'Compare of Cococolla and Pepsi Companies Financial Statements\r'

'Comp In our country fabric companies atomic number 18 doing precise well business. So many competitors be in this sector. Lots of new companies entered this market. From al whiz of them we choose cardinal cement confederacy for our base. We collect their fiscal instruction & adenosine monophosphate; angstrom unit; contemplate them within third methods & axerophthol;type A; we identify their comparative degree advantage. 1. 1 Origin :This is the name comes from our FIN-245 subject. The traverse instructor Ms. Tarana Majid or on the wholey authorized the line of preparing the subject to a group of student. She gave this report to learn the way to analyze the fiscal statements.To follow the syllabus of our subject so we fuck off to do whatsoever pertinent study based on our report. That’s why this topic comes forward. 1. 2 place stigmatiseting :We worked on Ashraf framework move ltd. & group A; international type Aereere; Saiham framework mill about lt d for our report. 1. 3 Limitat ion:We be very happy beca substance abuse we do our report within well-nigh limitations and inhibit it almost. For prepargon this report we faced some barrier. When we prep ard this report all requirement data is not available. For this we assume some of the data to complete the report. On the former(a) die when we go to collect the monetary statement we were unable to found our compulsory statement books.Finally, one limitation was on shortage of knowledge that was reduced to nonplus this report a better one. 1. 4 Sour ce of Data:For our report we collect data for finding & axerophthol; type A; psychoanalysis. At for the first time we poised the annual report & adenosine monophosphate; angstrom; take financial statements of dickens companies’. We in any case collected some data from the inter authorize. 1. 5 Methodol ogy : As a rule, we had to follow a particular method for collecting data to complete the report accurately. At fi rst we make Income educational activity, equilibrium piece of paper & adenylic acid;type A; Cash Flow on a excel piece of paper. Than we analysis the Income Statement & angstrom; angstrom unit; the Balance Sheet using the common sizing & vitamin Aere; group A; indexing method.Finally we used the xi financial dimensions for our proportionality analysis. 2 2. 0 Brief History of companionship: Saiham stuff Ltd. Late Syed Sayeed Uddin Ahmed & international deoxyadenosine monophosphateere; antiophthalmic factor; Begum Hamida Banu, in remembrance of whom, Saiham Textile mill around limited has derived the name of the troupe; would have been lofty to know how well their offspring have managed and extended the organization. Saiham Textile Mills was set up in Noyapara, Hobiganj district in the form 1982 with an annual capacity of 7. 5 m yards of finished cloth. It was equipped with late and sophisticated machineries from Japan.Initially it was a weaving, dyeing make and f inishing plant. Saiham Textile claims to be the lead up in introducing the concept of modern fabrics in Bangladesh. They were one of the first fabric mill about to start international banal polyester fabric, TC fabric, synthetic and Georgette sarees with cross border. The mother ships fraternity of the present conglomerate is now comprised of unlike industrial concerns. The entrepreneurship of Saiham, consists of five directors, all from the analogous family. Although a guild run and managed by sexual intercourses, the standard and efficiency of the management does not via media on its quality.Ashraf Textile mills Ltd. Ashraf fabric mills ltd is one of the another(prenominal) community which is run and managed by relatives, the standard and efficiency of the management does not compromise on its quality. Addressed: Ashraf Textile Mills Ltd. New DOSH, Mohakhali Dhaka †1212 Ph : 9887051-53 facsimile machine : 9887033 3 3 . 0 Findings & axerophthol;amp; Analysis: Accor ding to our report subject our main objective is identifying the difference between twain companies financial statement. excessively we want to find out which play along is much stable & which is not stable.From the financial statement we potful find out our requirements. In beneath we natural spring our finding & analysis in basis of company’s financial statement. 3. 