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WELCOME TO OUR PRESENTAT

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Capital Structure EvaluatBased on

Ceramic Industry ofBangladesh

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WE AREGROUP 9

Mozaffor Mohammod Nur-E-Doza

Atiqur Rahman 13-056

Sharmin Akter Keya 13-066

Abu Syed Md. Zakaria Hossain13-07

Nahidul Islam13-086

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PRESENTING:

Sharmin Akter Keya13-066

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CERAMIC INDUSTRY OF BANGLADE

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SOME FACTORS OF CERAMIC INDU

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COMPANY PROFILE

Company Name Year of

Incorporation

Year of Listing Market capitalization Authorized

Fu-Wang Ceramic 31st may, 1995 May 1998 2387.074 (mn) 500 million

Monno Ceramic 1982 1983 1219.86 (mn) 500.0 million

RAK Ceramic 26 November,

1998

2010 25080.312 (mn) 3000.0 millio

Shinpukur Ceramic 1997 2008 5846.27 (mn) 5000.0 millio

Standard Ceramic 1993 1996 303.328 (mn) 100 million

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PORTER FIVE FORCES MODEL

Bargaining powerof customers ishigh-cheapimported ceramic

Threat of substitutes

is high plastic,

melamine, Low cost

importedproducts

Threat of new

entrants is low-

Heavy capital

requirements

Rivalry among

existing firms-

price wars

Bargaining power of

supplier is high-

high profitability of

imported products

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PRESENTING:

Abu Syed Md. Zakaria Hos13-076

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TIME SERIES ANALYSIS OF DEBT RA

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TIME SERIES ANALYSIS OF DEBT TO ERATIO

0

1

2

3

4

5

2005 2006 2007 2008 2009 2010

Industry average

DER of standard

DER of spa

DER of RAK

DER of Monno

DER of fuwang

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TIME SERIES ANALYSIS OF INTERESCOVERAGE RATIO

-25-20

-15

-10

-5

0

5

10

15

2005 2006 2007 2008 2009 2010

Industry average

ICR of standard

ICR of spa

ICR of RAK

ICR of Monno

ICR of fuwang

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TIME SERIES ANALYSIS OF CASH FLOW COVRATIO

-10

-5

0

5

10

15

20

25

30

35

40

45

2005 2006 2007 2008 2009 2010

Industry average

CFR of standard

CFR of spa

CFR of RAK

CFRof Monno

CFR of fuwang

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ANALYSIS

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ANALYSIS

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ANALYSIS

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ANALYSIS

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PRESENTING

Atiqur Rahman 13

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PARAMETER OF INTEREST

Debt Ratio

Debt equity Ratio

Interest Coverage Ratio

Cash Flow CoverageRatio

Basic Earning Power Ra

Stability of Earnings

Ownership

Size of the company

Growth opportunities

Tax rate Asset tangibility

DOL

Free cash flow

Effective tax rate

INDICATORS

RATIO MEASUREMENT

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EFFECT OF BASIC EARNING POWER & DEGROPERATING LEVERAGE ON DEBT RATIO

No relationship between basic earning power and the deb

and higher the DOL, lower the debt ratio. In quartile 4, controlling the effect of DOL; higher the basi

power , lower the debt ratio

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EFFECT OF UNCERTAINTY OF OPERATING INCOME & EFFECCORPORATE TAX RATE ON DEBT RATIO

Positive relationship between Effective corporate tax rate and Debt Ratio

Higher the Effective corporate tax rate , higher the Debt Ratio. And Uncertaintyoperating income has no significant pattern on Debt Ratio.

EFFECT OF STABILITY OF SALES & SIZ

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EFFECT OF STABILITY OF SALES & SIZDEBT RATIO Higher the Size, higher the Debt Ratio.

Stability of Sales has no significant pattern on Debt Ratio.

In quartile 4, controlling the effect of size, higher the stability of sales higher thdebt ratio

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PRESENTING

Mozaffor Mohammod Nur-E-Doza

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EFFECT OF BASIC EARNING POWER & FCF HYPOTHESIS ON DEBT EQUITY R

Effect of Basic earning power & FCF Hypothesis on Debt e

Ratio In quartile 4, controlling the effect of basic earning power

the FCF Hypothesis, lower the debt equity ratio

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EFFECT OF TANGIBILITY & EFFECTIVE CORPORATE TAX RADEBT EQUITY RATIO

Tangibility has no significant impact on debt equity ratio & higher the Effectcorporate tax rate, higher the debt equity ratio

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Higher the Uncertainty of operating income, lower the deb

ratio & higher the Growth, lower the debt equity ratio. In quartile 2, controlling the effect of Uncertainty of opera

income, higher the Growth, lower the debt equity ratio.

Effect of Uncertainty of operating income& Growth on Debt equity

Ratio

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PRESENTING

Nahidul Islam 1

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Higher the Uncertainty of operating income, lower the deb

ratio & higher the Growth, lower the debt equity ratio. In quartile 2, controlling the effect of Growth, higher the

Uncertainty of operating income, higher the debt to equity

Effect of Uncertainty of operating income & Growth on Debt to

Equity Ratio

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EFFECT OF BASIC EARNING POWER & STABILITY OF SALESINTEREST COVERAGE RATIO

Negative relationship between Stability of Sales and Inter

Coverage Ratio that is higher the Stability of Sales ,lower Interest Coverage Ratio.

Basic earning power has no significant pattern on the InteCoverage Ratio

EFFECT OF BASIC EARNING POWER & EFFECTIVE CORPOR

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EFFECT OF BASIC EARNING POWER & EFFECTIVE CORPORRATE ON CF COVERAGE RATIO

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PIVOT TABLE

Pivot Table

http://cfinance.xls/http://cfinance.xls/

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Thank you all