Financial Performance of Ceramics Industry of Bangladesh

Financial Statements Analysis of
Ceramics Industry
Financial Statements Analysis of Ceramics Industry
Financial Accounting 2 (ACN 211)
Submitted to
Md. Sharif Hassan
Lecturer
Department of Business Administration
University of Asia Pacific
Submitted by
Sabbiha Hossain Methela (19102003)
Gazi Shahbaz Mohammad (19102007)
Mahmud Hasan Abir (19102011)
Farhan Saif (19102019)
Humayra Anjum (19102023)
Section – A

October 01, 2020
ii
October 01, 2020
Md. Sharif Hassan
Lecturer
Department of Business Administration
Subject: Submission of report on ‘Financial Statement Analysis of Ceramics Industry’.
Dear Sir,
We are pleased to submit the report on “Financial Statement Analysis of Ceramics Industry”
for the 2015,2016 2017,2018 and 2019 years.
The study attempts to show financial statements of ‘Five selected companies from the Ceramics
Industry’, including Income Statements, Balance sheets, Shareholders’ information. The report
focuses on the representations concerning the ratios of financial statements of five companies of
the Ceramics industry. This study analyses the achievements and financial statements from the
financial periods of each company on how over the years their financial components have
progressed. While preparing this report, we have tried our level best to follow your instructions.
In spite of various inadequacies, we have tried to cover all the relevant information that you have
assigned us. It is quite worthy to mention that this report has been done because of your kind-
hearted guidance and cooperation. We will be pleased and grateful to you to answer if you have
any queries regarding this report.
Sincerely yours,
Sabbiha Hossain Methela (19102003)
Gazi Shahbaz Mohammad (19102007)
Mahmud Hasan Abir (19102011)
Farhan Saif (19102019)
Humayra Anjum (19102023)
iii
Table of Contents
Executive Summary vi
1. Introduction 1
1.1 Origin of the Report 1
1.2 Objective of the Study 1
1.3 Scope of the Report 1
1.4 Methodology 2
1.5 Limitations 2
2. An Overview of the Market 3

2.1 Industry Overview 3
2.2 Company overview 4
3. Findings and Analysis 6

3.1 Shinepukur Ceramics Ltd. 6
3.2 Standard Ceramic Industries Ltd. 17
3.3 RAK Ceramics (Bangladesh) Limited 28
3.4 Monno Ceramic Industries Ltd. 39
3.5 Fu-Wang Ceramic Industries Ltd. 50
4. Performance Evaluation on Ceramics Industry 61
iv
5. Conclusion 80
Bibliography
Appendix
v
Executive Summary
The main focus has been given to Income Statements, Balance sheets, Shareholders’ information
of Shinepukur Ceramics, Monno Ceramic, RAK Ceramics, Fu-wang Ceramic, and Standard
Ceramic. On the basis of those companies' financial information, we have conducted the analysis
by using the financial statements’ ratio analysis methods. Financial ratio analysis and performance
evaluation of five of these companies have been given using these methods. To have a more
accurate interpretation of the financial position of these companies, more focus has been given to
some components of the financial statements and also to the profitability, liquidity, efficiency
ratios, and solvency ratios. All of the data studied from the analysis have been also used to
determine the selected companies' financial standing in the ceramic industry. This study has been
conducted based on the secondary data collected from annual reports of Shinepukur Ceramics,
Monno Ceramic, RAK Ceramics, Fu-wang Ceramic, and Standard Ceramic. The study has shown
the objectives of this report and findings which have been uncovered using ratio analysis. On the
basis of the findings remarks have been made. Some remarks have been made on Financial
Statements through group discussions. Due to the Covid-19 situation any discussion with officials
of the selected companies could not have been made possible. So, we had to work with secondary
data only.
vi
1. Introduction
1.1 Origin of the Report
This report titled ‘Financial Statements Analysis of Companies of Ceramics Industry’ has been
prepared for Md. Sharif Hassan, Course Instructor, Financial Accounting II - ACN 211, as a partial
requirement of the above-mentioned Course.
1.2 Objective of the Study
Broad Objective
To analyze the financial position of Shinepukur Ceramics, Monno Ceramic, RAK ceramics, Fu-
wang ceramic, and Standard ceramic by evaluating the financial statements which will provide
useful information. This study will also help us to understand the concept of financial statements
analysis.
Specific Objectives
• To identify the Financial activities of Ceramics Industry

• To identify the financial position of Shinepukur Ceramics, Monno Ceramic, RAK ceramics,
Fu-wang ceramic, and Standard ceramic.
• To understand the Ceramics Industry
• To evaluate the performance of Shinepukur Ceramics, Monno Ceramic, RAK ceramics, Fu-
wang ceramic, and Standard ceramic.
1.3 Scope of the Report
The basic focus of this report is on the financial statement analysis of Shinepukur Ceramics,
Monno Ceramic, RAK ceramics, Fu-wang ceramic, and Standard ceramic by using the ratio
analysis method. Attention has been given on some of the components of the Income statement,
Balance Sheet and Cash Flow Statement. An overview of each company from the ceramic industry
has been given also. On the basis of the financial statements analysis, performance evaluation has
been given for Shinepukur Ceramics, Monno Ceramics, RAK ceramics, Fu-wang ceramics, and
Standard ceramics.
1
1.4 Methodology
The secondary sources were:
• Annual Report of each company

• Shinepukur Ceramics’s website
• Standard Ceramic’s website
• RAK Ceramics’s website
• Monno Ceramic’s website
• Fu-wang Ceramic’s website
• Lankabangla Financial Portal
• Amar Stock Web Portal
1.5 Limitations
To study is limited to the following aspects:
• Time constraint
• Company visit could not be possible due to Covid-19
• Interview with officials could not be conducted due to Covid-19
• All of the components could not be covered.
2
2. An Overview of the Market
2.1 Industry Overview
Ceramics industry is a thriving manufacturing sector in Bangladesh’s economy. The ceramics

