A Study on Financial Performance, Growth & Sustainability of ACI Limited

Abstract

In this paper, the Financial performance and growth and sustainability of an organizing has been analyzed. After the introduction, the analysis has started from the second chapter. The Horizontal and Vertical analysis have been conducted to view the changes and get quick overview of the financial statements. Ratio analysis has been conducted to measure the various aspect of financial metrics and to assess the overall performance of the company. The main analysis of this project, Profitability, Sustainability and Growth, are presented in chapter 3,4 and 5. The financial statements have been reformulated to analyze further.

In the profitability analysis we have seen that ACI Limited’s return in net operating asset and return on common equity holders was reasonably good, but there was scope of improvement. The firm was not getting that much return from its operation and its high-level leverage was also reducing the return for the common equity holders.

In the analysis of growth, we have seen that ACI Limited is struggling with growth. They have very poor yearly growth rate and even negative growth in some years of the analysis. In terms of sustainability, the growth was mostly coming from its core operating items but there were also effect of one- time transitory income. For sustainability of an organization, contribution in growth should come mostly from core income items which will be repeated in the future. So, return from main business operations should be improved.

Overall, to improve the return for common shareholders, ACI Limited needs to generate more return on its operating assets.