Financial Statement Analysis

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 Term Paper
on
Financial Statement Analysis

Course: Fundamentals of Finance (ALD1204)

Submitted To:
Md. Kaysher Hamid
Lecturer
Dept of Business Administration- General

Submitted By:
Alfee Shahreen Mashfee - Roll: 18251047,
Minhajuz Zaman Tonmoy - Roll: 18251055
Rahat Ahmed Shimanto - Roll: 18251009,
Farah Manzoor - Roll: 18251007,
Prottay Abedin – Roll- 18251099
Section: A
Semester: Second
Batch 2017-18
Department of Marketing

Thursday Bangladesh University of Professionals

November 8, 2018 Mirpur Cantonment, Dhaka- 1216

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 ACKNOWLEDGEMNT
One of the most pleasant parts of preparing this report is the opportunity to thank those who have
contributed to it. Unfortunately, in any establishment, the list of expression of thanks, no matter
how all-embracing, is always imperfect and insufficient, this acknowledgement alike others, is
not an Immunity.

At first we want to thank Almighty Allah who gave us energy, forbearance and also knowledge
for making that kind of report. Secondly we want to express our gratitude to our course instructor
Md. Kayser Hamid without whom we would have been unable to make it.

Moreover, I am also thankful to my classmates and friends for their help and support. Last but
not least, thanks to my parents and family members for their help, support and sacrifices during
the entire study period.

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 LETTER OF TRANSMITTAL

8th November, 2018

Md. Kayser Hamid
Lecturer
Dept. of Business Administration- General
Bangladesh University of Professionals. (BUP)

Subject: Submission of Term Paper on “Financial Statement Analysis.”

Sir,
It is our immense pleasure to submit the report on “Financial Statement Analysis.” as a part of
our BBA curriculum. To prepare this term paper, we have gathered what we believe to be the
most complete information available. It was an enormous opportunity for us to prepare the report
under your instruction, which really was a great experience for us.

We have worked hard preparing this term paper and sincerely tried to make the paper a
comprehensive one within the given time span. Any lacking or fault may arise as our
unintentional mistakes. We will be always available for answering any query regarding this
paper. We believe that the preparation to prepare our term paper will endorse us to work in our
career.

Sincerely yours,

Alfee Shahreen Mashfee - Roll: 18251047,

Minhajuz Zaman Tonmoy - Roll: 18251055
Rahat Ahmed Shimanto - Roll: 18251009,
Farah Manzoor - Roll: 18251007,
Prottay Abedin – Roll- 18251099
Section: A
Department of Business Administration in Marketing.

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 Table of Contents

CHAPTER 1: INTRODUCTION 7

1.1: ORIGIN OF STUDIES 7

1.2: OBJECTIVES OF THE STUDY 7
1.3: DATA COLLECTION AND ANALYSIS 7
1.4: LIMITATIONS OF THE STUDY 7

CHAPTER 2: OVERVIEW OF SELECTED COMPANIES 8

COMPANY PROFILE 8
POWER GRID COMPANY OF BANGLADESH (PGCB) 8
LINDE BANGLADESH 8
DESCO 8
MJL BANGLADESH LIMITED 8
TITAS GAS TRANSMISSION DISTRIBUTION COMPANY 9
PRODUCTS AND SERVICES OF THE ORGANIZATION 9
POWER GRID COMPANY OF BANGLADESH (PGCB) 9
LINDE BANGLADESH 9
DESCO 10
MJL BANGLADESH LIMITED 10
TITAS GAS TRANSMISSION DISTRIBUTION COMPANY 10