industry started during the late 1950s when the first ceramics industrial plants were established.
This industry’s production mainly consists of tableware, sanitaryware, and tiles. Ceramics industry
has flourished greatly over the years. Local demand for ceramic products continues to grow as the
country experiences steady economic growth and urbanization. Ceramics Industry caters 85% of
local demands and it also exports quality ceramic products to international markets. The growth
trend is an indication of the industry's potential to be one of the top foreign exchange earners of
the country. As the demand for ceramic products have been increasing day by day, all of the major
companies of the ceramics industry are expanding their plants and operations. Spinning and textile
factories, medical ceramics, ceramic plate for bulletproof jackets have emerged as another
manufacturing product which is explored by the ceramic industry. Currently the ceramics industry
has more than 500,000 people engaged in the workforce.
Specialized departments and institutes have been established in the leading universities of the
country such as the department of glass and ceramic engineering (GCE) in Bangladesh University
of Engineering and Technology, Rajshahi University of Engineering and Technology, Bangladesh
Institute of Glass & Ceramics, Faculty of Fine Arts in Dhaka University and many more to create
skilled manpower. One of the main challenges to the growth of the ceramics industry is inadequate
supply of natural gas. Natural gas is not only the key energy source for the industry but also crucial
for maintaining quality of the products as the local natural gas does not contain any Sulphur which
makes locally produced ceramic products look brighter and shiny. Bangladesh's ceramics industry
has experienced 200 percent growth in production in the last five years. This growth momentum
is expected to sustain for a considerable period of time thanks to the robust development of the
real estate sector and rising living standard of the people in the country.
3
2.2 Company Overview
2.2.1 Shinepukur Ceramics Limited
Shinepukur Ceramics was registered in Bangladesh in 1997 and the Plants were commissioned in
1998. Commercial production of Porcelain Tableware started in April 1999 and Bone China in
November 1999. Shinepukur Ceramics Limited is a member of the BEXIMCO Group. For the
upper echelons of the Global Tabletop industry, Shinepukur produces World Class Bone China,
using the top quality raw materials and ingredients, sourced by highly reputed manufacturers from
all corners of the Globe. These are meticulously crafted and transformed into exquisite Bone China
tabletop, mirroring a unique blend of eye-catching shapes, enviable translucency, durability, all of
it with a Lead and Cadmium free glaze. They work to benefit and add value to the commonwealth
of the society. Shinepukur Ceramics believes that in the final analysis, they are accountable to
employees, customers, business associates, fellow citizens and shareholders. In addition,
Shinepukur Ceramics is equipped with the top-of-the-Line Testing and Quality Control
Laboratory, own raw material disposal set-up, own captive gas-based Power generation capability,
own water supply through Deep Tube well and Sanitary facilities. The facility has its own Medical
Center with an in-house registered doctor.
2.2.2 Standard Ceramic Industries Ltd.
Standard ceramic Industries Limited is one of the renowned companies in the field of the ceramic
industry of Bangladesh. It was incorporated as a public limited company in 1984 and started
commercial production on September 1, 1993. The factory of Standard ceramic industries limited
is situated in Joydebpur, Gazipur. Around six hundred employees are working in this company.
Standard ceramic industries limited produce eye-catching stone wares and table wares with their
unique shape of design for local and foreign markets. They provide lightweight classy stoneware
with high-temperature glaze. The goal of standard ceramic is to expand and explore the market
globally along with its native market. They have successfully made their products available in 4
continents of the world including the United States and European market. Standard Ceramic
Industries Limited is very committed to bringing affordable luxury in daily life launching the
superb quality products in our local market as well as the global market.
4
2.2. 3 RAK Ceramics (Bangladesh) Limited
RAK Ceramics (Bangladesh) is also the country’s leading manufacturer and distributor of high-
end interior building products. The Company’s wide range of branded products are made available
to all potential and emerging markets of the country through a unified customer sales team and an
integrated supply chain network that leverages the Company’s scale. They target the highest
profitability, underpinned by a cost-conscious culture, as well as environmental, social, and
governance (ESG) principles to drive shared value creation. Rak Ceramics is a pioneer in
introducing hi-tech innovations that are a breakthrough in the industry. A wide range of
technologies is used at the company’s state of the art plants, including digital printing technology,
slim, double charge, scratch-free, and other advanced technologies, such as granitech, techno slate,
twin press, dry glaze, and waterjet, to name a few.
2.2.4 Monno Ceramic Industries Ltd.
Monno Ceramic Industries Ltd. has remained one of the most recognizable brand names in
Bangladesh. Monno Ceramic Industries Limited owns and operates modern ceramic wares factory
and produces high-quality porcelain tableware products and sells them in the local and
international market. The company was incorporated in Bangladesh on 21st April,1981as a public
limited company under the Companies Act,1913. The company began its journey in 1984 by
producing porcelain tableware. The company went for a public issue of shares in 1985 and its
shares listed with the Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited
since 1983 and 1995 respectively. They see business as a means to the well-being of the
shareholders and all other stakeholders, society as well as national interest as a whole. All financial
policies like investments policy, dividend policy, and financing policy is to maximize the value of
the organization
2.2.5 Fu-Wang Ceramic Industries Ltd.
Fu-wang Ceramic Industries Ltd. is one of the pioneers in the Ceramic Industry in Bangladesh.
The company was incorporated on 31 May 1995. The main business lines for Fu-wang Ceramic
Industries Ltd. is manufacturing and marketing of ceramic and homogeneous floor and wall tiles.
Fu-wang Ceramic Industries Ltd. started its commercial production in October 1996. It got its ISO
certificate (ISO-9002) on 4 November 1998. In the same year, it was listed in Dhaka Stock
Exchange Ltd. and Chittagong Stock Exchange Ltd. The company is continuously upgrading its
machines as a result the company is producing excellent quality products of European standards
with affordable prices for Bangladeshi consumers. Moreover, the company has 57 distributors all
over the country which makes its distribution network wide and strong. All the transactions and
events are reported and presented in a manner that archives fair representation.
5
3. Findings and Analysis
3.1 Shinepukur Ceramics LTD
3.1.1 Liquidity Ratio:
Current Ratio for 2015, 2016, 2017, 2018, and 2019 are 0.65:1, 0.56:1 ,0.56:1 ,0.62:1 and
0.71:1 respectively.
Shinepukur Ceramics Limited's obligation to meet its current liabilities by using its current assets
has declined from 2015 to 2016. After that, there was an increase from 2016 to 2019 in their current
ratio, and 2016 and 2017 had the same current ratio. After the 2017 financial period, their current
ratio kept inclining to 0.71 in 2019. We can see there is an upward trend happening in the current
ratio which indicates their gain of capacity to meet the obligations.
6
3.1.2 Asset Management Ratio:
Total asset turnovers for 2015, 2016, 2017, 2018, and 2019 are 0.21, 0.31, 0.22, 0.24, and 0.23
times respectively.
In 2015 Shinepukur Ceramics Limited's total asset turnover was 0.21 times and it increased in
2016 to 0.31 times which means they were more efficient to generate sales from their assets in
2016. But in 2017 their total asset turnover decreased to 0.22 times which is a bad indicator for
their company to generate sales from assets. They lost the capability to generate sales from assets
compared to the previous years. The last two years of Shinepukur to generate sales from assets
weren't efficient like the previous year’s either as the decline of total assets turnover.
7
3.1.3 Profitability Ratios:
Return on assets for 2015, 2016, 2017, 2018, and 2019 are 0.58%,0.49%,0.13%,0.95% and
0.95% respectively.
From 2015 to 2016 we can see that Shinepukur Ceramics Limited's return on assets has decreased
which means their capability of producing net income from the assets has gone down. Though
there was a tremendous fall in 2017 but still they bounced back in 2018. From 2018 to 2019
Shinepukur Ceramics Limited is very efficient to generate profit as they utilize their assets more
efficiently as a result of the increase in return on assets. And compared to the major fall in 2017,
Shinepukur has generated more profits from its assets which is a good indication of the success
rate.
8
Return on equity for 2015, 2016, 2017, 2018, and 2019 are 0.91%,0.79%,0.20%,1.46% and
1.47% respectively.
Shinepukur Ceramics Limited's return on equity has decreased from 2015 to 2016 which indicates
that they were not successful to generate enough profit from the investments they received. But in
2017 there was a major fall of return on equity as it declined to 0.20 % which is bad compared to
the return on equity of 2016. There is a great increase in return on equity in 2018 and 2019. They
