Statistics Term Paper FINAL

Statistical analysis and comparison between the annual reports of Square Textiles Ltd. & Monno Fabrics Ltd.

Statistical analysis and comparison between the annual reports of Square Textiles Ltd & Monno Fabrics Ltd

Course: B-106Business Statistics- ISubmitted to

Mr. Emdadul IslamLecturer

Department of Banking

University of Dhaka

Submitted by

Sabiha Farzana Moonmoon ID 16 089

Sushmita Saha ID 16 032

K. M. Wasiuzzaman ID 16 005

Tahmina Akhter ID 16 083

Nandita Saha ID 16 060

Md. Jamal Hossain ID 16 050

Sharmin Sharkar ID 16 057Students of


BBA 16th batch

Submission Date22 November, 201022 November, 2010

To

Mr. Emdadul IslamLecturer


Faculty of Business Studies

University of Dhaka

Subject: Submission of an assignment on statistical analysis of annual reports.

Dear Sir,

This is to inform you that we have completed the group assignment that you had assigned us for the course B-106 for the 2nd semester of BBA 16th batch. For the analysis we have chosen Square textiles ltd & Monno fabrics ltd.

In writing this report, we have followed the instructions that you have given us in the class, and we have also applied relevant concepts that we have learnt throughout our course. The contents provided in this report are all our own, though some information and references have been taken from different sources to facilitate our report.

However, we will be glad to clarify any discrepancy that may arise.

Finally, we would love to express our gratitude for your supportive thoughts and kind consideration in and outside of the class.

Yours sincerely,

Name: Sabiha Farzana Moonmoon

ID: 16089

Name: Tahmina Akhter

ID: 16083

Name: K. M. WasiuzzamanID: 16005

Name: Nandita Saha

ID: 16060

Name: Md. Jamal Hossain

ID: 16050

Name: Sushmita Saha

ID: 16032Name: Sharmin Sharkar

ID: 16057

Acknowledgement

This Assignment is the product of our endeavor, which is actually the reflection of continuous supervision of our course teacher Mr. Emdadul Isalm, valuable guidance of some scholar teachers of the department of Banking, our cordial effort. First of all, our gratitude goes to our most esteemed teacher Emdadul Isalm who gave us his valuable advice, direct guidance, cordial inspiration and specially his valuable time to carry out this assignment. Without his sincere encouragement it would not possible to accomplish this study properly. We are like to thank to authority of the library and Internet facilities from where we got enormous information.

While the discussion of some critical terms and calculations, some of our elder brothers have helped us with their cordial effort. We cordially thank to all of them.

We are grateful to some of our intimate friends for their collaboration in our weekly group discussions. Our special thanks to all of them for their cordial participation in different group discussions, actually they share their views, experience to make the report properly. We are highly indebted to all of them.

Finally, we would like to express our profound appreciation and render our most gratefulness to our beloved parents, who are our continuous source of inspiration in the successful accomplishment of this report.

We are,

Sabiha Farzana Moonmoon Nandita Saha Sushmita Saha Tahmina Akhter K. M. Wasiuzzaman Md. Jamal Hossain Sharmin sharkar Table of Contents

1.0 Introduction 8

1.1 Title of the report 8 1.2 Reason for choosing 81.3 Area of the report 91.4 Graphical presentation 91.5 Statistical application of the report 102.0 Objectives of the report 103.0 Methodology 114.0 Return on Equity 135.0 Net income before tax 186.0 Net income after tax 237.0 Current Liability 308.0 Asset 359.0 Long term liability 4110.0 Findings 4811.0 Conclusion 4912.0Bibliography 49

Executive summaryIn twenty first century Business students have access to large amounts of information. To grow the ability to analyze economic data, we have to know the importance of statistical tools and techniques to provide accurate and timely information to make public statement.

One of the tools used to understand information is Statistics. As a student of business faculty we are interested in such as profit, hours worked, and wages. Statistical courses in business education usually teach the courses at a more applied level. Numerical information is used everywhere. To be an educated consumer if these information ,we need to be able to read the charts and graphs and understand the discussion of the numerical information .An understanding if the concepts of the basic statistics will be a big help.

