Internship Report

on
Financial Statement Analysis of
Share Trip Limited.

Submitted To:
Controller of Examinations
National University
Gazipur-1704.

Supervised By:
Md. Sanowar Hossain Atiq
Assistant Professor
Department of Business Administration
Daffodil Institute of IT (DIIT)

Submitted by:
Sayed Md. Ashikur Rahman
Registration No: 20601000331
Roll No: 2120475
Session: 2020-2021
Major in Finance & Banking
MBA Program
Daffodil Institute of IT (DIIT)

Date of Submission: 15th October, 2024

 LETTER OF TRANSMITTAL

15th October, 2024

Controller of Examination
National University
Gazipur-1704, Bangladesh.

Subject: Submission of internship report.

Dear Sir,
This is my pleasure to present my Internship Report entitled- “Financial Statement
Analysis of ShareTrip Limited”
I have conducted my internship program in Ahmed Yusuf & Co., and effect from the
01 April 2024 to 30 June 2024. I have invested my every effort to financial functions
performed by AYC & STL.
I believe that the knowledge and experience I gathered during the internship period,
will be helpful in my future professional life. I will be grateful to you if you kindly
accept this report.

Sincerely Yours,

……………………………….
Sayed Md. Ashikur Rahman
Roll No: 2120475
Registration No: 20601000331
Session: 2020-2021
Program: MBA (Major in Finance & Banking)
Daffodil Institute of IT

i
 Supervisor's Certificate

This is to clarify to that Sayed Md. Ashikur Rahman Islam, Student of Masters
of Business Administration (MBA) Major in Finance of Daffodil Institute of IT
(DIIT) has completed this internship paper on Financial Statement Analysis of
Ahmed Yusuf & Co. he/her completed this project satisfactorily under my
supervision.

She has done her job according to my supervision and guidance. He has tried her best
to do this successfully. I think his study will help him in future to up build his career.

I wish her every success in life.

…………………………………….
Md. Sanowar Hossain Atiq
Assistant Professor
Department of Business Administration
Daffodil Institute of IT (DIIT)

ii
 Student’s Declaration

I do thereby solemnly declare that the work presented in this Internship Report has
been carried out by me and has not been previously submitted to any other University
or Organization.
The work I have presented does not branch any existing copyright and no portion of
this Report is copied from any work done earlier from a degree or otherwise.
I further undertake to indemnify the department against any loss or damage arising
from branch of the foregoing obligations.

……………………………………………………………
Sayed Md. Ashikur Rahman
Roll No: 2120475
Registration No: 20601000331
Session:2020-2021
Program: MBA (Major in Finance & Banking)
Daffodil Institute of IT

iii
 ACKNOWLEDGEMENT

A detailed research type report cannot be completed without the help of

significant others. I would like to thank a first; the Almighty Allah, who has
given me the courage, patience, knowledge and fitness to complete the report
promptly and within right time. The heartfelt support or cooperation that I have
received while doing the internship and preparing the report is unforgettable and
very appreciable. I would like to thank my parents, teachers, officials and
friends; who has helped me directly and indirectly to finish the report as per the
instruction of my honorable supervisor. I would like to mention the name of
some person, whose contribution in completing my internship and report are
highly obvious from all aspects. Firstly, I would like to express my heartfelt
gratitude towards my honorable academic supervisor; Md. Sanowar Hossain
Atiq, Assistant Professor, who has directed, monitored and helped me
continuously whenever I needed in doing internship and report. Secondly, the
support and compliment that I have received from my honorable Managing
Director; Mr. Irfan Uddin, has increased my motivation, confidence level and
has eased the path of collecting data because he permitted me for doing analysis
and working anywhere within the office I needed most. Thirdly, The help from
Audit Manager; Mr. Rejaul Karim is worthy to mention because he provide me
some resources that were apparently impossible to get and took good care of
me while doing internship. Lastly, I would like to admire the outstanding
support and time; provides by Mr. Rezaul Karim, Manager of Audit, regarding
my quarries about financial performance analysis and course related data and
customer satisfaction. He has contributed deeply at each step of this analysis
based internship report.

