Ratio analysis of RAK ceramics and Shinepukur Ceramics
- 1. Welcome to the Presentation 1
- 2. FIN 501- Managerial Finance 2 Instructed By: Md. Zahidur Rahman Faculty, CBA, IUBAT. IUBAT - Friends Café
- 3. Ratio Analysis of RAK Ceramics & Shinepukur Ceramics Ratios: Quick Ratio Settlement period of receivable Settlement period of payable Return on Capital Employed Earnings Per Share 3
- 4. RAK Ceramics RAK Ceramics Company is named after its founder Ras Al Khaimah in 1991. The Company was incorporated in Bangladesh on 26 November, 1998 as a private limited company under the Companies Act, 1994. UAE-Bangladesh joint venture project. The core business of RAK Ceramics (Bangladesh) Limited is to manufacture and sale of ceramics and fully vitrified tiles, bathroom sets and all types of sanitary ware. RAK Ceramics (Bangladesh) Limited is the market leader with around 25% market share in tiles sector and around 65% market share in sanitary ware sector based on production capacity. 4
- 5. Quick Ratio 5 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐀𝐬𝐬𝐞𝐭𝐬 − 𝐈𝐧𝐯𝐞𝐧𝐭𝐨𝐫𝐲 𝐂𝐮𝐫𝐫𝐞𝐧𝐭 𝐋𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬2015= = 1.07 2014= = 1.49 2013= = 1.50 2012= = 1.28 2011= =1.50 6741661301 − 2239844230 4218330929 7123130156 − 1835354727 3538079861 5827334588 − 1858379882 2643929982 4913984328 − 1777888718 2456242485 4768443264 − 16580625698 2077509374
- 6. Settlement period of receivables6 𝐓𝐫𝐚𝐝𝐞 𝐑𝐞𝐜𝐞𝐯𝐢𝐚𝐛𝐥𝐞𝐬 𝐒𝐚𝐥𝐞𝐬 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝒙 365 2015= . = 46.06 days 2014= = 41.99 days 2013= = 56.11 days 2012= = 46.22 days 2011= = 41.93 days 638387373 5059300403 x 365 580719781 5047345373 x 365 720608027 4687262509 x 365 621510397 4908171279 x 365 526123351 4580008209 x 365
- 7. Settlement period of payables7 𝐓𝐫𝐚𝐝𝐞 𝐏𝐚𝐲𝐚𝐛𝐥𝐞𝐬 𝐏𝐮𝐫𝐜𝐡𝐚𝐬𝐞 𝒙 365 640626199 1779555491 x 3652015= = 131.4 days 2014= = 88.36 days 2013= = 14.42 days 2012= = 39.25 days 2011= = 85.52 days 355096186 1466848016 x 365 27661728 700041647 x 365 159789966 1485997165 x 365 306963146 1310179114 x 365
- 8. Return on Capital Employed8 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐧𝐠 𝐏𝐫𝐨𝐟𝐢𝐭 𝐒𝐡𝐚𝐫𝐞 𝐜𝐚𝐩𝐢𝐭𝐚𝐥 + 𝐑𝐞𝐬𝐞𝐫𝐯𝐞𝐬 + 𝐍𝐨𝐧 − 𝐜𝐮𝐫𝐫𝐞𝐧𝐭 𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬 𝒙 100 2015: = 27.27% 2014: = 21.49% 2013: = 22.67% 2012: = 22.71% 2011: = 23.85% 1057321166 3368506110 +1473647979 +78418185 x 100 1041025563 3062278290 +1473647979 +56957686 ) x 100 910508985 2783889350 +1473647979 +139729663 x 100 994864945 2530808500 +1473647979 +167573712 x 100 1455987536 3368506110+1473647979+496435996 x 100
- 9. Earnings Per Share (EPS))9 1094339767 3368506110 𝐄𝐚𝐫𝐧𝐢𝐧𝐠𝐬 𝐚𝐯𝐚𝐢𝐥𝐚𝐛𝐥𝐞 𝐭𝐨 𝐨𝐫𝐝𝐢𝐧𝐚𝐫𝐲 𝐬𝐡𝐚𝐫𝐞𝐡𝐨𝐥𝐝𝐞𝐫𝐬 𝐍𝐮𝐦𝐛𝐞𝐫 𝐨𝐟 𝐨𝐫𝐝𝐢𝐧𝐚𝐫𝐲 𝐬𝐡𝐚𝐫𝐞𝐬 𝐢𝐧 𝐢𝐬𝐬𝐮𝐞 2015: = 0.32 2014: = 0.14 1094339767 3368506110 488074917 33685061102013: = 0.28 2012: 500210985 2783889350 = 0.18 2011: 641737193 2530808500 = 0.25