Statistical course is that techniques are used to make decisions that affect our daily lives. Statistical course is that the knowledge of statistical methods will help us understand how decision are made and give us a better understanding of how they affect us.

As described above, first of all we will collect relevant data of our selected organized Monno Fabrics Ltd and Square Textiles Ltd .In some way we will present those data in charts , graphs, bar diagrams etc. after that we will analyze those data applying some statistical techniques and formula.

1.0 Introduction

In order to transform some raw data or ungrouped data into a meaningful form , we organized the data into some statistical formula. This allows us to visualize where the data tends to cluster, the largest value, smallest value Etc. These measure of the data allow us to report typical value in the set of observations.We also computed some measures of standard deviation .These measure allow us to describe the variation or the spread in a set of data.

We continue our study in a descriptive statistics. The pie chats and the bar diagrams give us additional insight into where the values are concentrated and dispersed and the general shape of the data.

1.1 Title of the report

The Title of the report is - Statistical analysis and comparison between the annual reports of Square Textiles Ltd & Monno Fabrics Ltd1.2 Reason for choosing

When we complete our report we can gather some knowledge, which will help us in future to doing something creative. These are as follows:

Introduce with a new Idea, which is totally different with the life of student.

Evaluate with the others potential.

Being to present us with the world of communication.

Get some practical experiences and gather some knowledge which is very important for carrier building.

So for this reason, We choose manufacturing company, as an organization who can provide us the brilliant future in our near, coming life to fill our gap of skills.

1.3 Area of the report

The area of the report is given below :

Net income before tax:

In business, what remains after subtracting all the costs (namely, business, depreciation, interest) from a companys revenues is called net income before tax Net income after tax: In business, what remains after subtracting all the costs (namely, business, depreciation, interest, and taxes) from a companys revenues is called net income.Net income is sometimes called the line. Also called earnings or net profit.

Total Asset: The sum of current and long-term assets owned by a company or other entity.

Total Current Liabilities: A balance sheet item which equals the sum of all money owed by a company and due within one year. Also called payables or current debt.

Total Long Term Liabilities: A category of debt son a company's balance sheet that do not need to be repaid during the upcoming twelvemonths, but that instead need to be repaid in a year or more.

Earning per share: Total earnings divided by the number of shares outstanding. Companies often use a weighted average of shares outstanding over the reporting term. EPS can be calculated for the previous year ("trailing EPS"), for the current year ("current EPS"), or for the coming year ("forward EPS").

Return on Equity: A measure of how well a company used reinvested earnings to generate additional earnings, equal to a fiscal year's tax income(after preferred stock dividends but before common stock dividends) divided by book value, expressed as a percentage. It is used as a general indication of the company's efficiency.

We have collected information regarding these points for both companies of last 5 years. We will show the comparison in two ways

Comparison of two companies similar type data of one year

Comparison of a companys 5 years performance in a single sector1.5 Statistical application on the report

The statistical applications on the report are given below :

Mean

Meadian

Mode

Standars Deviation

Variance

Coefficient of Variance

Skewness

Bar diagram

Pie Chart

2.0 Objectives of the Report

Broad objectives:

Every report has an objective. The objective of the report is to familiarize students with the real business situation, to compare them with the statistical theories & at the last stage make a report on assigned task.

Specific objectives:

There are some specific objectives of this process. Those are :

To identify the mean of the areas of the report.

To identify the median of the areas of the report.

To identify mode of the areas of the report.

To identify the Standard Deviation of the areas of the report.

To identify the skewness of areas of the report.

To identify the variance of the areas of the report.

To identify the co-variance of the areas of the report.

To draw the bar diagram on the basis of data set.

To draw the line graph on the basis of the data set. Find out the regression analysis.

Find out the correlation analysis.3.0 Methodology

Source of information: Our research will be comprised of data from primary and secondary sources.

Primary Sources:

Primary source of data will be collected from the interview and study. We conducted interview with our respective company managres of the selected companies.