iv
 EXECUTIVE
SUMMARY
The main focus of this report is on the Financial Statement Analysis and
Performance Evaluation of ShareTrip Limited. In order to focus on the financial
performance and evaluation of ShareTrip Limited, the study focuses on the
financial statement and ratio analysis, liquidity ratio, Efficiency ratio, Debt
Management and Profitability and also analyze the market position by
comparing STL’s Revenue, EPS, NAV, Net Income with other ceramic
companies. The study has been conducted mainly based on secondary data.
Moreover, on the study describe the internship experience and objectives of the
study. Some information has also been collected from the discussion with the
officers. Trend analyses are mainly conducted to analyze the trend of liquidities,
profitability, debt management and Efficiency of ShareTrip Limited. Recovery
performance of STL within the ceramic industry is also analyzed in the report.
STL’s results of the study shows that, increasing trend of inventory turnover
ratio, gross profit margin ratio maintaining of debt to asset ratio. STL is in 1st
position in market by their selling excellent. Proper and effective monitoring
system should be developed in order to ensure the proper maintain liquidity and
to minimize the debt of STL.

v
 Table of Content

SL. Particulars Page No.

LETTER OF TRANSMITTAL

Executive Summary

Chapter-1 Introduction 1-4

1.1 Introduction 1
1.2 Description of the Project 1
1.3 Significance of the Report 2
1.4 Scope of the Report 2
1.5 Objectives of the Report 2
1.6 Methodology 3
1.7 Limitations 4

Chapter-2 An Overview of STL 5-9

2.1 Background and History of ShareTrip Ltd 5
2.2 Management Profile of Share Trip Limited 5

2.3 Products of Share Trip 6

2.4 Position of ShareTrip in Bangladesh Market 7

2.5 Operating Performance of STL last 4 years 8

2.6 Financial Performance of STL last 4 years 9

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 Chapter-3 Financial Statement (Ratio) Analysis 10-27

3.0 Financial Statement Analysis of company 10

Methods of Analysis 11
3.1 Liquidity Ratio 14
 Current Ratio
 Working Capital
 Cash Conversion Cycle
3.2 Asset Management/Efficiency Ratio 18

 Total Asset Turnover Ratio

 Days sales Outstanding
 Average Payment period
3.3 Debt Management Period 20
 Debt Ratio

3.4 Profitability Ratio 22-27

 Net Profit Margin Ratio
 Gross Profit Margin Ratio
 Operating Profit Margin Ratio
 Return On Equity
 Return On Asset

Chapter- 4 Findings, Conclusion and 28-

Recommendations
4.1 Findings 28
4.2 Conclusion 29
4.3 Recommendation 30

Bibliography 31

vii
1.1 Introduction:

Financial performance analysis can identify the financial strengths and weaknesses
of the firm by properly establishing the relationship between the items of balance
sheet and profit and loss. It helps a firm to identify short term and long term growth
forecasting. This analysis can be undertaken by management of the firm or by
parties outside the namely, owner, creditors, investors. Financial statement analysis
involves the re-organization of the entire financial data contained the financial
statements. It is the establishment of significant relationships between the
individual components of balance sheet and profit loss account. This is done
through the application tools of financial analysis like ratio analysis, trend analysis,
common size balance sheet and comparative balance sheet. This is used for
determining the investment value of the business, credit rating and for testing
efficiency of operation. Every company need to analyze financial statement to
know the performance of a company and company take their decision and recovery
procedure if need.

