Assignment on Ratio Analysis

Company name: Aramit Limited

Prepared for:
Quazi Sagota Samina Senior Lecturer Department of Business Administration East West University

Course Code Course Title SEC

: FIN 201 : Business Finance : 05

Prepared by:
Md. Anis Uddin Miah ID: 2006-3-10-082

Date of Submission: August 7, 2011

Ratio Analysis
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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 companys 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

Return on total asset

= = =0.07755572

By utilizing total asset companys rate of return is 0.07755572.

Price/ earning ratio

= = = 50.35

Companys price earning ratio is 50.35 .It indicate that investor is looking for paying 50.35

Market by book ratio

= = =6.526323414

Book value per share

= = =74.605558

It is a reputed company because its market value is greater than its book value