Financial condition of a company can be measured by different tools. These different tools measure different financial aspect and reveal financial condition of a company from different aspect. In this report the annual report of “Alltex Industries Ltd” has been evaluated by using different mechanism to observe the financial position of this company.
“Alltex Industries Ltd” has included Balance sheet, Income Statement, Statement Of Cash Flow and Statement Of Retained Earnings in their report. We have used different tools such as ratio analysis, sensitivity measure, CAPM, cost of equity, cost of debt, DOL, DFL, DTL etc. The goal of “Alltex Industries Ltd” is to maximize shareholder’s wealth and to make good of the community. It is socially responsible and to make good of society it uses different device so that its waste can’t harm society.
The financial performance of “Alltex Industries Ltd” is not overall good. It’s not very much liquidated. Its profit margin is low. Its overall return on investment is not attractive. Moreover, investors are willing to pay less for “Alltex Industries Ltd” than for other textile manufacturer.
Its beta is 0.702 indicating that it’s not as risky as market. Its stock return is 5.65% which is not attractive. Its DFL indicates its EPS is quite sensitive to its change in EBIT.
“Alltex Industries Ltd” has used quite high amount of debt for which its interest expense becomes high and its sales has increased in this year by considerable amount.
“Alltex Industries Ltd” has included Balance sheet, Income Statement, Statement Of Cash Flow and Statement Of Retained Earnings in their report. We have used different tools such as ratio analysis, sensitivity measure, CAPM, cost of equity, cost of debt, DOL, DFL, DTL etc. The goal of “Alltex Industries Ltd” is to maximize shareholder’s wealth and to make good of the community. It is socially responsible and to make good of society it uses different device so that its waste can’t harm society.
The financial performance of “Alltex Industries Ltd” is not overall good. It’s not very much liquidated. Its profit margin is low. Its overall return on investment is not attractive. Moreover, investors are willing to pay less for “Alltex Industries Ltd” than for other textile manufacturer.
Its beta is 0.702 indicating that it’s not as risky as market. Its stock return is 5.65% which is not attractive. Its DFL indicates its EPS is quite sensitive to its change in EBIT.
“Alltex Industries Ltd” has used quite high amount of debt for which its interest expense becomes high and its sales has increased in this year by considerable amount.
The preparation of this report is a requirement of the course on “Financial Management”. Mahmood Osman Imam, Chairman of Finance Department at Faculty of Business Studies, University of Dhaka, who is also the course instructor of “Financial Management”, has assigned us a report regarding to our course of “Financial Management” which is the evaluation of financial performance of Alltex Industries Ltd.
A company’s current position and its status in the market is reflected by financial position of a company which can be understand by observing its financial statement. Financial statement of a company is stated in the annual report of a company observing which financial condition of a company can be known. Different tools can measure financial condition of a company. These different tools measure different financial aspect and reveal financial condition of a company from different aspect. Being a students of Finance Department I have learned how to evaluate a company’s financial statement. Here this report is based on the evaluation of Alltex Industries Ltd by using some tools. In this report certain answer has given by analyzing the report according to the requirement.
No comments:
Post a Comment