have achieved the highest return on equity in 2019. There is a fluctuation in their return on equity
and they have achieved great progression from the loss in 2017.
9
Net profit Margin for 2015, 2016, 2017, 2018, and 2019 are 2.73%,1.59%,0.58%,4.03% and
4.09% respectively.
Shinepukur Ceramics Limited's net profit margin has seen a great decline from 2015 to 2017 which
means they were in lower profitability in 2017 than 2015 by earning the amount of net income
from each dollar of sales. From the fall of net profit margin in 2017, the profit margin has increased
hugely from 2017 to 2019 which was in larger quantities and 2019 was their peak profit margin
for the time period. Shinepukur Ceramics Limited has achieved growth in its ability to earn profit
from each dollar of sales.
10
Price to earnings ratio for 2015, 2016, 2017, 2018, and 2019 are 0.29, 0.21, 0.38 ,0.30, and
0.26 times respectively.
Shinepukur Ceramics Limited's price to earnings ratios has decreased noticeably from 2015 to
2016. In 2017 they have regained the greater price to earnings ratio which means investors are
putting 0.38 bdt for every bdt of annual earnings. But in 2018 it declined to 0.30 and 0.26 in 2019
which is lower compared to 2015. So, the growth expectations have decreased compared to 2015
over the years for Shinepukur ceramics and they are in bad growth rate.
11
Dividends to Yield for 2015, 2016, 2017, 2018, and 2019 are all 0.
Shinepukur Ceramics Limited’s dividends to yield have been 0 from 2015 to 2019 as Shinepukur
did not provide any information regarding the annual dividend paid per share.
12
Price to Book Ratio for 2015, 2016, 2017, 2018, and 2019 are 0.93, 0.88, 1.67, 1.67 and 1.34 times
respectively.
Shinepukur Ceramics Limited's price to book ratio has decreased from 0.93 in 2015 to 0.88 in
2016 which is not a good indicator for the value that market participants attach to a company's
equity relative to the book value of its equity has increased. In 2017 the price to book ratio has
increased even more making it as the highest and 2018 has seen the same. From 2018 to 2019 the
price to book ratio has decreased but compared to 2015 it is still in a good position. Shinepukur
Ceramics Limited's growth is at a reasonable price rate.
13
3.1.4 Solvency Ratios:
Total Debt to Equity Ratio for 2015, 2016, 2017, 2018, and 2019 are 0.57:1, 0.57:1, 0.55:1,
0.53:1 and 0.55:1 respectively.
A fluctuation can be spotted from 2017 to 2019. Shinepukur Ceramics Limited's debt has not
increased from 2015 to 2016 as a result their shareholder's equity has stayed the same which means
they use the same debt to finance their growth. In 2018 they have the lowest solvency rate with
0.53 and in 2019 it increased again which means It will be riskier for other businesses to invest in
them as they may fail to produce enough money to meet those debts. They were more solvent in
2015 than the later years.
14
Long Term debt to Equity Ratio 2015, 2016, 2017, 2018, and 2019 are 0.22:1, 0.19:1, 0.16:1,
An upward trend line has been seen in the ratio. Shinepukur ceramics’ long term debt to equity
ratio has decreased from 2015 to 2016 which is a good indicator for investors and creditors as they
are not in a risky position. From 2016 to 2018 the long term debt to equity ratio has decreased
which is a good deciding factor for investors and creditors as they were more solvent than the
previous years. But from 2018 to 2019 the long term debt to equity ratio has increased making it
the highest which puts the company at a risky position.
15
Shinepukur Ceramics’s ability to repay short-term creditors out of its total cash has increased
over the years as it has been observed from the liquidity ratio. Shinepukur Ceramics has performed
very well in 2019 as it is observed from the current ratio. Shinepukur Ceramics was liquid in 2019
compared to the previous years.
Shinepukur Ceramics’s ability to generate income (profit) relative to revenue, balance sheet
assets, operating costs, and shareholders’ equity has increased as they performed very well in 2019
for ROA, ROE and net profit margin, in 2017 for price to earnings ratio, in 2017 and 2018 for
price to book ratio shown from the profitability ratios. They were profitable in 2019.
Shinepukur Ceramics has failed to utilize their assets to generate income as the total assets
turnover ratio is declined in 2019. But Shinepukur Ceramics was more successful utilizing their
assets in 2016. Shinepukur Ceramics was efficient in 2016.
Shinepukur Ceramics’s solvency ratios have increased from 2015-2019 gradually which
means Shinepukur Ceramics was more solvent in 2018.
16
3.2 Standard Ceramic Industries Ltd.
Current Ratio for 2015, 2016, 2017, 2018, and 2019 is 0.95:1, 0.90:1, 0.86:1, 0.89:1, and 0.92:1
respectively.
Standard Ceramic Industries Limited's obligation to meet their current liabilities by using their
current assets has declined from 2015 to 2019. Though there was an increase from 2017 to 2019
but it is still lower than the current ratio of 2015. After the 2015 financial period, their current ratio
kept declining to 2019. We can see there is a downward trend happening in the current ratio which
indicates their loss of capacity to meet the obligations.
17
Total Asset Turnover for 2015, 2016, 2017, 2018, and 2019 are 1.33, 1.37, 1.30, 1.42 and 1.39
times respectively.
In 2015 Standard Ceramic Industries Limited total asset turnover was 1.33 times and it increased
in 2016 to 1.37 times. On the other hand, in 2017 it decreased to 1.30 which means they were not
efficient to generate sales from their assets this year compared to 2016. But in 2018 their total asset
turnover again increased to 1.42 times which is a good indicator for their recovery to generate sales
from assets. On the contrary, In 2019 it decreased to 1.39. So, we can see a dramatic ups and downs
of the company’s performance for generating sales from assets within the mentioned years.
18
Return on Asset for 2015, 2016, 2017, 2018, and 2019 are 4.52%, 3.22%, -1.25%, 4.90%, and
4.30% respectively.
From 2015 to 2016 we can see that Standard Ceramic Industries Limited’s return on assets has
decreased from 4.52% to 3.22% which means their capability of producing net income from the
assets has gone down. In 2017 their return on assets was -1.25% which means this year they ran
negatively and faced loss. But we can see a growth in 2018 and it was 4.90% which was the highest
among these 5 years because in 2019 their assets on return declined again to 4.30%. So, it
illustrated that standard ceramic Industries Limited were not efficient enough to generate profit
and they failed to utilize their assets.
19
Return on Equity for 2015, 2016, 2017, 2018, and 2019 are 10.02%, 7.14%, -2.90%, 10.54% and
9.50% respectively.
Standard Ceramic's return on equity has decreased from 10.0% in 2015 to 7.14% in 2016 which
indicates that they were not successful to generate enough profit from the investments they
received. But in 2017 it declined enormously to -2.90% which is bad compared to the return on
equity of 2015 and 2016. There is a huge increase in 2018 which is the highest among the years
but again decreased in 2019. There is a fluctuation in their return on equity and they could not
replicate their success rate of 2018.
20
Net profit Margin for 2015, 2016, 2017, 2018, and 2019 are 3.40%, 2.36%, -0.96%, 3.45% and
3.10% respectively.
Standard Ceramics’s net profit margin has decreased from 2015 to 2016 which means they were
in lower profitability in 2016 than 2015 by earning the amount of net income from each dollar of
sales. Though the profit margin decreased tremendously from 2016 to 2017, in 2018 their profit
margin increased rapidly and in 2018 was their peak profit margin for the time period. Standard
ceramics has achieved growth in their ability to earn profit from each dollar of sales.
21
Price to Earnings Ratio for 2015, 2016,2017,2018, and 2019 are 33.27, 48.68, -251.03,110.89
and 158.40 times respectively.
Standard Ceramic Industries Limited price to earnings ratios has increased from 2015 to 2016
slightly. In 2017 their price to earnings decreased noticeably. But they regained the greater price
to earnings ratio in 2018 which means investors are putting 110.89 bdt for every bdt of annual
earnings. Again in 2019, it increased from 110.89 to 158.40 which is higher compared to the
previous years. Though the growth expectations have increased compared to 2015 but they had a
huge loss in 2017 over the years for Standard ceramics. But in total, they are at a good growth rate.
22
Dividends to Yield for 2015, 2016, 2017, 2018, and 2019 are 2.00%, 1.94%, 0.00%, 0.11%, and
0.20 % respectively.
Standard ceramics dividends to yield ratio has decreased from 2015 to 2016 which means they
paid way less out in dividends in 2016 relative to its stock price. In 2017 they have no dividend
yield. But in 2018 Standard ceramics’s dividend to yield increased to 0.11%. On the other hand,
in 2019, it increased a little compared to 2018. Standard ceramics’s dividends payment has
decreased so people will not buy stocks for making profit from Standard ceramics’s stocks So, the
growth expectations have decreased over the years for Standard ceramics
23
Price to Book Ratio for 2015, 2016, 2017, 2018, and 2019 are 4.99, 5.16, 9.79, 17.52, and 24.71
times respectively.
Standard Ceramics’s price to book ratio has increased from 4.99 in 2015 to 5.16 in 2016 which is
a good indicator for the value that market participants attach to a company's equity relative to the
book value of its equity has increased. In 2017 the price to book ratio has increased dramatically
than 2016. In 2018 the price to book ratio was higher, almost double the amount of 2017. Finally,
in 2019 the price to book ratio was the highest among all of the years. So it can be stated that
Standard Ceramics's growth is at a higher price rate.
