The Performance Analysis of “Dhaka Electric Supply Company Limited (DESCO)”

Abstract

Finance department of a company played a vital rule on its success specially in making investing and financing decision. The ratio analysis act as source of needed information towards making those decisions. Our purpose of this study is to analyse financial statement of a company that is listed in Dhaka or Chittagong stock exchange in order to find out the limitations and providing reliable recommendation. We conducted our study on Dhaka Electric Supply Company Limited (DESCO) that is listed in Dhaka stock exchange. All the data study includes collected from secondary sources those are mentioned in the reference section. We also study other competitive firms operating in fuel and power industry. On this report, we provide graphical presentation of financial data to make it easily understandable. We also present the overall scenario of Bangladesh fuel and power industry as well as the business environment in our country and its impact on this industry. During our study, we tried to give our best effort to find out the limitations and risk associated with management dilemma of Dhaka Electric Supply Company Limited. And our effort succeeds to find out that, the company is losing its net income in current year compare with its previous year that’s declining net profit margin and assert turnover. We also fund that the rate of debt against its assets is remarkable that may lead the company towards bankruptcy. In order to resolve management dilemma, we recommend being more conscious about effective and efficient management to minimize its exchange fluctuation loss.