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Ratio Analysis of "RAK Ceramics" and "Shinepukur Ceramics" 2011-2015
Ratio Analysis of "RAK Ceramics" and "Shinepukur Ceramics" 2011-2015
its
commercial
production
on
12
November
2000.
It has converted into public limited company on 10 June 2008 and listed in
the stock exchanges of Bangladesh on 13th June 2010. The Company has
anchored
this
position
construction
developers,
government
institutions
and
local
10
Quick Ratio
Current AssetsInventory
Current Liabilities
2015= 67416613012239844230
4218330929
= 1.07 times
2014= 71231301561835354727
3538079861
= 1.49 times
2013=
58273345881858379882
2643929982
= 1.50 times
2012= 49139843281777888718
2456242485
= 1.28 times
2011= 476844326416580625698
2077509374
=1.50 times
2015= 638387373
5059300403 x 365
= 46.06days
2014= 580719781
5047345373 x 365
= 41.99days
2013= 720608027
4687262509 x 365
= 56.11days
2012=
621510397
4908171279 x 365
= 46.22days
2011=
526123351
4580008209 x 365
= 41.93days
Comment:
12
lack of proper credit control. It came to an acceptable level in 2014 but rises again
in 2015. It is a bad sign.
2014= 355096186
1466848016 x 365
= 88.36 days
2013= 27661728
700041647 x 365
= 14.42days
2012= 159789966
1485997165 x 365
= 39.25 days
2011= 306963146
1310179114 x 365
= 85.52 days
13
The ratio shows, in 2011 RAK got 85.50 days on average to clear its debts. It
lessened in 2012 and 2013 to only 14.42 days. But the condition changed in
2014. Company got the maximum period to pay its due 131.4 days in 2015.
It is a good sign.
1455987536
3368506110 +1473647979+496435996 x 100
2015:
=27.27%
1057321166
3368506110 +1473647979+78418185 x 100
2014:
= 21.49%
2013:
3062278290+1473647979+56957686
1041025563
x 100
= 22.67%
910508985
2783889350+1473647979+139729663 x 100
2012:
= 20.71%
994864945
2530808500+1473647979+167573712 x 100
= 23.85%
14
2011:
Comment: The ratio is used to show how efficiently its investments are
used to create a profit. A good ROCE is one that is greater than the rate at
which the company borrows.
Here, we can see in 2011 ROCE of RAK was 23.58%, decreased to 21.49% in
from 2012 to 2014. But it cheered up in 2015 by 27.27%. The progress rate
of the company is not pleasurable.
ordinary shareholders
Number of ordinary sharesissue
1094339767
3368506110
2015:
= 0.32tk
500210985
2783889350
2014: 488074917
3368506110
= 0.14tk
500210985
2783889350
2013:
=
= 0.28tk
2012:
= 0.18tk
15
641737193
2011: 2530808500
= 0.25tk
Comment: EPS measures how much profit earned on behalf of each
outstanding shares issued for the accounting period. The ratio is showing
that in 2011 RAK had 0.25 tk earning on per outstanding shares that
decreased by 0.18 tk in 2012, raised in 2013 by 0.28 tk, again collapses
dramatically in 2014 by only 0.14tk, but finally progressed in 2015 by 0.32.
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.
From its inception, SCL has been able to gain substantial headway against its
competitors and acquire commendable market share from its competitors
both in Porcelain and in Bone China. Therefore SCLs position in the world
tableware industry is very high, with its world-class product quality, which
helped to attract and retain leading century-old branded companies as its
bluechip customers from USA, Canada, UK, Germany, France, Italy, Japan,
Sweden, Norway, Denmark, Finland, Spain, Poland, Mexico, Brazil, Chile, UAE,
Australia, New Zealand, Turkey, India, Egypt, Russia and still growing.
In domestic market also, 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. It has more than 250 dealers to sell and distribute SCL product
in Bangladesh Market. In the hospitality sector, all the international hotels in
Bangladesh use SCL products.
16
17
18
19
20
21
22
23
25
26
Quick Ratio
Current AssetsInventory
Current Liabilities
2015:
1060146634488
1584117
= 0.27 times
2014:
1044626671352
1890252
=
0.20 times
2013:
1710385576912642408
1756989717
= 0.45 times
2012:
1796412804845059407408
1772067117
= 0.54 times
2011:
1617231951891674750
1648906953
= 0.44 times
1. Comment: Quick ratio measures Companys ability to meet its shortterm obligations using its most liquid assets. A higher quick ratio
indicates greater short-term financial health. 1% quick ratio is
accepted.