1.2 Description of the Project:

This internship report is prepared as a mandatory course fulfillment of the
requirement of MBA program. It is my great pleasure to permit to complete
internship report on “Financial Statement Analysis of Share Trip Limited”. I
am studentof MBA program. I sincerely believe that my practical knowledge and
experiences gathered fromthis study will be very helpful in my future life for doing
any types of research work.
The industrial venture is a private limited company which has been incorporated
with the register of the join stock companies, Gov. of the People’s of Bangladesh
under the mane and style ShareTrip Limited. As per the companies Act-1994 the
company is going to be a Public Limited company very soon and related works in
this regard is under process.
This internship report is submitted after completed of three months internship
program in ShareTrip Limited to the internship supervisor. This program direct
authorized by me to submit the report on “Financial Statement Analysis Share
Trip Limited”. This internship program was started from April 01, 2024.
1
1.3 Significance of the Report

This internship report is an important partial requirement of MBA program because

knowledge and learning become perfect when it is associated with theory and
practice. Students can establish contacts and networking by this internship
program. Contacts may help to get a job in future. That is, student can train and
prepare themselves for the job market. Developing country in the world like
Bangladesh has an overwhelming number of unemployed educated graduates.
Therefore; it is obvious that the significance of internship is clearly justified as the
crucial requirement of MBA Post graduation. The main theme of internship of
internship is together practical experience and knowledge about the corporate
activities of different sector of the business. It also helps a lot to compare the
theoretical knowledge with the practical field. Furthermore, the program has
helped me a lot to understand the organization atmosphere and behavior.

1.4 Scope of the Report:

Share Trip Limited is Startup company. Hence, their economic activities and
productions are huge and versatile. Three month is not enough time to learn the
vast financial activities. I tried to note my daily experience and finally make a
combination of them to prepare my project. This study is focused on the following
areas of Share Trip Limited
 An overview of Share Trip Limited.
 Financial Statement analysis of four past years of Share Trip Limited.
 Financial Performance Evaluation of Share Trip Limited.

1.5 Objectives of the Project:

The objective of the project is to develop the concept about the various aspects of
the organizational structure, financial position, success and marketing process of the
ceramic industry. This study will help me to analyze the carious concept of
financial statement analysis, decision making in stable and unstable situation, how
to increase the financial position, organizational network and so on which will
enrich my experience for my future career. More specifically the objective of the

2
study-

 To practice knowledge and experience gathered from this study , which will
be very much helpful in my future life for doing any types of research work
 To know the corporate activities of different sector of business sector.
 To identify the total activities of OTA industry
 To get the exposure in business field
 To identify the financial position of STL
 To find out the problem of STL
 To recommend the suggestion to solve the problem

1.6 Methodology:
1.6.1 Research Design:

The study on “Financial Statement Analysis and Performance Evaluation of Share

Trip Limited”, is descriptive in nature which is mainly based on secondary data.
The study focuses on financial statement analysis using of ratio and measurement
of performance of Share Trip Limited.

1.6.2 Data used in the study:

The study is mainly based on secondary data.
The audit report of Share Trip Limited
 Website of Share Trip Limited
 Magazines of Share Trip Limited
 Files and folder of Share Trip Limited
 Written documents of Share Trip Limited
 Statistical data of Share Trip Limited and
 Different text book are the major data sources in this report.
 Statistical data of STL and
 Different text book are the major data sources in this report.

Though the use of primary data are very limited in this report, some information has
been collected from the opinions of officials of STL. The secondary data are
collected for the period of five years from 2020 to 2023..

3
1.6.3 Data Analyzing and Reporting:
Trend analysis and performance evaluations are made to analyze of Financial
performance of ShareTrip Limited. Trend of Liquidity Ratio, Efficiency Ratio,
Debt Management Period and Profitability Ratio are analyzed in the study.
Software like MS word, excel are used for analyzing and reporting purpose of the
report.

1.7 Limitations of Report:

Though I have given utmost effort to prepare this paper but there are some
limitations of the study. Such are as follows:

 The main constrain of the study was insufficiency of information,

which was required for the study. There was various information the
head office employee can’t provide due to confidential and other
corporate obligations.
 Time constrains, three months are not enough to collect all necessary
material

 Lack of opportunity to visit production house.

 The functions and activities of STL are too vast, so they change their
strategy day by day. As a result I can’t collect update information &
strategy.
 As I am student it is not possible for me to collect all the necessary
information.

 Lake of Experience.

