Financial Performance Evaluation of Linde Bangladesh Limited

Linde Bangladesh
One of the most profitable engineering company Provides gas for industrial purposes Operates in over 100 countries turnover of the company has exceeded BDT 3.19 billion. Started operation in Bangladesh more than 50 years ago Tejgaon, Rupganj and Shitalpur and an LPG Bottling plant at Bogra. 80 tons of liquid ASU gases per day and 23,100 MT of Welding Electrodes per year Linde Bangladesh limited motto is to ensure optimum conditions in health, safety and the environment for its employees, customers and stakeholders.

Objective
Evaluate financial performance of Linde Bangladesh limited in terms of book value and market value Find it strength and weakness Identify problem and give recommendation to their problem

Methodology
Time series, Cross sectional and benchmark analysis Its a quantitative analysis based on secondary data. Data source annual report. Data taken from 2008-2012

For benchmark we choose rival firm named Summit power .

Current Ratio
Current Ratio
2.5

1.5

0.5

0 2012 2011 Linde 2010 Summit 2009 2008

Quick Ratio
Quick Ratio
2.5

1.5

0.5

0 2012 2011 Linde 2010 Summit 2009 2008

Inventory Turnover
10 9 8 7 6 5 4 3 2 1 0 1 2 Linde 3 Summit 4 5

Invertory Turnover

Days sales outstanding

Day Sales Outstanding
160 140 120 100 80 60 40 20 0 1 2 Linde 3 Summit 4 5

Total and Fixed Asset Turnover

Fixed Asset Turnover

3

TOTAL ASSETS TURNOVER

Linde Summit
6.1521354 0.597590048 0.570255645 0.578077269 0.550017171 0.55454165

2.5

1.5

1
0.649484536 5

0.5

0 1 2 Linde 3 Summit 4 5
1 2 3 4

0.6456464

0.64854

0.762626

Debt Ratio
Debt Ratio
70 60 50 40 30 20 10 0 1 2 Linde 3 Summit 4 5

Times Interest Earned

Times Interest Earned
12

10

0 2012 2011 Linde 2010 Summit 2009 2008

Profit Margin
Profit Margin
70 61.5 59.44 53.39 50 52.98 54.43

60

40

30

20 8.664921466 9.022992674

10

8.268573205

5.824636518

6.12808971

0 1 2 Linde 3 Summit 4 5

Return on Asset
ROA
14 12 10 8 6 4 2 0 1 2 Linde 3 Summit 4 5

Return on Equity
ROE
30

25

20

15

10

0 1 2 Linde 3 Summit 4 5

P/E ratio
Price earning ratio
180 160 140 120 100 80

60
40 20 0 1 2 Linde 3 Summit 4 5

Market to book Ratio

Market to book ratio
12

10

0 1 2 Linde 3 Summit 4 5

Discussion
Inventory pile up Asset underutilized High leverage Lower current ratio

Recommendation
Better inventory management Sales Campaign to increase sale Asset utilization Issue more share to reduce weight of debt