Financial Performance of Reckitt Benckiser

3532 Words Oct 19th, 2012 15 Pages
Financial Performance Analysis of
RECKITT BENCKISER
PREPARED BY:
Name:

ID:






1020547030
1020730520
1110857030
1030708530

Nazla Naim Subha
Farzana Mir
Tanzir Islam
MD. Shaifur Rahman

PREPARED FOR:
Riyashad Ahmed (RyA)
MBA in Finance
University of Wales Institute
Cardiff, UK.
BBA in Finance
St. Francis Xavier University
Nova Scotia, Canada

School of Business
North South University

Table of Content
Executive summary, 1
Introduction, 2
Financial Performance Analysis:
 Liquidity Ratio, 4
 Asset Management Ratio, 6
 Debt Management Ratio, 9
 Profitability Ratio, 10
 Stock Market Ratio, 13
 Du-Pont Equation, 16
 Modified Du-Pont Equation, 17

Conclusion and Recommendations, 18
…show more content…
In Bangladesh some strong branded products of its portfolio are in market including: DETTOL, HARPICK, LYSOL, VANISH, and VEET etc.

4

Financial Performance Analysis
 Liquidity Ratio
Current
Ratio
Quick
Ratio

2007
1.52 Times

2008
1.5 Times

2009
2010
2011
1.41 Times 1.15 Times 1.14 Times

1.22 Times 1.25 Times 0.82 Times 0.69 Times 0.63 Times

Current Ratio:
Interpretation: In 2011, the company’s current assets were 1.14 times of their current liabilities. It means that for one taka of current liabilities, the current assets are 1.14 taka is available to the company. The
Current Ratio is more or less stable. Relative change in current assets was greater than the relative change of current liabilities. So, the ratio has deteriorated. Current Ratio is declining over the last 5 years. (Times Series)

Current Ratio

1.6
1.4

1.52

1.5

1.2

1.41
1.15

1

1.14

2010

2011

0.8
0.6
0.4
0.2

0
2007

2008

2009

5

Quick Ratio:
Interpretation: The quick ratio indicates the liquid financial position of an enterprise. In 2011, the company’s current assets excluding inventory were 0.63 times of their current liabilities. The Quick Ratio is unsatisfactory.
Current Assets excluding inventory has gone up, at the same time, Current
Liabilities has gone up. So, the ratio has deteriorated. Quick Ratio is declining over the last 5 years. (Time Series)

Quick Ratio
1.4
1.2
1

1.22
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