786188
307879768233.85
1350281988
5220136740
9965449
52436464939
5220136740
9965449
112418537183.19
15820058051
7342041958
26988064686
1066421122
161047181358.92
33916622456
15740603754
57859711881
1066421122
345269052115.40
2008
2009
2010
Current Ratio
1.29 times
1.95 times
2.38 times
2.18 times
a.
Quick Ratio
0.68 times
0.94 times
1.67 times
1.76 times
1.62
Working Capital
Cash conversion
2011
times
tim
426445560
281976842
669053702
122726594
es
208806591
410 Days
2
709 days
8
1024 days
11
146 days
11
215 days
cycle
13
Ratios
Aramit
Berger
Current ratio
Limited
1.82 times
Paints
Ball Pen
1.70 times
1.70 times
Quick ratio
Working Capital
1.33 times
273890158
0.69 times
931005
GQ
BSC
1.18 times
Beximco
Industry
3.37 times
Limited
average
1.85 times 2..09 times
2.78 times
195047953 150014412
5
122726594 6382581360
11
I. Current ratio:
Formula = Current Assets/Current Liabilities
Interpretation:
In 2011 Beximco's current ratio was 1.85.That means Beximco's current assets were 1.85 times
of their current liabilities. Performance declined compared to the previous performance as well
as the industry average 2.09. Relative change in current liabilities was more than the relative
change in assets. It is a bad sign in companys performance as current liabilities were more than
its current assets in 2011.
14
Interpretation:
In 2011 Beximco's Quick ratio was 1.62. That means Beximcos current assets (excluding
inventory) were 1.62 times of their current liabilities. Performance decline compared to the
previous performance as well as the industry average 1.52. From 2007 to 2009 the quick ratio of
Beximco went high but then till 2011 the ratio declined little in amount. Relative change in
current liabilities was more than relative change in assets (excluding inventory). Declining
performance in this ratio is bad for the company. This shows Beximco may not have enough
current asset excluding inventories to fulfill the liabilities.
15
Interpretation:
In 2011 Beximco's working capital was 20880659111. This is way more than previous year.
Its working capital is much more than industry average 6382581360 Taka. That means the
company is having enough money to operate its business which has a good effect on
Beximco. As we can see the trend from the graph it is going upward.
Interpretation:
In 2011 it takes on an average 215 days to convert invested capital to cash. From 2007 to 2009
the ratio was extremely high then the trend fluctuated.
16
Inventory Turnover
Days In Inventory
Total Asset Turnover
Fixed Asset Turnover
Days Sales Outstanding
Average Payment Period
2007
1.29 times
283 days
0.44 times
0.83 times
129 days
2 days
2008
0.45 times
811 days
0.31 times
0.83 times
100 days
2 days
17
2009
0.39 times
925 days
0.31 times
0.96 times
101 days
2 days
2010
2.43 times
150 days
0.62 times
2.30 times
225 days
229 days
2011
2.81 times
130 days
0.39 times
0.99 times
277 days
192 days
Berger
GQ
Beximco
Industry
Limited
Paints
Ball Pen
BSE
Limited
Average
Inventory Turnover
2.74 times
3.09 times
1.35 times
3.3 times
Days in inventory
133 days
118 days
270 days
58 days
142 days
0.69 times
1.85 times
0.23 times
0.78 times
2.37 times
5.4 times
0.47 times
2.20 times
1 day
28 days
26 days
31 days
277 days
73 days
Period
217 days
9 days
3 days
31 days
192 days
91 days
130 days
I. Inventory Turnover:
Formula=Cost of goods sold/ inventory
Interpretation:
In 2011, the company has sold out & restocked their inventory 2.81 times. It did well compare
to last few years. But still it is unfavorable because it is below industry average. The relative
change in COGS is higher than the relative change in inventories over last few years.
18
Interpretation:
On an average the inventory stay in their company 130 days before it gets sold out. In 2011
number of days went down compared to last 4 years which is a good sign. Beximco is below
company average which means days in Beximco is doing good. The lower it is the better. So for
2011 days in inventory is in a good shape.
19
Interpretation:
In 2011, Every 1 taka worth of total assets generated 0.39 taka worth of sales. Performance is
bad. The pattern is not stable at all. Industry average is 0.78 taka so it is lower than that. So it is
unsatisfactory. The relative change in total assets is more than relative change in sales.
Interpretation:
20
In 2011, Every 1 taka worth of fixed assets generates 1 taka worth of sales. Performance has
declined and it is way lower than the industry average. So it is not satisfactory at all. The relative
change in fixed assets is higher than the relative change in sales amount.
V. Days Sales Outstanding:
Formula=Accounts receivable/ (sales/365)
Interpretation:
In 2011, it takes on average 277 days to collect account receivables from debtors. It has
increased than previous years and it was above than industry average. So they should worry.
Compared to industry average it is very high. So it is not good at all.
21
Interpretation:
In 2011, on an average company took 192 days to pay to suppliers.
Beximco is not in favorable situation because DSO is 277 days and APP is 192 days. APP is less
than DSO. So they should do something to maximize DSO.