4
2.1 Background and History of Share Trip:
dedication to customer support. ShareTrip is the country's first and leading online
platform for both travel and lifestyle solutions. Since inception, their mission has been to
simplify the lives of people of all ages by offering reliable and convenient services. The
company is situated at JCX Business Tower (3rd Floor), Plot - 1136/A, Block - I,
Bashundhara R/A, Dhaka 1229, Bangladesh.

Registered office JCX Business Tower (3rd Floor), Plot - 1136/A, Block - I,
Bashundhara R/A, Dhaka 1229, Bangladesh.

Branch Office ShareTrip Lounge (Dhaka) 3rd Floor, House 1,

Road 17, Block C, Banani, Dhaka 1213, Bangladesh

Chattogram Office BM Height 5th Floor,

318 Sheikh Mujib Road. Chattogram 4100, Bangladesh

Web Site www.sharetrip.net

Main Market Around Bangladesh

Product & Services air ticketing, hotels, packages, ancillary travel requirements,
travel insurance and visa processing

2.2 Management Profile of Share Trip Limited:

Management Profile of ShareTrip Ltd.:

Chairman Sadia Haque

Managing Director Kashefur Rahman

CFO Apurba Roy

5
2.3 Products of Share Trip:

Air Ticketing:
Air Ticketing is the main service of Share Trip Limited. It’s an Authorized ticketing
partner of Domestic & International Airlines. They provide ticket to customer with
very competitive rate. They also provide ticket with sub agent. Ticket available for
Domestic & International route.

Hotel Package:
Another Service of Share Trip Limited is Hotel Package. Local & International
hotel booking service available with their packages. The Hotels and packages
holiday packages and hotel reservations through an Internet-based platform, call-
centers and partner offices. The segment provides holiday packages and hotel
reservations through an Internet-based platform, call-centers and partner offices.

Visa Support:
Share Trip Limited also facilitating access to third-party travel insurance and visa
processing

2.4 Position of Share Trip in Bangladesh Market

ShareTrip is one of the several companies that are leading this transformation. It is
one of the leading and most important companies in the vertical in Bangladesh. The
company has experienced phenomenal growth, overcome significant challenges like
the coronavirus pandemic unscathed, and has contributed to the overall growth of the
OTA industry in the country.

What are the Top 10 OTA agents in Bangladesh?

Here we are listing agents based on their revenue generation and visibility in the
market, which might change from month to month. Among top 10 OTA agents in
Bangladesh, only GoZayaan serves B2C (Agency model) and rest are hybrid or
merchant model (B2B & B2C).

6
The major Bangladesh OTA Sector are:

1. ShareTrip
2. Triplover
3. Fly Hub Travel Bangladesh
4. TravelChamp
5. First Trip
6. GoZayaan
7. flight expert
8. Amy
9. TLN Trip
10. Tryotel

7
2.5 At a Glance Operating Performance of STL fir last 4 years:

Operating 2020 2021 2022 2023

Performance

Total Revenue
21,631,585.00 68,475,586.00 150,428,722.00 337,396,768.00

Total Expense
24,563,624.00 69,406,395.00 149,561,399.00 159,070,211.00

PBT
(2,932,039.00) (913,798.00) 1,077,323.00 2,486,781.00

Provision for
1,357,369.00 4,471,698.00 960,322.00 2,315,062.00
Taxation

Net Profit After

(4,289,408.00) (5,385,496.00) 117,001.00 171,719.00
Taxation

Table 1 STL operating performance

8
2.6 At a Glance Financial Performance of last 4 years:

Financial 2020 2021 2022 2023

Position
Total Non- 5,989,322.00 5,212,795 5,384,500.00 6,251,363.00
Current Asset

Total Current 28,243,664.00 45,431,257.00 229,799,227.00 289,539,055.00

Asset

Total Asset 34,232,986.00 50,644,052.00 235,183,727.00 295,790,418.00

Total 4,213,071.00 (1,172,425.00) (1,055,424.00) (9,286,184.00)

Shareholders
Equity
Total Non- - - - 8,402,479.00
Current
Liabilities
Total Current 30,019,915.00 51,816,477.00 236,239,151.00 296,674,123.00
Liabilities

Total Equity &34,232,986.00 50,644,052.00 235,183,727.00 295,790,418.00

Liabilities

Net Asset
Value Per
421.31 (117.24) (105.54) (928.62)
Share

Table 2 financial position of STL

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3.0 Financial Statement Analysis Company:
Financial statement analysis (or financial analysis) is the process of reviewing and
analyzing a company's financial statements to make better economic decisions.
These statements include the income statement, balance sheet, statement of cash
flows, and statement. Financial statement analysis is a method or process involving
specific techniques for evaluating risks, performance, financial health, and future
prospects of an organization.

