Financial Performance Analysis of Aksid Corporation Limited

Abstract

Aksid Corporation limited is one of the largest construction chemical suppliers in Bangladesh. They started their journey in 2008. They are specialist in construction and chemical product in Bangladesh. The prime objective of this report is to analyze financial performance of Aksid Corporation. Performance analysis is based on ratio analysis, which is one of the widely used techniques of measuring financial performance. I prepared this report based on the company last 5 years’ financial data. Analysis is done on the basis of five dimensions: liquidity ratio, activity ratio, profitability ratio, solvency ratio. At the beginning, we have tried to analysis the liquidity dimension with the help of two particular ratios that shows us that the liquidity position of Aksid corporation is not stable. It is going down from the last five years. It makes the company more risker in terms of liquidity. Then we evaluate the activity ration with the help of 3 different ration which indicate the company properly utilize its assets for generating revenue. After that we evaluate the profitability ratio with the help of five different ratios. We found that the company overall profitability condition is stable. The business is doing well as evidenced by the net profit margin growth over time. It has become more adept at converting sales into real profit. After that we evaluate solvency ratios which indicate company has minimum amount of cash flows to cover the long term obligation. They are taking more loan to running his operation, which increase their debt portion over the equity. Lastly, we use DuPont analysis technique to find out company’s overall performance. We break down the ROE in 3-dimension: Net profit margin, Return on Asset and Leverage Ratio. The aggregate ROE indicates how well it converts equity investment into profits. Aksid corporation highest margin was recorded in 2019 but over the year it was declined but leverage is increased.