Financial performance analysis of RAK Ceramics Bangladesh Limited

Abstract

Financial Performance Analysis is a technique of evaluating and studying a company's financial condition to determine its past, existing, and predicted future performance. Moreover, by thoroughly comprehend the company‘s financial status it helps to find the best way to improve it. RAK Ceramics (Bangladesh) Limited, a joint venture with UAE company, is the biggest and most notable tile and sterile product organization in Bangladesh. Therefore, it has established a superb operational benchmark throughout years of concentrated investments and the development of unique operational knowledge. This research paper is based on the financial performance analysis of RAK ceramics Bangladesh. The 2nd chapter of this research paper emphasizes an overview of the company including RAK‘s management, marketing practice, operational system, etc. The last part of 2nd chapter is about a short discussion on comparative advantage that indicates the strengths, weaknesses, opportunities, and threats of RAK Ceramic with some general recommendations. The 3rd chapter is based on financial performance analysis and for that examination, trend/horizontal analysis, vertical analysis, and ratio analysis, discount cash flow model has been applied. This study is centered on a 5- year time frame, from 2016 to 2020. The ratio analysis part has been divided into four partsliquidity and solvency, assets management, profitability, and investment valuation to have a clear view of the total performance of RAK. After examining the performance with three metrics, the overall financial performance of RAK Ceramics Bangladesh from 2016 to 2020 was judged to be less than satisfactory.