I declare that this report titled “Financial Analysis of Design Lab Ltd” submitted by me to Sonargaon University for Bachelor of Business Administration is an original work. I certify that Kazi Sourav ID :BBA under my supervision at Design Lab Ltd from 1st October 2021 to 20th December 2021 has prepared the internship paper “Financial Analysis of Design Lab Ltd” to fulfill BBA program at Sonargaon University. This report by “Design Lab Ltd” has been prepared to fulfill the requirements of the BBA degree.
Thanks to Abdullah Al Zayed (HR), Abu Huraira (ED) and all staff of Design Lab Ltd who kindly spared me much of their precious time by providing me support and information and helping to complete my report on Financial Analysis Of Design Lab Ltd. During the internship I was treated so cordially by Design Lab Ltd and staff that I feel the office as my second home. I have completed my internship at Design Lab Limited and I will analyze Design Lab (hereinafter referred to as "Design Lab Limited" or "the company or organization") using financial analysis methods.
In this chapter, general understanding of financial analysis and company introduction of Design lab Limited will be covered, especially more attention will be given to Design lab Limited. In the study period, students mainly gained theoretical knowledge, but the other day I was allowed to do a report in Design Lab. Finally, to make some recommendations and suitable conclusions regarding financial performance of Design Lab Limited.
The information was collected within the organization through the accounting department of Design Lab Limited.
Board of Directors
Management
Marketing Department
Design Team
Other Staff
Mission
Vision
Strategy
Motto
Quality & Quantity
Values
Design Lab Ltd Featured In
Design Lab Ltd Service
Popular Products
New Products
Child Bed Room
Important Assignment of Design Lab Ltd
Design Lab Ltd Honorable Client list
Location
Corporate Office Corporate Office Address
Chapter: 03
Theoretical Background
- Financial Ratio Analysis
- Financial Ratios
- Current Ratio
- Debt Ratio
- Total Asset Turnover Ratio
- Cost Income Ratio
- Net Profit Margin
- Operating Profit Margin
- Cash Ratio
- Return on Equity
- Return on Asset
- Cash to Asset Ratio
It calculates operational efficiency by measuring the percentage of total operating income that the company spends on its daily operations. Net profit margin is calculated as the percentage of each dollar of sales that remains after all costs including taxes have been subtracted. It is often used by companies to measure the success of the business in terms of profits from sales.
The cash ratio is a liquidity measure that demonstrates a company's ability to cover its short-term obligations with only cash and cash equivalents. The cash ratio is derived by adding a company's total reserves of cash and near-cash securities and dividing that amount by its total current liabilities. Return on assets calculates the overall effectiveness of management in generating profits from the available assets.
The cash asset ratio is the current value of marketable securities and cash divided by the company's current liabilities. Also known as the liquidity ratio, the liquidity ratio compares the amount of highly liquid assets (such as cash and marketable securities) to the amount of current liabilities.
Chapter: 04
Financial Performance analysis of Design Lab Limited
Ratios
Current Ratio
Debt Ratio
Cost Income Ratio
Total Asset Turnover Ratio
Operating Profit Margin
Net Profit Margin
Return on Asset
Return on Equity
Cash Ratio
Cash to Asset Ratio
Findings
In 2018, the current ratio was 1.00, and with the increasing trend, the value in 2019 was 1.02, indicating that the ratio is growing towards its capacity in 2020. Also, an increase in 2020 could indicate increased operational growth and likely increase the company's value. In general, a current ratio greater than 1 or 2:1 indicates that the company has sufficient financial resources to remain secure in paying off its short-term obligations. As we can see, Design Lab Limited's current ratio is on an upward trend. It may soon have a current ratio of 2, meaning the company may not have enough current assets on hand to meet its short-term obligations.
Design Lab Limited's debt ratio is volatile as it increased in 2018 to 2020 from 9.63 to 10.20 indicating that a large percentage of the company's financing assets are from debt. This means that the company has a high risk of going bankrupt as excessive debt can lead to a heavy debt repayment burden. The cost-to-income ratio has a downward trend which means that the income is growing at a higher rate than the cost, which may suggest that the company is focusing on cost minimization.
So we can say that the operational efficiency of Design Lab Limited is good. That means they can minimize their operating costs and their income becomes high day by day. This shows that Design Lab Limited is using its assets more efficiently to generate operating income.
The lowest value was 2.56 in 2018 and the highest value was 3.81 in 2020 which means the company is more efficient in generating sales in current profit. The lowest value was 0.38 in 2018, but it changes to 0.73 in 2019, which shows that its earning capacity has increased from 2018, but in 2020 it has again become lower than 2019. So it can be said that the percentage of their profits is not increasing. year after year regularly. So the management should try to increase the return on equity, however, the return has increased slightly from 2018 to 2019.
Since all the values in Design Lab Limited have been increasing and decreasing over the years, it shows that the company is not using productively.
Recommendations
Chapter: 05
Conclusion
Design Lab Limited sets new standards in the interior architecture field in the time of turbulent economic and dark pandemic conditions. The Design Lab Limited one of the leading interior design firms in our country that also plays an important role in games. The Design Lab Limited advances the field by bringing new ideas, conducting research and generating innovative, highly creative solutions that embody and also develop our clients' brands and make a big name for them and also for Bangladesh.
Design Lab Limited has over the years created a well-established position through its activities. To face the competition, Design Lab Limited should think to see new services and take different types of marketing strategies to get more customers in this competitive market. It can be said that Design Lab Limited is growing rapidly and its contribution in our field is also significant.
I hope that Design Lab Limited will expand its services by expanding its products and branch all over the country. I sincerely hope that with gradual and successful globalization Design Lab Limited will grow enough to be a global company.