Secondary Sources:

Secondary of data are existed in various annual reports of year 2005 -2009 and the same along with journal articles from the newspaper and internet.

4.0 Limitation of the studyThe present study was not out of limitations. Some constraints are appended bellow-

Lack of adequate primary and secondary information. Up-to date information were not available

Inadequate access to information, which has hampered the scope of analysis required for the study. Due to time limitations, many of the aspects could not be discussed in the present report.

Every organization has their own secrecy that was not revealed to others. While collecting data i.e. interviewing the employees, they did not disclose much information the sake of the confidentiality of the organization.

We have not any previous experience of writing this type of report based on raw data of any company.

5.0 COMPANY OVERVIEW IN BRIEF

5.1. Square textile ltd.5.1.1 ABOUT COMPANY:Square Textiles Ltd. started its journey by establishing the first unit in 1997. One year later the second unit was established. Square Textile is a subsidiary company of Square Group .The Company was incorporated as a public limited company in the year of 1994. The operation was started in 1997.It was enlisted in Dhaka Stock Exchange & Chittagong Stock Exchange in 2002. Within a very short time of span the company achieved some significance success. Square Textile receives Oeko-Tex standard 100 and ISO-9002 certificates in the year 2000. Authorized capital of the company is tk. 1000 million. Its paid- up capital is tk. 251.90 million. 1,223 employees are working in this organization. The business lines of Square Textiles Limited are manufacturing and marketing of yarn. The factory is located in Saradaganj, Kashimpur, Gazipur, Bangladesh. Its office is located at Uttara in Dhaka

5.1.2 Mission:

The mission of square textile is to maximize of production of quality products and services strictly on ethical and moral standards at minimum costs to the society ensuring optimum benefits to the consumers, the shareholder and the stakeholders.

5.1.3 Vision:

The conception of business germinated from its vision which sees it as a means to the well being of the investors, stakeholders, employees and members of the society at large by creating new wealth in the form of goods and services that go to satisfy the wants of all of them without damaging the socio-ecological-economic balance of the mother earth and the process of human civilization leading to peaceful co- existence of all the living being.

5.1.4 Objectives: To strive hard to optimize profit through conduction of transparent business operation within the legal and social framework with malice to none and justice for all in respective of genre disparity, caste, creed, or region.

To create more jobs with minimum investment.

To increase productivity.

To be competitive in the internal as well as external markets.

To maximize export earning with minimum imported in puts.

To reduce income gap between top and bottom categories if employees.

To promote corporate social responsibility among all employees.5.2. Monno fabric limited5.2.1 About company:Monno Ceramic Industries began producing porcelain tableware for the Bangladesh home market in 1985, and secured its first export order the following year. Monno soon earned an enviable reputation for both quality and value. The subsequent introduction of bone china to its range of quality dinnerware has only served to strengthen that reputation. As the original exporter of porcelain dinnerware Made in Bangladesh Monno is proud to contribute to the growth of the Bangladesh economy. In a developing country the kudos accorded to exports and the valuable foreign exchange derived is significant. Today in Bangladesh Monno is a household name and regarded as one of the countrys premier companies.

Bangladesh is still a relatively young country. When after independence British India was partitioned in 1947, West Pakistan and East Pakistan were created. Subsequently East Pakistan proclaimed independence in 1971 and Bangladesh (meaning Bengali homeland) came into being. As a developing country Bangladesh is accorded preferential tariffs by the European Union which means zero import duty on Monno tableware.

Monno offers products in Porcelain, New Bone China, Ivory China, and real Bone China. In fact they source the materials in their bone china body and glaze from Stoke on Trent, to which is added pure water filtered from their own wells. So Monno likes to think of it as English Bone China. Customers include many well known prestigious department stores, speciality and chain stores around the world for whom they manufacture own label products. Some customers have been with Monno for as long as 20 consecutive years and Monno is proud to enjoy a close relationship with them. They work with customers to develop their own shapes or decorations, or can offer designs from their extensive stable. Their talented teams of artists and designers work closely with the experienced technicians of an own in-house decal print unit. That combination of man and machine helps achieve striking results.

