FINANCIAL ANALYSIS OF THE INSURANCE INDUSTRIES IN BANGLADESH: PRAGATI INSURANCE COMPANY
FINANCIAL ANALYSIS OF THE INSURANCE INDUSTRIES IN BANGLADESH: PRAGATI INSURANCE COMPANY
Prepared for
Mr. Mohammad Abdul Momen Associate Professor
Prepared by
M. M. Shahnewaz Kabir Shawon Roll No.: ZR-04 BBA 15th batch
Institute of Business Administration
January 27, 2008
Letter of Transmittal
January 27, 2008
Mr. Md. Abdul Momen Associate Professor Institute of Business Administration University of Dhaka
Subject: Submission of the report of Financial Accounting II.
Dear Sir: Here is the report on Analysis of Financial Statements : Pragati Insurance Company as a partial requirement of our Financial Accounting II course. In this report I have analyzed the Balance Sheets and Income Statements of the most recent 5 years of this company.. While doing so, I have learned a lot about accounting and how these principles are used to analyze a companys financial condition. I have learned how to interpret the figures of annual report. This report as it has helped me to gain an understanding of how the insurance companies work. Thanks for your sincere co-operation throughout the duration of the course. Sincerely,
M. M. Shahnewaz Kabir Shawon Roll No. ZR-04 Section A BBA 15th Batch
Table of Content Letter of Transmittal Executive Summary 1. Introduction
Objective Scope Source and Methods of Data Collection Limitations Company Background 2. Investors: The principal source of capital 2.1Financial Statement Analysis: Investors Perspective
3. Comparative Analysis
3.1Vertical and Horizontal Analysis 3.2Trend Percentage
4. Ratio Analysis
4.1Liquidity Ratio 4.1.1Current Ratio 4.1.2Acid Test Ratio 4.2 Equity Ratio 4.2.1 Equity (stockholders equity) Ratio 4.2.2 Stockholders Equity to Debt Ratio 4.2.3 Total Asset Turnover 4.3 Profitability Test 4.3.1 Rate of Return on Operating Assets 4.3.2 Earning per Share on Common Stock 4.3.3 Net Income to Net Revenue 4.4 Market Test 4.4.1 Earning Yield on Common Stock 4.4.2 Price Earning Ratio 4.4.3 Dividend Yield on Common Stock 4.4.4 Payout Ratio of Common Stock
5. State of Insurance Industry 6. Conclusion 7. Bibliography