Cement Industry Financial Analysis
Table of Content
Acknowledgement 2 Executive Summary 3 Ratio and other analysis of the company 6 Liquidity Ratios 7 Activity Analysis 8 Debt Analysis 10 Profitability Analysis 11 Market Analysis 14 Benchmarking of your company with industry 15 Analysis of company’s strength and weakness 15 Strengths:- 16 Weaknesses:- 16 recommendations for company 17 Realized rate of return: 18 Beta of the D.G. Khan Cement 18 Expected Return of the D.G. Khan Cement 19 Standard Deviation 20 Required rate of return (CAPM) 20 Expected Return Vs. Required Return 21 Portfolio Planning 21 Dividend growth model 24 Corporate Valuation Model 24 Constant & non-constant growth of dividend 27 Actual prices Vs. Expected Prices 27 Weighted average cost of capital (WACC) 28 Trend of financial statements in last five years 30
Acknowledgement
First of all we all are thankful to one and only the Almighty Allah for always guiding us in the thick and thin and giving us strengths and courage to complete this project without Him nothing would have been possible .We also like to thank our parents who have shown their trust and always encouraged us to move ahead.
No one can work alone and without the guidance and help of others. But we are fortunate enough that we got assistance from our most respected teacher Miss Munazza Asad. We acknowledged that we could never complete this Project without her guidance in a most effective and efficient manner. She always offered helpful suggestions in improving the technical areas involved in the preparation of this report.
Last but not the least; we will never forget the sincere efforts of all group members who have take an active part to complete this research project. We pray for each member for their success at every stage of their lives and finally obliged to our Mam who has made an opportunity for us to experience
Acknowledgement 2 Executive Summary 3 Ratio and other analysis of the company 6 Liquidity Ratios 7 Activity Analysis 8 Debt Analysis 10 Profitability Analysis 11 Market Analysis 14 Benchmarking of your company with industry 15 Analysis of company’s strength and weakness 15 Strengths:- 16 Weaknesses:- 16 recommendations for company 17 Realized rate of return: 18 Beta of the D.G. Khan Cement 18 Expected Return of the D.G. Khan Cement 19 Standard Deviation 20 Required rate of return (CAPM) 20 Expected Return Vs. Required Return 21 Portfolio Planning 21 Dividend growth model 24 Corporate Valuation Model 24 Constant & non-constant growth of dividend 27 Actual prices Vs. Expected Prices 27 Weighted average cost of capital (WACC) 28 Trend of financial statements in last five years 30
Acknowledgement
First of all we all are thankful to one and only the Almighty Allah for always guiding us in the thick and thin and giving us strengths and courage to complete this project without Him nothing would have been possible .We also like to thank our parents who have shown their trust and always encouraged us to move ahead.
No one can work alone and without the guidance and help of others. But we are fortunate enough that we got assistance from our most respected teacher Miss Munazza Asad. We acknowledged that we could never complete this Project without her guidance in a most effective and efficient manner. She always offered helpful suggestions in improving the technical areas involved in the preparation of this report.
Last but not the least; we will never forget the sincere efforts of all group members who have take an active part to complete this research project. We pray for each member for their success at every stage of their lives and finally obliged to our Mam who has made an opportunity for us to experience