Ratio Analysis

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Assignment on

Ratio Analysis

Company name: Aramit Limited

Prepared for:

Quazi Sagota Samina

Senior Lecturer

Department of Business Administration

East West University

Course Code : FIN – 201

Course Title : Business Finance

SEC : 05

Prepared by:

Md. Anis Uddin Miah

ID: 2006-3-10-082

Date of Submission: August 7, 2011

Ratio Analysis

Current Ratio

=

=

= 1.932097405 times

It indicates the intent, to which current liabilities are covered by asset expected to be converted into cash in the near future.

The current liabilities of this company’s is = 1.932097405 times

Quick Ratio

=

=

= 1.435763175 times

It indicates the measurement of how firm is managing its assets effectively

Inventory Turnover Ratio

=

=

=2.261264584 times

More inventory turnover ratio is better for company

Day Sales Outstanding Ratio (DSO)

=

=

=76.93759 days

76.93759 days company wait, require collecting the cash

Fixed asset turn over ratio

=

=

= 1.905820306

By utilizing fixed asset of 1 taka company generate 1.905820306 taka

Total Asset Turnover Ratio

=

=

= 0.532943999

By utilizing total asset of 1 taka company generate 0.532943999

Debt Ratio

=

=

= 0.372838235

37.28%

The more of debt ratio is more risk for company

Time Interest Earned Ratio (TIE)

=

=

= 2.4062345 times

This company has the capacity to pay interest charge is 2.4062345 times

Net Profit Margin On Scale

=

=

=.1455232

In terms of net income each dollar of sells is .1455232...