Course Name: FIN 254

Section: 22

Project: Financial Analysis of Crown Cement Company

Submitted By:
NAME ID
1. Jinat Ara Ferdous 1921972030
2. Noor Ashfi Ahmed 1921773030
3. Tonjoy Karmakar 2012253030
4. Kamrunnaher Jui 1931385630
5. Marin Hossain Khan 2012331030
6. Salsabil Alam 1812991030

Submitted to:
Sheikh Mohammad Rabby (RBY)
Department of Accounting and Finance
 Time series Analysis

Liquidity Ratio

Current ratio= Current asset/current liabilities

1 RAK
)
Year 2015-16 2016-17 2017-18 2018-19 2019-20
1130432126 1062432854
Current asset 8609003487 10138764676 10503676128
9 4
Current liabilities 6721249003 8372771301 9829557849 9667634975 10419742836
Current ratio 1.63 9.45 1.66 1.71 1.67

Time series analysis: we know the current ratio is higher the better. Here we can see the current
ratio is declining. In 2015-16 it was 1.63 then it increased in 2016-17 and became 9.45. Then
again, in 2017-18 it decreased and the number was 1.66 and in 2019-20 it became 1.71.In 2020 it
was 1.67. So, lower the worse.
1
)
Year 2015-16 2016-17 2017-18 2018-19 2019-20
1130432126 1062432854
Current asset 8609003487 10138764676 10503676128
9 4
Current liabilities 6721249003 8372771301 9829557849 9667634975 10419742836
Current ratio 2,17 1.99 1.85 1.54 1.49

Time series analysis: we know the current ratio is higher the better. Here we can see the current
ratio is declining. In 2015-16 it was 2.17 then it decreased in 2016-17 and became 1.99. Then
again, in 2017-18 it decreased and the number was 1.85 and in 2019-20 it became 1.54.In 2020 it
was 1.49. So, lower the worse.
 Quick ratio=current asset-inventory/current liabilities

Year 2015-16 2016-17 2017-18 2018-19 2019-20

Current asset-
7811134998 9158403782 10251529093 9326450844 8735608893
inventory
Current liabilities 6721249003 8372771301 9829557849 9667634975 10419742836
Quick ratio 1.04 2.40 1.05 1.17 1.29

Time series analysis: Quick ratio is higher the better as we know. We can see from the
above graph that it is a downward sloping graph. The value for 2015-16 was 1.04. In 2017 it
increased and it was 2.40. In 2018 the ratio decreased and it was 1.05. In 2019 in increased
and now in 2019-20 it has increased to 1.29. Therefore, we can say that the Quick ratio has
improved.
 Quick ratio=current asset-
inventory/current liabilities

Ye 2015- 2016- 2017- 2018- 2019-

ar 16 17 18 19 20
Cu
rrent 78111 91584 10251 93264 87356
asset- 34998 03782 529093 50844 08893
inventory
Cu
67212 83727 98295 96676 10419
rrent
49003 71301 57849 34975 742836
liabilities

Qu
0.67 0.55 0.44 0.44 0.42
ick ratio
Time series analysis: Quick ratio is higher the better as we know. We can see from the above
graph that it is a downward sloping graph. The value for 2015-16 was 0.67. In 2017 it decreased
and it was 0.55. In 2018 the ratio decreased and now in 2019-20 it has decreased to 0.42.
Therefore, we can say that the Quick ratio has worsened.

Inventory Turnover=COGS/inventory

Year 2015-16 2016-17 2017-18 2018-19 2019-20

COGS 7357193512 7,829,382,292 10915891226 12698608615 12454360809

Inventory 797868489 980,360,894 1052792176 1297877700 1768067235

Inventory turnover 1.29 1.68 1.44 1.68 2.02

Time series analysis: Inventory turnover is higher the better. In 2019-20 it was 2.02 which was
higher than the 2018-19 year but the ratio fluctuated from 2018, but in the end, it has the highest
value from other years in 2019-20. So, it has improved.
Year 2015-16 2016-17 2017-18 2018-19 2019-20
COGS 7357193512 7,829,382,292 10915891226 12698608615 12454360809

Inventory 797868489 980,360,894 1052792176 1297877700 1768067235

Inventory turnover 0.44 0.49 0.42 0.34 0.28

Time series analysis: Inventory turnover is higher the better. In 2019-20 it was 2.08 which was
lower than the 2018-19 year but the ratio improved in 2017, but in the end, it has the lower value
from other years in 2019-20. So, it has worsened.
 Average Collection Period=
accountsreceivable /avg sales per day

