FINANCIAL STATEMENT ANALYSIS

Grameenphone (2012-2016)
Presentation By: Group 4
Abid Hasan
Syed Mahmudul Muddassir
Sanzana Rahman
Tanvir Rahman Rakib
Tanzilur Rahman
Tasnia Tasnim
 INTRODUCTION

▪ Started in 1989 with the issuance of license to a private operator-inter

alia cellular
▪ Rapidly emerging with the help of both government & private sectors
▪ Has attracted many foreign investors
▪ 141.679M subscribers as of October,2017 than 45.21M in 2009
 OVERVIEW OF GRAMEENPHONE
▪ Operation started on 26th March, 1997
▪ Parent company known as Telenor, located in Norway
▪ Leading service provider with 64.44M subscriber in 2017
▪ Shareholding structure- Telenor 55.80%, Grameen Telecom 34.20% & Public 10%
▪ Started trading at DSE & CSE from November,2009
▪ Covered 99% of Bangladesh’s population with 2G services & 90% 3G network
 LIQUIDITY RATIO
2012 2013 2014 2015 2016
Current ratio 0.22 0.22 0.24 0.18 0.16
Quick ratio 0.18 0.15 0.18 0.14 0.12
Current ratio Quick ratio
0.3 0.2

0.18 0.18 0.18

0.25
0.24 0.16
0.22 0.22 0.15
0.14 0.14
0.2
0.18 0.12 0.12
0.16
0.15 0.1

0.08
0.1
0.06

0.04
0.05
0.02

0 0
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
 ASSET MANAGEMENT RATIO
2012 2013 2014 2015 2016

Days sales outstanding 38.69 44 34.08 25.22 23.39

Total asset turnover 0.78 0.71 0.79 0.79 0.88
Fixed asset turnover 0.89 0.82 0.89 0.87 0.96
Total asset turnover Fixed asset turnover
Days sales outstanding
1.2
50

45 44 1
40
38.69
35 34.08 0.8
30

25 25.22
23.39
0.6
20

15 0.4
10

5 0.2
0
2012 2013 2014 2015 2016 0
2012 2013 2014 2015 2016
 DEBT MANAGEMENT RATIO

Debt Ratio Debt Equity Ratio

78.00% 4
76.97% 76.87%

75.99% 3.5 3.32 3.34

76.00% 3.17

3 2.88
74.27%
74.00%
2.5 2.32

72.00% 2

69.86% 1.5
70.00%

1
68.00%
0.5

66.00%
2012 2013 2014 2015 2016 0
2012 2013 2014 2015 2016
 PROFITABILITY RATIOS
Operating Profit Margin Net Profit Margin
37.00% 25.00%

36.50% 36.63%
20.00%

36.00% 36.19%
36%

35.50% 15.00%

35.29%
35.00%
10.00%

34.50%

34.36%
34.00% 5.00%

33.50%
0.00%
2012 2013 2014 2015 2016
33.00% percentage 19.00% 15.22% 19% 18.81% 19.61%
2012 2013 2014 2015 2016
 RETURN ON ASSET RETURN ON EQUITY
20.00% 80.00%

18.00%
70.00%

16.00%
60.00%
14.00%

50.00%
12.00%

10.00% 40.00%

8.00%
30.00%

6.00%
20.00%
4.00%

10.00%
2.00%

0.00% 0.00%
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
percentage 14.88% 10.87% 15% 14.88% 17.26% percentage 49.37% 47.21% 63% 64.35% 67.00%
OPERATING EXPENSE RATIO
65.64%

64.71%

64%
63.81%

63.36%

2012 2013 2014 2015 2016

percentage 63.36% 65.64% 64% 64.71% 63.81%
 Price/earnings ratio Market/book value ratio
30.00 18.00

16.00
15.58
25.00 24.67
14.00

20.00 12.00
11.43
11.14
18.45
17.32 17.03 10.00

15.00 8.71
8.00
13.49
6.66
6.00
10.00

4.00

5.00
2.00

0.00
0.00 2012 2013 2014 2015 2016
2012 2013 2014 2015 2016
 Earning per share (EPS)