Financial statement analysis should focus primarily on isolating information useful

for making a particular decision. The information required can take many forms
but usually involves comparisons, such as comparing changes in the same item for
the sane company over a number of years, comparing key relations within the same
year or comparing the operations of several different companies in the same
industry.

ShareTrip Limited maintains the International Accounting Standards (IAS) rules

and regulation. The rules using by this company are-

IAS 1:51(a) ShareTrip Limited

IAS 1:10(c) Notes to the Financial Statement

IAS 1:51(c) Analyzing Year

IAS 1:138 Legal Status and Nature of Company

IAS 1:38(a) Registered Office and Principal Place of Business

IAS 1:38(b) Principal Activities and Nature of operation

IAS 1:112(a) Basis of Preparation

IAS 1:117(a) Basis of Management

IAS 16:30 Depreciation of Fixed Assets

IAS 2:36 Valuation of Inventories

IAS 12 Taxation

IAS 37 Provision

IAS 21:7 Foreign Currency Translations

10
 IAS 1:36 Basis of Reporting

IAS 1:54(b) Accounts Receivable

IAS 1:79 Earnings Per Share (EPS)

IAS 39 Investments

Methods of analysis

Common methods of ShareTrip Ltd. is financial statement analysis include

fundamental analysis, horizontal and vertical analysis and the use of financial
ratios. Historical information combined with a series of assumptions and
adjustments to the financial information used to project future performance.
Formulas of ratio are given below-

3. 1. Liquidity Ratio:

Current Assets
3.1.1.Current Ratio =
Current Liabilities

3.1.2 Working Capital= Current Assets – Current Liabilities

3.1.3 Cash conversion cycle = DSO + DIO − DPO

Days sales outstanding = 365/receivables

turnover ratio Days inventory outstanding
= 365/inventory turnover ratio Days
payables outstanding = 365/payables
turnover ratio Cash conversion cycle =
DSO + DIO − DPO

11
3. 2. Asset Management/Efficiency Ratio:
Net Sales
3.2.1.Total Asset Turnover Ratio =
Average Total Assets

3.2.2 Days sales outstanding = 365/receivables turnover ratio

Net Credit Sales

Receivables =
Turnover Average Accounts Receivable

3.2.3 Average Payment Period= (Accounts Payable × Number of Working

Days)/Net Credit Purchase

3. 3. Debt Management period:

Total Liabilities
3.3.1. Debt Ratio =
Total Assets

Earnings before Interest and

3.3.2.Tmies Interest
Tax
Earned Ratio
Interest Expense
=

12
3.4. Profitability Ratio:

Net Income
3.4.1 Net Profit Margin =
Net Sales

Gross Profit
3.4.2. Gross Margin =
Revenue

Operating Income
3.4.3. Operating Margin =
Revenue
3.4.4. ROE = Net income after tax / Average shareholder's equity

Annual Net Income

3.4.5.ROA =
Average Total Assets

13
 3.1. Liquidity Ratio
Current Ratio:

Year 2020 2031 2022 2023

Current Ratio 0.94 0.87 0.97 0.98

Table 3.1.1: Current Ratio

Graphical Presentation:

Figure 3.1.1: Current Ratio

Interpretation: There is a up & downward trend of Current ratio. It sharply
declined from 2020 to 2023 and reached at 0.98. This indicates, over the time
period, ShareTrip achive its capacity to pay their current obligations by using its
current assets. All of the ratios of the years are less the 2, which indicates they are in
risky position in current ratio.