Year 2015-16 2016-17 2017-18 2018-19 2019-20

Account Receivable 1140292431 1801620086 2666360153 3599007746 3927759329

Avg. Sales per day 24702872.96 25862520.61 34409072.87 40077897.51 38017017.62

Average Collection
40 30 47 416 70
Period

Time series analysis: Average collection period is lower the better. We can see from the above
graph that from the year 2015-16 fiscal year we can see avg collection period is getting higher
fiscal years. In 2015-16 it was 40 and now in 2019-20, it has increased to 70.
Average Collection Period=
accountsreceivable /avg sales per day

Year 2015-16 2016-17 2017-18 2018-19 2019-20

 Account Receivable 1140292431 1801620086 2666360153 3599007746 3927759329

Avg. Sales per day 24702872.96 25862520.61 34409072.87 40077897.51 38017017.62

Average Collection
96 80 59 51 43
Period

Time series analysis: Average collection period is lower the better. We can see from the above
graph that from the year 2015-16 fiscal year we can see avg collection period is getting lower
fiscal years. In 2015-16 it was 96 and now in 2019-20, it has increased to 43.
 Total asset
turnover
ratio=sales
revenue/total asset

Year 2015-16 2016-17 2017-18 2018-19 2019-20

12,559,311,59 1462843259
Sales Revenue 9016548629 9,439,820,021 13876211430
9 1
1415961887 17,919,446,70 19,713,912,11 1927075326
Total Assets 19084838495
7 7 5 4
Total Asset
45% 60% 76% 6% 42%
Turnover

Time series analysis: Total Asset turnover is higher the better. The value for 2015-16 was
45% and now in 2019-20 it has come risen up to 42%. Therefore, we can say that the Total
Asset turnover has improved compared to 2019 but not compared to 2016-17,2017-18 and
2018-19.

Total asset
turnover
ratio=sales
revenue/total asset
 Year 2015-16 2016-17 2017-18 2018-19 2019-20
12,559,311,59 1462843259
Sales Revenue 9016548629 9,439,820,021 13876211430
9 1
1415961887 17,919,446,70 19,713,912,11 1927075326
Total Assets 19084838495
7 7 5 4
Total Asset
29% 27% 24% 20% 24%
Turnover

Time series analysis: Total Asset turnover is higher the better. The value for 2015-16 was 29%
and now in 2019-20 it has fall up to 24%. Therefore, we can say that the Total Asset turnover
has worsened compared to 2016 but not compared to 2018-19.
 Return on asset = Net profit/total
asset
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Net Profit or,
744247825 661,079,097 315,612,768 251150155 132453273
EAFCSH
1415961887 17,919,446,70 19,713,912,11 1927075326
Total Assets 19084838495
7 7 5 4
Return on Assets 8.20% 8.63% 7.31% 5.91% 2.48%

Time series analysis: Return on Asset is higher the better. We can see from the
above graph that it is a downward sloping graph. The value for 2015-16 was 8.20% and
now in 2019-20 it has come falling down to 2.48% therefore we can say that the return on
the asset has worsened.
Return on asset = Net profit/total
asset
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Net Profit or,
744247825 661,079,097 315,612,768 251150155 132453273
EAFCSH
Total Assets 1415961887 17,919,446,70 19,713,912,11 1927075326 19084838495
 7 7 5 4
Return on Assets 3.82% 3.93% 4.42% 2.19% 1.46%

Time series analysis: Return on Asset is higher

the better. We can see from the above graph
that it is a downward sloping graph. The value
for 2018 was 4.42% and now in 2019-20 it has
come falling down to 1.46% therefore we can
say that the return on the asset has worsened.

Debt Ratio

Debt ratio=Total liabilities/total asset

Year 2015-16 2016-17 2017-18 2018-19 2019-20

Total liabilities 7434795 1082165 1258955 121102 1219772
 022 1958 7659 75556 2782
1415961 1791944 1971391 192707 1908483
Total asset
8877 6707 2115 53264 8495
Debt ratio 52.51% 60.39% 63.86% 62.84% 63.91%

Time series analysis Debt ratio is lower the better.

We can see from the above graph that it is an downward sloping graph. The value for
2015-16 was 45% and now in 2019-20, it has fallen up to 44%. Therefore, we can say that
the Debt ratio has improved but not compare to 2019.
Time series analysis Debt ratio is lower the better.
We can see from the above graph that it is an upward sloping graph. The value for 2015-16
was 29% and now in 2019-20, it has risen up to 50%. Therefore, we can say that the Debt
ratio has worsened.