Ratio Analysis : Market Value Ratio

Years 2012 2013 2014 2015 2016

Net income 17504769 14701574 19803283 19706891 22526355

No. of shares outstanding 1350300 1350300 1350300 1350300 1350300

EPS 12.96 10.89 14.67 14.59 16.68

18.00
16.68
16.00
14.67 14.59
14.00
12.96
12.00
10.89
10.00

8.00

6.00

4.00

2.00

0.00
2012 2013 2014 2015 2016
 Dividend per share (DPS)
Grameen Phone

Ratio Analysis : Market Value Ratio

Years 2012 2013 2014 2015 2016

DPS 14.00 14.00 16.00 14.00 17.50

Share price 174.8 200.9 361.9 252.7 284.1

Div. Yield 8.01% 6.97% 4.42% 5.54% 6.16%

9.00%

8.00% 8.01%

7.00% 6.97%

6.00% 6.16%
5.54%
5.00%
4.42%
4.00%

3.00%

2.00%

1.00%

0.00%
2012 2013 2014 2015 2016
 DIVIDEND YIELD
Grameen Phone
Ratio Analysis : Market Value Ratio
Years 2012 2013 2014 2015 2016
DPS 14.00 14.00 16.00 14.00 17.50

Share
price 174.8 200.9 361.9 252.7 284.1
Div.
Yield 8.01% 6.97% 4.42% 5.54% 6.16%

Div Yield
9.00%
8.00% 8.01%
Here Grameen phone’s Dividend yield is 8.01% in
7.00% 6.97%
6.00%
5.54%
6.16% 2012 which means the company’s payout of dividend
5.00%
4.42% is 8.01 taka per share. This rate dropped during the
4.00%
3.00%
2.00%
following years at the lowest point 4.42%.
1.00%
0.00%
2012 2013 2014 2015 2016
 BOOK VALUE/SHARE

Grameen Phone
Ratio Analysis : Market Value Ratio
Years 2012 2013 2014 2015 2016

Total stockholders'
equity 35458008 31140570 31364502 30625258 33572284
No. of shares
outstanding 1350300 1350300 1350300 1350300 1350300

Book value per share 26.26 23.06 23.23 22.68 24.86

Book value per share
27.00

26.00
26.26 Grameen phone’s book value is very sensitive to its
25.00 24.86 share price and it falls greatly during the year 2012 –
24.00
2013 and then slightly rise and abruptly rise in 2016 to
23.00 23.06 23.23
22.68
22.00
24.86 times. It means in 2016 GP’s book value is 24.86
21.00 times of its per share value. And it indicates the growth
20.00
2012 2013 2014 2015 2016
of the company.
 STATEMENT OF FINANCIAL POSITION
Total non-current assets Total current assts
16.00% 30.00%
14.00% 25.00%
12.00% 20.00%
10.00% 15.00%
8.00% 10.00%
6.00% 5.00%
4.00% 0.00%
-5.00% Y15-16 Y14-15 Y13-14 Y12-13
2.00%
-10.00%
0.00%
Y15-16 Y14-15 Y13-14 Y12-13 -15.00%
-2.00%
-20.00%
-4.00%
-25.00%

Total assets Total equity

20.00% 15.00%

15.00% 10.00%

5.00%
10.00%
0.00%
5.00% Y15-16 Y14-15 Y13-14 Y12-13
-5.00%
0.00% -10.00%
Y15-16 Y14-15 Y13-14 Y12-13
-5.00% -15.00%
STATEMENT OF FINANCIAL POSITION
Total non-current liabilities
60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
Y15-16 Y14-15 Y13-14 Y12-13
-10.00%

-20.00%

Total current liabilities

30.00%

20.00%

10.00%

0.00%
Y15-16 Y14-15 Y13-14 Y12-13
-10.00%

-20.00%

-30.00%
 STATEMENT OF COMPREHENSIVE INCOME
Revenue
12.00%

10.00%

8.00%

6.00%
Revenue
4.00%

2.00%

0.00%
1 2 3 4 The trend line shows that GP’s
income fluctuates a lot. It drastically
Total comprehensive income for
falls in the year 2014- 15 and rise
the year
40.00% abruptly in 2015-16. Its earning
30.00%
sensitivity is very high.
20.00%
Total comprehensive
10.00%
income for the year
0.00%
1 2 3 4
-10.00%