24
1.27:1, and 1.35:1 respectively.
An upward trend line has been seen in the ratios. Standard ceramics's debt to equity ratio has
increased from 2015 to 2019 but in 2016 there was a decrease in the ratio which means they were
more solvent in 2016. As a result, their shareholder's equity has increased as well which means
they use debt to finance their growth. It will be riskier for other businesses to invest in them as
they may fail to produce enough money to meet those debts. They were more solvent in 2015 and
2016 than the later years.
25
Long Term Debt to Equity Ratio for 2015, 2016, 2017, 2018, and 2019 are 0.115:1, 0.120:1,
0.120:1, 0.120:1, and 0.117:1 respectively.
There is an upward and downward trend line that can be spotted in the ratio. Standard Ceramics’s
long term debt to equity ratio has increased from 2015 to 2018 with the same ratio which is a bad
indicator for investors and creditors as they are in a risky position. But from 2018 to 2019 the long
term debt to equity ratio has decreased which is a good indicator for investors and creditors.
26
Standard Ceramics’s ability to repay short-term creditors out of its total cash has decreased over
the years as it has been observed from the liquidity ratio. Standard Ceramics has performed very
well in 2015 as it is observed from the current ratio. Standard Ceramics was liquid in 2015
compared to the later years.
Standard Ceramics’s ability to generate income (profit) relative to revenue, balance sheet assets,
operating costs, and shareholders’ equity has decreased as they performed very well in 2018 for
ROA, ROE and net profit margin, in 2015 for dividend to yield ratio, in 2019 for price to earnings
ratio and price to book ratio shown from the profitability ratios. They were profitable in 2018.
Standard Ceramics has failed to utilize their assets to generate income as the total assets turnover
ratio declined in 2019. But Standard Ceramics was more successful utilizing their assets in 2018.
Standard Ceramics was efficient in 2018.
Standard Ceramics’s solvency ratios have increased from 2015-2019 gradually which
means Standard Ceramics was more solvent in 2015 for long term debts and in 2016 for total debts.
27
3.3 RAK Ceramics (Bangladesh) Limited
Current Ratio for 2015, 2016, 2017, 2018, and 2019 is 1.59:1, 1.48:1, 1.57:1, 1.64:1, 1.71:1
respectively.
RAK Ceramics’s obligation to meet their current liabilities by using their current assets has
inclined from 2015 to 2019. Though there was a decrease in 2016 in their current ratio but in 2017
it increased to 1.57 which is more than the current ratio of 2016. After the 2017 financial period,
their current ratio kept inclining to 2019. We can see there is an upward trend happening in the
current ratio which indicates their gain of capacity to meet the obligations.
28
Total Asset Turnover for 2015, 2016, 2017, 2018, and 2019 are 0.51, 0.52, 0.61,0.53,0.53 times
respectively.
In 2015 RAK Ceramics’s total asset turnover was 0.51 times and it increased slightly in 2016 to
0.52 times which means they were more efficient to generate sales from their assets in 2016. But
in 2017 their total asset turnover increased to 0.61 times which is a good indicator for their
company to generate sales from assets. They gained the capability to generate sales from assets
compared to the previous years. The last two years of RAK Ceramics to generate sales from assets
weren't efficient like 2017 as the decline of total assets turnover.
29
Return on Asset for 2015, 2016, 2017, 2018, and 2019 are 7.67%,8.52%,8.90%,7.53% and
6.51% respectively.
From 2015 to 2016 we can see that RAK Ceramics’s return on assets has increased which means
their capability of producing net income from the assets has gone up. There was a rise in 2017
which was better than the ratios in 2015 and 2016.RAK ceramics is not efficient enough to generate
profit as they failed to utilize their assets as they did in 2017. From 2018 to 2019 the return on
assets have declined. But compared to 2017, RAK ceramics has not been capable of generating
more profits from its assets.
30
Return on Equity for 2015, 2016, 2017, 2018, and 2019 are 12.46%, 14.91%, 15.48%, 12.64%
and 10.74% respectively.
RAK Ceramics's return on equity has increased from 2015 to 2017 which indicates that they were
successful to generate enough profit from the investments they received. But in 2018 it declined
to 12.64 % which is bad compared to the return on equity of 2017 but still efficient compared to
2015. There is a decrease in 2018 and 2019. There is a fluctuation in their return on equity and
they could not replicate their success rate of 2017.
31
Net profit Margin for 2015, 2016, 2017, 2018, and 2019 are 15.07%, 16.39%, 14.58%, 14.09%
RAK Ceramics's net profit margin has increased from 2015 to 2016 which means they were in
higher profitability in 2016 than 2015 by earning the amount of net income from each dollar of
sales. Though the profit margin again decreased from 2016 to 2019 but was in smaller quantities
and 2016 was their peak profit margin for the time period. RAK Ceramics has achieved growth in
its ability to earn profit from each dollar of sales.
32
Price to Earnings Ratio for 2015, 2016, 2017, 2018, and 2019 are 29.87, 22.84, 23.31, 18.93 and
RAK Ceramics’s price to earnings ratio has decreased noticeably from 2015 to 2016. In 2015 they
had gained a greater price to earnings ratio which means investors were putting 29.87 bdt for every
bdt of annual earnings. But in 2018 it declined to 18.93 and 15.51 in 2019 which is lower compared
to 2015. So, the growth expectations have decreased compared to 2015 over the years for RAK
Ceramics but they are in decent growth rate.
33
Dividends to Yield for 2015, 2016, 2017, 2018, and 2019 are 3.74%,4.04%,3.34%,2.56% and
3.48% respectively.
RAK Ceramics dividends to yield ratio has decreased poorly from 2016 to 2018 which means they
paid way less out in dividends in 2018 relative to its stock price. In 2019 they have an increase in
their dividend yield. But in 2016 RAK ceramics dividend to yield was 4.04% which is their highest
dividends paid but again decreased in 2019. Compared to 2016, RAK Ceramics’s dividends
payment has decreased so people won’t buy stocks for good profit. So the growth expectations
have decreased over the years for RAK ceramics.
34
Price to Book Ratio for 2015, 2016, 2017, 2018, and 2019 are 6.69, 6.19, 5.99, 3.9, and 2.87 times
respectively.
RAK Ceramics’s price to book ratio has decreased from 6.69 in 2015 to 6.19 in 2016 which is not
a good indicator for the value that market participants attach to a company's equity relative to the
book value of its equity has increased. In 2017 the price to book ratio has decreased even more
making it more concerning. From 2018 to 2019 the price to book ratio has decreased but compared
to 2015 it is still in a bad position. RAK Ceramics’ growth is not at a reasonable price rate.
35
Total Debt to Equity Ratio for 2015,2016,2017, 2018, and 2019 are 0.71:1,
0.78:1,0.79:1,0.71:1 and 0.69:1 respectively.
A downward trend line can be spotted in the ratios. RAK Ceramics’ debt to equity ratio has
decreased from 2015 to 2019 as a result their shareholder's equity has decreased as well which
means they use debt to finance their growth. It will be riskier for other businesses to invest in them
as they may fail to produce enough money to meet those debts. They were more solvent in 2016
and 2017 than in 2018 and 2019.
36
Long Term Debt to Equity Ratio 2015, 2016, 2017, 2018, and 2019 are 0.067:1, 0.112:1,
0.078:1, 0.036:1, and 0.026:1 respectively.
There is a downward trend line that has been seen in the ratio. RAK Ceramics’s long term debt to
equity ratio has increased from 2015 to 2016 which is a bad indicator for investors and creditors
as they were in a risky position. But from 2017 to 2019 the long term debt to equity ratio has
decreased which can be a deciding factor for investors and creditors. It won't be riskier for other
businesses to invest on them because they won't fail to produce enough money to meet those debts.
37
RAK Ceramics’s ability to repay short-term creditors out of its total cash has increased over the
years as it has been observed from the liquidity ratio. RAK Ceramics has performed very well in
2019 as it is observed from the upward trend of current ratio. RAK Ceramics was liquid in 2019
compared to the previous years.
RAK Ceramics’s ability to generate income (profit) relative to revenue, balance sheet assets,
ROA and ROE, in 2016 for net profit margin and dividend to yield ratio, in 2015 for price to
earnings ratio and price to book ratio shown from the profitability ratios.
RAK Ceramics has failed to utilize their assets to generate income as the total assets turnover ratio
declined in 2019. But RAK Ceramics was more successful utilizing their assets in 2017. RAK
Ceramics was efficient in 2017.
RAK Ceramics’s solvency ratios have decreased from 2015-2019 gradually which means RAK
Ceramics was more solvent in 2019.
38
3.4 Monno Ceramic Industries Ltd.
Current Ratio for 2015, 2016, 2017, 2018, and 2019 is 1.03:1, 1.25:1, 1.12:1, 1.25:1 and
Monno Ceramic Industries Limited’s obligation to meet their current liabilities by using their
current assets has increased from 2015 to 2016. Though there was a decrease from 1.25 in 2016 to
1.12 in 2017 in their current ratio. Again, it increased from 1.25 in 2018 to 1.34 in 2019 and 2019
is their peak current ratio so we can say that they have gained the capacity to meet the obligations
by using their current assets.
39
Total Asset Turnover for 2015, 2016, 2017, 2018, and 2019 are 0.25, 0.26, and 0.27 ,0.29 and
In 2015, Monno Ceramic Industries Limited's total asset turnover was 0.25 times and it
continuously increased from 0.25 in 2015 to 0.34 times in 2019. We can see there is an upward