22
3. Profitability Ratios:
Beximco Ratio
Profitability Ratio
2007
2008
2009
2010
2011
33.53%
51.72%
74.51%
43.55%
44.58%
40.97%
46.53%
70.86%
42.21%
39.63%
10.78%
37.36%
61.18%
36.13%
50.91%
Return on Asset
4.71%
11.46%
19.19%
22.43%
19.88%
11.89%
14.27%
22.22%
26.21%
15.48%
Return on Equity
11.52%
17.18%
33.92%
38.43%
33.88%
Berger
BSC
GQ Ball
Beximco
Industry
Gross Profit
Limited
22.80%
Paints
34.08%
4.60%
pen
20.25%
Limited
44.58%
Average
25.26%
Margin
Operating Profit
20.30%
14.31%
-1.83%
21.74%
39.63%
18.83%
Margin
Net Profit Margin
Return on Asset
Operating Return
14.61%
10.02%
10.05%
11.41%
34.48%
42.70%
0.73%
0.53%
-1.33%
24.48%
5.67%
5.04%
50.91%
19.88%
15.48%
20.43%
14.12%
14.39%
on Asset
Return on Equity
17.00%
36.27%
1.03%
8.15%
33.88%
19.27%
23
Interpretation:
In 2011, for every $100 worth of sales Beximco operates $44.58 worth of gross profit. It has
improved from last year, and is at a favorable position compared to the industry average.
Performance had fluctuated but increased from 2007. Even though gross profit and total sales
increase, relative change in gross profit was higher than relative increase in sales. Gross profit
margin in current year is comparatively lower than historical years which are an effect of
generating lower gross profit.
II. Operating Profit Margin:
Formula: (Operating profit/Sales)*100
24
Interpretation:
In 2011for every $100 sales Beximco made $39.63 worth of operating profits. Performance
fluctuated but declined in general. Performance declined from 2010, but is very favorable
compared to industry average. This is because relative increase in operating profit was less than
relative increase in sales.
25
Interpretation:
In 2011 for every $100 sales there is $50.91 worth of net profit. Performance increased from last
year, and is also favorable compared to the industry average. This is because relative increase in
net profit is higher than relative increase in sales. The net profit margin fluctuated from 2007,
but increased in general.
Return on Asset:
Formula: (Net profit/Total asset)*100
26
Interpretation:
In 2011, every $100 worth of asset generated a Net Profit of $19.88. Performance declined from
2010, but is favorable compared to the industry average. This is because relative increase in total
assets was more than relative increase in net profit. Beximcos return on asset has shown an
upward growing trend from 2007
Operating Return on Asset:
Formula: (EBIT/Total Asset)*100%
27
Interpretation:
In 2011, every $100 worth in assets generated an operating profit worth $15.48. Performance has
declined from last year but is favorable compared to the industry average. This is because the
relative increase in operating profit was less than relative increase in total assets. The operating
profit had a growing trend till 2010 but declined in 2011.
Return on Equity:
Formula: (Net profit/Total equity)*100
Interpretation:
In 2011, the shareholders received a return of $33.88 for every $100 invested in the company.
Performance has declined compared to last year but is very favorable compared to industry
average. The return on equity had a growing trend till 2010 but declined in 2011. This is the
28
main indicator of stock market. As the return on equity is on favor the stockholders will still be a
part of the company.
2008
2009
2010
2011
Debt-Asset
ratio
Time Interest
Ratio
38%
37%
37%
343%
40%
2.08
8.75
11.52
12.65
1.46
Berger
GQ Ball
Limited
Paints
pen
BSC
Beximco
Industry
average
Debt-Asset ratio
41%
42%
30%
48%
40%
40%
1472.10
22.20
3.17
-0.25
1.46
299.74
29
I. Debt to Asset:
Formula = Total debt/ total asset
Interpretation:
In 2011 the company has 40% debt to asset ratio. This ratio means the company has used 40% of
total assets were purchased by using debt. It also means the companys total structure consists of
40% debt and 60% owners equity
30
Interpretation:
In 2011, Beximcos EBIT was 1.46 times higher than interest. During 2007 to 2011 the timeinterest ratio has fluctuated a lot. Performance has declined on this ratio regarding the last years
performances. The ratio is also very lower than industry average. The interest expense has
increased relatively higher than relative change in EBIT
2007
2008
2009
2010
2011
0.51
1.91
3.46
1.94
2.5
M/B Ratio
8.4
16.58
30.35
28.90
9.11
73.33
96.54
89.39
160.567
45.2
Industry
Average
Tk.1.79
/share
Earnings Per
Share
M/B Ratio
Price Earning
Ratio
Aramit
Limited
Tk. 1.43
/share
Berger
Paints
Tk. 3.11
/share
GQ Ball Pen
BSC
Tk. 0.99
/share
Tk. 0.92
/share
Beximco
Limited
Tk. 2.5
/share
33.04 times
62.86 times
13.91times
62.16 times
9.11 times
36.23 times
19.44
176.85
71.31
45.2
203.37
31
60
4.03
Interpretation:
In 2011 the shareholders earned Tk. 2.50 per share. Performance has improved from last year
and overall performance is also very favorable compared to the industry average. This is because
the relative increase in net income is very higher.
