Impact of financial & economic indicators on the performance of Infrastructure Development Company Limited (IDCOL)

Abstract

The report defines the impact of financial and economic indicators on the performance of IDCOL. The objective of the report includes measuring the company’s financial indicators, observing Bangladesh’s economic indicators, assessing company’s financial performance and assessing the relationship of financial & economic indicators with the performance of the company. Relevant data has been collected from company’s annual report, Bangladesh bank website, IMF website and other credible sources. Trend analysis of the financial, economic and performance indicators have been conducted in the project part. Financial indicators like NPL Ratio, Loan-loss Provision Ratio, Debt-Equity Ratio show an upward trend for the last 15 years. Other financial indicators like the cost-income ratio and capital adequacy ratio show a mixed trend. Economic indicators like GDP growth rate, inflation rate, trade-GDP ratio show a mixed trend over the last 15 years with some fluctuations. Growth of BDT exchange rate against US dollar shows an upward trend over the last 15 years. Financial performance indicators like ROA, ROI and ROE highlight mixed trends for the last 15 years with a combination of upward and downward trends. Multiple linear regressions have been conducted to observe the impact of financial & economic indicators on Return on Investment of IDCOL. From regression analysis, it is found that NPL Ratio, Debt-Equity Ratio, GDP Growth Rate and Trade-GDP ratio have significant impact on the ROI of the organization.