Profitability Ratios

Gross profit margin=gross profit /sales

Year 2015-16 2016-17 2017-18 2018-19 2019-20
Gross profit 1659355117 1610437729 1643420373 1929823976 1421850621
sales 9016548629 9439820021 12559311599 14628432591 13876211430
Gross profit margin 42.56% 39.85% 36.82% 29.51% 22.50%
Time series analysis: Gross profit margin is higher, the better. We can see from the above
graph that it is a downward sloping graph. The value for 2015-16 was 42.56,% and now in
2019,-20 it has fallen down to 22.50%, therefore, we can say that the Gross profit margin
has worsened.
Gross profit margin=gross profit /sales
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Gross profit 1659355117 1610437729 1643420373 1929823976 1421850621
sales 9016548629 9439820021 12559311599 14628432591 13876211430
Gross profit margin 39.45% 35.15% 37.93% 37.75% 27.64%
Time series analysis: Gross profit margin is higher, the better. We can see from the above graph
that it is a downward sloping graph. The value for 2015-16 was 39.45,% and now in 2019,-20 it
has fallen down to 27.64%, therefore, we can say that the Gross profit margin has worsened.
 Operating profit margin=gross profit
/sales
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Operating profit 1196135443 1109776984 1001289845 1109776984 799581796
sales 9016548629 9439820021 12559311599 14628432591 13876211430
Operating profit
16.17% 22.08% 18.82% 16.89% 8.29%
margin

Time series analysis: The operating profit margin is higher the better. We can see
from the above graph that it is a downward sloping graph. The value for 2015-16 was
16.17% and now in 2019-20 it has fallen down to 8.29%. Therefore, we can say that the
Operating profit margin has worsened.

Operating profit margin=gross profit

/sales
Year 2015-16 2016-17 2017-18 2018-19 2019-20
 Operating profit 1196135443 1109776984 1001289845 1109776984 799581796
sales 9016548629 9439820021 12559311599 14628432591 13876211430
Operating profit
21.01% 20.18% 28.82% 12.81% 4.91%
margin

Time series analysis: The operating profit margin is higher the better. We can see from the above
graph that it is a downward sloping graph. The value for 2018 was 28.82 and now in 2019-20 it
has fallen down to 4.91%. Therefore, we can say that the Operating profit margin has worsened.
 Net profit margin=gross profit /sales
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Net profit 744247825 661079097 315612768 251150155 132453273
sales 9016548629 9439820021 12559311599 14628432591 13876211430
Net profit margin 16.17% 14.40% 13.04% 11.67% 5.87%

Time series analysis: Net profit margin is higher the better. We can see from the above
graph that it is a downward sloping graph. The value for 2015-16 was 16.17% and now in
2019-20 it has fallen down to 5.87%. Therefore, we can say that the Net profit margin has
worsened.

Net profit margin=gross profit /sales

Year 2015-16 2016-17 2017-18 2018-19 2019-20
Net profit 744247825 661079097 315612768 251150155 132453273
sales 9016548629 9439820021 12559311599 14628432591 13876211430
Net profit margin 15.37% 14.68% 18.63% 10.87% 6.04%
Time series analysis: Net profit margin is higher the better. We can see from the above graph that
it is a downward sloping graph. The value for 2018 was 18.63% and now in 2019-20 it has
fallen down to 6.04%. Therefore, we can say that the Net profit margin has worsened.
 Price Earning ratio =
Market price per
share/ EPS
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Market price per
10 10 10 10 10
share
Earnings per share 5.01 4.45 2.12 1.69 0.89
Price Earnings ratio
3.68 34.48 4.37 5.68 13.70
(Times)

Time series analysis: Price Earning Ratio is lower the better. The value for 2015-16 was
3.68 and now in 2019-20 it has risen up to 13.70. Therefore, we can say that the Price
Earning Ratio has worsened.