-20.00%
COMMON SIZE ANALYSIS
Balance Sheet & Income Statement
COMMON SIZE ANALYSIS
▪ Also known as vertical analysis
▪ A common size financial statement displays all items as percentages
of a common base figure

Base Figure
Income
Balance Sheet Statement
Total Equity &
Total Assets Net Sales/Revenue
Liabilities
COMMON SIZE BALANCE SHEET
(ASSETS)
Years 2012 2013 2014 2015 2016
Assets (% of Total Asset OR Total Equity & Liability)
Non-Current Assets
Property, plant and equipment, net 59.138 51.710 53.804 56.025 58.841
Intangible assets, net 28.959 35.301 34.264 30.990 29.259
Investment in associate - 0.422 0.532 0.537 -
Other non-current assets - - 0.024 3.444 3.515
Total non-current assets 88.097 87.433 88.624 90.994 91.616
Current Assets
Inventories 0.354 0.414 0.297 0.329 0.433
Trade and other receivables 8.396 8.734 7.437 5.541 5.720
Short-term investment 0.122 0.058 - - -
Cash and cash equivalents 3.030 3.361 3.643 3.136 2.231
Total current assets 11.903 12.567 11.376 9.006 8.384

Total Assets 100.000 100.000 100.000 100.000 100.000

COMMON SIZE BALANCE SHEET
(EQUITY & LIABILITIES)
Years 2012 2013 2014 2015 2016
Equity and Liabilities (% of Total Asset OR Total Equity & Liability)
Equity attributable to owners of the company
Share capital 11.476 9.986 10.333 10.195 10.347
Share premium 6.663 5.798 6.000 5.919 6.008
Retained earnings 10.163 7.233 7.656 6.996 9.358
Total Equity 30.135 23.029 24.002 23.122 25.726
Non-current liabilities
Finance lease obligation 4.266 3.928 4.039 3.931 3.903
Loans and borrowings - 8.627 18.369 14.318 10.388
Deferred tax liabilities 7.883 5.784 6.117 5.973 6.311
Total non-current liabilities 16.273 18.858 29.008 25.820 22.106
Current liabilities
Trade and other payables 30.293 29.854 15.903 17.044 19.435
Provisions - - 10.946 10.629 10.938
Loans and borrowings 6.965 5.694 3.174 7.532 6.207
Current tax payable 15.210 17.352 15.022 14.938 14.515
Total current liabilities 53.592 58.112 46.989 51.057 52.168

Total equity and liabilities 100.000 100.000 100.000 100.000 100.000

COMMON SIZE INCOME STATEMENT
2012 2013 2014 2015 2016
Years
(% of Net Sales OR Revenue)
Revenue 100.00 100.00 100.00 100.00 100.00
Operating expenses
Cost of material and traffic charges 6.64 8.03 9.34 10.21 9.28
Salaries and personnel cost 7.66 7.31 6.29 6.08 7.21
Operation and maintenance 3.86 5.20 4.94 4.22 3.27
Sales, marketing and commissions 14.53 14.95 12.86 12.33 10.88
Revenue sharing, spectrum charges and licence fees 8.24 8.50 7.87 7.88 7.75
Other operating (expenses)/income, net 5.92 5.78 5.56 5.85 7.14
Depreciation and amortisation 16.51 15.87 17.20 18.14 18.28
Total Operating expenses 63.36 65.64 64.06 64.71 63.81

Operating Profit 36.64 34.36 35.94 35.29 36.19

Total Other Gains/(losses) 3.79 0.36 1.99 1.95 2.95

Profit before tax 32.85 34.00 33.95 33.34 33.24

Income tax expense 13.80 18.78 14.66 14.52 13.63

Profit after tax 19.04 15.22 19.29 18.81 19.61
CONCLUSION