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- 11. Shinepukur Ceramics Shinepukur Ceramics Ltd. (SCL) is the leading Bone China & Porcelain tableware manufacturer and exporter of Bangladesh. Shinepukur Ceramics has been a successful brand, thanks to its state-of-the-art manufacturing facilities, about 2,700 highly skilled & motivated people and cutting-edge technology. Shinepukur Ceramics Ltd. is very well known for its premium quality tableware products. In Bangladesh, SCL is the leader in Ceramics’ Market and ranks as number 1 in terms of sales revenue and market share. 11
- 12. Quick Ratio 2015: 1.07 2014: 1.49 2013: 1.50 2012: 1.28 2011: 1.50 12
- 13. Settlement period of receivables 2015: 46.06 days 2014: 41.99 days 2013: 56.11 days 2012: 46.22 days 2011: 41.93 days 13
- 14. Settlement period of payables 2015: 46.06 days 2014: 41.99 days 2013: 56.11 days 2012: 46.22 days 2011: 41.93 days 14
- 15. Return on Capital Employed 2015: 27.27% 2014: 21.49% 2013: 22.67% 2012: 20.71% 2011: 23.85% 15
- 16. Earnings Per Share (EPS) 2015: 0.32tk 2014: 0.14tk 2013: 0.28tk 2012: 0.18tk 2011: 0.25tk 16
- 18. Comparison of Ratios Quick Ratio 18 Name of the Organization 2015 2014 2013 2012 2011 Remark’s RAK Ceramics 1.07 1.49 1.50 1.28 1.50 Good sign Shine Pukur Ceramics 0.27 0.20 0.45 0.54 0.44 Bad sign
- 19. Settlement period of receivables: Name of the Organization 2015 2014 2013 2012 2011 Remark’s RAK Ceramics 46.06 41.99 56.11 46.22 41.93 Good Sign Shine Pukur Ceramics 58.59 45.62 144.54 160.37 112.86 Bad sign 19
- 20. Settlement period of payables Name of the Organization 2015 2014 2013 2012 2011 Remark’s RAK Ceramics 131.4 88.36 14.423 88.36 131.4 Good sign Shine Pukur Ceramics 543.84 242.89 248.95 153.46 Bad sign 20
- 21. Return on Capital Employed Name of the Organization 2015 2014 2013 2012 2011 Remark’s RAK Ceramics 27.27% 21.49% 22.67% 20.71% 23.85% Good sign Shine Pukur Ceramics 3.64% 5.20% 7.30% 11.39% 10.50% Bad sign 21
- 22. Earnings Per Share (EPS) Name of the Organization 2015 2014 2013 2012 2011 Remark’s RAK Ceramics 0.32 0.14 0.28 0.18 0.25 Good Sign Shine Pukur Ceramics 0.00 0.03 -0.01 0.07 0.17 Bad Sign 22
- 24. Which Company we recommend to invest: So observing the overall situation we can say that if we invest in RAK we will get more profit on behalf on each outstanding share their liquidity is also high so its risk is low than Shinepukur & its ROCE is also situated in a better position so we decide that we will invest our money in RAK Ceramics. 24
- 25. Do you have any question ? 25 Thank you for your kind attention