A performance analysis has been carried out on a food manufacturing company in this report, Bangas Limited (listed at Dhaka Stock Exchange). The analysis had been carried out over a five years time period from 2003 to 2008. The designated company given to us is part of the food and allied industry. It is a reputed company and had been part of the stock exchange for a long time. Hence analyzing such a company will help us to understand its financial position over a period of time selected for us.
Financial statements are the major elements required to understand a company’s condition, market position profitability state and how it efficiently its functioning. The comparison of data from the financial statements helps us to identify a lot of basic details about the company. The basic financial statements used for analyzing are; balance sheet, income statement, cash-flow statement and statement of retained earnings.
The balance sheet gives us details about the financial details about the company’s financial position at a given point of time. The income statement provides the financial summary of all the company’s operating results during a given period of time. The statement of retained earnings show us the reconciled net income earned during a given year. As well as the dividends paid during that financial year, with the change in retained earnings between the start and end of the year is found there. The statement of cash-flow provides the summary of the firm’s operating, investment and financing cash flows and reconciles them with changes in its cash and marketable securities during the period. Although in this report our work will be with the details from the balance sheet and income statement collected from the annual reports gathered of the five consecutive years.
Our main objective of the report is to analyze the performance of Bangas Ltd. over the five years to find out its market position, performance, liquidity position, profitability overtime. With the help of certain financial tools we will be able to find out about the relevant details needed to analyze the current position of the company as well as the position it had been in over the five years.
This financial analysis would help us also to recommend potential investors as well as the existing investors know about this company whether investing in this company had been profitable and the rate return they are receiving is how good it is compared to the other companies. For the potential investors the five years conditions in liquidity, profitability, market position, efficiency rates would indicate whether investing in this company would be a good idea or not.
All methods of data collection can supply quantitative data (numbers, statistics or financial) or qualitative data (usually words or text). Quantitative data may often be presented in tabular or graphical form. Our secondary data consists of annual report collected from Dhaka Stock Exchange. They have been included in the report can be found in the appendix. We have also accessed the Bangas Ltd. website to find information about the company and have taken relative and important information which were important part of our research to help the matters. Financial Tools:
Time series analysis had been used to evaluate performance of the company overtime. It is an analysis used to evaluate the performance of the company over a period of time using the financial ratios. As technical instruments to prepare and analyze the information of our project on financial analysis in Bangas Ltd the followings were used: ✓ Microsoft Word
✓ Microsoft Excel
Limitations of the Study
While carrying out our analysis, we have gone through several complications in order to collect accurate data. Still, we would like to mention the main parts which are as...