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Financial Analysis of Mozaffar Hossain Spinning Mills: Submitted by

Mozaffar Hossain Spinning Mills is a cotton yarn manufacturing company that exports 100% of its products. Over the last 5 years, its revenue peaked at 1.147 billion Taka in 2017 but declined in 2018 to 982 million Taka. While its gross profits increased from 2014 to 2016, profit margins have decreased in recent years due to rising operating and administrative expenses outpacing revenue growth. The company also has high fixed assets and long-term liabilities relative to its revenues, indicating potential inefficiencies and financial risk for its level of operations.

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Ehsanul Azim
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113 views12 pages

Financial Analysis of Mozaffar Hossain Spinning Mills: Submitted by

Mozaffar Hossain Spinning Mills is a cotton yarn manufacturing company that exports 100% of its products. Over the last 5 years, its revenue peaked at 1.147 billion Taka in 2017 but declined in 2018 to 982 million Taka. While its gross profits increased from 2014 to 2016, profit margins have decreased in recent years due to rising operating and administrative expenses outpacing revenue growth. The company also has high fixed assets and long-term liabilities relative to its revenues, indicating potential inefficiencies and financial risk for its level of operations.

Uploaded by

Ehsanul Azim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Financial Analysis of Mozaffar

Hossain Spinning Mills


Submitted By
Ashraful Ambia
Ayub Khan
Ehsanul Azaim
About the Industry
• Company Name: Mozaffar Hossain Spinning Mills
• Business: Woven fabrics coton Yarn manufacturing
• Market: 100% Export
• Date of Incorporation: November 2005

• Listed at stock exchange: January 2014


• Authorized Share Capital : Taka 300 Core
• Paid Up share Capital : Taka 94.3 core
Share holder composition
Last 5 Years Financial Position
Turnover(Million Taka)
1400

1200 1,147.56 1,134.47


1,061.07
982.32
1000

800
674.57
600

400

200

0
2018 2017 2016 2015 2014
Last 5 Years Financial Position
Gross Profit (Core Taka)
30

27.8
25
24.5 25.1
24.1
20

15

11.87
10

0
2018 2017 2016 2015 2014
Last 5 Years Financial Position
Fixed Asset, Liablity and Equity
1800 120

1600
100
1400

1200 80
1027
1000
60
800 736.46 739.21 706.07
634.78
600 40

400
20
200

0 0
2018 2017 2016 2015 2014

Fixed Assets Shareholder’s Equity Long Term Liability


Ratio Analysis
Net Income Ratio and Revenue
1400 18%

15.5% 16%
1200 14.6%
13.5% 13.2% 14%
1000
12%

800 10%

600 7.2% 8%

6%
400
4%
200
2%
982.32 1134.47 1061.07 1147.56 674.57
0 0%
2014 2015 2016 2017 2018

Revenue Net Income Ratio


Ratio Analysis
Current Ration and Quick Ratio
5
4
3 3.43
2.84
2
2.16 2.3
1 1.71
0
2018 2017 2016 2015 2014
Current Ratio Quick Ratio
Liability and Equity
2016 2017 2018
Share holders
83.74% 84.68% 78.30%
Equity
Long terms
2.26% 2.35% 4.75%
liabilities
Current
13.99% 12.96% 16.95%
Liabilities
Vertical analysis
COGS and Gross Profit over the Revenue
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2016 2017 2018

Cost of Goods Sold Gross Profit


Vertical Analysis
Profit and Expense Analysis
160% 150%
140% 136%

120% 112%
100% 100% 100% 102%
100% 95%

80%
60%
41%
40%
20%
0%
2016 2017 2018

Gross Profit Operating Expenses Administrative Expenses


Marketing Expenses Profit from Operation
Summery
 Gross Profit Ration is not so much attractive
Company increases their operating expenses though sales
revenue is not good.
High long term investment increases the risk of the business at
low turnover
Lack of efficiency to control the COGS
End

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