Chapter-1: Introduction
Chittagong Cement Factory one of the pioneer cement industries in the country was established in 1966 and was placed under control and management of Bangladesh Mineral Oil and Gas Corporation and subsequently of BMEDC. The factory was converted into and incorporated as a private limited company on 30 June 1979. Thereafter the company converted into a public limited company in February 1989 with the shareholding of 51% by Bangladesh Chemical Industries Corporation (BCIC), 34% by General Public and 15% by officers, staff and workers of the company. Under the privatization policy of the Government, BCIC sold and transferred its 51% shares to Local investors on 27 June 1993.
HCBL is subsidiary of HeidelbergCement
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To capture the uncertain future, a scenario analysis has been prepared. The growth rate of turnover, dividend under Gordon Model and retention method, sustainable growth rate of sales and the GDP growth rate were taken under consideration with an obvious choice of practicable growth rate. Plug variable was ascertained based on the debt: equity ratio to specify the projection like dividend policy and/or capital structure policy.
1.3 Methodology
Analysis Technique
Balance sheet analysis, cash flow analysis, ratio analysis of Heidelberg Cement Bangladesh Ltd.has been performed for a period of six years and pictorial representation such as bar charts, trend lines are used to present the results and interpret effectively. Furthermore, Microsoft Excel has been used for forecasting the future stock price under different growth models by the help of current and past data. To capture the uncertain future scenario analysis has been performed.
Nature and Sources of Data
The financial analysis of Heidelberg Cement Bangladesh Ltd. is performed by using secondary data only. Annual Reports from year 2003-2008 are collected from Dhaka Stock Exchange and also data from websites of Dhaka Stock Exchange (dsebd.com), Heidelberg Cement Bangladesh Ltd., newspapers are conferred with while analyzing the financial position and finding various news related to the firm. Secondary Data of recent 6 years are utilized in this study for
Secondary information is collected for this case. This case study limited only one techniques of financial analysis that is Ratio Analysis and also taken a single company. Thus the conclusion of the analysis carried out in a professional manner will be able to correctly describe the evaluation of the company and to substantiate the user’s decisions.
• Valuation of the company—application of sophisticated quantitative valuation models, IRR, net present value and forecast of future cash flows.
The decision making of management is very crucial and involves various analysis to be performed. There are various ratios and methods that can be useful for mitigating the risks and increasing the expected returns with investments. The financial forecast is a mix of the behaviour,
Must be 8 to 10 double-spaced pages in length (not including the title and reference
In this project, the research on Kirkland`s and Pier 1 Imports company has been done on their financial Ratio and of the company`s available current financial data. Kirkland`s is a marketing chain that sells home décor. Pier 1 Imports focus on traded home furnishings and décor mostly furniture, table top items, decorative accessories and seasonal décor. During this project I would be also compare the company’s financial analysis, cost of capital and the history reports.
The results of Haefren Baum’s common-size balance sheet from 1993-1995 states that the company has a short-term outlook on its assets because it ranges from 65% to 85%; compared to its 67% total long-term liability holdings. Haefren Baum’s account receivable payments from its customers have also slowed down due to the slower economy. The slow down also forced Haefren Baum to extend more favorable credit terms to its customers because they wanted to keep their sale volume up as well. This decision added to the slowing down of their income and to the extension of their account receivable days. Haefren Baum’s cash flow from operating activities became negative in 1994 due to the Germany’s economic downturn that occurred the year prior. However, it then made a 100% recover from its previous showing in 1995, while remaining negative. Time interest earned took a noticeable drop of 4.3 in 1993 to 0.96 in 1994. This indicated that the company was unable to meet the requirement of its fixed interest from its operating earnings. The DuPont analysis stated that net profit margin was the primary contributor of the firm’s return. From 1993-1995, the net profit margin fell from 101.35% to -5.73%, indicating that the company’s financial problems were
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This report provides an analysis and evaluation of the current and forecasted profitability, liquidity and financial stability of Alliance Concrete. Methods of analysis include forecasting the income statement and balance sheet to calculate financial ratios and profitability ratios. The key drivers for the income statement was management’s assumption about the sales environment surrounding Alliance Concrete. All calculations can be found on the attached document. Results of data analyzed show that Alliance Concrete is experiencing sales decline, profitability decline, but is relatively financially stable for the most part. The report finds the prospects of the company in its current
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The financial data of company does not tell us the entire position of an organisation and its performance over the year or certain period of time for comparative purposes. Therefore, the use of ratios
From the 2001 projections, the company`s sales revenues reached the 90.9 million mark in 2001 representing a 15 million rupees growth over the previous year. Despite this remarkable increase, there are a number of financial challenges that must be taken into account when evaluating the forecast. For example, based on the company`s total assets turnover which tells how efficient the company is using its assets to generate sales, Kota`s total assets turnover ratio is suboptimal. In 2000, the
is previously known as Perlis Plantations Berhad. Its corporate head office is found in Kuala