CHAPTER 3: ANALYSIS & DISCUSSION 11

ANALYSIS OF LIQUIDITY RATIO 11

LIQUIDITY RATIO OF POWER GRID COMPANY OF BANGLADESH (PGCB): 11
LIQUIDITY RATIO OF LINDE BANGLADESH: 11
LIQUIDITY RATIO OF DESCO: 11
LIQUIDITY RATIO OF MJL BANGLADESH LTD.: 11
LIQUIDITY RATIO OF TITAS GAS TRANSMISSION DISTRIBUTION COMPANY: 11
COMPARATIVE ANALYSIS OF ALL COMPANIES: 12
ANALYSIS OF ASSET MANAGEMENT RATIOS 12
ASSET MANAGEMENT RATIO OF POWER GRID COMPANY OF BANGLADESH (PGCB): 12
ASSET MANAGEMENT RATIO OF LINDE BANGLADESH: 12
ASSET MANAGEMENT RATIO OF DESCO: 12
ASSET MANAGEMENT RATIO OF MJL BANGLADESH LIMITED: 13
ASSET MANAGEMENT RATIO OF TITAS GAS TRANSMISSION DISTRIBUTION COMPANY: 13
COMPARATIVE ANALYSIS OF ALL COMPANIES: 13
ANALYSIS OF DEBT RATIOS 14
DEBT RATIOS OF POWER GRID COMPANY OF BANGLADESH (PGCB): 14

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DEBT RATIOS OF LINDE BANGLADESH: 14
DEBT RATIOS OF DESCO: 14
DEBT RATIOS OF MJL BANGLADESH LIMITED: 14
DEBT RATIOS OF TITAS GAS TRANSMISSION DISTRIBUTION COMPANY: 14
COMPARATIVE ANALYSIS OF ALL COMPANIES: 15
ANALYSIS OF PROFITABILITY RATIOS 15
PROFITABILITY RATIOS OF POWER GRID COMPANY OF BANGLADESH (PGCB): 15
PROFITABILITY RATIOS OF LINDE BANGLADESH: 15
PROFITABILITY RATIOS OF DESCO: 16
PROFITABILITY RATIOS OF MJL BANGLADESH LIMITED: 16
PROFITABILITY RATIOS OF TITAS GAS TRANSMISSION DISTRIBUTION COMPANY: 16
COMPARATIVE ANALYSIS OF ALL COMPANIES: 17

CHAPTER 4: FINDINGS, RECOMMENDATION & CONCLUSION 17

FINDINGS: (BASED ON COMPARATIVE ANALYSIS ONLY) 17

RECOMMENDATION 18
CONCLUSION 18

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 EXECUTIVE SUMMARY
This term paper is prepared on The Comparative Analysis of Power Grid Company of
Bangladesh (PGCB), Linde Bangladesh, DESCO, MJL Bangladesh Ltd. and Titas Gas
Transmission Distribution Company for the years 2017-16. Ratio analysis is a quantitative
analysis of information contained in a company’s financial statements. The ratio analysis helps
an organization to understand their performance and helps them to take decisions in future.
Chapter 1 of our report contains the origin, objectives, data collections and analysis, and
limitations of our study. In chapter 2, we have covered the brief background of the companies
selected and an overview of their products and operations. Chapter 3 contains the comparative
analysis of the liquidity, asset management, profitability, and debt ratios for the companies. In
Chapter 4, we have discussed the findings about the financial performance of these companies
and based on them, we have given some recommendations that will help the companies to
strengthen their financial performance. Lastly we have presented a brief conclusion to our term
paper.

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Chapter 1: Introduction
• 1.1: Origin of studies
We have prepared our term paper by analyzing and comparing the financial statements of the
companies – Power Grid Company of Bangladesh (PGCB), Linde Bangladesh, DESCO, MJL
Bangladesh Ltd. And Titas Gas Transmission Distribution Company for the years 2017-16. This
paper has been prepared to fulfill the academic requirements of the course ALD 1204
Fundamentals of Finance, for our BBA Program from Faculty of Business Studies at Bangladesh
University of Professionals.

• 1.2: Objectives of the study

To compare and analyze the financial positions of the companies mentioned above. The
objectives of this paper are:
o Analyzing the financial statements of Power Grid Company of Bangladesh
(PGCB), Linde Bangladesh, DESCO, MJL Bangladesh Ltd. And Titas Gas
Transmission Distribution Company.
o Comparing their financial positions to each other.
o Relating academic leanings to the real-life business world.

• 1.3: Data collection and analysis

The data used to prepare this term paper has been collected from the annual reports available
online on their official websites and the Dhaka Stock Exchange website. They have been
analyzed using various ratios that we learned throughout our course, specifically the liquidity
ratios, asset management ratios, debt ratios and profitability ratios.

