Operating Profit Margin

20 17.89

18

16
12.39
14

12

10

0
2018 2019 2020

LafargeHolcim Heidelberg

1. Operating Profit Margin

Company 2018 2019 2020
Name
Lafarge 1.5 17.89 12.39
Heidelberg 8.3 1.4 3.7

Time Series:

Lafarge: The OPM of Lafarge is increasing. The OPM rise from 1.5% in 2018 to 17.89 in the
year of 2019. But in 2020 the rate has decreased again to the 12.39%.

Heidelberg: According to the data, Lafarge had a declining OPM. It has Operating Profit Margin
of 8.3%, 1.4%, 3.7% in the year of 2018, 2019 and 2020 respectively.

Cross Sectional: It can be seen that Heidelberg’s OPM had a relative decreasing rate from 2018.
But its OPM has always been below Lafarge’s. Whereas Lafarge’s OPM rate is increasing
gradually. Overall it can be said LafargeHolcim Bangladesh Ltd. has been doing a bit better here
O
since it has a higher OPM and this indicates that the company is becoming operationally more
efficient.

2. Net Profit Margin

Company Name 2018 2019 2020
Lafarge 22.8 27.47 24.87
Heidelberg 16.3% 9.7% 12.4%

Net Profi t Margin

30

27.47
25
24.87
22.8
20

16.3
15
Net Profit Margin
12.4
10
9.7

0
2018 2019 2020

Lafarge Heidelberg

Time Series:

Lafarge: If we look at Lafarge’s Net Profit Margin Ratio starting from 2018, it has increased till
2019 and decreased again in the next year 2020.

Heidelberg: Heidelberg’s Net Profit Margin Ratio kept decreasing in the year 2019 but in 2020
the ratio has been increased again.

Cross Sectional: A higher net profit margin is always preferred as this goes to show that firms
can distribute more money to their shareholders. Lafarge had higher Net Profit Margin than
Heidelberg. So it can be concluded that Lafarge can distribute more money among its
shareholders than Heidelberg.

3. Price Earnings Ratio:

Company Name 2018 2019 2020
Lafarge 5.76 31.11 25.58
Heidelberg 26.6 -36.4 -1719.8

Price Earnings Rati o

500

59.76 31.11 25.58

0
26.6
2018 2019 2020
-36.4
Price earnings ratio

-500

-1000

-1500

-1719.8
-2000

Lafarge Heildelberg

Time Series:
Lafarge: The P/E ratio for Lafarge was 59.76 in 2018, 31.11 in 2019 and 25.58 in 2020.

Heidelberg: The P/E ratio had been decreased for Heidelberg dramatically. The ratio was 26.6 in
2018, -36.4 in 2019 and -1719.8 in the year of 2020.
Cross- Sectional: The higher the P/E Ratio is the greater the investor confidence. If the stock
price increases, the shareholders will get more profit which fulfils the objective of a corporation.
According to the data, Lafarge maintained a higher P/E Ratio in comparison to Heidelberg.