Financial Analysis of Bangladesh Oxygen

Financial Performance Analysis
Of
BOC Bangladesh Limited

CONTENTS:

  I. Introduction                         3
  II. Liquidity Ratio 4-5
III. Asset Management Ratio 6-8
  IV. Capital Structure Ratio 9-10
  V. Debt Management Ratio 11
  VI. Profitability Ratio 12-15
VII. Conclusion 16
VIII. Appendix 17

INTRODUCTION

The BOC group is a British company, which was acquired by the Linde Group, a world leading industrial gases & engineering group, in 2006. The competing companies include Chevron, National Oxygen, and Saeed Gas & Chemical, etc. The company specializes in industrial oxygen and nitrogen production, which is highly demanded by the pharmaceutical sector. BOC Bangladesh Limited is also producing packaged chemicals, medical equipments and medical gases particularly medical oxygen. BOC Bangladesh Ltd. shares are available in the Stock exchange at a face value of Tk/no 10/50 and at a price of Tk301.00.

Liquidity Ratio
|                           |                   |                   |                   |
|Liquidity Ratios           |2004               |2005               |2006               |
|                           |                   |                   |                   |
|Current Ratio               |1.32 times         |1.88 times         |2.65 times         |
|                           |                   |                   |                   |
|Quick Ratio                 |0.46 times         |0.99 times         |1.54 times         |

Interpretation:
Current Ratio:
          In the year 2004, BOC Bangladesh Limited's current assets were 1.32 times more than their current liabilities. It was 1.88 times in 2005 and in 2006, it was 2.65 times.   The current ratio went up from year 2004 to 2005 and it increased from 2005 to 2006. This is because the current assets have increased each year and the current liability has gone down from 2004 to 2005. Even though in 2006, the current... [continues]

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