Analysis of financial statement using ratio analysis of Power & Fuel Sector
Ms. Rumana Ahmed
Department of Accounting & Information Systems
Faculty of Business Studies
Univeristy of Dhaka
A.H.A Elahi Rumi…….11221032
Program: MBA (Evening)
Date of submission: February 5, 2013
The submission of this assignment on “Analysis of financial statement using ratio analysis of power & fuel sector” is a very happy Occasion for us. The successes of this assignment depend on the contribution of number of people especially those who have shared their thoughtful guidance and suggestions to improve this report.
This assignment has created a great deal of interest in us. We must thank a few people who help and encouraged us to grow our interest. First of all, we would like to thank our honorable course teacher “Ms. Rumana Ahmed “for her proper guidance and care. And, we would like to give a special thanks to the Almighty Allah for given us such patience and power for completing this assignment smoothly.
The power & fuel sector in Bangladesh plays a vital role in the socio-economic development of Bangladesh. But the net profit of this sector has increased for the last few years. This study is designed to review the financial performance of this sector, to test its strengths and weaknesses. The financial performance of this sector is measured in terms of Ratio (Profitability, Liquidity, Solvency and Activity ratio) Analysis and in terms of Testing Financial Soundness by using Multivariate Discriminate Analysis (MDA) as developed by Prof. Altman. For the source of data the author mainly relied on Annual Reports and official records as well as primary data collected by interview. It was observed from the study of the financial statement of the power & fuel sector that the profit earning capacity, liquidity position, financial position and the performance of the most of the power & fuel sector are not in sound position and it was also observed that the most of the power & fuel sector has a lower level position of bankruptcy. The reasons behind this position of the sectors are inefficiency of financial management, absence of realistic goals, strict government regulation. The financial performance should be improved immediately. Therefore the appropriate authority should take measures for the removal of above problems.
Key Words: Financial Performance, Ratio Analysis, Power & Fuel sector.
TABLE OF CONTENTS
PARTICULARS| PAGE NO.|
RATIO ANALYSIS| |
CLASSIFICATION OF RATIOS| |
STATEMENT OF PROBLEM| |
DATA COLLECTION| |
Theoretical discussion of Financial Ratio| |
Liquidity Ratio| |
Current Ratio| |
Working capital turnover ratio| |
financial leverage ratio| |
Proprietary Ratio| |
Cash coverage ratio| |
Findings and Discussions| |
Liquidity ratios| |
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