27
The ratios indicate that Shine Pukur Ceramics had low liquidity in 2011 that is
o.45 and 2012 its liquidity is as nearly same that is 0.54 and up to 2015 its
liquidity is o.27 as we know that quick ratio 1% is acceptable so we cant
accept it.
2015:
179691
1119480 x 365
= 58.59 days
2014:
2013:
157873
1263135 x 365
= 45.62 days
674987355
1704567234 x 365
= 144.54 days
2012:
853413145
1942350752 x 365
= 160.37 days
2011:
587933889
1901444562 x 365
= 112.86 days
28
Comment It shows, on average how long it takes to collect cash from credit
customers. Increasing account receivable collection period is usually a bad
sign. The ratio shows, in 2011 Shine pukur took 112.86 days on average to
collect due receivable, 160.37 days 2012, but it decrease at 144.54 days in
2013 which indicates lack of proper credit control. It came to an acceptable
level in 2014 but rises again in 2015. It is a bad sign.
706010383 x 365
= 242.89 days
2012: 445028986
652490552 x 365
= 248.95 days
2011: 291823065
694085694 x 365
= 153.46 days
Comment: The ratio represents the credit period taken by the company
from its suppliers. A long period represents a source of free finance.
The ratio shows, in 2011 Shine pukur got 153.46 days on average to clear its
debts. It increase in 2012 that is 248.95 days and 2013 is 242.89 days. 2014
it more increase it is a bad sign.
29
190614
1469661+2966690+807295 x 100
2015:
= 3.64%
258365
1469661+2966690+534600 x 100
2014:
= 5.20%
370026306
1469660550+2966690015+629397933 x 100
2013:
= 7.30%
568165442
1277965700+2907734989+ 803483989 x 100
= 11.39%
2011:
532318752
1111274530+ 2953318420+ 1005382500 x 100
30
2012:
= 10.50%
Comment; The ratio is used to show how efficiently its investments are
used to create a profit. A good ROCE is one that is greater than the rate at
which the company borrows.
Here, we can see in 2011 ROCE of Shine pukur was 10.50%, increased
to11.39% in from 2012 but decrease 7.30% and up to 2015 it is decreaseble.
The progress rate of the company is pleasurable.
ordinary shareholders
Number of ordinary sharesissue
2015:
5284
1469661
= 0.00 tk.
2014: 47356
1469661
= 0.03 tk.
11801568
1469660550
2013:
= -.01 tk.
2012: 90285057
1277965700
= 0.07 tk.
31
2011: 168768102
1005382500
= 0.17 tk.
Comment: EPS measure show much profit earned on behalf of each
outstanding share issued for the accounting period.
The ratio is showing that in 2011 RAK had 0.17 tk earning on per outstanding
shares that decreased by 0.07 tk in 2012, decrease in 2013 by .01 tk, again
collapses dramatically in 2014 by only 0.03 tk, and 2015 it is more
decreaseble that is 0.00 tk.
2015
2014
2013
2012
2011
Remarks
RAK Ceramics
1.07
1.49
1.50
1.28
1.50
Shine Pukur
Ceramics
0.27
0.20
0.45
0.54
0.44
Good
sign
Bad sign
2015
2014
2013
2012
2011
Remarks
46.06
58.59
41.99
45.62
56.11
144.54
46.22
160.37
41.93
112.86
Good Sign
Bad Sign
Name of the
Organization
RAK Ceramics
Shine Pukur
Ceramics
2015
2014
2013
2012
2011
131.
4
88.36
14.423
88.36
131.4
543.8
4
242.89
248.95
153.46
Remark
s
Good
sign
Better
2015
2014
2013
2012
2011
27.27%
21.49
%
5.20%
22.67%
20.71%
23.85%
7.30%
11.39%
10.50%
3.64%
Remark
s
Good
sign
Bad
Sign
2015
2014
2013
2012
2011
Remarks
0.32
0.00
0.14
0.03
0.28
-0.01
0.18
0.07
0.25
Good sign
Bad Sign
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.
Conclusion
The two companies are very famous & renowned in the ceramic industry by serving their good
products and services but in the financial term RAK is a good position rather than Shinepukur so
we choose it for our investment.
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