Performance Analysis of United Power Generation & Distribution Company (UPGD)

Abstract

This report provides a comprehensive performance analysis of UPGD, beside it is associated with comprehensive analysis and structural activities. UPGD has maintained its trend of a healthy net income Margin of around 70% that cascaded into resultant profits of BDT 4,596.36 million that is 100% growth over last year. Given the inherent business challenges, this is often applauding able performance by UPGDCL. During this report I analyzed the comprehensive performance of UPGD by doing both qualitative and quantitative manner.

In the analysis and findings part I did both qualitative and quantitative analysis of UPGD. For the qualitative part I did the external analysis of UPGD. For that I did SWOT analysis of the company. By that analysis I explained the strength, weakness, opportunities and threats as well. By the analysis I could figure out the quality of the performance of UPGD.

In the quantitative part first of all I did the ratio analysis for the last 4 years so that I can figure out the financial performance of the company. In ratio analysis part I covered liquidity ratio, profitability ratio, leverage ratio and efficiency ratio. In the later part I also did the aggregate ROE model to focus on the ROE value.

Liquidity ratio is mainly focused on the liquidity position of the company. For this I worked with the current asset and current liability and cash & cash equivalent amount of the company. The four ratios have a positive result over the 4 years of the calculation. Profitability Ratio is focused with the gross profit and net income of the company. By working with the last 4 years financial data I found that the profitability position of the company was stable last 4 years. Leverage ratio is calculated to learn the leverage position. Now UPGD is the debt free company. So the debt amount is zero in amount for this reason the ratio was also decreased. When it had debt, at that time they had enough fund to meet up all the obligations. Growth Ratios were calculated for dividend per share and earnings per share. Growth refers to quantitative relation determines whether or not a specific security is reasonable or valuable compared to an exact live such as profits or enterprise price. In growth ratio there is a upward movement in last 4 years.

All the components of an ROE model are calculated for UPGD over the 4 years. By calculating this we can figure out the overall financial performance of UPGD. Different form of performance measures ROE is the perfect one. My report helps to calculate the real ROE earned by UPGD. So the real performance evaluation of both qualitative and quantitative manner of UPGD can be earned by this report. The aggregate ROE model has 3 parts in my calculation. The first part was asset utilization ratio then the 2nd portion is expense ratio and then the final part is to calculate ROE by equity multiplier.