It is my great pleasure to present my internship report on Financial Performance Analysis of Geeta Apparels Limited after completion of my internship. It was my best consideration to follow all the points of this Geeta Apparels Limited as far as I can. I am pleased to mention that the report titled “Financial Performance Analysis of Geeta Apparels Limited” was completed by Shorovi Akter Pakhi ID Department of Business Administration, Daffodil International University.
She was posted in the Geeta Apparels Limited, one of the glorious organizations. Abul Hossain Department of Business Administration for his valuable guideline which helps me to complete my report easily. Moreover, I also thank the Managing Director of Soiyod Nazmul Huda of Geeta Apparels Limited who helps me a lot in learning about organizational activities.
After analyzing the overall study, it can be revealed that ROE of Geeta Apparels Limited has a decreasing trend, on the other hand, its ROA has an increasing trend in every year. This means that Geeta Apparels Limited is able to use its assets more efficiently than its earnings. Moreover, Geeta Apparels Limited uses own fund to make new policies which simultaneously reduces the cost of total assets. This increases the operating expenses.
It is my belief that Geeta Apparels Limited will maintain a crucial role in the development of Bangladesh economy to build up in Digital Bangladesh project as before in the near future.
Introduction
Origin of the Study
Objectives of the Study
Scope of the Study
Methodology of the Study
Limitations of the Study
Chapter-2
Profile of the Organization
- Mission
- Vision
- Corporate Social Responsibility
- Flexibility and Efficiency
- Focused on Continuous Improvement
- Machines
- Work environment
- Quality
Geeta Apparels Limited is a new factory equipped with green technology in Tongi industrial area, Dhaka, Bangladesh. Geeta Apparels Ltd, a new factory equipped with green technology in Tongi industrial area, Dhaka, Bangladesh. The business objective of Geeta Apparels Limited is to invest its business globally and provide best value, on-time delivery, customer satisfaction, better service and relativity.
Our employees are the foundation of our business and enable us to fulfill everything we do as a supplier, customer and partner. Combining business, socially responsible and sustainable goals strengthens the reliability, stability and competitiveness of our business and the business of our customers. Corporate social responsibility and sustainability are not secondary in our business – they are embedded in everything we do.
We are very committed to growing our business with no negative environmental, economic and social impact. We deliver the optimal levels of service, quality and price through our unique customer partnership model and commitment to long-term synergies. The focus on continuous improvement enables us to deliver innovative product and process solutions across our value chain.
We see our commitment to continuous improvement as the means to improve our price competitiveness, product quality and the efficiency of our operations. Given that we are 100% domestically managed, the process choices we make are highly integrated, consistent and self-reinforcing. This enables us to constantly adapt, innovate and stay ahead in a rapidly changing industry and market.
Geeta Apparels Limited manufactures various types of products like Poplin, Canvas, Rif stop, Sheet, T/C pocketing, Peach Canvas, Peach Twill, Peach Spandex twill,. Geeta Apparels Limited has many modern and updated machines to manufacture the products which are given below. They have set standards in the national and international woven markets with the quality and performance of their cotton.
Chapter-3
Theoretical Aspects of
Financial Statement Analysis
- Financial Statements
- Need for Financial Statement Analysis
- Ratio Analysis
- Financial Performance Analysis
- Ratio Analysis
- Types of Comparison
- Significance of using Ratio
- Cautions
- Groups of Ratios
Financial statements provide data about the company's assets, liabilities, income and cash flows, and investor values. Numerous exchanges are reflected in more than one proclamation with the aim that the entire set is required to assess the company. Footnotes provide details of the accounting strategy, assumptions and judgments used by accounting to construct the information announced in the financial statements.
They are intended to enable clients to improve judgments of the amounts, timing and vulnerability of the judgments disclosed in the money-related explanations. Examining these messages helps both the organization and its speculators understand the organization's general money-related condition. In a perfect world, the accounting client could concentrate only on the main concerns of monetary advertising: net pay and investor value.
Long-lived resources are more often than not committed in the budget period in which the government decides. Generally, GAAP allows monetary occasions that do get accounting recognition to be observed in different courses by different money-related articulations. Financial reports often contain additional information that, despite being excluded from the announcements themselves, helps the money-related publishing clients translate the announcements or adjust business execution measures to make them more similar.
Information outside the financial reporting process can be used to add value to money-related information. 3-3.2 Profitability Ratio: It measures a company's revenue relative to its revenue and capital employed. 3-3.4 Debt Management Ratio: The debt management ratio is increased to increase the process of financial leverage and the ability of the company to avoid financial distress in the long run.
The method of interpreting and calculating financial information to analyze and monitor the Firm's financial performance is called ratio analysis. Cross Section Analysis: Comparison of different firm's financial ratios at the same point in time. Make sure that the dates of financial statements that are compared at the same time.
Chapter-4
Financial Statement Analysis of Geeta Apparels Limited
Ratio Analysis of Geeta Apparels Limited
Liquidity Ratio
Efficiency or Activity Ratio
From this chart we can say that Geeta Apparels Limited increased its accounts receivable turnover and accounts receivable collection day from 2014 to 2017 which is good for the company but decreased in 2018 and bad for Geeta Apparels Limited. Inventory turnover and collection period decreased and increased from 2014 to 2017, which is bad for the company. Accounts Payable increased from 2014 to 2016 but decreased in 2017 which is bad for Geeta Apparels Limited.
Profitability Ratio
Explanation: Profitability ratios are a class of financial metrics used to assess a company's ability to generate profits compared to its expenditures and other relevant costs incurred over a period of time. Return on assets (ROA) is a financial ratio that shows the percentage of profit a company earns relative to its total assets. The return on equity ratio, or ROE, is a profitability ratio that measures a company's ability to generate a profit from its shareholder's investment in the company.
Operating margin is a measurement of what part of a company's revenue remains after paying for variable costs of production such as wages, raw materials. Net operating margin the Geeta Apparels Limited in 2014 was 1% and 2015 was less than 1% which decreased but in the last three years was good and also increased. The operating profit margin is an increase in 2018 which was 7% last year and this is good for the company.
Financial Risk/Leverage Ratios
FINANCIAL RISK/LEVERAGE RATIOS
Balance Sheet of Geeta Apparels Limited
Geeta Apparels Limited Balance Sheet
Income Statement of Geeta Apparels Limited
Geeta Apparels Limited Income Statement
Trend Analysis Balance Sheet
Trend Analysis Liquidity and Liability
Geeta Apparels Limited Income statement
Chapter-5
Findings, Recommendations and
Conclusion
Findings
Ratio analysis is the most important tool and technique to measure profitability and liquidity for a firm or company. It measures the efficiency of our capital, whether owned or borrowed, how effectively it can be used without incurring any additional expenses. It also helps in maintaining the debt repayment capacity of an organization by providing them efficient asset management techniques through ratio analysis.
It also helps improve company performance by comparing within the company, as ratio analysis is the most widely used and reliable source of financial performance analysis. On the other hand, in 2018, the operating profit margin was 8%, which shows that the company's performance is not so good. Total assets have increased by more than 159% between 2014 and 2018, which is a good indicator for Geeta Apparels Limited.
Recommendations
Conclusion
Bibliography
Books
Reports
Websites