trend happening which means they were efficient to generate sales from their assets. Their total
asset turnover has increased continuously which is a good indicator for their recovery to generate
sales from assets.
40
Return on Asset for 2015, 2016, 2017, 2018, and 2019 are 0.10%, 0.07%, 0.08%, 1.68 %,
From 2015 to 2016 we can see that Monno Ceramic Industries Ltd.’s return on assets has decreased
which means their capability of producing net income from the assets has gone down. Though
there is a rise in 2017 but still not better than in 2015. But it dramatically increased from 0.08% in
2017 to 2.33% in 2019 which means that Monno Ceramic Industries Ltd. is efficient enough to
generate profit as they have succeeded to utilize their assets.
41
Return on Equity for 2015 ,2016 ,2017, 2018, and 2019 are 0.13%, 0.10%, 0.12%, 2.31%, and
3.38% respectively.
Monno Ceramic Industries Limited's return on equity has declined from 0.13% in 2015 to 0.10%
in 2016 which indicates that they have failed to generate enough profit from the investments they
received. But in 2017 it rose to 0.12 % which is good but still not efficient compared to 2015. But
it increased tremendously from 0.12% in 2017 to 3.38% in 2019 which is a good indicator of their
recovery.
42
Net Profit Margin for 2015, 2016, 2017, 2018, and 2019 are 0.41%, 0.27%, 0.32%, 5.86%, and
6.78% respectively.
Monno Ceramic Industries Ltd.’s net profit margin has decreased from 2015 to 2017 which means
they were in higher profitability in 2015 than 2016 and 2017 by earning the amount of net income
from each dollar of sales. Though the profit margin again increased from 0.32% in 2017 to 6.78%
in 2019 and 2019 was their peak profit margin for the time period. Monno Ceramics has achieved
growth in its ability to earn profit from each dollar of sales.
43
Price to Earnings Ratio for 2015, 2016, 2017, 2018, and 2019 are 190.77, 408.89, 352.73, 144.98
and 91.4 times respectively.
Monno Ceramic Industries Limited’s price to earnings ratios have increased from 2015 to 2016.
On the other hand, it has been decreasing from 2017 to 2019. In 2016 they have the highest price
to earnings ratio which means investors are putting 408.89 bdt for every bdt of annual earnings.
But in 2017 it declined to 352.73 and 91.4 in 2019 which is very low compared to 2016. The
growth expectations have decreased over the years for Monno Ceramic Industries Ltd.
44
Dividends to Yield for 2015,2016, 2017, 2018, and 2019 are 0.81%, 1.09%, 0.41%, 0.07%, and
0.39% respectively.
Monno ceramics Industries Limited’s dividends to yield ratio has increased highly from 0.81%
in 2015 to 1.09% in 2016.In 2016 they have the highest dividends to yield ratio but its dividends
to yield has decreased poorly from 2016 to 2018 but there is a rise in 2019 which is very low
compared to 2016.Compared to 2016,Monno ceramics’s dividends has decreased so people
cannot expect good profit those who will buy stocks. So, the growth expectations have decreased
over the years for Monno ceramics.
45
Price to Book Ratio for 2015, 2016, 2017, 2018, and 2019 are 2.48, 3.68, 3.88, 30.59, 20.29 times
respectively.
Monno ceramic Industries Limited’s price to book ratios have been increasing from 2.48%
in 2015 to 3.88% in 2017 which is a good indicator for the value that market participants attach
to a company's equity relative to the book value of its equity has increased..In 2018 the price to
booking ratio has increased even more making it as the highest .But in 2019 the price to book ratio
has decreased but compared to 2015 it is still in a very good position .Monno ceramics's growth is
at a reasonable price rate.
46
Total Debt to Equity Ratio for 2015, 2016, 2017, 2018, and 2019 is 1.34:1, 1.42:1,1.42:1, 1.35:1
and 1.46:1 respectively.
Monno ceramics's debt to equity has increased from 1.34 in 2015 to 1.42 in 2016 as a result their
shareholder's equity has increased as well which means they use debt to finance their growth and
in 2017 it has the same ratio. But in 2018 it decreased which is higher compared to 2015. On the
other hand, there is a rise in 2019, so we can say that it will be riskier for other businesses to invest
on them as they may fail to produce enough money to meet those debts.
47
Long Term debt to Equity Ratio 2015, 2016, 2017, 2018, and 2019 is 0.005:1, 0.106:1,0.085:1,
Monno ceramics's long term debt to equity ratio has increased highly from 0.005 in 2015 to 0.106
in 2016. But it continuously decreased from 0.085 in 2017 to 0.073 in 2018 which is higher than
the ratio in 2015. On the other hand, in 2019 it increased dramatically. As a result, their
shareholder's equity has increased as well which means they use long term debt to finance their
growth. It will be riskier for other businesses to invest on them as they may fail to produce enough
money to meet those debts.
48
Monno Ceramics’s ability to repay short-term creditors out of its total cash has increased over
the years as it has been observed from the liquidity ratio. Monno Ceramics has performed very
well in 2019 as it is observed from the current ratio. Monno Ceramics was liquid in 2019 compared
to the previous years.
Monno Ceramics’s ability to generate income (profit) relative to revenue, balance sheet assets,
operating costs, and shareholders’ equity has increased as they performed very well in 2019 for
ROA, ROE and net profit margin, in 2016 for dividend to yield ratio and price to earnings ratio, in
2018 for price to book ratio shown from the profitability ratios. They were profitable in 2019.
Monno Ceramics has successfully utilized their assets to generate income as the total assets
turnover ratio is inclined in 2019. But Monno Ceramics was more successful utilizing their assets
in 2019. Monno Ceramics was efficient in 2019.
Monno Ceramics’s solvency ratios have increased from 2015-2019 gradually which means Monno
Ceramics was more solvent in 2015.
49
3.5 Fu-Wang Ceramic Industries Ltd.
Current Ratio for 2015, 2016, 2017, 2018, and 2019 are 2.13:1, 3.22:1, 2.17:1, 1.99:1 and 1.85:1
respectively.
Fu-wang ceramics’ obligation to meet their current liabilities by using their current assets has
declined from 2015 to 2019. Though there was a huge increase from 2015 to 2016 in their current
ratio but in 2017 it decreased to 2.17 which is more than the current ratio of 2015. After the 2017
financial period, their current ratio kept declining to 2019. We can see there is a downward trend
happening in the current ratio which indicates their loss of capacity to meet the obligations.
50
Total Asset Turnover for 2015,2016,2017, 2018, and 2019 are 0.46,0.54,0.27,0.28 and 0.26 times
respectively.
In 2015 Fu-wang ceramics’s total asset turnover was 0.46 times and it increased in 2016 to 0.54
times which means they were more efficient to generate sales from their assets in 2016. But in
2017 their total asset turnover decreased to 0.27 times which is a bad indicator for their company
to generate sales from assets. They lost the capability to generate sales from assets compared to
the previous years. The last two years of Fu-wang to generate sales from assets weren't efficient
like the previous years either as the decline of total assets turnover.
51
Return on Asset for 2015,2016, 2017, 2018, and 2019 are 2.35%,8.52%,4.18%,4.16% and
3.48% respectively.
From 2015 to 2016 we can see that Fu-wang's return on assets has increased incredibly which
means their capability of producing net income from the assets has gone up. Though there is a fall
in 2017 but still better than in 2015. Fu-wang ceramics was not efficient enough to generate profit
as they failed to utilize their assets as they did in 2016. From 2018 to 2019 the return on assets
declined more. But compared to 2015, Fu-wang has generated more profits from its assets.
52
Return on Equity for 2015, 2016, 2017, 2018, and 2019 are 2.99%, 10.31%, 5.36%, 5.84% and
5.32% respectively.
Fu-wang Ceramics's return on equity has increased hugely from 2015 to 2016 which indicates that
they were successful to generate enough profit from the investments they received. But in 2017 it
declined to 5.36 % which is bad compared to the return on equity of 2016 but still efficient
compared to 2015. There is an increase in 2018 and a decrease in 2019. There is a fluctuation in
their return on equity and they could not replicate their success rate of 2016.
53
Net Profit Margin for 2015,2016,2017, 2018, and 2019 are 5.08%,15.80%,15.37%,14.68% and
13.57% respectively.
Fu-Wang Ceramic's net profit margin has increased tremendously from 2015 to 2016 which means
they were in higher profitability in 2016 than 2015 by earning the amount of net income from each
dollar of sales. Though the profit margin again decreased from 2016 to 2019 but was in smaller
quantities and in 2016 was their peak profit margin for the time period. Fu-wang Ceramics has
achieved growth in its ability to earn profit from each dollar of sales.
54
Price to Earnings Ratio for 2015,2016,2017, 2018, and 2019 are 28.59,10.38,25.92,22.29 and
Fu-wang ceramics’ price to earnings ratios has decreased noticeably from 2015 to 2016 more than
half of 2015. In 2017 they have regained the greater price to earnings ratio which means investors
are putting 25.92 bdt for every bdt of annual earnings. But in 2018 it declined to 22.29 and 20.85
in 2019 which is lower compared to 2015. So, the growth expectations have decreased compared
to 2015 over the years for Fu-wang ceramics but they are in good growth rate.
55
Dividends to Yield for 2015,2016,2017, 2018, and 2019 are 6.56%,2.49%,5.95%,6.64% and
5.33% respectively.
Fu-wang ceramics dividends to yield have decreased poorly from 2015 to 2016 which means they
paid way less out in dividends in 2016 relative to its stock price. In 2017 they have an increase in
their dividend yield. But in 2018 Fu-wang ceramics dividend to yield increased to 6.64% which is
