Performance Analysis of Square Textiles Limited

Abstract

Square Textiles Limited is one of the ventures of SQUARE. The first unit of Square Textiles Limited was established in 1997. It is a public limited company incorporated with registrar Joint Stock Companies and firms under Companies Act 1913. The shares of the company are listed in the Dhaka Stock Exchange Limited (DSE) and Chittagong Stock exchange Limited (CSE). The Company got ISO-9002 certificate in 2000. It manufactured 100% cotton yam. Its target market is the export oriented ready made garment industry. It owns two units of spinning mills and its activities and operations are related with manufacturing and marketing of Yam. In this report, I have tried to analyze the performance of the Company based on different financial techniques. I have analyzed different components of the financial statements. I have calculated growth in percentage of different components such as Sales, Net income, Retained earnings, Earning per share, shareholder Equity, Reinvestment etc. I have done ratio analysis, common size statement analysis and trend analysis to evaluate the firm's performance and growth prospect I have also found out the dividend policy of Square Textiles Limited to understand whether the firm paid all income as dividend or invest funds in good investment opportunities. I have collected data from the annual report and the website of square Textiles Limited. For analysis purpose, I have used the concept of various financial concepts and theories. Based on the analysis at the end, I have given my romments about firm's performance, different problems and I have given suggestions also. I have found out that although the firm had some problem with liquidity, asset turnover and production costs, the firm is performing moderately in an efficient manner. It has good growth prospect. The financial performance evaluation suggests that the firm is in good financial position and the financial condition is expected to improve in future.