Monnos Porcelain & Bone China factories are perhaps unique in being able to offer under one roof the flexibility and versatility of many manufacturing methods as best suit the size or nature of the product. Monno has invested in modern machinery and can boast high pressure casting, ISO Static Pressing, auto cup lines, auto dip glazing, spray drying, and an open firing system. That technology helps them in their never ending pursuit of excellence. Manufacturing capacity is in the order of 2 Million pieces per month.

Monno Products are safe! Tests carried out by CERAM show their products fall well below the thresholds for lead and cadmium release in tableware or cookware coming into contact with foodstuffs as specified under current European regulations. They also meet Australasian and US Federal requirements as well as those specified by Californias very tough Proposition 65.

The Monno Group of companies includes, significantly, Monno Fabrics Ltd. and Monno Attire Ltd, as well as printing and packaging companies mutually supporting the activities of the Group. Monno is not therefore dependent on outside suppliers for labels or packaging, which helps to ensure orders are available on time.

Monno provides employment to some 5,000 skilled and unskilled local artisans, crafts men and women, who are encouraged to develop their full creative potential. Training is highly regarded, especially when working with some of the very best advanced machinery selected from manufacturers worldwide. That technology helps to provide Monno with a competitive edge in the market place. Monno is a strong supporter of the environment, using for example only natural non toxic materials in its porcelain, and only recycled pulp in its packaging; disposing of waste factory product in accordance with Federal and European standards. Monno does not employ children or discriminate between gender, and has an equal opportunity policy. Monno also cares for the community, providing welfare, vocational training, basic education for those less well off, together with a home for underprivileged children. Those graduating from these programmers are helped to find jobs according to their individual abilities. Monnos own ethical and social environmental policy is in accord with that of their customers and has satisfied the requirements of all factory and ethical audits independently carried out on their behalf.

At the time of writing the Monno Group is currently building a hospital as will further benefit its employees and residents in local communities.5.2.2 Mission:

The mission of monno fabric limited is to provide world class quality products to our valued customers, strictly maintain ethical standard in business operation.

5.2.3 Visions:They see business as a means to the well-being of the shareholders and all other stakeholders , society as well as the national interest as a whole.

5.2.4 Objectives:

Their objectives are to conduct transparent business operation within the legal and social framework with aims to attain the mission with a quantitative/qualitative target in business operation.

5.2.5 Corporate focus:

Their mission, vision and objectives are to emphasize on the continuous development in making value addition to their products for producing the higher end products, to keep well prepared for competitive world market.

6.0 Return on Equity

2005: Monno Fabrics ltd : 6%

Square Textiles ltd: 17.85%

2006:

Monno Fabrics ltd: 6%


2007:



2008:



2009:



Monno Fabrics ltd:

20052006200720082009

6%6%6%4%20%

1. Mean: The mean of return on investment capital for 5 years:

= 8%

2. Median : The median of return on investment capital for 5years:

4%, 6%, 6%, 6%, 20%

Median3.Mode: The value of 6% is the Mode.

4. Sample Variance: The sample variance of return on investment capital for five years:

s = =0.004285. Standard Deviation: The standard Deviation of return on investment capital for five years:

s=

= 0.0654226. Co-Variance: The co- variance of net profit for five years:

CV = 1.09036677. Skewness : The skewness of net profit for five years :

sk = = 2.134348Here the mean is greater than median. So, the normal distribution of the data set is positively skewed.Square Textiles ltd:

20052006200720082009

17.85%21.24%18.59%9.49%8.57%

1. Mean : The mean of return on investment capital for 5 years:

= 15.15%

2. Median : The median of return on investment capital for 5years:

8.57%, 9.49%, 17.85%, 18.59%, 21.24%

Median

3.Mode: There is no Mode.

4. Sample Variance: The sample variance of return on investment capital for five years:

s = =0.0032895. Standard Deviation: The standard Deviation of return on investment capital for five years:

s=

= 0.0573466. Co-Variance : The co- variance of net profit for five years:

CV = o.3785217. Skewness : The skewness of net profit for five years :

sk = = -0.39585Here the mean is smaller than median. So, the normal distribution of the data set is negatively skewed.