32
Interpretation:
In 2011, the market value per share was 9.11 times higher than the book value. Performance has
declined very much compared to 2010. Overall performance is very unfavorable compared to the
industry average. This is because, the market price of the share decreased and the book value/
share increased. As the market price is declining, this can create unfavorable situations for the
company.
Interpretation:
In 2011, the shareholders of this company were willing to pay Tk.45.2 for every one taka of
reported earnings. It is the key for a companys judgment. Beximcos price earnings ratio is very
33
low than the industry average which is not a good sign for the companys performance. The
shareholders will not have any confidence to invest or reinvest in this company.
Return on Assets
2007
10.78%
0.44 times
4.71%
2008
37.36%
0.31 times
11.46%
2009
61.18%
0.31 times
19.19%
2010
36.13%
0.62 times
22.43%
2011
50.91%
0.39 times
19.88%
34
demand in the market seems to decrease and the sales are getting affected. The total asset is increasing
allot, we can see that loan also increases so maybe the company purchased asset using the loan.
Equity Multiplier
Return on Euity
2007
10.78%
0.44 times
2.46
11.52%
2008
37.36%
0.31 times
1.52
17.18%
2009
61.18%
0.31 times
1.77
33.92%
2010
36.13%
0.62 times
1.71
38.43%
2011
50.91%
0.39 times
1.70
33.88%
industry average. The company had huge loans in 2010 which they have paid back in 2011 so the
debt management ratio is favorable. The stock-market ratio is not so satisfactory. The
shareholders are earning less than the industry average from the company. And other ratios are
also below the industry average and that shows that the shareholders have lack of confidence on
the company. If the company does not take necessary steps to handle this situation then they may
have to face some bad consequences.
4. Risk Analysis
To calculate the risk of Beximco Limited, we have collected last five years daily trading
information from DSE. Then we have taken the beginning and the ending market price of the
shares of each month of last five years. Using this information we have calculated total 60
monthly returns from 2008 to 2011. Then we have calculated the standard deviation and analyze
risk.
Beximco Limiteds Returns for all month from 2007 to 2011:
Months
2007
2008
2009
2010
2011
January
1.13%
1.93%
12.56%
1.28%
-5.69%
-17.28%
2.49%
-9.50%
11.56%
-20.30%
March
3.15%
6.48%
9.98%
0.16%
17.42%
April
-6.90%
-6.47%
25.52%
8.67%
-4.81%
May
-2.94%
9.87%
-14.40%
-22.13%
-40.67%
June
16.79%
72.71%
29.70%
-9.23%
3.39%
July
3.15%
69.02%
-4.23%
1.91%
17.11%
February
36
August
-7.19%
-21.67%
-10.10%
8.07%
-15.26%
September
-3.77%
94.05%
-3.99%
-5.69%
-4.36%
October
61.11%
-1.15%
15.21%
2.90%
-24.28%
November
3.45%
-41.12%
-9.23%
-1.20%
5.17%
December
-4.10%
36.73%
3.72%
-3.89%
-7.78%
5. Market Return
Market return measures the total return of a market on a whole. We have calculated the monthly
return of the market by using the DSE index in the same way we have calculated the monthly
return of Beximco Limited.
DSE Market Returns for all month from 2007 to 2011:
Month/Year
2007
2008
2009
2010
2011
JANUARY
14.02%
-3.38%
-5.63%
17.48%
-9.88%
FEBRUARY
-1.92%
1.42%
-3.41%
2.01%
-33.47%
MARCH
-1.85%
3.44%
-6.83%
0.27%
13.40%
APRIL
0.34%
1.56%
4.55%
0.92%
-6.14%
MAY
13.69%
2.13%
1.30%
8.46%
-3.89%
JUNE
7.09%
-6.46%
15.91%
0.12%
7.91%
JULY
8.84%
-8.85%
-5.06%
2.02%
4.91%
AUGUST
2.55%
3.76%
0.01%
3.44%
-2.44%
SEPTEMBER
1.26%
5.18%
4.53%
4.77%
-16.19%
37
OCTOBER
8.52%
-8.42%
7.72%
10.16%
-13.97%
NOVEMBER
4.75%
-6.70%
29.15%
8.23%
4.61%
DECEMBER
4.81%
11.06%
2.52%
-4.96%
0.40%
The average of these 60 monthly returns of the market is the Market Return (RM ) Market Return
Market Return per month = 1.85%
Market Return Annually (RM) = 1.85 x12
RM = 22.2%
Df
Regression
Residual
Total
Intercept
X Variable 1
SS
MS
0.10646
3
0.05566
4
F
1.91260
6
P-value
0.36193
5
0.17197
5
0.106463
58
59
3.228504
3.334967
Coefficient
s
Standard
Error
0.028649
0.031176
t Stat
0.91893
6
0.497004
0.359374
1.38297
Significanc
eF
0.171975
-0.03376
Upper
95%
0.09105
4
-0.22236
1.21637
Lower 95%
We have cross checked the beta by using a scatter plot diagram which is given below:
39
Lower
95.0%
0.03376
0.22236
Upper
95.0%
0.09105
4
1.21637
40
According to us, the safest investment in Bangladesh is the investment on 364 days Treasury bill
of Bangladesh Bank. The rate of return of that kind of bill is on an average 10.995%. We can
assume that the Bangladesh government will be able to pay the interest in all circumstances and
in this short period of time there is a very low possibility of changing the interest rate. So we
consider the risk free rate of return.