their highest dividend paid but again decreased in 2019. Compared to 2016, Fu-wang ceramics’
dividends payment has increased so people will buy stocks for good profit. So, the growth
expectations have increased over the years for Fu-wang ceramics.
56
Price to Book Ratio for 2015,2016,2017, 2018, and 2019 are 1.06, 1.34, 1.53, 1.38 and 1.23 times
respectively.
Fu-wang ceramics's price to book ratio has increased from 1.06 in 2015 to 1.34 in 2016 which is a
good indicator for the value that market participants attach to a company's equity relative to the
book value of its equity has increased. In 2017 the price to book ratio has increased even more
making it the highest. From 2018 to 2019 the price to book ratio has decreased but compared to
2015 it is still in a good position. Fu-wang ceramics's growth is at a reasonable price rate.
57
0.85:1, and 1:1 respectively.
An upward trend line has been seen in the ratios. Fu-wang ceramics’ debt has increased from 2015
to 2019 as a result their shareholder's equity has increased as well which means they use debt to
finance their growth. It will be riskier for other businesses to invest in them as they may fail to
produce enough money to meet those debts. They were more solvent in 2015 and 2016 than in
2017 and 2018.
58
Long Term debt to Equity Ratio 2015, 2016, 2017, 2018, and 2019 are 0.059:1, 0.053:1, 0.089:1,
0.124:1, and 0.237:1 respectively.
An upward trend line has been seen in the ratio. Fu-wang ceramics’ long term debt to equity ratio
has decreased from 2015 to 2016 which is a good indicator for investors and creditors as they are
not in a risky position. But from 2016 to 2019 the long term debt to equity ratio has increased
which can be a deciding factor for investors and creditors.
59
Fu-wang Ceramics’s ability to repay short-term creditors out of its total cash has decreased over
the years as it has been observed from the liquidity ratio. Fu-wang Ceramics has performed very
well in 2016 as it is observed from the current ratio. Fu-wang Ceramics was liquid in 2016
compared to the other years.
Fu-wang Ceramics’s ability to generate income (profit) relative to revenue, balance sheet assets,
ROA, ROE and net profit margin, in 2015 for dividend to yield ratio and price to earnings ratio, in
2017 for price to book ratio shown from the profitability ratios. They were profitable in 2016.
Fu-wang Ceramics has failed to utilize their assets to generate income as the total assets turnover
ratio declined in 2019. But Fu-wang Ceramics was more successful utilizing their assets in 2016.
Fu-wang Ceramics was efficient in 2016.
Fu-wang Ceramics’s solvency ratios have increased from 2015-2019 gradually which means Fu-
wang Ceramics was more solvent in 2015.
60
4. Performance Evaluation of Ceramics Industry
4.1 Liquidity Ratio:
The industry average of the Current Ratio for the last 5 years is 1.32:1.
From the bar graph above we can clearly see that Fu-Wang Ceramic Industries Ltd. has done better
in the current ratio over the last five years as their average ratio is 2.27:1. However, Shinepukur
Ceramics Limited did not perform well compared to other companies. Their ratio was 0.62:1 while
the average current ratio for Standard Ceramics Industries Ltd., RAK Ceramics (Bangladesh) Ltd.,
and Monno Ceramic Industries Ltd were 0.90:1, 1.60:1, and 1.20:1 respectively.
61
4.2 Asset Management Ratio:
The industry average of Total Asset Turnover for the last 5 years is 0.56 times.
From the bar graph above we can clearly see that Standard Ceramics Industries Ltd has. done better
in the total asset turnover over the last five years as their average turnover is 1.36 times. However,
Shinepukur Ceramics Limited performed the least compared to other companies. Their average
turnover is 0.24 times while the average total asset turnover for RAK Ceramics (Bangladesh) Ltd.,
Monno Ceramic Industries Ltd., and Fu-Wang Ceramic Industries Ltd. are 0.54, 0.28, and 0.36
times respectively.
62
4.3 Profitability Ratios:
The industry average of Return on Assets for the last 5 years is 3.40%.
From the line graph above we can clearly see that RAK Ceramics (Bangladesh) Ltd. has done
better in the Return on assets over the last five years as their average return is 7.83%. However,
Shinepukur Ceramics Limited did not perform well compared to other companies. Their average
return is 0.62%. The average return for Fu-Wang Ceramic Industries Ltd. is 4.54% which is
above the industry average. On the other hand, average return on assets for Standard Ceramics
Industries Ltd., and Monno Ceramic Industries Ltd. are 3.14% and .085% respectively which is
under the industry average.
63
The industry average of Return on Equity for the last 5 years is 5.65%.
From the line graph above we can clearly see that RAK Ceramics (Bangladesh) Ltd. has done
better in the return on equity over the last five years as their average return is 13.25%. The average
return for Standard Ceramics Industries Ltd., and Fu-Wang Ceramic Industries Ltd. are 6.68%,
and 5.96% respectively which is above the industry average. On the other hand average return on
equity for Shinepukur Ceramics Limited, and Monno Ceramic Industries Ltd. are 0.97% and
1.21% respectively which is under the industry average.
64
The industry average Net Profit Margin for the last 5 years is 7.00%
From the line graph above we can clearly see that the average net profit margin for RAK Ceramics
(Bangladesh) Ltd., and Fu-Wang Ceramic Industries Ltd. are 14.50%, and 12.90% respectively
which is above the industry average. On the other hand, average net profit margin for Shinepukur
Ceramics Limited, Standard Ceramics Industries Ltd., and Monno Ceramic Industries Ltd. are
2.60%, 2.27%, and 2.73% respectively which is under the industry average.
65
The industry average of the Price to Earnings Ratio for the last 5 years is 60:1.
From the graph above we can clearly see that Monno Ceramic Industries Ltd. has done better at
the price to earnings ratios over the last five years as their average ratio is 237.75:1. However,
Shinepukur Ceramics Limited did not perform well compared to other companies. Their ratio was
0.29:1 while the average price to earnings ratios for Standard Ceramics Industries Ltd., RAK
Ceramics (Bangladesh) Ltd., and Fu-Wang Ceramic Industries Ltd. are 20.04:1, 22.09:1, and
66
The industry average Dividends to Yield for the last 5 years is 2.04%
From the graph above we can clearly see that the average Dividends to Yield for RAK Ceramics
(Bangladesh) Ltd., and Fu-Wang Ceramic Industries Ltd. are 3.43%, and 5.39% respectively
which is above the industry average. On the other hand, average dividends to yield for Shinepukur
Ceramics Limited, Standard Ceramics Industries Ltd., and Monno Ceramic Industries Ltd. are 0%,
0.85%, and 0.55% respectively which is under the industry average.
67
The industry average of the Price to Book Ratio for the last 5 years is 6.47:1.
From the graph above we can clearly see that the average price to book ratios for Standard
Ceramics Industries Ltd., and Monno Ceramic Industries Ltd. are 12.43:1, and 12.18:1
respectively which is above the industry average. On the other hand average price to book ratio
for Shinepukur Ceramics Limited, RAK Ceramics (Bangladesh) Ltd., and Fu-Wang Ceramic
Industries Ltd. are 1.30:1, 5.13:1%, and 1.31:1 respectively which is under the industry average.
68
4.4 Solvency Ratio:
The industry average of the Total Debt to Equity Ratio for the last 5 years is 0.94:1.
From the graph above we can clearly see that the average price to book ratios for Standard
Ceramics Industries Ltd., and Monno Ceramic Industries Ltd. are 1.26:1, and 1.40:1 respectively
which is above the industry average. On the other hand, average total debt to equity ratio for
Shinepukur Ceramics Limited, RAK Ceramics (Bangladesh) Ltd., and Fu-Wang Ceramic
Industries Ltd. are 0.55:1, 0.74:1, and 0.77:1 respectively which is under the industry average.
69
The industry average of the Long Term Debt to Equity Ratio for the last 5 years is 0.15:1.
From the graph above we can clearly see that the average Long Term Debt to Equity Ratio for
Shinepukur Ceramics Limited is 0.39:1 which is above the industry average. On the other hand,
average ratio for Standard Ceramics Industries Ltd., RAK Ceramics (Bangladesh) Ltd., Monno
Ceramic Industries Ltd., and Fu-Wang Ceramic Industries Ltd. are 0.12:1, 0.07:1, 0.09:1, and
0.11:1 respectively which is under the industry average.
70
5. Conclusion
Fu-wang ceramics’s ability to repay short-term creditors out of its total cash has increased over
the years as they have the highest average for liquidity ratio shown from the current ratio which
exceeds the industry average. RAK ceramics has also performed well in the ceramics industry over
the five years as their average current ratio also exceeds industry average. Standard ceramics is the
most efficient company when it comes to utilizing assets to generate income as their average
efficiency ratio exceeds the industry average and other companies are below the average industry
average for efficiency ratio. RAK ceramics and Fu-wang ceramics have dominated the profitability
ratios as their average for most of the ratios have exceeded the industry average. They were more
profitable compared to the other companies in the ceramic industry. Shinepukur ceramics and
RAK ceramics has the lowest average for total debt to equity as they used less debts to finance
their growth. RAK ceramics has the lowest average for long term debt to equity ratio as they have
used less long term debts to finance their growth. As a result RAK ceramics is more solvent than
any other companies in the ceramic industry.
71
Work Cited
Weygandt, Jerry J., Kimmel, Paul D., Kieso, Donald E. Accountings Principle.12th Ed. USA:
Wiley.
The Daily Star,2017, An overview of Bangladesh's ceramics industry, viewed on 27 September

