meghna cement trend
TRANSCRIPT
Trend Analysis
Ratio analysis indicates a company’s current financial position; however, this analysis does not tell us whether the company is in a better or a worse financial position than it was in previous year. To determine the direction in which the firm is headed, we must analyze the trends in ratios.
By examining the paths taken in the past, trend analysis provides information about whether the firm’s financial position is more likely to improve or deteriorate in the future.
A simple approach to trend analysis is to construct graphs containing the company’s past and present data.
Trend Analysis of Meghna Cement Mills Ltd. for the periods 2007-2011
Assets Part for Trend Analysis
ASSET
Asset represents the firm’s investments. Assets are subdivided into current and long-term or fixed assets to reflect the ease of liquidating each asset.
Non-Current Assets
Non-current (Also called Fixed assets) include land, buildings, equipment and technologies, and vehicles that are used in connection with the business.
Year 2007 2008 2009 2010 2011Property, plant and equipment
1,252,083,379
1,171,823,423
1,096,828,028
1,305,602,458
1,221,277,710
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Here, we can see an irregular trend.
Year 2007 2008 2009 2010 2011
Total Non-Current Assets 1,307,816,629
1,222,856,544
1,096,828,028
1,305,602,458
1,221,277,710
2
The trend analysis of total non-current asset shows an irregular trend.
Current AssetsCurrent assets are items that can be liquidated and thus converted into cash within one year. As depicted by the bar graph below, we can observe that the current assets of HSBC has grown quite steadily and continuously over the years.
Year 2007 2008 2009 2010 2011
Inventories 950,009,108
607,442,163
839,260,219
756,944,188
798,290,626
3
The trend analysis of inventories results an irregular trend.
Year 2007 2008 2009 2010 2011
Cash and bank balances 83,467,224
79,977,095
153,252,252
62,526,731
93,382,758
4
Here, we can find an irregular trend.
Year 2007 2008 2009 2010 2011
Advance, deposits and prepayments
290,731,537
698,546,609
893,689,327
1,052,598,449
1,200,376,960
5
The trend analysis of Advance, deposits and prepayments shows an upward trend.
Year 2007 2008 2009 2010 2011
Total Current Assets 1,564,372,223
1,693,743,225
2,172,916,224
2,305,163,660
2,886,387,943
6
The trend analysis of Total Current Assets presents an upward trend.
Year 2007 2008 2009 2010 2011
Total Assets 2,872,188,852
2,916,599,769
3,269,744,252
3,610,766,118
4,107,665,653
7
We see an upward trend in the trend analysis of Total Assets.
Liabilities Part for Trend Analysis
This includes all debts and obligations owed by the business to outside creditors or vendors that are payable within one year.
Non-Current Liabilities
Non-current or Long-term liabilities are liabilities with a future benefit over one year, such as notes payable that mature longer than one year. In accounting, the long-term liabilities are shown on the right wing of the balance-sheet representing the sources of funds, which are generally bounded in form of capital assets. Also ‘long-term liabilities’ are a way to show that you have to pay something off in a time period longer than one year.
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Year 2007 2008 2009 2010 2011
Long-term Debt 619,319,928
936,655,246
743,561,807
789,361,205
779,338,188
Here, we can find an irregular trend.
Year 2007 2008 2009 2010 2011
Total Non-Current Liabilities
833,152,269
1,157,073,249
964,903,100
1,023,934,047
1,013,312,325
9
The trend analysis of Total Non-current Liabilities presents an irregular trend.
Current Liabilities
Current liabilities are a company's debts or obligations that are to be repaid or performed within one year. Often referred to as short-term debt, short-term liabilities or current debt, they appear on the right side of the company's balance sheet. A short-term liability makes it easier to manage the financial affairs of a company, as it is a great indicator of the overall financial stability of the organization.
Year 2007 2008 2009 2010 2011
Short-term Bank Loan 1,107,116,886
809,477,080
1,271,266,296
1,256,183,509
1,827,443,072
10
In this analysis, we can identify an upward trend.
Year 2007 2008 2009 2010 2011
Advance Received Against Sales
98,564,591
53,667,768
42,755,939
86,249,673
28,439,198
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The ananlysis of Advance Received Against Sales presents us with an irregular trend.
Year 2007 2008 2009 2010 2011
Total Current Liabilities
1,419,807,625
1,184,666,380
1,678,078,121
1,915,455,122
2,418,739,807
12
In this analysis, we can identify an upward trend.
Year 2007 2008 2009 2010 2011
Total Liabilities 2,252,959,894
2,341,739,629
2,642,981,221
2,939,389,169
3,432,052,132
13
The trend analysis of Total Liabilities shows an upward trend.
Equities Part for Trend Analysis
Sometimes this is referred to as stockholders’ equity. Owners’ equity is made up of the initial investment in the business as well as any retained earnings that are reinvested in the business.
Year 2007 2008 2009 2010 2011
Retained Earnings 57,399,542
80,531,924
132,434,815
207,154,249
211,390,821
14
The trend analysis of Retained Earnings exhibits an upward trend.
Year 2007 2008 2009 2010 2011
Total Equities 619,228,958
574,860,140
626,763,031
671,376,949
675,613,521
15
The trend analysis of Total Equities exhibits an upward trend.
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Trend Percentage Analysis of Meghna Cement Mills Ltd. for the periods 2007-2011
Property, plant and equipment
Year 2007 2008 2009 2010 2011
(%) 100
94
88
88
88
Total Non-Current Assets
Year 2007 2008 2009 2010 2011
(%) 100
94
84
99.83
93
Inventories
Year 2007 2008 2009 2010 2011
(%) 100
64
88
80
84
Cash and bank balances
Year 2007 2008 2009 2010 2011
(%) 100
96
184
75
112
17
Advance, deposits and prepayments
Year 2007 2008 2009 2010 2011
(%) 100
240
307
362
413
Total Current Assets
Year 2007 2008 2009 2010 2011
(%) 100
108
139
147
185
Total Assets
Year 2007 2008 2009 2010 2011
(%) 100
102
114
126
143
Long-term Debt
Year 2007 2008 2009 2010 2011
(%) 100
151
120
127
126
18
Total Non-Current Liabilities
Year 2007 2008 2009 2010 2011
(%) 100
139
116
123
122
Short-term Bank Loan
Year 2007 2008 2009 2010 2011
(%) 100
73
115
113
165
Advance Received Against Sales
Year 2007 2008 2009 2010 2011
(%) 100
54
43
88
29
Total Current Liabilities
Year 2007 2008 2009 2010 2011
(%) 100
83
118
135
170
19
Total Liabilities
Year 2007 2008 2009 2010 2011
(%) 100
104
117
130
152
Retained Earnings
Year 2007 2008 2009 2010 2011
(%) 100
140
231
361
368
20