• 1.4: Limitations of the study

The ratio analysis of Power Grid Company of Bangladesh (PGCB), Linde Bangladesh, DESCO,
MJL Bangladesh Limited and Titas Gas Transmission Distribution Company has been done
keeping in mind some limitations. Firstly, all the required data and records of financial years
were collected from the statements provided by the companies on their respective websites, so
it’s doubtful as to which extent the authenticity stands or if there was any issue of window
dressing. Secondly, it concerns whether the inflation factor of the country in the respective years
were taken into account or not. Thirdly, specific information such as Average Daily Purchase
could not be found on all the financial statements. So, ratio of the Average Payment Period could
not be calculated. And finally, it was difficult to properly understand the overall standard of
comparison of ratios as the standard varies between companies.

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Chapter 2: Overview of Selected Companies
• Company profile

Power Grid Company of Bangladesh (PGCB)

Power Grid Company of Bangladesh Ltd. (the Company) is a listed public limited Company. The
Company was incorporated on 21 November 1996 having registration no. C-31820 (941)/96
under the Companies Act, 1994 as a private limited company by share which was subsequently
converted to a public limited company on 5 March 2000. The Company is listed with both Dhaka
Stock Exchange (DSE) and Chittagong Stock Exchange (CSE).
Linde Bangladesh
The Linde group was initially founded by Professor Doctor Carl Von Linde who invented
refrigeration technology and pioneered a process of air separation. Linde Bangladesh is a pioneer
in industrial gases in Bangladesh. Its roots go back to 1950’s, even for the independence. The
turnover of the company has exceeded over BDT 3.19 billion.
DESCO
DESCO is one of the principal electric power distribution companies of Bangladesh. DESCO
stands for Dhaka Electric Supply Company Limited. Dhaka Electric Supply Co. Ltd. (DESCO)
was created as a distribution company in November 3, 1996 under the Companies Act 1994 as a
Public Limited Company with an Authorized Capital of Tk. 5.00 billion. As per the License,
DESCO can receive power at 132KV & 33KV voltage levels and distribute the power at 33KV,
11KV & 0.4KV voltage level. The formation of this company is seen as an essential step towards
“corporatization and commercialization” of the power generation sector and to reduce the
excessive inefficiency in the distribution network in the capital.
MJL Bangladesh Limited
MJL Bangladesh Limited (formerly Mobil Jamuna Lubricants Limited) is the joint venture
company between state owned Jamuna Oil Company and EC Securities Limited (a subsidiary of
the East Coast Group). The journey of blending world-class lubricants in Bangladesh started in
1998 when Mobil Corporation (after the merger known as Exxon Mobil Corporation) decided to
set up Mobil Jamuna Lubricants Limited in partnership with the state owned Jamuna Oil
Company Limited. MJL Bangladesh Limited envisioned that Bangladesh would be one of the
few countries in the region to blend high quality lubricants. Accordingly, it commissioned a
state-of-the-art Lube Oil Blending Plant (LOBP) - the first of its kind in the country - in May
2003. Since then the production of this plant and marketing activities of MJL Bangladesh
Limited has expanded greatly.

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Titas Gas Transmission Distribution Company
The Titas Gas Transmission and Distribution Company is the largest natural gas distributor in
Bangladesh, with an 80% market share. As of June 2017, they employed 2,252 staffs (987
officials and 1,265 staffs) and served total 2,734,534 customers. 2,717,536 domestic customers,
10,919 commercial customers, 1,088 captive powers, 335 CNGs, 4,610 industrial customers, 03
fertilizers, 36 private power plants and 07 government power plants. The discovery of a huge gas
field on the bank of the Titas River in Bhramanbaria in 1962 created a new horizon for the
utilization of natural gas. Being established on November 20,1964Titas Gas Transmission and
Distribution Company Limited (TGTDCL) has completed 50 years of its operation. The
company began its commercial operation with the commissioning of gas supply to Siddhirganj
Thermal Power Station on April 28, 1968, after construction of 14-inch dia 58-mile-long Titas-
Demra gas pipeline by the then East Pakistan Industrial Development Corporation. In October
1968, first domestic natural gas connection was provided to the residence of renowned litterateur
Shawkat Osman. As a progressive national organization, it has earned the glory of being a
trustworthy one for the people by means of the quality of service delivery. This has been possible
because of the relentless and cordial endeavors of its officials and employees.

