FUEL & POWER

Financial Statement
Analysis

January 01, 2022

Agenda
Introduction

Abstract of SMPL

Ratio analysis & Interpretation

Final comparison of UNIP, SMPL &

Power Grid

Core Values

Conclusion

01/07/2022 Annual Review 2

Introduction
Profits are up, and losses are down! We
are very proud of the progress our
SMPL has made. ​
Today we’ll review our wins and losses
from last three year and give you an
overview of what you can expect for
next year.

01/07/2022 Annual Review 3

Off Taker: Bangladesh Power Development
Board

(BPDB) and Bangladesh Rural Electrification

Board (BREB)

Date of Incorporation: March 30, 1997

Converted to publicly listed company in DSE and

CSE: June 7, 2004

SPL company profile in Dhaka Stock Exchange

(DSE): Click here

SPL company profile in Chittagong Stock

Exchange (CSE): Click here

Summit Power Limited

 Abstract of SMPL (SUMMIT POWER LIMITED)
Vertical Analysis Vertical Analysis Horizontal Analysis Horizontal Analysis
Balance Sheet Income Statement Balance Sheet Income Statement

2020 2019 2018 2020 2019 2018 2020 2019 2018 2020 2019 2018

Vertical analysis is a popular To conduct a vertical analysis of 1. In Horizontal Analysis of 1. In Horizontal Analysis of income
method of financial statement income statement, sales figure is Balance sheet we use 2018 as a statement we use 2018 as a
analysis that shows each item on a generally used as the base and all base year. base year.
statement as a percentage of a base other components of income 2. There has been a decreasing 2. Cost of goods sold (COGS)
figure within the statement. To statement like cost of sales, gross trend in total asset from 9% in includes all of the costs and
conduct a vertical analysis of profit, operating expenses, income 2019 to 7.79% in the year expenses directly related to the
statement of financial position, the tax, and net income etc. are shown ending 2020. production of goods. The cost of
total of assets and the total of as a percentage of sales. 3. We also note that Total Equity & Sales has been dropped from
liabilities and shareholders’ equity Liabilities decreased. 41.89% to 10.25% That leads the
are generally used as base figures. In a vertical analysis the percentage higher profit margin in 2020.
All individual assets (or groups of is computed by using the following Decreases in current assets occur all 3. There has been a decreasing
assets if condensed form statement formula: the time. The cash balance in a trend in Selling General and
of financial position is used) are Percentage of Base = Amount of company rises and falls based on administrative expenses from
shown as a percentage of total Individual Item * 100 / Amount of inflows and outflows of operational 18.83% in 2019 to 9.02% in the
assets. The current liabilities, long Base Item cash and financing activities. A year ending 2020.
term debts and equities are shown decrease in an asset is offset by 4. We also note that Operating
as a percentage of the total either an increase in another asset, a income increased significantly
liabilities and stockholders’ equity. decrease in a liability or equity in 2020 to 42.94%.
account, or an increase in an 5. The comprehensive net income
expense. has also increased to 19.24% in
2020.

01/07/2022 Annual Review 5

Ratio Analysis
&
Interpretation

Let’s dive in!

 Click icon to add picture

LIQUIDITY RATIO

0.23
LIQUIDITY RATIO
Cash Ratio 0.37
0.94

Liquidity ratios show that, company

-0.09
Net Working Capital to Total Assets 0.06
had a better liquidity position in 2020
0.18 than 2019 & 2018.
2.27
Further, it can be seen that, Net working
Quick Ratio 1.55 capital to a total asset is negative, it
0.80
happens when the company has negative
0.72
working capital, current asset less than
Current Ratio 1.25 the current liabilities. It shows that the
3.04
company was in financial difficulties in
-0.50 0.00 0.50
30-Jun-20 1.00
30-Jun-19 1.50
30-Jun-18 2.00 2.50 3.00 3.50 2018.

01/07/2022 Annual Review 7

 Click icon to add picture

FINANCIAL LEVERAGE RATIO

0.43
FINANCIAL LEVERAGE RATIO
Debt to asset ratio 0.40
0.41

(12.34)
(10.91) Times Interest Earned Ratio A financial leverage ratio refers to the
(8.98)
amount of obligation or debt a company
0.57 has been or will be using to finance its
Long-Term Debt Ratio 0.55
0.55 business operations. 
0.74 A financial leverage ratio of less than 1
Debt-Equity Ratio 0.68
0.70 is usually considered good by industry
standards. A leverage ratio higher than 1
Total Debt Ratio
0.43
0.40 can cause a company to be considered a
0.41
risky investment by lenders and potential
(14.00) (12.00) (10.00) (8.00) (6.00) (4.00) (2.00) 0.00 2.00 investors, while a financial leverage ratio
30-Jun-20 30-Jun-19 30-Jun-18 higher than 2 is cause for concern.