Risk Free Rate (Rf) = 10.995%
CAPM, Ke = Rf + (Rm - Rf ) x
= 10.995 + (22.2 10.995) X 0.497
= 16.56%
So the investors yearly Required Rate of Return is 16.56%.
Cost of Financing is the price a company has to pay to obtain loan capital. We know that its
formula is:
Cost of Financing = Interest Rate x (1- Tax Rate)
And the Interest rate is simply obtained by dividing the Interest expense by EBIT (Earning
before Interest and Taxes). By doing so, we will get the before tax interest rate and cost of
financing of debt. And if we want to calculate the after tax interest rate and cost of financing of
debt, we just need to multiply the before tax interest rate and cost of financing of debt with (1Tax Rate)
If we refer to the Financial Report (Balance Sheet and Income Statement) for the year 2011
Interest Rate = (2959557424/8644756339) x100
= 11.10%
Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which
each category of capital is proportionately weighted. All capital sources - common stock,
preferred stock, bonds, retained earnings, and any other long-term debt - are included in a
WACC calculation. All else equal, the WACC of a firm increases as the beta and rate of return
on equity increases. An increase in WACC notes a decrease in valuation and a higher risk.
Cost of Equity:
The cost of equity is the Required Rate of Return (Ke ). The Required Rate of Return (Ke ) was
calculated using the Capital Asset Pricing Model (CAPM).
Therefore, Cost of Equity( Ke) = 16.56%
Market Value of Equity:
No. of common shares outstanding = 353520857
Market price per share = Tk. 113
Total market value of common equity = 353520857 X 113
= Tk. 39947856840
Retained earning = Tk. 16918967359
Total Equity = Common Stock Equity + Retained Earnings
= Tk. 39947856840 + Tk. 16918967359
= Tk.56866824190
Total Debt = Tk. 8644756339
Weight of Debt =
= 13.20%
Weight of Capital =
= 86.80 %
WACC = Wd Kd (1- Tax Rate)+ We x Ke
= 13.20 x 10.16% + 86.80 % x 16.56%
43
= 15.72%
Weight of Debt
Cost of
Debt
Weight of
Equity
Cost of
Equity
WACC
V*
13.20%
10.16%
86.80%
16.56%
15.72%
50371636250
25%
10.16%
75%
16.56%
14.96%
52914461100
35%
10.16%
65%
16.56%
14.32%
55279353210
50%
10.16%
50%
16.56%
13.36%
59251522310
55%
10.16%
45%
16.56%
13.04%
60705547390
From this table, we can see there are 5 combinations of debt and equity including the actual
combination of Beximco Limited for the year 2011. Optimum Capital Structure means the
highest value generated from a mix of debt and equity. From all combinations most preferable
one is 55% debt and 45% equity because it gives the highest value among all. So the Optimum
Capital Structure is 55% debt and 45% equity.
44
100.33%
2011
P0 , DO
100.33%
4.5%
2012
2013
D1
D2, TV2
2014
D3
The constant growth rate was assumed to be 4.5%, which is below the required rate of return
(16.56%). The intrinsic stock price of Beximco Limited in 2011 was Tk. 92.42. Whereas, the
market value Beximco Limiteds Stock was Tk.113 in the year 2010. So, the intrinsic share price
is lower than the market price. So the stock price is over-valued. The investors are interested to
invest in this particular company for their huge reputation or for the dividend policy. This is a
good sign that people are attracted to the company but on the other hand because of the high
share price is there is a chance of sudden market fall also they investor to make profit might sell
the stocks.
46
8. Dividend Policy
There are three views:
1st view: One of the most argued by Modigliani and Miller. It states that the
dividend is the passive residual. People only care about the return (Capital gain
yield+ dividend gain yield). So, no matter what happens to the dividend as long as
the overall return is good the buyer will buy the share
dividend, because it has more guaranteed income. For that higher dividend
attracts more buyers. As a result the share price very much depends on the
dividend.
3rd view: Low dividend increases the share price. People always try to
maximize income (after tax income). Though the tax rate on the dividend is
very high buyers expect to have lower dividend so that the overall return is
higher.
47
Small regular dividend plus year end extra dividend payout: A corporation
following this policy pays a small regular dollar dividend plus a year end
extra dividend in prosperous years. The extra dividend is declared toward
the end of the fiscal year, when the companys profits for the period can be
estimated. If company has a very good profit year it (the company) follows
this policy. Example: $1, $1.5, $2.0
48
Notes:
1. We could not calculate g using the formula g = retention* ROE .Because our retention was
coming out to be more than 200%. Then Sir you gave us the permission to not to calculate using
this method.