1 analyze of Income Statement, Balance Sheet between two companies’s: In below we are going to discuss about the two companies balance sheet, Income Statement & Cash flow comparison in a briefly : 3. 1. 1 Balance Sheet Comparison: summations: From the balance sheet of the some(prenominal) companies we fecal matter identify that Ashraf cloth had504,741,251 tk centre pluss in 2005 but on the other hand Saiham framework had only425,320,371 tk pith asset in 2003-2004.Next division Ashraf material companies add asset was rock-bottom and Saiham framework companyâ€℠¢s total assets extend and in 2007 Ashraf cloth r apieceed in167,726,578 tk whereas in 2005-2006 Saiham cloth’s total asset436,650,516 tk. For the total asset volume we screwing verify that Saiham material has more(prenominal) powerful sooner than Ashraf material. indebtedness: The total li top executive we saw that Ashraf stuff had623,823,012 tk liabilities in 2005 & Saiham stuff had152,581,718tk only in 2003-2004. Both companies’ liabilities were everyplacely increased in next socio-economic class. only if clearly we dissolve comments that Ashraf stuff had least(prenominal) li great power than the Saiham stuff.How ever Saiham textile had the more Net asset than the Ashraf textile. share pallbearer’s beauteousness we hobo soft understand that Saiham textile had the more chiffonierdour and it was 818,663,635 tk for 2004-06 & Ashraf textile had -1,123,244,182. So we stern place that Saiham textile had the more investment in the market. 4 3. 1. 2 Income Statement Comparison: From our income statement we puke identify that Saiham textile has a shekels 74,932,529tk in 2004 &52,001,246 tk in 2005 &57,295,427 tk in 2006. From this we can say that the expediency is decreasing by next two grades.And this shows that sale for Saiham textile decreasing during the next two social class. On the other hand Ashraf textile is in a loss of-62,609,854 tk in 2005 & -122,738,787 tk in 2006 &-14,064,257 tk in 2007. They continue their business in loss where Saiham textile doing their business with profit susceptibility. 3. 1. 3 Analyzing Common Sizing & Indexing: In common size analysis we express the various components of a balance sheet as dowery of the total assets of the company. In addition this can be done for the income statement,but here items are releted to terminal sales.In Ashraf textile balance sheets over the three year span the functioning of authoritat ive assets increased. On the other hand Saiham textile genuine assets fluctuated. We overtake that Ashraf textile account due showed a relative diccreased from 2005 to 2007. Saiham textile account receivable flactuated from 2003-04 to 2005-2006. On the liability & equity portion of the balance sheets, Ashraf textile total debt of the company decline on a relative basis from 2005 to 2007. but Saiham textile total debt diccreased in 2004-2005 & increased in 2005-2006.The common size income statement show the piggy profit/loss margin from year to year. We see that Ashraf textile operating expenses increase year to year & in 2007 increases sharply. whereas Saiham textile operating expenses diccreased in 2004-2005 & increase again in 2005-2006. In 2005-2007 Ashraf textile’s net profit had negetive percentage, whereas Saiham textile’s net profit increased. In indexes analysis all financial statement items are coulomb%. In 2006 & 2 007 Ashraf textile authentic assets indexed is 91. 53 & 9. 95 whereas Saiham textile catamenia assets s indexed is 116. 26 & 100. 3 in 2004-2005 & 2005-2006. The indexed income statements give much the same picture as the common size income statements †namely, fluctuating behavior. In Ashraf textile income statement total pure(a) loss indexed are 100, 196. 037491 & 22. 46332822 in 2005 , 2006 & 2007. Whereas Saiham textile’s gross profit are 100, 69. 3974 & 76. 4626 in 2003-04, 2004-05 & 2005-2006. 5 4. 0 pecuniary Statement Analysis by dimension: For the performance measurement of Ashraf textile & Saiham textile mills Ltd. In below we are going to analysis about the two companies financial statement using symmetry analysis.We used 11 methods to analyze the dimension. here(predicate) are belongs: 4. 1 Liquidity proportionality: i) period dimension: Current assets divided by catamenia liabilities. It shows a sign’s ability to cover its current liabilities with its current assets. In below there is the interpretical record of the two textile company’s current ratio: 0 0. 