7.0 Net Income before Tax

Year 2005:

Name of the CompanyAmount

Square397812202

Monno71496

Year 2006:


Square403965035

Monno70009

Year 2007:


Square411123186

Monno76610

Year 2008:


Square277581733

Monno-44387

Year 2009:


Square311776874

Monno-224734

Square Textiles Limited

Net Income before Tax:YearAmount (tk)

2005397,812,202

2006403,965,035

2007411,123,186

2008277,581,733

2009311,776,874

1. Mean : The mean of net income before tax for 5 years:

= 360,240,2492. Median : The median of net income before tax for 5 years:= 397,812,202 3.Mode: There is no mode.

4. Sample Variance: The sample variance of net income before tax for five years:

s = =37.61 5. Standard Deviation: The standard Deviation net income before tax for five years:

s=

=613,839,5626. Co-Variance : The co- variance of net income before tax for five years:

CV = 17.01%7. Skewness : The skewness of net income before tax for five years :

sk == -1.79Here the median is greater than mean. So, the normal distribution of the data set is negatively skewed

Monno Fabrics Limited

Net Income before Tax:YearAmount tk

200571,496

200670,009

200776,610

2008-44,387

2009-224,734

1. Mean : The mean of net income before tax for 5 years:

= 10,200 2. Median : The median of net income before tax for 5 years.= 70,0093.Mode: There is no mode.

4. Sample Variance: The sample variance of net income before tax for five years:

s = =17475,061 5. Standard Deviation: The standard Deviation net income before tax for five years:

s=

= 132,1936. Co-Variance : The co- variance of net income before tax for five years:

CV = 1296.0009%7. Skewness : The skewness of net income before tax for five years :


8.0 Net Income after Tax

Year 2005:


Square255494330

Monno71496

Year 2006:


Square348833453

Monno70009

Year 2007:


Square352447136

Monno62143

Year 2008:


Square23652908

Monno-44487

Year 2009:


Square260634002

Monno-224834

Square Textiles Limited

Net Income after Tax:YearAmount

2005255494330

2006348833453

2007352447136

2008236529908

2009260634002

1. Mean : The mean of net income after tax for 5 years:

=29.072. Median : The median of net income after tax for 5years.= 26.063.Mode: There is no mode.

4. Sample Variance: The sample variance of net income after tax for five years:

s ==30.665. Standard Deviation: The standard Deviation of net income after tax for five years:

s=

= 5.546. Co-Variance : The co- variance of net income after tax for five years:

CV =19.05%7. Skewness : The skewness of net income after tax for five years :

sk ==1.633Here the mean is greater than median. So, the normal distribution of the data set is positively skewed Monno Fabrics Limited

Net Income After Tax:YearAmount

200571496

200670009

200776610

2008-44387

2009-224734

1. Mean : The mean of net income after tax for 5 years.

= -10.20

2. Median : The median of net income after tax for 5years.

= 70.093.Mode: There is no mode.

4. Sample Variance: The sample variance of net income after tax for five years:

s == 17475.065. Standard Deviation: The standard Deviation of net income after tax for five years:

s=

= 132.1936. Co-Variance : The co- variance of net income after tax for five years:

CV

= 1296.0009%7. Skewness : The skewness of net income after tax for five years :


9.0 Current Liability

2005:

Monno: 998,487,398

Square: 989,212,000

2006:

Monno: 1,001,018,456

Square: 1,269,821,000

2007:

Monno: 1,224,412,403

Square: 1,558,932,515

2008:

Monno: 1,501,365,569

Square: 2,722,233,092

2009:

Monno: 1,615,370,010

Square: 2,999,102,012

Monno fabrics ltd:

20052006200720082009

998,487,3981,001,018,4561,224,412,4031,501,365,5691,615,370,010

1. Mean: the mean of current liability for 5 years

= 126.8142. Median: the median of current liability for 5 years

998,487,398 ; 1,001,018,456; 1,224,412,403; 1,501,365,569; 1,615,370,010

Median3. Mode: there is no mode

4. Sample variance: the sample variance of current liability for 5 years

s = = 802.345. Standard deviation: the standard deviation of current liabilities for 5 years

S= s = 28.3396. Co- variance: the co-variance of current liability for 5 years

CV = 22.33%7. Skewness: the skewness of current liability for 5 years sk = = 0.47Here the mean is greater than the median, so the normal distribution of the data set is positively skewed.Square textiles ltd.20052006200720082009

989,212,0001,269,821,0001,558,932,5152,722,233,0922,999,102,012

1. Mean: the mean of current liability for 5 years:

= 190.784

2. Median: the median of current liability for 5 years:

989,212,000 1,269,821,000 1,558,932,515 2,722,233,092 2,999,102,012

Median

3. Mode: there is no mode

4. Sample variance: the sample variance of current liabilities for 5 years

s = =8066.965. Standard deviation: the standard deviation of current liability for 5 years:

S= s = 89.81 6. Co- variance: the co- variance of current liability for 5 years:

CV =47.07%

7. The skewness of current liability for 5 years:

sk = =1.17 Here the mean is greater than the median, so the normal distribution of the data set is positively skewed.10.0 Total Asset2005:

Monno: 3,001,210,121

Square: 2,585,177,000

2006:

Monno: 3,170,805,901

Square: 3,120,686,000

2007:

Monno: 3,432,827,872

Square: 3,659,375,000

2008:

Monno: 3,581,786,270

Square: 5,807,897,000

2009:

Monno: 3,477,279,519

Square: 5,508,282,000

Monno fabrics ltd:

20052006200720082009

3,001,210,121 3,170,805,901 3,432,827,8723,581,786,270 3,477,279,519

1. Mean: the mean of asset for 5 years:

= 333.278

2. Median: the median of asset for 5 years:

3,001,210,121 3,170,805,901 3,432,827,872 3,477,279,519 3,581,786,270

Median

3. Mode: there is no mode

4. Sample variance: the sample variance of asset for 5 years:

s = =572.71

5. Standard deviation: the standard deviation of asset for 5 years:

S= s

= 23.936. Co- variance: the co-variance of asset for 5 years;

CV =7.18%7. Skewness: the skewness of asset for 5 years:

sk = = -1.25Here the median is greater than the mean, so the normal distribution of the data set is negatively skewed.Square textiles ltd:

20052006200720082009

2,585,177,000 3,120,686,000 3,659,375,000 5,807,897,000 5,508,282,000

1. Mean: the mean of asset for 5 years: =413.582. Median: the median of asset for 5 years: 2,585,177,000 3,120,686,000 3,659,375,000 5,508,282,000 5,807,897,000

Median3. Mode: there is no mode4. Sample variance: the sample variance of asset for 5 years: s = = 20850.025. Standard deviation: the standard deviation of asset for 5 years: S= s

=144.396. Co- variance: the co-variance of asset for 5 years: CV =34.9%

7. Skewness: the skewness of asset for 5 years:

sk = =0.99Here mean is greater than median. So normal distribution of data set is positively skewed.

11.0 Long Term Liability

2005:

Square textiles Ltd.876,999,876

Monno fabrics Ltd.612,675,456

2006:



2007Square textiles Ltd.10,04,873,256


2008Square textiles Ltd.1247,896,052


2009:



Square textiles Ltd.

20052006200720082009

876,999,876997,769,7691004,873,2561247,896,0521401,521,362

1. Mean : The mean of long term liability for 5 years.

= 110.5 2. Median : The median of long term liability for 5years.= 100.493.Mode: There is no mode.

4. Sample Variance: The sample variance of long term liability for five years:

s = =455.215. Standard Deviation: The standard Deviation of long term liability for five years:

s=

= 21.336. Co-Variance : The co- variance of long term liability for five years:

CV = 19.3%7. Skewness : The skewness of long term liability for five years :

sk == 1.41Here the mean is greater than median. So, the normal distribution of the data set is positively skewedMonno fabrics ltd.20052006200720082009

612,675,456638,412,765697,928,666671,920,512678,243,643

.

