Square Linen Essay


Square Textiles Ltd. started its quest by building the first unit in 1997. One full year later the second unit began. Square Textile is a supplementary company of Square Group. The Company was incorporated as being a public limited company in the year 1994. The operation was started in 97. It was enrolled in Dhaka Stock Exchange (DSE) & Chittagong Stock Exchange (CSE) in 2002. Within a very short span of time the organization achieved some significant success. Square Linen receives Oeko-Tex standard 95 and ISO-9002 certificates back in 2000. Approved capital of the company is usually tk. one thousand million. Really paid- up capital is tk. 705. 84 million. 1, 884 employees (till December 23, 2009) are working in this organization. The business lines of Sq Textiles Limited are production and marketing of yarn. The factory is located in Saradaganj, Kashimpur, Gazipur, Bangladesh. Its office is located for Uttara in Dhaka.

About Ratio

Meaning of Ratio: Just one way of expressing the partnership between one accounting consequence and an additional, whichВ is designed to provide a beneficial comparison. Accounting ratios assist in measuring the efficiency and profitability of any company based upon its economic reports. Accounting ratios constitute the basis of important analysis.


Sq . Textiles Ltd. started its journey simply by establishing the first product in 1997. One year afterwards the second product was established. Square Textile is actually a subsidiary firm of Sq Group. The corporation was incorporated as a general public limited business in the year year 1994. The procedure was made its debut in 1997. It absolutely was enlisted in Dhaka Stock Exchange (DSE) & Chittagong Stock market (CSE) in 2002. In a very short span of time the company accomplished some significant success. Sq Textile will get Oeko-Tex normal 100 and ISO-9002 accreditation in the year 2000. Authorized capital of the organization is tk. 1000 , 000, 000. It's paid- up capital is tk. 705. 84 million. you, 884 staff (till January 31, 2009) are working in this organization. The company lines of Square Fabrics Limited will be manufacturing and marketing of yarn. The factory is located in Saradaganj, Kashimpur, Gazipur, Bangladesh. Their office can be found at Uttara in Dhaka.

Types Of Ratio: You will discover 5 types of ratio analysis in accounting.

Functionality ratios

Earnings ratios gauge the company's utilization of its property and power over its expenses to generate an acceptable rate of return 1 . Return on capital employed=profit before curiosity and tax/capital employed [pic] 2 . Come back on shareholders' fund=Net profit/equity-minority interest three or more. Gross earnings margin= Low profit/Revenue [pic]

4. Working cost percentage= Operating price /Revenue[pic] 5. Operating income margin=Profit coming from operations/Revenue[pic]

fluidity ratios

Liquidity ratios measure your business ability to cover its expenditures. The two most frequent liquidity ratios are the current ratio and the quick proportion. Both are based upon balance sheet items.

1 . Current Ratio= Total current resources / Total current debts 2 . Speedy Ratio = (Total Current Assets - Total Inventory) / Total Current Financial obligations

solvency proportions

Solvency ratios measure the balance of a business and its capacity to repay financial debt. These ratios are of particular fascination to loan from the bank officers. They must be of interest to you personally, too, seeing that solvency.

Solvency ratios in accounting method is

1 . Gearing Ratio=Net debt/Equity[pic]

Efficiency Proportions

Ratios that are typically used to analyze how well a business uses their assets and liabilities internally. Efficiency Ratios can determine theВ turnover of receivables, theВ repayment of debts, В theВ quantity and usage of collateral and the basic use of inventory and machinery. В

solvency ratios

Solvency ratios gauge the stability of the company and its particular ability to repay debt. These kinds of ratios are of particular interest...