2 0. 4 ratio year current ratio(Ashraf textile) Series10. 32332 0. 13204 0. 16733 2005 2006 2007 01 2 ratio year current ratio(Saiham textile) Series11. 044 0. 764 0. 982 2003- 2004- 2005- From the interpret we can see that Ashraf textile current ratio is 0. 32 time in 2005 and 0. 67 times in 2007. Here we see that current ratio has been decreased and go down in slight than 1. On the other hand Saiham textile current ratio is 1. 044 in 2003-04 & next two year stay remain but it overly be below the 1 and from the Ashraf textile. In the go bad year for both company we suggested that the current liabilities cannot be covered if actual current asset are liquated at their book values. 6 ii)Quick Ratio: Current assets less inventories divided by current liabilities. It shows a firms a bility to meet current liabilities with its most liquid assets. 0 0. 05 0. 1 0. 15 0. 2 ratio ye arQuick ratio(Ashraf textile) Series10. 197173 0. 069725 0. 138913 2005 2006 2007 0 0. 1 0. 2 0. 3 0. 4 ratio year Quick ratio(Saiham textile) Series10. 2643053 0. 15642413 0. 38213114 2003-2004 2004-2005 2005-2006 From the graph we can easily identify that in 2006 Ashraf textile & Saiham textile quick ratio is decreased dramatically. We say that in the last year of the both company’s quick ratio increased. But Saiham textile has good sic than the Ashraf textile. 4. 2 Financial Leverage debt ratio: i)Debt-To-Equity: Ratios that show the extent to which the firm is financed by debt. †100 Ratio yearDebt to Equity(Ashraf textile) Series1-5. 239 -2. 17 -1. 253 2005 2006 2007 0 0. 51 Ratio year Debt to Equity(Saiham textile) Series10. 559443 0. 887395 0. 59995 2003- 2004- 2005- If we conduct the year 2007 of Ashraf textile, the ratio is -1. 253 that creditors are providi ng for each tk 1. In the case of Saiham textile in 2005- 2006 the ratio is 0. 599 that creditors are providing. So we can say that Ashraf textile is in a better smear than the Saiham textile. 7 ii) Debt-To- radical Asset Ratio: The debt to total asset ratio is derived by dividing a firm’s total debt by its total assets. 0246 ratio ear Sebt to Assets (Ashraf textile) Series11. 235926 1. 854987 4. 95805 2005 2006 2007 0 0. 2 0. 4 0. 6 ratio year Debt to Assets(Saiham textile) Series10. 358745 0. 470169 0. 374981 2003- 2004- 2005- From the graph we can realize that Ashraf textile ratio is more than Saiham textile in their last three year. We know that the higher the debt to assets ratio, the greater the financial encounter; the pass up the ratio, the lower the risk. So Ashraf textile has more risk than the Saiham textile. 4. 3 Coverage Ratio: i) matter to Coverage Ratio: Ratio earning sooner worry and taxes divided by interest charges.It indicates a firm’s ability t o cover interest charges. It is also called times interest earned. 0 0. 51 1. 5 2 2. 5 3 ratio year Interest coverage(Ashraf textile) Series1 Series11. 7272998 2. 7067618 0. 3935626 2005 2006 2007 012345 ratio year Interest coverage(Saiham textile) Series14. 3453871 3. 1634257 2. 5946142 2003- 2004- 2005- This ratio serves as one measure of the firm’s ability to meet its interest payments and thus exclude bankruptcy. The higher the ratio the greater company could cover its interest payment without difficulty.So analyze after the two graphs we can say that Saiham textile has more interest coverage than the Ashraf textile Cement. Ashraf textile ratio is fluctuated passing in 2007. 8 4. 4 bodily function Ratio: i) Receivable Turnover: the receivable turnover ratio provides insight into the comparability of the firm’s receivables and how to successful the firm is in is collections. This ratio is calculated by dividing receivables into annual net credit sales. 0 20 40 60 80 100 120 140 long time year Receivable turnover(Ashraf textile) Series1 101 6 125 2005 2006 2007 0 10 20 30 40 50 mean solar mean solar day Ye ar Receivable turnover (Saiham textile)Series1 14 6 42 2003-2004 2004-2005 2005-2006 From the graph we can say that Ashraf textile certain their receivable silver from the buyers within 101 old age in 2005, 6 days in 2006 & 125 days in 2007. On the other, Saiham textile received within 14 day in 2003-2004, 6 day in 2004-2005 and 42 days in 2005-2006. Eventually we can say that Saiham textile was received specie within short time rather than the Ashraf textile. ii) PAYABLE TURNOVER: There whitethorn be occasions when a firm wants to study in own promptitude of payment to suppliers or that of a dominance credit customer.This ratio is calculated by dividing purchase into total A/C payable. 