Financial Performance and Financial Position Analysis of Reckitt Benckiser (Bangladesh) PLC

"Financial Performance and Financial Position Analysis of Reckitt
Benckiser (Bangladesh) PLC”

By
PRITU BHOWMICK
Student ID
18104037
An internship report submitted to the BRAC Business School in partial fulfillment of the
requirements for the degree of Bachelor’s in Business Administration
BRAC Business School

BRAC University
September 2022
© 2022, BRAC University

All rights reserved.
1
Declaration
It is hereby declared that
1. The internship report submitted is my/our own original work while completing degree at
Brac University.
2. The report does not contain material previously published or written by a third party, except
where this is appropriately cited through full and accurate referencing.
3. The report does not contain material which has been accepted, or submitted, for any other
degree or diploma at a university or other institution.
4. I have acknowledged all main sources of help.
Student’s Full Name & Signature:
Pritu Bhowmick
18104037
Supervisor’s Full Name & Signature:
Dr. Faruk Bhuiyan

Assistant Professor
BRAC University
2
Letter of Transmittal
Dr. Faruk Bhuiyan

Assistant Professor
BRAC University
66 Mohakhali, Dhaka-1212
Subject: "Financial Performance and Financial Position Analysis: A Study on Reckitt

Benckiser (Bangladesh)”
Dear Sir,
With due respect and humble submission, it is my honor to work with you and I would also
like to thank you for giving me the opportunity of doing my internship report on my selected
topic "Financial Performance and Financial Position Analysis: A Study on Reckitt
Benckiser (Bangladesh)”
This report represents the study of the financial performance analysis of Reckitt Benckiser
(Bangladesh) PLC which is based on my 3-month long internship period. Working with the
dynamic team of the Finance department, the knowledge and experience that I gathered will
greatly help me a lot to perform my job responsibilities effectively in the future.
I have made every effort to make this report informative and hoping all my hard work reflects
on this paper and pray that you will cordially receive my Internship Report
Lastly, I would like to express my gratitude for your kindness and your valuable instructions
for completing this report successfully.
Sincerely yours,
Pritu Bhowmick
ID: 18104037
BRAC University
9-10-2022
3
Non-Disclosure Agreement
This is to notify that I was an intern at the Reckitt Benckiser (Bangladesh) PLC. I don't have
any agreement between me and Reckitt Benckiser (Bangladesh)PLC.
4
Acknowledgment
To begin, I would like to show my appreciation to the Almighty God for granting me the
opportunity to finish this internship report. During the past three months, I have been preparing
this report. The title of my internship report is "Financial Performance and Financial Position
Analysis: A Study on Reckitt Benckiser (Bangladesh) PLC." I have worked hard and put lots
of effort toward learning; however, I could not have successfully finished my report without
the support and encouragement of the people around me.
I want to use this golden opportunity to show my gratitude to BRAC University for providing
me with the opportunity to give me a chance. First, I would like to convey my sincere
appreciation to my academic supervisor, Mr. Faruk Bhuiyan, an assistant professor at BRAC
University, for his valuable time and support in completing my internship report. He is a
lecturer at BRAC Business School and BRAC University. The production of this report appears
to be almost impossible without his assistance and cooperation. Furthermore, a special word of
gratitude goes to my co-supervisor, who assisted me in acquiring the knowledge necessary to
continue my journey while maintaining a high level of inspiration. This report could not have
been conducted successfully without their direction. Their helpful instruction and orientation
in the right direction throughout each stage of this project were a massive help to me in finishing
the report correctly.
The staff of Reckitt Benckiser (Bangladesh) PLC, who assisted me in every stage of the
creation of this report, deserve more thanks than they will receive here because they were
helpful and kind with their expertise throughout the program. My cordial gratitude goes to
Natalia Khan, who supervised me throughout my internship. Each member of my finance team
assisted me and gave me valuable time to provide the information and sources of the
information included in this report.
My internship with Reckitt Benckiser (Bangladesh) PLC was a fantastic opportunity for
personal growth and career advancement. I gained a lot of valuable experience during my time
there. Because of this, I consider myself very lucky that I was allowed to participate. I am also
thankful that I was allowed to interact with such a beautiful variety of individuals and seasoned
professionals throughout my internship.
Lastly, I appreciate the help of everyone who had any part in my successful project completion.
Thank you.
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Executive Summary.
My internship report is titled "Financial Performance and Financial Position Analysis: A Study
on Reckitt Benckiser (Bangladesh) PLC."
The primary purpose of this report is to provide a clear vision of life at Reckitt Benckiser
Bangladesh PLC based on my five months of employment there. This report will also show a
picture of the company's financial health.
Reckitt Benckiser (Bangladesh) PLC is one of the country's most admired multinational
corporations and the dominant market leader in this FMCG.
The history of the organization and its establishment in Bangladesh are detailed in the reports.
In the report's first section, I provide a comprehensive overview of the organization, covering
its origins, goals, and guiding principles. Next, I provided a high-level overview of the
business's organizational structure.
In the second part of the report, I discussed the functions of finance and planning, the brains of
the operation. Next, the report presents a time series ratio analysis of Reckitt Benckiser's
financials. Finally, at the conclusion, the report provides a brief overview of its results and a
set of suggestions for enhancing Reckitt Benckiser in various ways.
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Table of Contents
Declaration ............................................................................................................................ 2
Letter of Transmittal.............................................................................................................. 3
Non-Disclosure Agreement ................................................................................................... 4
Acknowledgement................................................................................................................. 5
Executive Summary .............................................................................................................. 6
Table of Contents .................................................................................................................. 7
List of Figures ..................................................................................................................... 9
List of Tables ..................................................................................................................... 10
List of Acronyms................................................................................................................ 10
Chapter 1 [Introduction of the report] .............................................................................. 11
1.1 [Background Information] ................................................................................ 11
1.2 [Objectives of the Study] ................................................................................... 11
1.3 [Scope and limitations of this report] .................................................................. 12
1.4 [ Methodology] ................................................................................................. 12
1.5 [Significance of the study] ................................................................................. 14
1.6[Literature review] ............................................................................................. 15
Chapter 2 [Overview of Internship and Overview of the Company] ................................ 16
2.1 Student Information…....................................................................................... 16
2.2 Internship Information… .................................................................................. 16
2.3 Job Scope ......................................................................................................... 17
2.4 My job responsibilities and contributions… .....................................................17

