PresentationOn

Public Finance

Submission Date : 04 January 2013

Submitted by

Name : MD . Billal Hussan

ID : 100306012

Semester : 10th

Submitted to,

Mr. Taher Jamil

Lecturer, Business Administration

Green University of Bangladesh

Topic

Financial analysis of Dhaka Electric Supply Company ( DESCO )

Table of Content

• SWOT Analysis of ( DESCO )

• Financial Ratio Analysis of ( DESCO )

SWOT Analysis

It is the most important government electric supply company in the country. So it has a huge strength to run its operation and earn profit.

Strength

Due to the technological shortcomings of the country it is really tough for DESCO to explore their full potential.

Weakness

The electric based community is daily increasing in the country. So DESCO has an outstanding opportunity to wide their business. Opportunity

The political condition of the country is really unstable. So this condition is a great threat for Dhaka Electric Supply Company ( DESCO ) Threat

Financial Ratio Analysis of (DESCO )

• Financial ratios are indicators of financial strength/weakness of an organization. Some of these are presented below to

• reflect DESCO’s financial position:

Financial Ratio Analysis of ( DESCO )

Financial Ratio

20111-12 2010-11 2009-10 2008-09 2007-08

Current Ratio

3.09 3.49 3.65 3.23 2.58

Quick Ratio 2.60 2.78 2.66 2.25 2.39

Debt /Equity Ratio

59:41 58:42 59:41 60:40 73:27

Accounts Receivable (Months Equivalent to Sales)

2.05 2.43 2.74 2.73 2.61

Operating Expenses to Operating Revenue

88.53 77.58 78.77 78.55 75.67

Financial Ratio Analysis of ( DESCO )

Financial Ratio

2011-12 2010-11 2009-10 2008-09 2007-08

Gross Margin / Sales Ratio

11.46 22.75 21.58 21.89 24.81

Operating Margin / Sales Ratio

6.06 16.28 14.19 16.86 19.44

Net Income / Sales Ratio

5.16 12.03 16.55 16.40 11.10

Return on Asset

8.86 16.01 20.31 21.89 14.00

Financial Ratio Analysis of ( DESCO )

Financial Ratio

2011-12 2010-11 2009-10 2008-09 2007-

Return on Equity

7.95 14.90 20.42 21.96 22.38

Net Asset Value Per Share

40.54 459.83 546.91 548.46 334.95

Net Operating Cash Flow Per Share

14.04 164.97 118.15 118.83 194.58

Earnings Per Share (Tk.)

3.22 5.68 6.87 6.18 3.85