A RESEARCH REPORT ON LIQUIDITY AND FINANCIAL PERFORMANCE ANALYSIS: A COMPARATIVE STUDY ON SOME SELECTED CEMENT COMPANIES IN BANGLADESH

Abstract

Evaluation of company’s performance is important for all related parties: owners, company managers, customers and shareholders. The study tried to investigate the impact of liquidity, operational efficiency and asset utilization on the financial performance of these selected cement companies namely Lafarge Surma Ltd, Premier Cement Ltd and Crown Cement Ltd. A total of three cement companies are financially analyzed over the period, 2010 to 2014.The study finds that the company with higher total assets, liabilities and credits does not always ensure better profitability performance; liquidity, operational efficiency and asset utilization and all these have significant influence on financial performance of the commercial companies. The liquidity ratio indicates that firms within the cement industry have deficient current asset to meet liquid or current liability which is a sign of alarming liquidity position of the industry. This paper also tried to rank the three cement companies in Bangladesh on the basis of their financial characteristics revealed by different financial ratios. Financial ratios such as liquidity ratios and profitability ratios have used to analyze the liquidity position and financial performance of the three selected cement companies.