14
Working Capital:

Year 2020 2021 2022 2023

Working
capital
(1,776,251.00) (6,385,220.00) (6,439,924.00) (7,135,068.00)
Table 3.1.2: Working capital

Graphical Presentation:

Figure 3.1.2: Working Capital

Interpretation: However, ShareTrip Limited working capitals from 2020

to203 are minus figure. These minus figure show that company‟s working
capitals have not good performance means that, their current liabilities are
greater than their Current assets. It indicates, STL has great problem to
maintain liquidity.

15
Current Ratio:

Year 2020 2021 2022 2023

Cash Conversion
145 -7 74 72
Cycle

Table 3.1.3: Cash Conversion Cycle

Graphical Presentation:

Figure 3.1.3: Cash Conversion Cycle

Interpretation: Cash conversion cycle is the time it takes a company to

convert its resource inputs into cash. It measures how effectively a company is
managing its working capital. We can see that, cash conversion cycle was
highly efficient in 2021 They needed -7 days to convert their assets into cash
and worst situation in 2020 when needed 145days.

16
Overall Interpretation of Liquidity Ratio of ShareTrip Limited

Liquidity ratio expresses a company's ability to repay short-term creditors out of its
total cash. It is the result of dividing the total cash by short-term borrowings. It
shows the number of times short-term liabilities are covered by cash.

Ratios Interpretation Remarks

Current Ratio There is a up & downward trend of Current Positive

ratio
Working There is a downward trend of Working capital Negative
capital

Cash There is a worst situation in cash conversion Medium

Conversion cycle except 2021.
Cycle

Liquidity Overall position of liquidity is not good Negative

Position

There is a up & downward trend of Current ratio, and Working capital. Again there
is a worst situationin cash conversion cycle except 2021. Hence, it can be seen that,
overall position of liquidity is not good. STL need to take some immediate step to
recovery liquidity position.

17
3.2 Asset Management/Efficiency Ratio

Average Collection Period/Days’ Sales Outstanding:

Year 2020 2021 2022 2023

Days’ Sales20.74 11.61 14.92 7.50

Outstanding

Table 3.2.3: Day’s Sales Outstanding

Graphical Presentation:

Figure 3.2.3: Day’s Sales Outstanding

Interpretation: It shows how well a company can collect cash from its
customers. The sooner cash can be collected, the sooner this cash can be used
for other operations. Both liquidity and cash flows increase with a lower Day’s
sales outstanding measurement. STL has a downward trend of Days; sales
outstanding. It declined from 20 days to 7.5days. This indicates they increase
their strange to collect cash from their customers over the time period.

18
Overall Interpretation of Efficiency Ratio of ShareTrip Limited

Efficiency ratios also called activity ratios measure how well companies utilize
their assets to generate income.

Ratios Interpretation Remarks

Total Asset There is a downward trend of Total asset Positive

turnover Ratio turnover ratio.

Days Sales There was a downward trend of Day’s Positive

Outstanding sales outstanding.

Efficiency Position Efficiency ratio of STL is medium position positive

On the other hand, STL is not efficient to use its assets to generate sales. However,
it took recovery. Again, therewas a downward trend of Days‟ sales outstanding.
However, there is a great strength in Average Payment period. Overall, Efficiency
ratio of STL is medium position if they can continue it, they may improve the
company.

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3.3 Debt Management Ratio
Debt to Asset Ratio:

Year 2020 2021 2022 2023

Debt to Asset
0% 0% 0% 8%
Ratio

Table 3.3.1: Debt to Asset Ratio

Graphical Presentation:

Figure 3.3.1: Debt to Asset Ratio

Interpretation: This ratio measures the financial leverage of STL. It is a

upward trend. The company must decrease their debt to asset ratio. Moreover,
it performed greatly in 2023 at only 8%.

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Overall Interpretation of Debt Management Ratio of STL

Debt Management Ratios attempt to measure the firm's use of Financial Leverage
and ability to avoid financial distress in the long run. These ratios are also known
as Long-Term Solvency Ratios.

