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Welcome to our Presentation On Cross sectional analysis

Welcome to our Presentation On Cross sectional analysis. Bextex Ltd and Prime Textile Ltd. Company overview of Beximco Textile. Vision Use “Innovation” & “Speed” as prime drivers, rather than cotton & cheap labor. Mission

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Welcome to our Presentation On Cross sectional analysis

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  1. Welcome to our Presentation On Cross sectional analysis Bextex Ltd and Prime Textile Ltd.

  2. Company overview of Beximco Textile. Vision Use “Innovation” & “Speed” as prime drivers, rather than cotton & cheap labor. Mission BEXTEX Ltd. is a full service vendor with strong vertically integrated production facilities as well as creative & analytical capabilities which clearly set us apart from most other South Asian vendors.

  3. Cross sectional analysis Between Prime textile & Bextex Ltd.

  4. Liquidity Ratio

  5. Current Ratio

  6. Quick Ratio

  7. Activity Ratio

  8. Inventory Turnover

  9. Average collection period

  10. Total Asset turnover

  11. Debt Ratio

  12. Debt ratio

  13. Prime Textile Bextex 18% 44% debt capital debt capital equity capital equity capital 56% 82% Debt to Equity Ratio

  14. Time Interest Earned Ratio

  15. Profitability Ratio

  16. Gross profit margin

  17. Operating profit margin

  18. Net profit margin

  19. Earnings Per Share

  20. Return on Equity

  21. Return on Total Assets (ROA)

  22. Findings • The debt capital of Prime Textile possesses higher risk. • The higher interest payment also affects the return on total assets of Bextex. • Earnings per share of Bextex (3.23) is less than the Prime Textile 21.89 because their net profit hugely decline from operating profit because of higher interest payment.

  23. Recommendations • The Prime Textile should increase their debt capital slightly more than 50% in order to reduce the chance of hostile takeover from another company. • The debt capital of Bextex should be slightly declined to reduce the financial distress cost. • The debt capital should be declined to reduce the interest payment that adversely affect in profitability ratio of Bextex.

  24. Thank You All

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