01/07/2022 Annual Review 8

 Click icon to add picture

ASSET TURNOVER RATIOS

0.38
ASSET TURNOVER RATIOS
Fixed Asset Turnover 0.61
0.47

(3.16)
NWC Turnover 7.75
1.94
The asset turnover ratio measures the
181.38
value of a company's sales or revenues
Day's sales in receivable 142.02
173.39
relative to the value of its assets.
2.01 The higher the asset turnover ratio, the
Receivable Turnover 2.57
2.11 more efficient a company is at generating
(17.22) revenue from its assets.
Day's sales(11.11)
in inventory
(15.09)
A high DSR number shows that a
(21.20)
(32.84)Inventory Turnover company is selling its product to
(24.20)
customers on credit and waiting a long
(50.00) 0.00 50.00 100.00 150.00
time to collect the money.
200.00

30-Jun-20 30-Jun-19 30-Jun-18

01/07/2022 Annual Review 9

 Click icon to add picture

PROFITIBALITY RATIO PROFITIBALITY RATIO

31.69%
Net Profit Margin 21.10%
30.16%

28.61%
Operating Profit margin 25.15%
38.54%
According to the calculated profitability
ratios of the company, it can be seen that,
Gross Profit margin 26.23%
29.27%
gross profit ratio has been increased by
39.43%
39.43% however, net profit ratio has
Return on Equity (ROE)
15.86%
15.36% been increased by in 2020.
17.76%
The company has achieved better
9.10%
Return on Assets (ROA) 9.17%
10.45%
gross profit margin in 2020 than 2018 &
0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00% 45.00%
2019, however company failed to achieve
better net profit margin in 2020
30-Jun-20 30-Jun-19 30-Jun-18
compared to 2018.

01/07/2022 Annual Review 10

 Click icon to add picture

MARKET VALUE MEASURES

MARKET VALUE MEASURES
30.78

Book Value per share ratio 27.47 According to the market value
24.87 measures, it used analyze company's
stock trend. Book value per share
indicates that, over the years company's
4.88
net asset value on a per share basis
Earning per share (EPS) 4.22
decreased. Either increasing asset or
4.42
decreasing liabilities company can
improve its BVPS.
0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 As well, Company’s EPS also lower
30-Jun-20 30-Jun-19 30-Jun-18 than previous years, indicates lower
profitability to investors.

01/07/2022 Annual Review 11

 Three point Du Pont Analysis
0.16
Return on Equity (ROE) 0.15
0.18
 According to three point Du Pont
1.74
analysis, it shows overall return on
Equity Multiplier 1.68 equity has increases over the years
1.70 because of stable profit margin.
Though it may happen due to equity
Total Asset Turnover
0.29
0.43
multiplier, but that could be risky in
0.35 the long run for the company.

0.32
Profit Margin 0.21
0.30

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% 140.00% 160.00% 180.00% 200.00%

30-Jun-20 30-Jun-19 30-Jun-18

01/07/2022 Annual Review 12

 Five point Du Pont Analysis
15.86%
Return on Equity (ROE) 15.36%
17.76%

174.38%
 According to the five point Du Pont
Equity Multiplier 167.60%
169.93%
Analysis, ROE has increases due to higher
operating profit margin. Lower ratio of tax
Total Asset Turnover
28.70%
43.45%
burden and interest burden show higher
34.66% burden, which is significant to look after.
28.61%
Operating Profit Margin 25.15%
38.54%

100.43%
Interest Burden 96.08%
92.40%

110.29%
Tax Burden 87.33%
84.69%

0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% 140.00% 160.00% 180.00% 200.00%

30-Jun-20 30-Jun-19 30-Jun-18

01/07/2022 Annual Review 13

 Growth of SUMMIT POWER LIMITED in 2021

445৳
435৳

Growth

2020 2021

01/07/2022 Annual Review 14

 Final Comparison between 3

859৳
471৳

445৳
435৳

315৳
298৳
UNIP SMPL POWER GRID

2020 2021

01/07/2022 Annual Review 15

Summary

We’re delivering for our customers Our business is good

Last year we supported thousands of Profits are up in the last quarter by 3%
customers and sold 60,000 units

Our customers keep coming back We’re getting our work done
We increased customer retention by 4% We finished the consolidation project

Our team is growing We’re leaders

We welcomed 3 new team members We are top leaders in the industry across
last quarter the board

01/07/2022 Annual Review 16

Conclusion

In summary, most of the calculated

financial ratios clearly shows that ratios
were better in 2020 when compare to
2019 & 2018. Based on that, it could be
concluded that, company ensured better
financial performance and maintained
better financial position in 2020 than
2019 & 2018. Commitment and strong
work ethic, we know next year will be
even better than the last.

01/07/2022 Annual Review 17

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