Price Earning
ratio = Market price
per share/ EPS
 2015- 2016- 2017- 2018- 2019-
Year
16 17 18 19 20
Market price
10 10 10 10 10
per share
Earnings per
5.01 4.45 2.12 1.69 0.89
share
Price
Earnings ratio 15.63 14.93 16.95 21.28 29.41
(Times)

Time series analysis: Price Earning Ratio is lower the better. We can see from the above graph
that it is an upward sloping graph. The value for 2015-16 was 15.63 and now in 2019-20 it has
risen up to 29.41. Therefore, we can say that the Price Earning Ratio has worsened.
 Average payment
period= accounts
payable/ Average
purchase per day
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Accounts payable 633072009 502067142 445160172 491211689 527995990
Average purchase
16826916.26 19435178.69 25711657.83 30720226.73 29970585.74
per day
Average payment
95 78 64 79 86
period(days)

Time series analysis: Shorter payment period is good for the Average Payment period The
value for 2015-16 was 95 and now in 2019-20 it has fallen up to 86. Therefore, we can say
that the Average Payment period has improved as the payment period has shortened.

Average payment
period= accounts
payable/ Average
purchase per day
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Accounts payable 633072009 502067142 445160172 491211689 527995990

Average purchase 16826916.26 19435178.69 25711657.83 30720226.73 29970585.74

per day
 Average payment
56 53 0 68 116
period(days)

Time series analysis: Shorter payment period is good for the Average Payment period The value
for 2015-16 was 56 and now in 2019-20 it has rised up to 116. Therefore, we can say that the
Average Payment period has worsened as the payment period has shortened.
 Earnings Per share=Net profit/Outstanding common
share
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Net Profit 744247825 661079097 315612768 251150155 132453273
Outstanding
148500000 148500000 148500000 148500000 148500000
common share
0.2 2.2 1.7 0.7
EPS
027 9 9 6 9

Time series analysis: Eps is higher the better. We can see from the above graph that it is a
downward sloping graph from 2018. The value for 2015-16 was 0.27, and now in 2018 it
has rised to 2.29, in 2020 it fallen and it was 0.73 therefore, we can say that the Eps has
worsened.
Earnings Per share=Net profit/Outstanding common
share
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Net Profit 744247825 661079097 315612768 251150155 132453273
Outstanding
148500000 148500000 148500000 148500000 148500000
common share

EPS
0.64 0.68 0.59 0.47 0.34
Time series analysis: Eps is higher the better. We can see from the above graph that it is a
downward sloping graph . The value for 2015-16 was 0.64, and in 2020 it fallen and it was 0.34
therefore, we can say that the Eps has worsened.
 Return on equity=net
profit/total cs equity
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Net Profit 744247825 661079097 315612768 251150155 132453273
Total common
stock 6037910972 6437578828 6488704674 6547997216 6295649572
Equity
Return on equity 15.16% 15.27% 12.74% 10.25% 4.42%

Time series analysis: Return on Equity is higher the better. We can see from the above
graph that it is a downward sloping graph. The value for 2015-16 was 15.16% and now in
2019-20 it has risen up to 4.42%, therefore we can say that the ROE has worsened.

Return on equity=net
profit/total cs equity
Year 2015-16 2016-17 2017-18 2018-19 2019-20
 Net Profit 744247825 661079097 315612768 251150155 132453273
Total common
stock 6037910972 6437578828 6488704674 6547997216 6295649572
Equity
Return on equity 5.36% 5.84% 7.30% 4.67% 2.96%

Time series analysis: Return on Equity is higher the better. We can see from the above graph that
it is a downward sloping graph. The value for 2015-16 was 5.36% and now in 2019-20 it has
risen up to 2.96%, therefore we can say that the ROE has worsened.
 Book value per
share=total CS
equity/ no. of CS
outstanding
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Total common stock
6037910972 6437578828 6488704678 6547997216 6295649572
Equity
No.of common stocks
148500000 148500000 148500000 148500000 148500000
Outstanding
Book value per 17.9 18.2 40.8
0 1.89
share(%) 3 5 3

Time series analysis: Book value per share is higher, the better. We can see from the above
graph that it is in 2016 the book value was 17.93 and it increased in 2020 and it was 40.83 .
so that we can say that book value per share improved.

Book value per

share=total CS
equity/ no. of CS
outstanding
Year 2015-16 2016-17 2017-18 2018-19 2019-20
 Total common stock
6037910972 6437578828 6488704678 6547997216 6295649572
Equity
No.of common stocks
148500000 148500000 148500000 148500000 148500000
Outstanding
Book value per
0 11 1.15
share(%) 131.77 11.61

Time series analysis: Book value per share is higher, the better. We can see from the above graph
that it is in 2016 the book value was 131.77 and it decreased in 2020 and it was 1.15 . so that we
can say that book value per share worsened.
 Market to book
ratio=mkt price per
share/book value per
share
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Market price per
10 10 10 10 10
share
Book value per share 40.66 43.35 43.69 44.09 42.39
Market to book ratio 0.56 0.55 6992.97 5.29 1.18

Time series analysis: The market to book ratio is higher the better. We can see from the
above graph that in 2016 it was 0.56 and 2020 it was 1.18. Compare to last year the ratio
fallen up. So we can say that it is worsened.