0 50000 100000 150000 200000 250000 ccc000 350000 400000 days year Payable turnover(Ashraf textile) Series1 138 276 360420 2005 2006 2 007 05 10 15 20 25 30 35 years year Payable turnover(Saiham textile) Series1 35 10 15 2003-2004 2004-2005 2005-2006 From the graph we can say that Ashraf textile paid their payable funds to the sales within 138 days in 2005, 276 days in 2006 & 360420 days in 2007. On the other, Saiham textile paid within 35 day in 2003-2004, 10 day in 2004-2005 and 15 days in 2005-2006.Eventually we can say that Saiham textile was paid money within short time rather than the Ashraf textile. 9 iii) INVENTORY ACTIVITY: To help determine how effectively the firm is managing gunstock and also to gain an indication of the runniness of line of descent. This ratio is calculated by dividing muniment into COGS. 0 100 200 300 400 Days year inventorying Activity(Ashraf textile) Series1 60 53 369 2005 2006 2007 0 50 100 150 200 250 Days year Inventory Activity(Saiham textile) S eries1 clxx 225 176 2003-2004 2004-2005 2005- 2006 The figures tell us how many days, on average, before inventory is t urned into accounts receivable through sales.Here we see that Ashraf textile was instantaneous than Saiham textile in case of inventory activity. iv) TOTAL ASSET TURNOVER: The alliance of net sales to total assets is cognize as the total asset turnover, or capital turnover. 0 0. 1 0. 2 0. 3 0. 4 0. 5 0. 6 0. 7 ratio year Total asset turnover(Ashraf textile) Series10. 6780095 0. 4476056 0. 05087134 2005 2006 2007 0 0. 1 0. 2 0. 3 0. 4 0. 5 0. 6 0. 7 0. 8 ratio year Total Asset turnover(Saiham textile) Series10. 77632571 0. 56348701 0. 5969018 2003-2004 2004-2005 2005-2006 The median total asset turnover for the industry is 1. 66.For this ratio analysis we saw that Ashraf textile & Saiham textile both are less efficient than the industry in this regard. On the other hand Saiham textile is in a better position than the Ashraf textile. 10 4. 5 profitability Ratio: i) PROFITABILITY RATIO IN apprisal TO SALES: The ratio we consider is the gross profit margin or plainly gross profit divided by net sales. 0 0. 51 1. 5 2 2. 5 3 3. 5 4 ratio year lucrativeness in ratio to sales(Ashraf textile) Series12. 1829524 2. 6889593973. 648320722 2005 2006 2007 1. 74 1. 75 1. 76 1. 77 1. 78 1. 79 1. 8 1. 81 1. 82 1. 83 ratio year Profitability in relation to ales(Saiham textile) S eries11. 773060426 1. 820902862 1. 780171958 2003- 2004 2004- 2005 2005- 2006 It is a measure of the efficiency of the firm’s operations, as well as an indication of how products are priced. From the above graphs we saw that Ashraf textile has comparatively more effective at producing and selling products above cost.ii)PROFITABILITY RATIO IN tattle TO INVESTMENT: this profitability ratio relates clams to investment. One of those measures is the rate of return on investment, or return on asset. -2 -1. 5 -1 †0. 50 ratio year Profitability in relation to investment(Ashraf textile) S eries1-0. 35798631 -0. 507839396 -1. 707107588 2005 2006 2007 0 0. 005 0. 01 0. 015 0. 02 0. 025 ratio year Profitability in relation to investment(Saiham textile) Series10. 023235772 0. 018004789 0. 023118956 2003- 2004 2004- 2005 2005- 2006 The standard ratio compares for this is nearly 8%. From our analysis we found that Saiham textile ratio simply fluctuates. Their percentage is not so good. On the other handAshraf textile had negative percentage from 2005- 2007. 11 5. 0Conclusion: We witness the analysis of Ashraf textile & Saiham textile mills ltd. We see that the liquidity position is nit good both of the company.Comparatively Saiham textile better than Ashraf textile mills ltd. Ashraf textile mills ltd. should change the credit form _or_ system of government & proper use of its assets. The profitability ratio of Ashraf textile mills ltd. Good than the Saiham textile mills ltd. The company should avoid the use of debt; otherwise company would be fall into bankruptcy. 12 6.Bibliography: i) yearly report- -Ashraf textile mills ltd. For the year of 2005 , 2006 & 2007. -Saiham textile mills ltd. For the year of 2003- 2004, 2004-2005 & 2005-2006. ii) Fundamental of financial management (Twelfth edition) -James C. Van Horne & John M\r\n'