• Products and services of the organization

Power Grid Company of Bangladesh (PGCB)
The Company's principal activities are planning, promoting, developing, operating and
maintaining of an integrated and efficient power transmission system/network throughout
Bangladesh. As the sole power transmission Company in Bangladesh, the Company is
responsible in all aspects, regarding transmission lines, sub-stations, load dispatch centers,
communication facilities etc. The scope of work of the Company also includes co-ordination of
integrated operations of regional, national and international grid systems. It also provides
consultancy services in power systems and execution turnkey jobs for other organizations.
Linde Bangladesh
Linde Bangladesh is the market leader in Bangladesh in industrial gases. The company basically
focuses on 3 sectors: Industrial gas, Engineering and Medical Oxygen service. The product and
services range of the company is –
Industrial Gases: Liquid oxygen, Liquid nitrogen, Liquid argon, Liquid carbon dioxide,
Compressed oxygen, Compressed nitrogen, Compressed argon, CORGON (Shielding Gas),
Lamp gas, Dissolved acetylene etc.
Hardgoods Filler materials & equipment: Mild steel electrodes, Low hydrogen/low alloy
electrodes, Cast iron electrodes, Hard surfacing electrodes, Stainless steel electrodes etc.
Medical gases & equipment: Medical oxygen liquid, Medical oxygen compressed, Nitrous
oxide, Entonox, Sterilizing gases, Medical Carbon-di-Oxide, Medical Compressed Air, Medical
Gases Cylinders, Oxygen Concentrator etc.

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DESCO

Basically, DESCO has two types of products. They are: Pre-paid & Post-paid connections. Their
services include: Providing Temporary and permanent electric connection, Transformer rental,
Electric line accessories supply feasibility, Study for line expansion, Delivery of Bill payment,
statements and Certificate, Customer meter change, etc. They also have Post-paid Bill payment
services which include: Bill collection booths adjacent to the respective sales and distribution
division, Online bill collection through Debit and Credit cards, Payment through Mobile
Banking, Bill payment through live payment gateway, etc. Finally, they also provide Pre-paid
meter Recharge Service through vending stations.
MJL Bangladesh Limited
Where there is engine there is presence of MJL Bangladesh Limited to give appropriate
lubrication solutions. The lubricants blended and marketed by MJL Bangladesh Limited are
being used in powering the engines touching all corner-stones of modern developments of the
country including motor vehicles, locomotive engines, river, sea and ocean-going vessels,
aviation and power and other sectors of the country. MJLBD’s products are mainly divided into
two categories namely locally blended products and imported finished products. The company
caters the demand of wide range of customers from different sectors through providing 17 types
of product lines. Other than ‘Mobil’ branded product, MJLBL has been establishing its own
brand ‘Omera’ in other categories where Omera products will not come onto direct competition
with Mobil products.
Titas Gas Transmission Distribution Company
The main product of TGTDCL is Natural gas.Titas Gas is playing a significant role to strengthen
the socio-economic condition of a developing country like Bangladesh, even pioneering in
saving foreign currency by ensuring expected use of natural gas. As a leader among gas
distribution companies, contribution of Titas Gas to the Bangladesh Economy is as evident as its
eternal flame to the total economy of the country. Titas Gas has fulfilled 50 years of its operation
on 19 November, 2014. With the Passage of time, it has been continuing its activities with the
distinct mission of bringing about welfare to the nation for long fifty years. Supplying natural
gas, the principal and environment-friendly fuel of Bangladesh, to the door steps of the
customers Titas Gas will march ahead beyond 50 years of its journey with the vision of further
growth of Bangladesh.