49
APPENDIX
50
2007
2008
2009
2010
2011
1721730460
2803557113
5327783716
18980964619
27438488152
51
2) FV= PV(1+g)n
27438488152= 1721730460 (1+g) 4
g= 99.80%
so, g= (115.64+99.80)/2
= 114.39%
Dividend calculation:
2007:
No. Of common stock outstanding = no. of stock outstanding in 2007 + no. of stock outstanding
in 2007* dividend stock percentage
= 36204297 (1.15) = 41634941.55
Stock Dividend = no. Of stock outstanding in 2007* FV
= 41634941.55*10
= 416349415.5
2008:
Cash dividend = FV* Cash percentage* no. Of shares outstanding in 2007
= 10* 10%* 41634941.55
= 41634941.55
No. Of stocks outstanding = 41634941.55(1.50)
= 62452412.33
Stock dividend = 62452412.33*10 = 624524123.3
Total dividend = 41634941.55 + 624524123.3= 666159064.9
52
2009:
No of stocks outstanding = 62452412.33(1.60) = 99923859.73
Stock dividend= 99923859.73*10 = 999238597.3
2010:
No. Of stocks outstanding = 99923859.73(1.5) = 149885789.6
Stock dividend = 149885789.6 * 10 = 1498857896
2011:
No. Of stocks outstanding = 149885789.6(1.25) = 187357237
Stock dividend = 187357237 *10 = 1873572370
2008
666159064.90
2009
999238597.30
2010
1498857896.00
2011
1873572370.00
53
g = 159.002%
3) Sustainable growth rate :
Note: g is not possible to be counted as retention ratio was not possible to be counted
from the annual reports of Bangladesh Export and Import company.
29339932714(1+1.1439)
2013
62901881746(1+1.1439)
16260877280/29339932714
*100= 55.42%
34860222863/62901881746*1
00= 55.42%
62901881746* 55.42%
134855344274.27* 55.42%
62901881746-34860222863
134855344274.27-
54
74736831796.80
Operating Expenses
Administrative expenses
Exchange loss
Operating Profit
Financial Expenses
Net Profit Before Cont. to
WPWF
Contribution to Workers'
Profit/Welfare Fund
6270773509+350623895.1
+40456603.28
2924937501+163544892.5+
18870564.52
1365536627/29339932714
*100= 4.65%
2924937501/62901881746*10
0=4.65%
62901881746* 4.65%
134855344274.27* 4.65%
75169915/29339932714 *100=
0.25%
163544892.5/62901881746*10
0= 0.25%
62901881746* 0.25%
134855344274.27* 0.25%
10120204/29339932714*100=
0.03%
18870564.52/62901881746*10
0= 0.03%
62901881746* 0.03%
134855344274.27* 0.03%
97762104609
-3107352958
-3219854322
209592176071.08
-6661854007
-3219854322
94654751651
-3219854322
400398779/29339932714*100
= 1.36%
202930322063.93
-3219854322
855465591.7/62901881746*10
0= 1.36%
62901881746* 1.36%
134855344274.27* 1.36%
87754415223-855465591.7
674985413/8007975587
*100=8.43%
88609880815* 8.43%
Net Profit after Tax
199710467741.93
-1834032682
16087354170/19787643505
9.80
*100
=8.13%
197876435059.80* 8.13%
197876435059.80
-16087354170
88609880815-7203983310
Non-Controlling (minority)
Interest in Income
84384072/29339932714*100=
0.03%
55
181157419.4/62901881746*10
0= 0.03%
Total Comprehensive
Income after minority
interest
62901881746* 0.03%
134855344274.27* 0.03%
7248606102/29339932714*10
0= 0.29%
79652907607.00/62901881746
*100= 0.29%
62901881746* 0.29%
134855344274.27* 0.29%
7601395496/29339932714*10
0
= 25.91%
16297877560/
62901881746*100= 25.91%
62901881746* 25.91%
134855344274.27* 25.91%
86202955/29339932714*100=
0.29%
182415457.1/62901881746*10
0= 0.29%
62901881746* 0.29%
134855344274.27* 0.29%
181400697497.93+
79652907607.00+1629787756
34941019701
0+
182415457.1
EPS
8.79
+391080498.4
6.69
56
2012
Non-current Assets
Investment in Shares
2013
56884253318.07+5180683914.75 121954150688.61+11106
868245
+
+56290261.97+81789174
26256011.00+817891743
26533072120/29339932714
*100= 90.43%
56884253318.07/ 62901881746*100=
90.43%
62901881746* 90.43%
134855344274.27* 90.43%
2416476475/29339932714
*100= 8.24%
5180683914.75/ 62901881746*100=
8.24%
62901881746* 8.24%
Deffered Assets
12246845/29339932714 *100=
0.041%
134855344274.27* 8.24%
26256011.00/ 62901881746*100=
0.041%
62901881746* 0.041%
Long-term Loan
Current Assets
