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    Conclusion & Recommendation

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    Hamja
    Apex Spinning and Knitting Mills has mixed financial results, with good sales revenue and net income but unsatisfactory liquidity and declining efficiency and profitability. While its debt levels are not high compared to its industry, its interest expenses and overhead are higher than average. Risk and return analysis indicates the company's specific risks are offset by expected higher returns. The company's stock appears overvalued, so management should focus on improving efficiency, profitability, and reducing expenses to better align stock price with true value.

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    Conclusion & Recommendation

    Uploaded by

    Hamja
    8 views1 page
    Apex Spinning and Knitting Mills has mixed financial results, with good sales revenue and net income but unsatisfactory liquidity and declining efficiency and profitability. While its debt levels are not high compared to its industry, its interest expenses and overhead are higher than average. Risk and return analysis indicates the company's specific risks are offset by expected higher returns. The company's stock appears overvalued, so management should focus on improving efficiency, profitability, and reducing expenses to better align stock price with true value.

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    This is a conclusion about APEX

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    Conclusion

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    Apex Spinning and Knitting Mills has mixed financial results, with good sales revenue and net income but unsatisfactory liquidity and declining efficiency and profitability. While its debt levels are not high compared to its industry, its interest expenses and overhead are higher than average. Risk and return analysis indicates the company's specific risks are offset by expected higher returns. The company's stock appears overvalued, so management should focus on improving efficiency, profitability, and reducing expenses to better align stock price with true value.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    8 views1 page

    Conclusion & Recommendation

    Uploaded by

    Hamja
    Apex Spinning and Knitting Mills has mixed financial results, with good sales revenue and net income but unsatisfactory liquidity and declining efficiency and profitability. While its debt levels are not high compared to its industry, its interest expenses and overhead are higher than average. Risk and return analysis indicates the company's specific risks are offset by expected higher returns. The company's stock appears overvalued, so management should focus on improving efficiency, profitability, and reducing expenses to better align stock price with true value.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Conclusion & Recommendation

    Although, Apex Spinning and Knitting Mills Limited's financial status is neither
    good nor poor, some of our evaluation shows unsatisfactory results. Their total asset
    was normal between June 2013 and June 2017 but only some part of its assets are
    financed by its equity. The company’s sales revenue and net income is also good
    during the period.
    Ratio analysis of Apex Spinning and Knitting Mills Limited shows that the company
    is not doing well in terms of its liquidity and all other indicators are sometime
    satisfactory and sometime poor. Efficiency of converting assets into sales is
    unsatisfactory which directly impacts its profitability which is also on the decline.
    The company is not lagging behind the industry in terms of managing its debts. As
    the company is financed by debt but not much. The stock market ratios show that
    the earning per share and market to book value per share is good which make their
    share more attractive in market.
    Risk and return analysis of Apex Spinning and Knitting Mills Limited show that its
    required rate of return is lower than its expected rate of return. As a result, investors,
    who are risk lovers, are willing to purchase their common stocks despite relatively
    high level of company specific risk associated with Apex Spinning and Knitting
    Mills Limited.
    Apex Spinning and Knitting Mills Limited's capital structure contains bank loan and
    on average, it costs them ৳4.00 for every ৳100 in capital. Non Constant and Price
    earnings multiple approach show that stock are overvalued in market and results
    from corporation valuation model shows that their common stocks are undervalued
    in the market.
    Apex Spinning and Knitting Mills Limited's management should try to make its
    operations more efficient and improve their overall profitability and try to reduce
    their interest expense and other administrative overhead which is very high when
    compared to the industry. This will help them to value their stock price properly
    which will reflect the true value.

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