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Chapter 3: Analysis & Discussion
• Analysis of Liquidity Ratio
o Liquidity Ratio of Power Grid Company of Bangladesh (PGCB):
2016 2017 Average
Current ratio 3.09x 2.78x 2.935x
Quick ratio 2.96x 2.66x 2.81x
Cash ratio 0.71x 0.78x 0.745x

o Liquidity Ratio of Linde Bangladesh:

2016 2017 Average
Current ratio 1.55x 1.67x 1.61x
Quick ratio 1.15x 1.24x 1.195x
Cash ratio 0.76x 0.72x 0.74x

o Liquidity Ratio of DESCO:

2016 2017 Average
Current ratio 2.41x 2.25x 2.33x
Quick ratio 1.62x 1.56x 1.59x
Cash ratio 1.30x 1.22x 1.26x

o Liquidity Ratio of MJL Bangladesh Ltd.:

2016 2017 Average
Current ratio 1.45x 1.64x 1.54x
Quick ratio 1.22x 1.42x 1.32x
Cash ratio 0.08x 0.02x 0.05x

o Liquidity Ratio of Titas Gas Transmission Distribution Company:

2016 2017 Average
Current Ration 1.27x 1.37x 1.32x
Quick Ratio 1.71x 1.70x 1.705x
Cash Ratio 0.33x 0.27x 0.30x

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 o Comparative analysis of all Companies:
Current ratio Quick ratio Cash ratio
Power Grid 2.935x 2.81x 0.745x
Company of
Bangladesh (PGCB)
Linde Bangladesh 1.61x 1.195x 0.74x
DESCO 2.33x 1.59x 1.26x
MJL Bangladesh 1.54x 1.32x 0.05x
Limited
Titas Gas 1.32x 1.705x 0.30x
Transmission
Distribution
Company

• Analysis of Asset Management Ratios

o Asset management Ratio of Power Grid Company of Bangladesh (PGCB):
2016 2017 Average
Inventory turnover 8.94x 9.95x 9.445x
Average collection 73.15 days 70.05 days 71.6 days
period
Fixed asset turnover 0.106x 0.104x 0.105x
Total asset turnover 0.092x 0.091x 0.0915x

o Asset management Ratio of Linde Bangladesh:

2016 2017 Average
Inventory turnover 3.14x 3.85x 3.495x
Average Collection 34.44 days 38.15 days 36.295 days
Period
Fixed Asset 1.61x 1.49x 1.55x
Turnover
Total Asset 0.78x 0.83x 0.81x
Turnover

o Asset management Ratio of DESCO:

2016 2017 Average
Inventory turnover 3.93x 4.48x 4.21x
Average Collection 42.12 days 45.13 days 43.63 days
Period
Fixed Asset 1.92x 1.66x 1.79x
Turnover
Total Asset 0.71x 0.70x 0.71x
Turnover

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 o Asset management Ratio of MJL Bangladesh Limited:
2016 2017 Average
Inventory Turnover 4.72x 6.89x 5.81x
Average Collection 29.79 days 44.04 days 36.92 days
Period
Fixed Asset 0.87x 0.91x 0.89x
Turnover
Total Asset 0.55x 0.59x 0.57x
Turnover

o Asset management Ratio of Titas Gas Transmission Distribution Company:

2016 2017 Average
Inventory Turnover 6.29x 8.68x 7.485x
Average Collection 117.18 days 103.91 days 110.54 days
Period
Fixed Asset 10.01x 10.53x 10.27x
Turnover
Total Asset 1.0052x 1.0393x 1.0222x
Turnover

o Comparative Analysis of all Companies:

Inventory Average Fixed assets Total assets
turnover collection turnover turnover
period
Power Grid 9.445x 71.6 days 0.105x 0.0915x
Company of
Bangladesh
(PGCB)
Linde Bangladesh 3.495x 36.295 days 1.55x 0.81x
DESCO 4.21x 43.63 days 1.79x 0.71x
MJL 5.81x 36.92 days 0.89x 0.57x
Bangladesh
Limited
Titas Gas 7.485x 110.54 days 10.27x 1.0222x
Transmission
Distribution
Company