134855344274.27* 0.041%
817891743
817891743
26599588863.04+1025
03852198.83
+78097613906.41+11
91406236.36
97202510007.29
Inventories
5787165141/29339932714
*100= 19.72%
12407103345.79/
62901881746*100=19.72%
62901881746* 19.72%
Trade and Other Receivables
22301349217/29339932714
*100= 76.01%
134855344274.27*19.72%
47811862586.33/ 62901881746*100=
76.01%
62901881746* 76.01%
Advances, Deposits and PrePayments
134855344274.27* 76.01%
16991382503/29339932714
*100= 57.91%
36427824948.18/ 62901881746*100=
57.91%
62901881746* 57.91%
134855344274.27* 57.91%
259209444/29339932714
*100= 0.88%
555719126.99/ 62901881746*100=
0.88%
62901881746* 0.88%
Total Assets
134855344274.27* 0.88%
63844671351.63+97202510007.29
57
136876590910.77+208392461204.63
136459835212.34
335040762991.85
Liquidity Ratio
Ratio
Current ratio
Quick ratio
Working
capital
Formula
Aramit
606243015/
332352857
Current
assets/current
liabilities
(In times)
(Current
(606243015assets164804751)/
inventories)/c 332352857
urrent liability
(in times)
606243015Current
332352857
assets- current
liabilities
Berger
2264647/
1333642
GQ ball pen
482070603/2
87022650
BSC
2131947699/
631803574
(22646471346988)/
1333642
(482070603144132670)/
287022650
(2131947699375469202)/
631803574
22646471333642
482070603287022650
2131947699631803574
58
(In taka)
Ratios
Current
ratio
Quick
ratio/acid
Working
capital
Formulas
Current
assets/curre
nt liabilities
(In times)
(Current
assetsinventories)
/current
liability
(in times)
Current
assetscurrent
liabilities
(In taka)
2007
2008
2009
2010
2011
187996830
3/
145352274
3
(18799683
03888067732
)/14535227
43
(57871651
41299923342
7)/2967396
719
(11526373
536344084369
6)/4835836
508
(22659992
465440696482
1)/1038733
3054
(453391063
05578716514
1)/2445844
7194
187996830
3145352274
3
578716514
1296739671
9
115263735
36483583650
8
226599924
65103873330
54
453391063
05244584471
94
Ratios
Formula
s
Asset
Manage
ment
Ratio:
Inventory
turn-over
ratio
Cost of
goods
sold/
inventory
Aramit
Limited
Taka
in000
Berger
Paints
Take in
000
GQ Ball
Pen
Take in
000
365
365/2.74
days/inve
ntory
turnover
ratio
Total
sales/total 585,578,0
asset
assets
70/
turn-over
853,383,8
ratio
60
Fixed
Sales/
585,578,0
asset ratio Fixed
70/
assets
247,140,8
45
365/3.09
Day's
sales
outstandi
ng
1,093,150
/
(585,578,
070/365)
472,468/(
6,321,274
/
365)
268,538,7
50/
(452,092,
313/
365)
103,651/
(4,167,03
9/
365)
Average
payment
period
Take in
000
Beximco
Limited
Take in
000
Day's in
inventory
Accounts
receivabl
e/
(sales/365
)
Accounts
payable/
(cost of
goods
sold/365)
BSE
365/1.35
365/6.38
211,776,6
09/
(2,512,71
2,635/365
)
1,276,651 203,299,8
/
08/
(194,204, (2,397,01
731/
5,344/365
365)
)
Profitability Ratio:
60
365/2.81
29,339,93
2,714/75,
118,793,4
88
29,339,93
2,714/29,
779,687,1
83
Industry
Average
Taka
in000
(2.74+1.3
5+6.38+3.
09+2.81)/
5
(133+270
+58+
118+130)
/5
(0.69+0.2
3+
0.73+1.85
+0.39)/5
(2.37+0.4
7+
1.80+5.40
+
0.99)/5
22,301,34 (1+26+31
9,217/
+28+
(29,339,9 2770/5
32,714/36
5)
8,557,615 (217+3+3
,555/
1+
(16,260,8 9+192)/5
77,280/36
5)
Ratios
Formulas
Profitabilit
y Ratio:
Gross profit
margin
(Gross
Profit/
Sales)*100
Operating
profit
margin
(Operating
profit/Sales
)*100
Net profit
margin
(Net profit/
Sales)
*100
ROA
(Net
profit/Total
asset)*100
ROE
(Net
profit/Total
equity)*10
0
Operating
Return on
Asset
(EBIT/Tota
l
Asset)*100
%
2007
2008
2009
2010
2011
Taka
in000
Taka
in000
Taka
in000
Taka
in000
Taka
in000
577,232,18
6
/1,721,730,
460
468,916,54
4/
1,721,730,4
60
185,635,97
8/
1,721,730,4
60
185,635,97
8/
3,953,800,6
68
-10,000,31
2
185,635,97
8/
1,611,487,8
48
1,450,086,5
55
/2,803,557,
113
1,304,479,6
55/
2,803,557,1
13
1,047,357,4
52/
2,803,557,1
13
1,047,357,4
52/
10,657,285,
210
-1,518,536,
258
1,047,357,4
52/
6,097,109,6
99
3,969,528,1
88 /
5,327,783,7
16
3,775,143,2
43/
5,327,783,7
