Topics: Financial ratios, Financial ratio, Generally Accepted Accounting Principles Pages: 21 (5953 words) Published: April 26, 2013
Analysis of financial statement using ratio analysis of Power & Fuel Sector

Submitted To:
Ms. Rumana Ahmed
Assistant Professors
Department of Accounting & Information Systems
Faculty of Business Studies
Univeristy of Dhaka
Submitted By

A.H.A Elahi Rumi…….11221032
Md.Shahidur Rahman…11221049
Faysal Ahmed………….11120029
Md.Lear Hossain……….11222052
Shovan Ahmed…………11222012

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.

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| |
EPS| |

Chapter: 01
Finance is the life blood of business. It is rightly termed as the science of money. Finance is very essential for the smooth running of the business. According to Wheeler, “Finance is that business activity which is concerned with the organization and conversation of capital funds in meeting financial needs and overall objectives of a business enterprise.” Financial management is that managerial activity which is concerned with the planning and controlling of a firm financial reserve. Financial management as a academic discipline, has undergone fundamental changes as regards its scope and coverage. In the early years of its evolution it was treated synonymously with the raising of funds. In the current literature pertaining to this growing academic discipline, a broader scope...
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