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 • Analysis of Debt Ratios
o Debt Ratios of Power Grid Company of Bangladesh (PGCB):
2016 2017 Average
Debt ratio 74.32% 73.83% 74.075%
Debt to equity ratio 289.31% 281.95% 285.63%
Times interest 1.64x 1.87x 3.51x
earned ratio

o Debt Ratios of Linde Bangladesh:

2016 2017 Average
Debt ratio 41.88% 38.17% 40.03%
Debt to equity ratio 72.06% 61.73% 66.895%
Times interest 10635.12x 67844.8x 39239.96x
earned ratio

o Debt Ratios of DESCO:

2016 2017 Average
Debt ratio 67.24% 68.77% 68.01%
Debt to equity ratio 205.34% 220.30% 212.82%
Times interest 1.76x 0.49x 1.13x
earned ratio

o Debt Ratios of MJL Bangladesh Limited:

2016 2017 Average
Debt ratio 37.69% 31.12% 34.41%
Debt to equity ratio 60.50% 50.23% 55.37%
Times interest 6.09x 7.85x 6.84x
earned ratio

o Debt Ratios of Titas Gas Transmission Distribution Company:

2016 2017 Average
Debt ratio 45.26% 45.35% 45.30%
Debt to equity ratio 84.45% 84.67% 84.56%
Times interest 1.56e-7x 1.31e-7x 1.435e-7x
earned ratio

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 o Comparative Analysis of all Companies:
Debt ratio Debt to equity ratio Times interest
earned ratio
Power Grid 74.075% 285.63% 3.51x
Company of
Bangladesh (PGCB)
Linde Bangladesh 40.03% 66.895% 39239.96x
DESCO 68.01% 212.82% 1.13x
MJL Bangladesh 34.41% 55.37% 6.84x
Limited
Titas Gas 45.30% 84.56% 1.435e-7x
Transmission
Distribution
Company

• Analysis of Profitability Ratios

o Profitability Ratios of Power Grid Company of Bangladesh (PGCB):
2016 2017 Average
Gross profit margin 48.18% 44.08% 46.14%
Operating profit 38.91% 39.76% 39.335%
margin
Net profit margin 9.64% 13.89% 11.765%
Earnings per share Tk. 2.66 Tk. 4.33 Tk. 3.495
Return on asset 0.89% 1.26% 1.075%
Return on equity 3.46% 4.82% 4.14%

o Profitability Ratios of Linde Bangladesh:

2016 2017 Average
Gross profit margin 46% 47% 46.5%
Operating profit 28.89% 27.46% 28.18%
margin
Net profit margin 20.63% 19.28% 19.96%
Earnings per share Tk. 57.90 Tk. 62.60 Tk. 60.25
Return on asset 16.08% 16.03% 16.06%
Return on equity 27.67% 25.92% 26.795%

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 o Profitability Ratios of DESCO:
2016 2017 Average
Gross Profit margin 5.96% 7.28% 6.62%
Operating profit 0.19% 0.85% 0.52%
margin
Net profit margin 1.40% 0.52% 0.96%
Earnings per share Tk. 1.18 Tk. 0.44 Tk. 0.81
Return on asset 1.07% 0.37% 0.72%
Return on equity 3.03% 1.17% 2.1%

o Profitability Ratios of MJL Bangladesh Limited:

2016 2017 Average
Gross Profit Margin 30.16% 30.28% 30.22%
Operating Profit 21.63% 22.13% 21.88%
Margin
Net Profit Margin 15.48% 14.14% 14.81%
Earnings Per Share Tk. 6.28 Tk. 6.91 Tk. 6.59
Return on Assets 8.48% 8.42% 8.54%
Return on Equity 17.39% 19.09% 18.24%

o Profitability Ratios of Titas Gas Transmission Distribution Company:

2016 2017 Average
Gross Profit Margin 7.12% 5.77% 6.445%
Operating Profit 3.71% 2.62% 3.165%
Margin
Net Profit Margin 6.4% 4.03% 5.235%
Earnings Per Share Tk 7.37 Tk 5.12 Tk 6.24
Return on Assets 6.44% 4.18% 5.31%
Return on Equity 12.02% 7.81% 9.91%

