FIN 201: Introduction to Finance

Jahangirnagar University
Department/Institute: Institute of Business Administration
(IBA)
Second Year First Semester/Honors/Masters Final Examination-2020
Assignment for Final Examination
Course No.# FIN 201
Course Title# Introduction to Finance
Name of the Student: MD. Obaidur Raman Dip
Class Roll No. #
Examination Roll No. #
Registration No. #
Academic Session #
Total number of written pages in the assignment #10 (Excluding
Top Sheet)
Date of Submission: July 18, 2021
Instructions:
1. Don’t copy from other’s assignment. Copying from others will be
punished severely.
2. The student must submit the assignment online (Google classroom/
email/google form etc.) as the course-teacher prescribes.
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1939
192470
20193550199
2018-2019

3. You must use your name# your EXAM ID only for naming your
submitted file.
Financial Analysis on Fu-Wang
Foods Limited
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Table of Contents
Introduction......................................................................................................................................4
Company Overview.........................................................................................................................4
Financial Analysis...........................................................................................................................5
Analysis of Financial Performance..............................................................................................5
Comparative Ratios (Benchmarking)..........................................................................................8
Summary of Ratio Analysis (The DuPont Analysis)...................................................................9
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................10
Index..............................................................................................................................................11
References......................................................................................................................................12
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Introduction
Financial statements provide information about the position of a firm or company at a point in
time and its operations over some past periods. Moreover, the essence of financial statements lies
in the fact that they can help predict a company’s financial position in the future. It also measures
the number of expected dividends and earnings (Besley and Brigham, 2016). Financial
statements are enriched with numbers, and it becomes difficult for the managers to determine
which number gets higher priority from another one. In order to understand whether a particular
number is of much importance, the general approach in financial statement analysis is to
calculate the ratios that demonstrate key underlying constructs. For example, liquidity,
efficiency, profitability, Etc. (Ak et al., 2013).
This formal assessment is aimed to collect financial statements for a specific year from a public
limited manufacturing company listed under DSE or CSE. The report also suggests calculating
the financial ratios for a given specific year. Finally, a comparison will be made between the
calculated ratios and the industry average.
Company Overview
In this formal assessment, Fu-Wang Foods Ltd. has been selected as the desired company to do
the analysis. Fu-Wang Foods Ltd. is a public limited company incorporated with joint-stock
companies. The company is also publicly listed in Dhaka Stock Exchange Ltd and Chittagong
Stock Exchange Ltd. (Fuwangfoodsltd.com, 2021). People of Bangladesh are well aware of Fu-
Wang. Most people from their early childhood were introduced to the “Instant Noodles” from
Fu-Wang. Other products include bread, biscuits, toast biscuits, wafer bar, chocolate, energy
drink, Etc. Fu-Wang has been incorporated in business since 1997 and has an authorized capital
of 1,500 Million (In Taka). There are approximately 1600 employees in the company
(Fuwangfoodsltd.com, 2021).
Limitations of the Study
While preparing the assignment, strict regulations have been maintained to make it flawless. Yet,
there were few limitations including:
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