Ratios Interpretation Remarks

Debt to Asset There is a upward trend of Debt to Asset Ratio. Positive

Ratio

Debt Overall position of debt management is in Positive

Management medium position because of times interest
Position earned ratio.

There is a upward trend of debt to asset ratio; it indicates company has lower level
of liabilities compared with assets and considered low leveraged and low risk but
need to decrease more debt.

21
3.4 Profitability Ratio
Net Profit Margin Ratio:

Year 2010 2011 2012 2013

Net Profit -19.83% -7.86% 0.08% 0.05%

Margin Ratio

Table 3.4.1: Net Profit Margin Ratio

Graphical Presentation:

Figure 3.4.1: Net Profit Margin Ratio

Interpretation: Net Profit Margin Ration of STL increased slowly from

2022 to 2023 and reached its peak in 2022 at 0.08%. It means, in 2022 STL is
in high position in profitability by earned amount of net income with each
dollar of sales.Net profit margin is not in good position.

22
Gross Profit Margin Ratio:

Year 2020 2021 2022 2023

Gross Profit 85% 73% 39% 74%

Margin Ratio

Table 3.4.2: Gross Profit Margin Ratio

Graphical Presentation:

Figure 3.4.2: Gross Profit Margin Ratio

Interpretation: Gross margin ratio is a profitability ratio that compares the

gross margin of a business to the net sales. Gross Profit of STL increased from
2020 to 2023 expect 2022 and reached its peak at 85% .

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Operating Profit Margin Ratio:

Year 2020 2021 2022 2023

Operating Profit
Margin Ratio

-13.6% -1.3% 0.6% 0.5

%

Table 3.4.3: Operating Profit Margin Ratio

Graphical Presentation:

Figure 4.4.3: Operating Profit Margin Ratio

Interpretation: Operating Profit Margin Ratio of STL fluctuated over the time,
it increased 2022 & 2023 and reached 0.6% which is higher value and favorable for
company, indicates which indicates that more proportion of revenue is converted to
operating income. Overall operating profit margin ratio is good position except
2020 & 2021.

24
Return on Equity (ROE) Ratio:

Year 2020 2021 2022 2023

ROE Ratio 0% 0% 0% 0%

Table 3.4.4: Return on Equity (ROE) Ratio

Interpretation: There is a Neutral trend of Return on Equity ratio. Because

from 2020 to 2023 STL negative profit. It indicates ability of STL to generate
profits from its shareholders investment getting worse on the time period,
which is harmful for the company.

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Return on Asset (ROA) Ratio:

Year 2010 2011 2012 2013

ROA Ratio 0% 0% .13% .57%

Table3.4.5: Return on Asset (ROA) Ratio

Graphical Presentation:

Figure.3.4.5: Return on Asset (ROA) Ratio

Interpretation: It emerge that, over the span of four years, return on asset of
STL dramatically declined and gone to zero in 2020 & 2021. Furthermore, it
increased by only 0.13% in 2022. It indicates, net income produced by total
assets is getting worse year by year. Hence, STL is not efficient company to
manage its assets to generate profits.

26
Overall Interpretation of Profitability Ratio of STL

Profitability is simply the capacity to make a profit, and a profit is what is left
over from income earned after you have deducted all costs and expenses
related to earning the income.

Ratios Interpretation Remarks

Net Profit Margin Net profit margin is not in good position but Positive
Ratio improving.

Gross Profit There is a increasing trend in gross profit Positive

Margin Ratio margin ratio it remain constant from 2022 to
2023
Operating profit Overall operating profit margin ratio is not Positive
Marin Ratio good except from 2022.

Return on Equity There is a 0% of Return on Equity ratio Negative

ratio

Return on Asset There is a Upward trend of Return on Asset Positive

Ratio Ratio

Profitability Overall position is good except ROA Positive

Position

STL is in low position in profitability by earned amount of net income with

each dollar of sales in 2020 to 2023 but it is worst in other year’s position
except 2023. On the other hand, Gross Profit Margin Ratio is in better position
by improvement. Operating Profit Margin Ratio of STL fluctuated over the
time and overall operating profit margin ratio is good position except
2020,2021. Moreover, STL generates profits from its shareholders investment
getting worse on the time period. Hence, in profitability, STL is good enough
and they need to concentrate more about their Equity, Assets and sales.

