Financial performance analysis of Advanced Chemical Industries (ACI) Limited

Abstract

This report is prepared focusing on the financial performance and identifies the latest standpoint of ACI applying the most common financial analysis tool- Ratio Analysis. Averages of twenty five different ratios have been applied and compared with the ACI’s closest competitors like Beximco and Square Pharmaceuticals, Renata to show the different aspects of the company. A credit-strength test called Altman’s Z-Score model has also been run to find out the likelihood of bankruptcy of ACI Limited in the near future. There were existence of certain extent and boundaries at the time of consolidating the report. Company profile, sister concerns, joint ventures, mission, vision and values have been included in the organizational preview. The major section of the study is the analysis part where the financial statements of ACI over five years have been evaluated, compared and presented with graphs. The findings in brief is that ACI has sales revenue in a positive manner in contrast to the net profit. The usage of excessive debt securities and interest cost originated from it are fueling the unnecessary expenditures that are slowing down the net income of the company. Finally the report draws the conclusion showing the standpoint of the company at the end of five years based on the evaluation. Developing a balanced capital structure is one of the major recommendations proposed here.