Apex Tannery Limited

Ratio
2012
(Ratio
value)
2011
(Ratio
value)
Remarks ( Comparison between
2012 and 2011)

Current ratio= 2.5x 2.14x
Current Ratio represents the ability
to turn asset in current form at
minimum time. In 2012 current ratio
increased than 2011 for APEX; hich
is a positi!e si"n.
In!entory
mana"em
ent as
better at
2012 than
2011. Quick or acid test= 0.99x 0.98x
#his ratio re$ects the real form of
current asset in minimum time. In
2012 APEX ha!e better position than
2011 hich is a positi!e indication
and also shos its at 2011 ha!e
better current ratio and at 2012
APEX ha!e more e%ecti!e in!entory
mana"ement than 2011.
Asset Management
Inventory turnover= 3.53x 3.04x
#his ratio shos the e%ecti!e use of
in!entory and at 2012 APEX ha!e
more cost e%ecti!e in!entory
mana"ement than 2011.
Asset
&ana"em
ent as
better in
2012 than
2011
'thou"h
credit
sales
increase(.
Day sales outstandin
!D"#$=
28 days 21 days
#his ratio shos the sales of credit.
#he more days shos ne"ati!e
impact. APEX had more day sales
turno!er at 2012 than 2011 hich
shos the more credit days
'ne"ati!e impact(.
%ixed assets turnover= 3.89x 3.38x
E%ecti!e use of )*ed asset in
response to the re!enue is shoin"
this ratio. At 2012 APEX ha!e more
e%ecti!e use of )*ed asset than
2011
&otal assets turnover= 1.92x 1.55x
#his ratio presents the e%ecti!e use
of total asset. #he e%ecti!e total
asset use as better at 2012 than
2011.
Debt management
De't to total assets= 32.00( 41.00(
#his Ratio shos the repay capacity
in terms of liability. APEX had better
position than 2011.
It shos
the
stren"th
a"ainst
the
liability.
Profitability
)et *ro+it ,arin= 3.00( 3.84(
#his ratio shos the portion of pro)t
a"ainst the sale. APEX had better
sales pro)tability at 2011 than 2012.
In 2012
APEX ha!e
better
pro)tabilit
y aspect
than 2011.
-eturn on &otal
assets!-#.$=
8.90 /.00
Return form asset shos by this ratio
and APEX ha!e positi!e indication in
2012 than 2011.
-eturn on co00on
e1uity !-#2$=
0.14 1.05
#his ratio shos the income a"ainst
the e+uity and ,A#A ha!e better
position at 2012 than 2011.
BATA
Ratio
2012
(Ratio
value)
2011
(Ratio
value)
Remarks ( Comparison between
2012 and 2011)

Liquidity
Current ratio= 1.10x 1.4/x
Current Ratio represents the ability
to turn asset in current form at
minimum time. In 2012 current ratio
decreased than 2011 for ,A#A; hich
is a ne"ati!e si"n.
In!entory
mana"em
ent as
better at
2012 than
2011. Quick or acid test= 0.54x 0.51x
#his ratio re$ects the real form of
current asset in minimum time. In
2012 ,A#A ha!e better position than
2011 hich is a positi!e indication
and also shos its at 2011 ha!e
better current ratio and at 2012
,A#A ha!e more e%ecti!e in!entory
mana"ement than 2011.
Asset Management
Inventory turnover= 2.49x 2.44x
#his ratio shos the e%ecti!e use of
in!entory and at 2012 ,A#A ha!e
more cost e%ecti!e in!entory
mana"ement than 2011.
Asset
&ana"em
ent as
better in
2011 than
2012
'thou"h its
!ery
insi"ni)ca
nt(.
Day sales outstandin
!D"#$=
13 days 10 days
#his ratio shos the sales of credit.
#he more days shos ne"ati!e
impact. ,A#A had more day sales
turno!er at 2012 than 2011 hich
shos the more credit days.
%ixed assets turnover= 8.3/x 8./3x
E%ecti!e use of )*ed asset in
response to the re!enue is shoin"
this ratio. At 2011 ,A#A ha!e more
e%ecti!e use of )*ed asset than
2012
&otal assets turnover= 1.85x 1.83x
#his ratio presents the e%ecti!e use
of total asset. #he e%ecti!e total
asset use as better at 2011 than
2012.
Debt management
De't to total assets= 53.41( 55.98(
#his Ratio shos the repay capacity
in terms of liability. ,A#A had better
position than 2011.
It shos
the
stren"th
a"ainst
the
liability.
Profitability
)et *ro+it ,arin= 9.09( 8.33(
#his ratio shos the portion of pro)t
a"ainst the sale. ,A#A had better
sales pro)tability at 2012 than 2011.
in 2012
,A#A ha!e
better
pro)tabilit
y aspect
than 2011.
-eturn on &otal
assets!-#.$=
0.42 0.19
Return form asset shos by this ratio
and ,A#A ha!e positi!e indication in
2012 than 2011.
-eturn on co00on
e1uity !-#2$=
15.5/ 14.04
#his ratio shos the income a"ainst
the e+uity and ,A#A ha!e better
position at 2012 than 2011.
or ore!asted "ear BATA APEX
Ratio Ratio value Ratio value
Liquidity
Current ratio= 1.43x 2.49x
Quick or acid test= 0.53x 0.99x
Asset Management
Inventory turnover= 2.39x 3.4/x
Day sales outstandin
!D"#$=
14 days 23 days
%ixed assets turnover= 8.03x 10.94x
&otal assets turnover= 0.13x 1.92x
Debt management
De't to total assets= 53./0( 32.93(
Profitability
)et *ro+it ,arin= 8.08( 4.80(
-eturn on &otal assets!-#.$= 0.23( 3.30(
-eturn on co00on e1uity
!-#2$=
0.59( 0.43(
Comparison and re!ie on the in!estor-s point of !ie.
&ost of the ratio of APEX in positi!e aspect than ,A#A. #he ratio shos the better position
of APEX in terms of li+uidity; Asset &ana"ement and /ebt &ana"ement.
,A#A has more pro)tability than APEX. ,A#A consistently impro!e its pro)tability hich is a
positi!e si"n for in!estment.
,A#A ha!e better credit mana"ement as the /ay sales outstandin" are better than APEX.
Earnin"s per share of ,A#A ere ,/# 02.00 at 2011 and ,/# 01.12 at 2012 on the other
hand APEX had 22.20 at 2011 and 22.01 at 2012.
,y considerin" the EP3 and pro)tability an in!estor may prefers the share of ,A#A than
APEX.

Comparison and re!ie on the ,an4er-s point of !ie.
#hese ratios sho the position of these to companies and as per the ratio analysis ban4er
ha!e both the potential in!estment opportunity.
#he pro)tability of ,A#A insists the in!estment on the other hand the current ratios of
APEX insist ban4er to in!est at APEX.
,y considerin" the mana"ement and competency ,A#A ill be preferable but considerin"
the /ebt ratio APEX is preferable.
,y considerin" all factors ,A#A is preferable but as APEX ha!e more potential to increase
debt ban4er ill "o for sanction to loan in fa!or of APEX.
Comparison and re!ie on the &ana"ement-s point of !ie.
,A#A mana"ement needs to focus on the utili5ation on the asset.
,A#A need to impro!e its asset mana"ement in terms of comparison ith APEX.
APEX need to focus on pro)tability.
APEXE3 ha!e to impro!e its credit sales mana"ement to impro!e its cost mana"ement.
md. 4ayser hasan 2012626106027