2020
<https://www.thedailystar.net/supplements/overview-bangladeshs-ceramics-industry-1498489>
Shinepukur Ceramics Limited. 2016. Annual Report.2016. Dhaka: Financial Portal, LankaBangla.
Shinepukur Ceramics Limited. 2017. Annual Report. 2017. Dhaka: Financial Portal, LankaBangla.
Standard Ceramic Industries Ltd. 2015. Annual Report. 2015. Dhaka: Financial Portal,
LankaBangla.
Standard Ceramic Industries Ltd. 2016. Annual Report.2016. Dhaka: Financial Portal,
LankaBangla.
LankaBangla.
LankaBangla.
LankaBangla.
RAK Ceramics (Bangladesh) Limited. 2015. Annual Report. 2015. Dhaka: Financial Portal,
LankaBangla.
72
RAK Ceramics (Bangladesh) Limited. 2016. Annual Report.2016. Dhaka: Financial Portal,
LankaBangla.
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Monno Ceramic Industries Ltd. 2015. Annual Report. 2015. Dhaka: Financial Portal,
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Monno Ceramic Industries Ltd. 2016. Annual Report.2016. Dhaka: Financial Portal, LankaBangla.
LankaBangla.
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Fu-Wang Ceramic Industries Ltd. 2015. Annual Report. 2015. Dhaka: Financial Portal,
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Fu-Wang Ceramic Industries Ltd. 2016. Annual Report.2016. Dhaka: Financial Portal,
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Appendix
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Financial Performance of Ceramics Industry of Bangladesh