2.5 My learnings and difficulties I have faced… ..................................................... 18
2.6 Observation… .................................................................................................. 18
2.7 My Recommendation… ................................................................................... 19
2.8 Overview of the Company................................................................................ 19
2.9 Reckitt Benckiser history ................................................................................ 20
2.10 Reckitt Benckiser in Bangladesh and overview… ............................................ 21
2.11 Brands… ......................................................................................................... 21
2.12 Company profile ............................................................................................. 23
2.13 Mission Visson… ........................................................................................... 23

2.14 Corporate Values… ........................................................................................ 24
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2.15 Reckis departments and employments… ........................................................ 26
2.16 Methods of Marketing ..................................................................................... 28
2.17 Financial performance and Accounting Methods ............................................ 28
2.18 Supply Service Management… ....................................................................... 29
2.19 Environmental Policy ...................................................................................... 29
2.20 Competitive and industry analysis .................................................................. 29
2.21 Strengths, Weaknesses, Opportunities, and Threats (SWOT)… ...................... 30
Chapter 3 [Project part] .......................................................................................................... 32

3.1 Introduction… ................................................................................................... 32
3.2 Objectives of this Report's Analysis,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,32
3.3 Methodology of this Ratio Analysis ..................................................................... 32
3.4 Findings and analysis .......................................................................................... 33
3.5 Ratio analysis .................................................................................................... 38
Chapter 4 : Summary, Recommendation, and conclusion… .................................................... 50
References...............................................................................................................................53
Appendix ............................................................................................................................... 55
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List of Figures
Figure 1: Reckitt Benckiser Logo ............................................................................................ 19
Figure 2: Brand names of Reckitt ............................................................................................21

Figure 3: Our purpose and compass… .....................................................................................23
Figure 4: Henchy of Reckitt Benckiser ..................................................................................25

Figure 5: Current Ratio Analysis for the year 2017- 2021… .................................................. 38
Figure 6: Quick Ratio Analysis for the year 2017- 2021…................................................... 39
Figure 7: Inventory turnover Ratio Analysis for the year 2017- 2021… ............................... 40
Figure 8: Total Asset Turnover Ratio Analysis for the year 2017- 2021… ............................ 41
Figure 9: Fixed Assets Turnover Ratio Analysis for the year 2017- 2021… .......................... 42
Figure 10: Days Sales Outstanding Ratio Analysis for the year 2017- 2021 ........................... 43
Figure 11: Debt to asset Ratio Analysis for the year 2017- 2021… ....................................... 44
Figure 12: gross profit margin Analysis for the year 2017- 2021… ........................................ 45
Figure 13: Operating profit margin Analysis for the year 2017- 2021….................................. 46
Figure 14: Net profit margin Analysis for the year 2017- 2021….......................................... 46
Figure 15: Return on Assets Analysis for the year 2017- 2021… .......................................... 47
Figure 16: Return on Equity Analysis for the year 2017- 2021… ..........................................47
Figure 17: Return on Investment Analysis for the year 2017- 2021… .................................... 48
Figure 18: Earnings per Share Analysis for the year 2017- 2021… ....................................... 49
Figure 19: Price Earnings Ratio Analysis for the year 2017- 2021…...................................... 49
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List of Tables
Table 1 [ formula of total Ratios we’ll be working with] ................................................. 31

