Ratio Analysis & Its Impact on Working Capital Management
Prepared For :
Assistant Professor (Finance)
Department of Business Administration
Stamford University Bangladesh
Rubaiya Rahim ID No: BBA 03912544 Khadiza Begum ID No: BBA 03912545
Batch No-39 (Major)
Course Code: FIN-436
Date of Submission: 28th July, 2011
STAMFORD UNIVERSITY BANGLADESH
This report is prepared as a requirement of the Bachelor of Business Administration (BBA) program. In our report we give a clear idea about Ratio Analysis & Its Impact on Working Capital Management. We have divided the whole report into three parts-Introductory parts, Main part & Findings. The first part of the report includes Companies Profile.
The second part of the report includes “Summary & Analysis of ratio of Singer Bangladesh Ltd & Aziz Pipes Ltd”
The third and last part of the report consists of “Findings from the perspective of WCM”
About Singer Bangladesh Limited
Singer Asia currently owns 75.0% of the shares of Singer Bangladesh. The Bangladesh Company has 926 employees. Singer has operated in the geographic area of Bangladesh since 1870.
Singer Bangladesh's revenue increased by 5.4% from prior year, to $72.9 million in 2011. Changes to local tax legislation during 2010 resulted in certain tax items no longer being included as part of revenue. Revenue would have increased by over 14.0% when it is calculated
Singer Bangladesh's strategy is to seek to further boost revenue and profit by: increasing the number of sales locations, particularly in rural areas; modernizing and improving existing outlets; improving and broadening the product offering; and expanding the range of financial services offered. The Bangladesh Company has approximately $5.7 million in cash on deposit plus an additional $29.5 million of unutilized, confirmed credit facilities available to help fund its expansion.Bangladesh operates 300 "Singer Plus" retail stores and 14 smaller "Singer" satellite shops. The Bangladesh Company also has approximately 1,017 independent dealers, most of whom sell the company's electric wire and cable products.
Singer Bangladesh is the largest retailer in Bangladesh of durables for the home with an approximate 20% overall market share and significant market shares across several product categories including an 18% market share in refrigerators, a 15% market share in televisions and a 6% market share in washing machines, as well as a 38% market share in consumer sewing machines. Sales of non-sewing products represent approximately 96% of Singer Bangladesh's total sales.
Products traditionally have been sold in Bangladesh using the Singer brand. During 2005, the Bangladesh company began to offer non-Singer brand home appliances, electronics and motorcycles, some of which brands, such as Haier, Whirlpool and Samsung, are being sold under exclusive or co-exclusive brand distribution arrangements.
At the end of 2011, Singer Bangladesh had 80,657 active installment accounts with a total installment accounts receivable, net of unearned finance charges and allowances, of $9.4 million. About 4.0% of Singer Bangladesh's installment accounts receivable is in arrears. Singer Bangladesh operates a call center and has introduced a customer loyalty program.
Singer Bangladesh has its own manufacturing facility that presently manufactures consumer and industrial electric wire and cable, and assembles motorcycles and televisions.
In July 2010, Singer Bangladesh sold its entire remaining 35.6% interest in its affiliate leasing company, ILFS, for a cash consideration of $31.9 million; the Bangladesh Company realized a profit of $24.5 million on the sale.
•To achieve and continue growth in sales
•To continuously develop human resources...