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 o Comparative Analysis of all Companies:
Gross Operating Net profit EPS Return Return
profit profit margin on Asset on Equity
margin margin
Power Grid 46.14% 39.335% 11.765% Tk. 3.495 1.075% 4.14%
Company of
Bangladesh
(PGCB)
Linde 46.5% 28.18% 16.96% Tk. 60.25 16.06% 26.795%
Bangladesh
DESCO 6.62% 0.52% 0.96% Tk. 0.81 0.72% 2.1%
MJL 30.22% 21.88% 14.81% Tk. 6.59 8.54% 18.24%
Bangladesh
Limited
Titas Gas 6.445% 3.165% 3.4% Tk. 6.24 5.31% 9.91%
Transmission
Distribution
Company

Chapter 4: Findings, Recommendation & Conclusion

• Findings: (based on comparative analysis only)
After observing and working with the obtained financial data from the financial statements and
balance sheets of Power Grid Company of Bangladesh (PGCB), Linde Bangladesh, Dhaka
Electric Supply Company Limited (DESCO), MJL Bangladesh Ltd. and Titas Gas Transmission
Distribution Company we have analyzed the types of ratios with necessary calculations and
differential measures. First of all, the profitability ratios of the companies were all analyzed in
average and it was found that Power Grid Company of Bangladesh (PGCB), Linde Bangladesh
and Dhaka Electric Supply Company Limited (DESCO) were following the trend of the overall
ratio but MJL Bangladesh Ltd. and Titas Gas Transmission Distribution Company lagged a bit
behind the average profitability ratio trend. Next, we analyzed the Asset Management Ratios of
the mentioned companies and found that all the companies were almost following the ratio trend
with Power Grid Company of Bangladesh (PGCB) and Titas Gas Transmission Distribution
Company doing the best but Dhaka Electric Supply Company Limited (DESCO) and MJL
Bangladesh Ltd. falling short of the trend by a nominal margin only. Next, we analyzed the Debt
Ratios and found that in average the considerable financial trend follower in this particular phase
was Linde Bangladesh and Power Grid Company of Bangladesh (PGCB), Dhaka Electric Supply
Company Limited (DESCO), MJL Bangladesh Ltd. and Titas Gas Transmission Distribution

17
Company were far behind the existing trend. Finally, we analyzed the Profitability Ratios of the
companies and found that Power Grid Company of Bangladesh (PGCB), Linde Bangladesh and
MJL Bangladesh Ltd. were doing very well and following the financial trend of the profitability
ratio average. But, Dhaka Electric Supply Company Limited (DESCO) and Titas Gas
Transmission Distribution Company were quite behind from the existing average or trend. This
is the overall finding and analysis of the financial ratios of the mentioned companies.

• Recommendation
After rigorous observations and analysis, it can be stated on the financial performance of Power
Grid Company of Bangladesh (PGCB), Linde Bangladesh, DESCO, MJL Bangladesh Ltd. and
Titas Gas Transmission Distribution Company that, MJL Bangladesh Ltd. and Titas Gas
Transmission Distribution Company need to increase their profits to be sustainable in the long
run. Then, DESCO and MJL Bangladesh Ltd. need to focus to develop their asset management
related financial activities a bit more to be secured. Next, DESCO, MJL Bangladesh Ltd. and
Titas Gas Transmission Distribution Company need to heavily work to offset their debts and
perform better. And finally, DESCO and Titas Gas Transmission Distribution Company need to
focus a bit more to generate more profits to be financially profitable.

• Conclusion
All the companies that have been analyzed in this study are all part of the power transmission
industry of the country which includes distributers of electric power transmission, industrial
gases, fuels and lubricants etc. The companies Power Grid Company of Bangladesh Bangladesh
(PGCB), Linde Bangladesh, DESCO, MJL Bangladesh Ltd. and Titas Gas Transmission
Distribution Company are all doing well in their respective areas while some are doing better
than the others. We started off by observing the financial statements and then moved on towards
the ratio analysis of each company using various different calculations. By doing so we have
discovered the performance of said real life companies and learned about the shortcomings as
well as strengths of their financial management.

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