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Financial Performance of Ceramics Industry of Bangladesh

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Financial Statements Analysis of

Financial Accounting 2 (ACN 211)

University of Asia Pacific

Md. Sharif Hassan

Department of Business Administration

University of Asia Pacific

Subject: Submission of report on ‘Financial Statement Analysis of Ceramics Industry’.

Sabbiha Hossain Methela (19102003)

Gazi Shahbaz Mohammad (19102007)

Mahmud Hasan Abir (19102011)

Farhan Saif (19102019)

Humayra Anjum (19102023)

2. An Overview of the Market 3

3. Findings and Analysis 6

4. Performance Evaluation on Ceramics Industry 61

1.1 Origin of the Report

1.2 Objective of the Study

• To identify the Financial activities of Ceramics Industry

1.3 Scope of the Report

The secondary sources were:

• Annual Report of each company

To study is limited to the following aspects:

2.1 Industry Overview

Ceramics industry is a thriving manufacturing sector in Bangladesh’s economy. The ceramics

2.2.1 Shinepukur Ceramics Limited

2.2.2 Standard Ceramic Industries Ltd.

2.2.4 Monno Ceramic Industries Ltd.

2.2.5 Fu-Wang Ceramic Industries Ltd.

3.1 Shinepukur Ceramics LTD

3.1.1 Liquidity Ratio:

3.2.1 Liquidity Ratio:

3.3.1 Liquidity Ratio:

3.4.1 Liquidity Ratio:

4.1 Liquidity Ratio:

The Daily Star,2017, An overview of Bangladesh's ceramics industry, viewed on 27 September

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