Name ID

Md. Rokonuzzaman 17015007

Md. Sadman Ahsan 17015035

Md. Haseen Mahtab 17015081

Md. Mehadi Hassan 17015029

Muhid
Md. Shakwat Hossen 17015097
Reyadh
Nusrat Jerin 17015004
 Acknowledgement
• Leading steel manufacturing company established in 1952.

• Partner of “Hateerjhil Development project”, “Shah Amanat Bridge”,

“Meghna Bridge “ and also “Metro rail” projects.

• Recognized as the best brand among the steel category in BD

• Only producer that EMF tested ductile rod in BD (EMF = Electromotive force)
testd in UK and passed 10 global standard
 Objective
• To analyze financial performance

• To understand Optimal Capital Structure

• To know the factors affecting capital structure decision

• To identify problems associated with performance and capital structure of

BSRM.
 Optimal Capital Structure

• Structure that maximizes the value of firm and minimizes the cost of
capital.

• Optimal Capital structure varies from firm to firm.

• Debt financing offers lowest cost of capital for its tax deductibility

• but on the other hand it raises the riskiness of the firm.

 Capital Structure
FY Weight of Weight of Cost of Cost of WACC
debt Equity debt equity

2018 0.03 0.97 29.74% 10%* 10.59%

2017 0.03 0.97 34.40% 10% 10.73%
2016 0.09 0.97 13.63% 15% 15.78%
 Gross profit margin:
• Sign of good management as it implies that the cost of production of the
firm is relatively low

Ratio 2018 2017 2016

Gross profit margin 12.30% 11.27% 8.55%

 Net profit margin:

• Return to the owner decreases in 2018

Ratio 2018 2017 2016

Net profit margin 3.91% 3.83% 4.39%

 Return on assets (ROA):
• It measures efficiency of the business that decreases in 2018.

Ratio 2018 2017 2016

Return on assets 1.30% 1.60% 3.05%

(ROA)
 Return on equity (ROE):
• The shareholders profit decreases in 2018
•
Ratio 2018 2017 2016

Return on equity 5.1% 6.24% 11.46%

(ROE)
 Debt to equity:
• Financial leverage calculated by dividing its total liabilities by stockholders'
equity.
• Proportion of equity and debt
Ratio 2018 2017 2016

Debt to equity 3.31 2.40 2.20

 Debt to total assets:
• A low ratio of debt to total assets is also always desirables.
• The firm is unable to ensure its total debt to total assets ratio in 2018
than other years.

Ratio 2018 2017 2016

Debt to total assets 0.88 0.74 0.68
 EPS

EPS is decreasing through the year

Year 2015 2016 2017 2018

EPS 2.42 1.17 1.25 1.18
 Findings
BSRM financed by equity the long term debt
Ratio of the current solvency is not much satisfactory
The major reason a great amount of debt.
Loan breeds the debt portion 3 to 5 times higher than assets.
That reduces shareholders equity