Performance Evaluation of Cement Industry of Bangladesh: A Case Study on Some Selected Firms

Abstract

Financial analysis is a logical way of inspecting the financial position of a company. It helps to measure ond realize lhe position of the company. It tries to cooperate the creditors, investors, and managers to determine the profitability of the company, to control costs, and to pay the interest and principal on its debt. Besides these, it gives the opportunity to lmow the liquidity of the company. For measuring the financial health of a business firm, there are lots of techniques available. But the Altman's Z-score has been proven to be a reliable tool across contexts. Bangladesh cement industry is a unique one because, the industry is producing a higher amount of cement than the local demand having no supply of local raw materials. The main objective of the study is to assess the fundamental financial health of this industry using Z-score model. Here, listed cement firms are considered in this study. The required information has been collectedfrom the annual reports ofthe selected companies andfrom other sources. The study revealed that four firms, Aman Cement, Crown Cement, Cemex Cement and Shah Cement are financially sound. The findings of the study can be useful for the managers to take financial decision, the stockholders to choose investment options and others to look after their interest in the concern cement manufacturers of the country.