1. Mean : The mean of long term liability for 5 years.

= 65.92 2. Median : The median of long term liability for 5years.

671,920,5123.Mode: There is no mode.

4. Sample Variance: The sample variance of long term liability for five years:

s = =11.495. Standard Deviation: The standard Deviation of long term liability+ for five years:

s=

= 3.396. Co-Variance : The co- variance of long term liability for five years: CV = 5.14%7. Skewness : The skewness of long term liability for five years :

sk ==1.12

Here the median is greater than mean. So, the normal distribution of the data set is negatively skewed.

12.0 Earning per share :

2005:

Monno Fabrics ltd: 6,220 tk

Square Textiles ltd: 6,480 tk

2006:



2007:



2008:

Monno Fabrics ltd: (3,870) tk


2009:

Monno Fabrics ltd: (19550) tk


Monno Fabrics ltd:

20052006200720082009

6,220 tk6,090 tk5,400 tk(3,870) tk(19550) yk

The scatter diagram of EPS of 5 years is given below:

1. Mean: The mean of the EPS for five years:

= (1,142) tk

2. Median: The median of the EPS for five years: (19550) , (3870) , 5400, 6090, 6220

Median3.Mode: There is no mode.4. Sample Variance: The sample variance of net profit for five years:

s= = 123,898,770

5. Standard Deviation: The standard Deviation of net profit for five years:

s=

= 11130.982

6. Co-Variance : The co- variance of net profit for five years: CV = (9.7469)

7. Skewness : The skewneess of net profit for five years:

sk= = (1.571265)

Here the mean is smaller than median. So, the normal distribution of the data set is negatively skewed.

Square Textiles ltd:

20052006200720082009

6,480 tk8,850 tk8,940 tk4,710 tk7,980 tk

The scatter diagram of EPS of 5 years is given below:

1. Mean: The mean of the EPS for five years:

= 7,392 tk

2. Median: The median of the EPS for five years: 4,710 , 6,480 , 7,980 , 8,850 , 8,940 Median3.Mode: There is no mode.4. Sample Variance: The sample variance of net profit for five years:

s= = 3,223,170

5. Standard Deviation: The standard Deviation of net profit for five years:

s=

= 1795.319

6. Co-Variance : The co- variance of net profit for five years: CV = 0.2428

7. Skewness : The skewneess of net profit for five years:

sk= = (0.93883)

Here the mean is smaller than median. So, the normal distribution of the data set is negatively skewed.

13. Regression & Correlation analysis:13.1 Regression:

The concept of regression might sound strange because the term is normally associated with movement backward, whereas in the world of statistics, regression is often used to predict the future. Simply put, regression is a statistical technique that finds a mathematical expression that best describes a set of data.

Often businesses try to predict the future using sales and percent-of-sales projections based on history. A simple percent-of-sales technique identifies assets and liabilities that vary along with sales, determines the proportion of each, and assigns them percentages. Although using percent-of-sales forecasting is often sufficient for slow or steady short-term growth, the technique loses accuracy as growth accelerates.

Regression analysis uses more sophisticated equations to analyze larger sets of data and translates them into coordinates on a line or curve. In the not-so-distant past, regression analysis was not widely used because of the large volume of calculations involved. Since spreadsheet applications, such as Excel, began offering built-in regression functions, the use of regression analysis has become more widespread.

The equation y = mx + b algebraically describes a straight line for a set of data with one independent variable where x is the independent variable, y is the dependent variable, m represents the slope of the line, and b represents the y-intercept. If a line represents a number of independent variables in a multiple regression analysis to an expected result, the equation of the regression line takes the form y=m1x1+m2x2+...+mnxn+b in which y is the dependent variable, x1 through xn are n independent variables, m1 through mn are the coefficients of each independent variable, and b is a constant.

