Financial performance evaluation & ratio analysis of Square Toiletries Ltd.

Abstract

Square Toiletries Ltd (STL) is one of the largest FMCG Company in Bangladesh. It is promoting more than 20 brands in different section like health and hygiene, oral care, hair care, beauty products, laundry products etc. As a local brand they gain consumer’s trust by their quality products. This report applies Financial Performance Evaluation of Square Toiletries Limited. It means how well the company performs. The main data is collected from the annual financial reports of the company from 2010 to 2014 which are provided by the employees of the company. Different financial ratios are evaluated such as liquidity ratios, asset management ratios, profitability ratios, debt management ratios and finally measure the best performance of the company. The graphical analysis and comparisons are applied for the measurement of all types of financial ratio analysis. Liquidity ratio is conveying the ability to repay short-term creditors and its total cash. It determines the performance of short term creditor of the company under the three categories such as current ratio, quick ratio and cash ratio. Asset management ratio is measured to know how the company is using and controlling its assets. Profitability ratio and debt coverage ratio are also measured to know overall market position of the company in the current market. I hope this report will be helpful for the management of the company who are responsible for taking decisions and formulating plans for future. It will also help the creditors who are the provider of loan capital of the company. They can decide whether they want to extend their loans or not in future. In the recommendation part I have tried my best to give some advice based on their problems that I found from the analysis. So this report will show a clear picture about STL’s performance in the last five years.