16
3,259,800,6
17/5,327,78
3,716
8,265,442,7
29 /
18,980,964,
619
8,012,370,4
76/
18,980,964,
619
6,857,572,2
57/
18,980,964,
619
3,259,800,6 6,857,572,2
17 /
57 /
16,987,753, 30,569,775,
707
387
13,079,055,
434/29,339,
932,714
11,628,228,
688/29,339,
932,714
14,936,204,
553 /
29,339,932,
714
14,936,204,
553 /
75,118,793,
488
6,857,572,2 14,936,204,
3,259,800,6 57/
553/44,079,
17/
17,843,954, 962,117
9,608,872,5 106
06
468,916,54 1,304,479,6 3,775,143,2 8,012,370,4 11,628,228,
4/
55/
43/
76/
688/
3,953,800,6 10,657,285, 16,987,753, 30,569,775, 75,118,793,
68210707
387
488
10,000,312 1,518,536,2
58
ratio
2007
2008
2009
2010
2011
DebtAsset
ratio
1020335581+
11029742+
2967396719/
10657285210
468916544/
225242845
1410929880+
12654931+
4835836508
/16987753707
1304479455/
149073846
4835836508+
1410929880+
12654931/
16987753707
3775143243/
327699387
103887333054+
1078512573+
13892058
/30569777387
8012730476/
633592074
(5220136740+
9965449+
24458447194
/75118793488)
(4242975262/
2913249384)
Ratio
Beximco
(Total
debt/
total
asset)%
Time
EBIT/
Interest Interest
Ratio
DebtAsset
ratio
Time
Interest
Ratio
(Total
(5220136
debt/ total 740+9965
asset)%
449+
24458447
194
/
75118793
488)
EBIT/
(4242975
Interest
262/2913
249384)
Aramit
GQ Ball
pen
Berger
BSC
Industry
average
(2785708
6+
32235285
7)
/
85338386
0
28702265
0/462068
833+4820
70603
Market Ratios:
62
Ratios
Market
Ratios
Earnings
per Share
Market/
Book Ratio
Price
Earning
Ratio
Ratios
Market
Ratios
Earnings per
Share
Market/ Book
Ratio
Price Earning
Ratio
Formulas
2007
Net Profit /
Total
Number of
Shares
Outstandin
g
Market
Price/ Book
Value per
Share
Market
Price/Earni
ngs Per
Share
37.4/4.45
2008
2009
2010
2011
184.4/1.91
309.3/3.46
311.5/1.94
113/2.5
37.4/0.51
Aramit
Limited
Berger
Paints
GQ Ball Pen
BSC
BexImco
Limited
85540569/60
000000
53523980/53
913600
53523980/53
913600
18360120/
7332990174/3
535208570
277.2/8.39
550/8.75
169.6/12.19
554.5/8.92
113/12.4
550/3.11
169.6/0.99
554.5/.918
113/2.5
277.2/14.26
63
2008
2009
2010
2011
January
(35.80-35.40)/
35.40*100
(36.9-36.2)
/36.2*100
(206.1-183.1)/
183.1*100
(324- 319.9)
/319.9*100
February
(29.20-35.30)/
35.30*100
(37-36.10)/
36.10*100
(183.8-203.1)/
203.1*100
(376.4-337.5) /
337.5*100
March
(29.50-28.60)/
28.60*100
(39.4-36.90)
/36.90*100
(203.8-185.3)/
185.3*100
(380.1-379.5) /
379.5*100
April
(27-29)/
29*100
(39-41.70)
/41.70*100
(260.2-207.3)/
207.3*100
(414.4-381.6) /
381.6*100
May
(26.40-27.20)/
27.20*100
(43.40-39.50)
/39.50*100
(237.8-277.8)/
277.8*100
(323.7-417.5) /
417.5*100
June
(30.60-26.20)/
26.20*100
(84.80-49.10)
/49.10*100
(315.3-243.1)/
243.1*100
(398.8-329.2) /
329.2*100
July
(32.70-31.70)/
31.70*100
(139.1-82.3)
/82.3*100
(305.5-319)/
319*100
(304.5-298.8) /
298.8*100
August
(27.10-29.20)/
29.20*100
(108.8-138.9)
/138.9*100
(274-304.8)/
304.8*100
(336-310.9)
/310.9*100
September
(25.50-26.50)/
26.50*100
(215.2-110.9)
/110.9*100
(274.4-285.8)/
285.8*100
(315.2-334.2) /
334.2*100
October
(40.60-25.20)/
25.20*100
(316.7-274.9)/
274.9*100
(323-313.9)
/313.9*100
November
(42-40.60)/
40.60*100
(231.50234.20)
/234.20*100
(128.5-218.2)
/218.2*100
(297.9-328.2)/
328.2*100
(322.1-324.8)
/324.8*100
(37.40-39)/
39*100
(185.4-135.6)
/135.60*100
(309.3-298.2)/
298.2*100
(311.5-324.1) /
324.1*100
(301.50319.70)/319.70
*100
(234.40294.10)/294.10
*100
(299.30254.90)/254.90
*100
(283.10297.40)/297.40
*100
(159.90266.80)/266.80
*100
(159.90154.80)/154.80
*100
(195.10166.60)/166.60
*100
(156.60184.80)/184.80
*100
(153.50160.50)/160.50
*100
(116.00153.20)/153.20
*100
(124.10118.00)/118.00
*100
(113.00122.40)/122.40
*100
December
64
Market Return(2007-2012)
Month
2007
2008
2009
2010
2011
January
{(1805.121583.08)/
1583.08}*100
{(2907.173008.91)
/3008.91}*100
(2,649.492,807.61)/2,8
07.61)*100
((5367.114568.4)/4568
.4)*100
((8302.597484.23)/7484.