27
4.1 Findings:

The study, Financial Statement Analysis and Performance Evaluation of ShareTrip

Limited, reveals the following majors findings:

 ShareTrip greatly lose its capacity to pay their current obligations

by using its current assets, which indicates they are in risky position
in current ratio.
 STL‟s current liabilities are greater than their Current assets. It
indicates, STL has great problem to maintain liquidity.
 Cash conversion cycle was highly efficient in 2021 They needed -7
days to convert their assets into cash and worst situation in 2020 when
needed 145days.
 ShareTrip has lower ability to generate sales from its assets during 2020 to
2023.

 STL has lower level of liabilities compared with assets and considered
low leveraged and low risk. Moreover, it performed greatly in 2023.
 Net profit margin of STL is not in good position.

 .Gross Profit of STL increased from 2020 to 2023.

 Ability of STL to generate profits from its shareholders investment

getting worse on the time period, which is harmful for the company and
at the same time net income produced by total assets, is getting worse
year by year.
 When STL collected their cash in delay, they pay to their creditors in
delay, which ensure balance liquidity and keep company risk free.
 STL has higher earnings per share which always better than a lower
ratio because this means the company is more profitable and the
company has more profits to distribute to its shareholders comparing to
other company

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4.2 Recommendations:

The Financial Statement Analysis and Performance Evaluation of ShareTrip

Limited require the following recommendation that may help the STL to improve
financial Performance and to be a key member in the ceramic sector of
Bangladesh:

 STL need to highly concern about their liquidity position. To recover

their liquidity performance they should collect their account receivable
as soon as possible on the other hand, delay payment to their suppliers
(creditors) may help to recover liquidity position.

 STL has poor sales and lower ability to generate sales from its assets,
therefore, excess inventory. They need to increase their sales by better
advertisement process and discount.

 Times Interest earned ratio can be recovered by increase operating

profit and operating profit can be increased by assess administration
and selling expenses. It is necessary to reduce some amount of
administration expenses which are getting higher day by day. By the
reduction of administration expense STL can improve their operating
profit also.

29
4.3 Conclusion:

ShareTrip Limited is one of the private limited company in OTA industry in

Bangladesh, which commenced in 2019. The study concentrated on the financial
performance evaluation. The products line of ShareTrip is much diversified in
terms of services. STL is highly efficient to control its inventory, creditors and
sales. On the other hand, STL is in high positionin profitability by improving net
profit, gross profit and operating profit. Though they have problems in ROA they
should recover it by giving deep concentration. Overall it is take good position in
market by improving.

30
Bibliography:

 Audit report 2020, 2021, 2022 and 2023 of ShareTrip Limited.

 www.sharetrip.net

 https://www.crunchbase.com/organization/sharetrip

31
Chapter-1 Introduction 1-4
1.1 Introduction 1
1.2 Description of the Project 1
1.3 Significance of the Report 2
1.4 Scope of the Report 2
1.5 Objectives of the Report 2
1.6 Methodology 3
1.7 Limitations 4
Chapter-2 An Overview of STL 5-9
2.1 Background and History of ShareTrip Ltd 5
2.2 Management Profile of Share Trip Limited 5

2.3 Products of Share Trip 6

2.4 Position of ShareTrip in Bangladesh Market 7

2.5 Operating Performance of STL last 4 years 8

2.6 Financial Performance of STL last 4 years 9

Chapter-3 Financial Statement (Ratio) Analysis 10-27

3.0 Financial Statement Analysis of company 10

Methods of Analysis 11
3.1 Liquidity Ratio 14
 Current Ratio
 Working Capital
 Cash Conversion Cycle
3.2 Asset Management/Efficiency Ratio 18
 Chapter- 4 Findings, Conclusion and 28-

Recommendations
4.1 Findings 28
4.2 Conclusion 29
4.3 Recommendation 30