Market to
book ratio=mkt
price per share/book
 value per share
2015- 2016- 2017- 2018- 2019-
Year
16 17 18 19 20
Market price
10 10 10 10 10
per share
Book value
40.66 43.35 43.69 44.09 42.39
per share
Market to
0.08 0.86 0 0.91 6.67
book ratio

Time series analysis: The market to book ratio is higher the better. We can see from the above
graph that in 2016 it was 0.08 and in 2020 it was 6.67 so we can say that book value of fu wang
is improving.
 Times Interest earned= EBIT/Operating Income
Year 2015-16 2016-17 2017-18 2018-19 2019-20
EBIT 1196135443 1109776984 1001289845 1177413394 799581796
Operating Income 457411326 436454746 725338688 925204385 935740554
Times interest
0.45 0.60 0.76 0.06 0.42
earned (times)

Time series analysis : Times interest earned is higher the better. We can see from the above
graph that it is a upward sloping graph. The value for 2015-16 was 0.45, and now in 2018-
19 it has come down to 0.06. in 2020 it rise up to 0.42 Therefore, we can say that the Times
interest earned has improved.

Times Interest earned=

EBIT/Operating Income
Yea 2015- 2016- 2017- 2018- 2019
r 16 17 18 19 -20
 EBI 1196 1109 1001 1177 7995
T 135443 776984 289845 413394 81796
Ope
4574 4364 7253 9252 9357
rating
11326 54746 38688 04385 40554
Income
Tim
es interest
0.29 0.27 0.24 0.20 0.24
earned
(times)

Time series analysis : Times interest earned is higher the better. We can see from the above
graph that it is a upward sloping graph. The value for 2015-16 was 0.29, and now in 2018-19 it
has come down to 0.20. in 2020 it rise up to 0.24 Therefore, we can say that the Times interest
earned has improved.
 Average age of inventory= 365/Inventory turnover
Year 2015-16 2016-17 2017-18 2018-19 2019-20
Total days in a fiscal
365 365 365 365 365
year
Inventory turnover 9.22 7.99 10.37 9.78 7.04
Average age of
284 217.54 254.19 223.16 180.49
inventory (days)

Time series analysis : Avarage age of inventory is lower the better. We can see from the
above graph that it is a downward sloping graph. The value for 2015-16 was 284 and now
in 2019-20 it has come down to 180.49. Therefore, we can say that the average age of
inventory has worsened.

Average age of inventory= 365/Inventory

turnover
Year 2015- 2016- 2017- 2018- 2019-
 16 17 18 19 20
Total days in
365 365 365 365 365
a fiscal year
Inventory
9.22 7.99 10.37 9.78 7.04
turnover
Average age 871.0 1167.2 1318.4
823 740.85
of inventory (days) 9 4 5

Time series analysis : Avarage age of inventory is lower the better. We can see from the
above graph that it is a upward sloping graph. The value for 2015-16 was 823 and now in
2019-20 it has come down to 1318.45. Therefore, we can say that the average age of
inventory has improved.

Recommendation: As most of the ratios of Crown Cement PLC do not fulfill the criteria for
determining a good financial position of the company in the market. One should not consider in
investing in this company.
Conclusion: Finally, the project includes a financial analysis of one of Bangladesh’s biggest
cement- factory. The cement industry in Bangladesh is one of Bangladesh's most scientifically
developed parts. Overall, this report has been organized to show a sequence of data points
gathered throughout this industry and compared using Ratio Analysis. It reveals how a company
has performed in a specific time frame. After analyzing the Ratios and comparing, we have
interpreted and recommended too for a better future outcome.

Reference:
1. https://crowncement.com/
2. https://www.wsj.com/market-data/quotes/BD/XDHA/CROWNCEMNT/financials/annual/
income-statement

3. https://www.marketwatch.com/investing/stock/crowncemnt/financials?
countrycode=bd&fbclid=IwAR18E-4Vaj-
DgZ5MAtAYMGyPxD_Zbtc8SgLvwGQbHe3Tzvjz_9yutF6UiqQ