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Financial statement analysis of leading leasing industry in Bangladesh
- By Super Admin
- Published 7 September 2006
- Report, Assignment, Case Study and Term Paper
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Total Asset Turnover :
Total asset turnover indicates the efficiency with which the firm uses its assets to generate sales. The total asset turnover of IDLC indicates average efficiently of its assets have been used because the higher a firm’s total asset turnover the more efficiently its assets have been used.
The total asset turnover of United Leasing Company is efficient. Because it indicates the ULC has been efficiently using its assets.
1997 1998
IDLC
Revenue (Rental) 760,225,167 801,268,786
Total Assets 2,050,904,961 2,075,899,918
Total assets turnover 0.37 times 0.39 times
ULC
Revenue (Rental) 509,314,689 672,263,098
Total assets 1,324,002,652 1,563,348,607
Total assets turnover 0.38 times 0.43 times
In compared with the IDLC the total asset turnover of ULC is much better because the higher a firm’s total asset turnover the more efficiently its assets have been used.
Lease Operation:
1996 1997 1998
IDLC
Lease contract 900,700,000 947,000,000 927,100,000
Growth (%) 5.1 (2.1)
ULC
Lease contract 591,000,000 708,000,000 880,000,000
Growth (%) 20 24
The growth of IDLC was not satisfactory only 5.1% in 1997 and (2.1%) in 1998. In 1998 the growth was negative i.e. lease contract growth has decreased.
On the other hand, ULC lease contract growth was satisfactory in the year of 1997 & 1998. The lease contract growth of 1998 has increased than 1997.
Per above calculation, ULC”s lease contract growth 292% & 1243% more than IDLC for the year 1997 & 1998 respectively.
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Financial statement analysis of leading leasing industry in Bangladesh