23)*100
{(1791.541826.58)/
1826.58}*100
{( 2931.382890.25)
/2890.25}*100
((2,570.962,661.6)/2,66
1.69 )*100
((5560.565451.15)/545
1.15)*100
((7820.285203.08)/5203.
08)*100
((5582.335567.4)/5567
.4)*100
((6352.15601.6)/5601.6
)*100
((5654.885594.32)/559
4.32)*100
((6050.856447.01)/6447.
01)*100
February
March
{(1760.881794.02)/
1794.02}*100
April
{(1743.331737.36)/
1737.36}*100
May
{(2003.581762.36)/
1762.36}*100
{(3167.993101.94)
/3101.94}*100
((2,572.182,539.17)/2,5
39.17)*100
((6107.815631.3)/5631
.3)*100
((5991.385758.26)/5758.
26)*100
June
{(2149.322007.05)/
2007.05}*100
{(3000.503207.89)
/3207.89}*100
((3,010.262,597)/2,597)
*100
((6153.686152.39)/615
2.39)*100
((6117.235668.68)/5668.
68)*100
July
{(2384.182190.46)/
2190.46}*100
((6342.766217.08)/621
7.08)*100
((6459.626157.52)/6157.
52)*100
August
{(2455.092394.11)/
2394.11}*100
((6657.976436.77)/643
6.77)*100
((62126367.6)/6367.6
)*100
September
{(2548.492516.72)
/2516.72}*100
((7097.386774.87)/677
4.87)*100
((5910.746193.08)/6193.
08)*100
{(3016.492916.20)
/2916.20}*100
{(3072.853025.57)
/3025.57}*100
{(2761.053029.24)
/3029.24}*100
{(2791.212689.94
/2689.94}*100
{(2966.822820.79)
/2820.79}*100
65
((2,446.922,626.27)/2,6
26.27 )*100
((2,554.362,443.2)/2,44
3.25)*100
((2,914.533,069.71)/3,0
69.71 )*100
((2,941.282,941.02)/2,9
41.02)*100
((3,083.892,950.12)/2,9
50.12 )*100
October
{(2850.812627.02)/
2627.02}*100
November
December
{(2971.112836.32)/
2836.32}*100
{(3017.212878.74)/
2878.74}*100
{(2748.603001.37)/
3001.37}*100
{(2468.922684.69)/
2684.69}*100
{(2795.342517.05
/2517.05}*100
Beximco Return
x axis
1.13%
-17.28%
3.15%
-6.90%
-2.94%
16.79%
3.15%
-7.19%
-3.77%
61.11%
3.45%
-4.10%
1.93%
2.49%
6.48%
-6.47%
9.87%
72.71%
69.02%
-21.67%
66
((3,364.263,123.24)/3,1
23.24)*100
((4,380.953,392.02)/
3,392.02)*10
0
((4,535.534,424.02)/4,4
24.02 )*100
((7957.127223.49)/722
3.49)*100
((5036.55901.94)/5901.
94)*100
((8602.447947.8)/7947
.8)*100
((5268.555205.17)/5205.
17)*100
((8290.418723.18)/872
3.18)*100
((5257.615236.76)/5236.
76)*100
5.18%
-8.42%
-8.03%
11.06%
-5.63%
-3.41%
-6.83%
4.55%
1.30%
15.91%
-5.06%
0.01%
4.53%
7.72%
29.15%
2.52%
17.48%
2.01%
0.27%
1.08%
8.46%
0.02%
2.02%
3.44%
4.77%
10.16%
8.24%
-4.96%
-9.88%
-28.53%
13.40%
-6.14%
-3.89%
7.91%
4.91%
-2.44%
-4.57%
-14.66%
1.22%
0.40%
94.05%
-1.15%
-41.12%
36.73%
12.56%
-9.50%
9.98%
25.52%
-14.40%
29.70%
-4.23%
-10.10%
-3.99%
15.21%
-9.23%
3.72%
1.28%
11.56%
0.16%
8.67%
-22.13%
-9.23%
1.91%
8.07%
-5.69%
2.90%
-1.20%
-3.89%
-5.69%
-20.30%
17.42%
-4.81%
-40.67%
3.39%
17.11%
-15.26%
-4.36%
-24.28%
5.17%
-7.78%
67
Weight of Debt
Weight of equity
V*=EBIT(1-Tax)/WACC
13.20%
86.80% 7,916,003,380/0.1572
25%
75% 7,916,003,380/0.1496
35%
65% 7,916,003,380/0.1432
50%
50% 7,916,003,380/0.1336
55%
45% 7,916,003,380/0.1304
68