Monno Fabrics Ltd:

20052006200720082009

1,369,435,000 tk1,506,857,000 tk1,540,870,000 tk1,577,113,000 tk857,628,000 tk

Here the slope is m= -95335800 The y intercept is = 1.92709E+11

So the estimated equation is y = -95335800x + (1.92709E+11)Square Textiles Ltd:

20052006200720082009

2,390,979,000 tk2,620,966,000 tk2,541,543,000 tk3,052,235,000 tk 3,765,218,000 tk

Here the slope is m= 317974700

The y intercept is = -6.35301E+11

So the estimated equation is y = 317974700x + (-6.35301E+11)

From these equations we can predict the approximate future sales of both companies.

Correlation analysis:

13.2 Correlation:

In statistics, correlation and dependence are any of a broad class of statistical relationships between two or more random variables or observed data values.

We use it to describe the degree to which one variable is linearly related to another. Often correlation analysis is used in conjunction with regression analysis to measure how well regression line explains the variation of the dependent variable.

Statisticians have developed two measures for describing the correlation between two variables.

1. the coefficient of determination

2. the coefficient of correlation

here we have computed the coefficient of determination between the sales and net income of both companies.Monno Fabrics ltd:

Sales:

20052006200720082009

1,369,435,000 tk1,506,857,000 tk1,540,870,000 tk1,577,113,000 tk857,628,000 tk

Net income:

YearAmount

200571496

200670009

200776610

2008-44387

2009-224734

Here the correlation between sales and net income is 0.829075. so the relation between these two variables is direct and the slope is positive. As the sales increases net income also increases.

Square Textiles ltd:

Sales:

20052006200720082009

2,390,979,000 tk2,620,966,000 tk2,541,543,000 tk3,052,235,000 tk 3,765,218,000 tk

Net income:

YearAmount

2005255494330

2006348833453

2007352447136

2008236529908

2009260634002

Here the correlation between sales and net income is -0.444418. so the relation between these two variables is not direct and the slope is negeitive. As the sales increases net income seems to decrease.14.0 FindingsEarning per share:

1. For the year 2005, 2006 and 2007 earning per share of monno fabrics is positive but for the year 2008 and 2009, earning per share is negative.2. Earning per share of square textile was increasing every year except 2008. In 2008 it has decreased to 4710 taka from 8940 taka in 2007.Asset :

1. Total asset of monno fabrics was increasing every year except for 2009. In 2009 it has decreased to 347 crore taka from 258 crore taka in 2008.2. For square textiles, total asset was increasing every year at a more faster rate than monno fabrics.Net income before tax:

1. For square textiles, net income before tax was increasing every year except for 2008.2. For monno fabrics, net income before tax was positive in the year 2005, 2006 and 2007 but was negative in the year 2008 and 2009.Net income after tax:

1. As net income before tax is increasing for square textiles, so net income after tax has been increased.2. As net income before tax was negative for last two years, monno fabrics has a negative net income after tax in 2008 and 2009.Current liability:

1. For monno fabrics, current liability is increasing every year.2. For square textiles, current liability is increasing every year.Long term liability:

1. For monno fabrics, long term liability was increasing except for the year 2008 and 2009.2. For square textiles, Long term liability was increasing every year.Return on equity:

1. For monno fabrics, the amount of return on equity is stable every year.For square textiles, the amount of return on equity was much higher than monno fabrics.15.0 Conclusion

The financial progress of a manufacturing company largely depends on the statigic of the company. For making the consumer satisfaction, every company and financial institution needs to make their organizational strategy perfectly according to consumer desire. In case of our analysis we try our best to focus the financial strategy of the companies that affects consumer behavior and share holder view points. We make statistical application on the companies financial amount and also interpreted its position in statistical view point. Sometimes our honourable teacher may find lsome lacking in interpreting the data. After having some drawback of satstistical measurement, our hardwork came to success tofulfill the report.

16.0 Bibliography

Five years annual report of Monno Fabrics Ltd.

Five years annual report of Square Textiles Ltd.

EMBED Excel.Chart.8 \s













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Statistics Term Paper FINAL