Table 2 [Vertical balance sheet of Reckitt] ..................................................................... 33
Table 3 [Vertical income statement of Reckitt] ................................................................ 34
Table 4 [Horizontal balance sheet of Reckitt] ................................................................. 35
Table 5 [ Horizontal income statement of Reckitt] ........................................................... 37
Table 6 [List of Liquidity Ratios] .................................................................................... 38
Table 7 [List of Asset Management Ratios] .....................................................................40
Table 8 [Debt Management Ratios] ................................................................................. 43
Table 9 [list of Profitability Ratios] ................................................................................. 44
Table 10 [List of Stock Market Ratios]............................................................................ 48
Table 11 [Calculation of ratio Analysis] .......................................................................... 54
List of Acronyms
VAT- Value Added Tax

VDS - VAT Deducted at Source
TDS - Tax Deducted at Source
PLC - Public Limited Company
RB - Reckitt Benckiser
WPPF- Workers’ Profit Participation Fund
DSO - Days’ Sales Outstanding
EPS- Earnings Per Share
ROA- Return on assets
ROE – Return on Equity
ROI – return on investment
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Chapter 1
Introduction of the report
1.1 Background Information:
An internship report is a fundamental and essential part of the BBA program. Internship reports
enhance the practical knowledge and practical life experiences of a student.
I am doing my internship at Reckitt Benckiser (Bangladesh) PLC. My respective supervisor at
the organization advised me to make an internship report on "Financial Performance and
Financial Position Analysis of Reckitt Benckiser Bangladesh PLC." During my internship, I
saw how important it is for a company to have solid financial strength and shared performance,
which is considered one of the vital tasks for an organization. Therefore, to identify the core
financial strength of Reckitt, I will analyze the financial statement and prepare some charts and
graphs to better understand and compare the financial position of Reckitt Benckiser
(Bangladesh) in the industry.
1.2 Objectives of the Study:
Broad objective:
The broad objective of this report is to analyze the Financial Performance of Reckitt Benckiser
(Bangladesh).
Specific objective
 To analyze the performance of the company over the years.

 To comprehend Reckitt's ability to generate profits based on their annual sales.
 To assess Reckitt's ability to meet debt and the efficiency of the firm's assets to
determine borrowing capacity
 To analyze its share performance in the DSE to describe its core financial strength.
 To provide information on how the company conducts finance and planning activities.
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1.3 Scope & Limitations of the report
The study details the many well-known products that Reckitt Benckiser Bangladesh PLC
manufactured. A detailed examination of the company's financial statements is included as
well. This report isn't complete without a thorough analysis and assessment of Reckitt
Benckiser's business and financial results. Reckitt Benckiser's management can use the findings
of this study to evaluate and appraise the entity's operations. After then, the company's
leadership can formulate and implement new strategies. The result will be an improvement in
the entity's present performance.
It was challenging to learn about the company's central financial system as there was a lack of
information and opportunities, and the most important barrier was time limitation.
Nevertheless, the report has successfully served its goal, even though many company details
have been kept secret.
1.4 Methodology
A researcher can use a variety of information sources for academic research purposes. But I
was able to finish my report by using both first-hand information, like what I saw and heard in
other offices, and second-hand information, like websites and the company's annual report.
First, I found out about the organization's policies, organizational structure, and board of
directors by talking to other employees and researching the company using its annual report
and website. This section is finished with my observations and what I've learned from talking
to my colleagues. I will give an overview of their different departments and how they discuss
their roles at Reckitt. Secondary data is used to verify the report and make it useful. This report's
financial information came from the company's annual reports over time (2017–2021). The
public can find these annual reports on the company's website. The company's income
statement, balance sheet, and other financial statements are used to determine its finances.
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Identify Data Sources
Select Topic and Collect Data
Do the calculation
Classify, Analyze and Present Data
Interpretations and comparison
Final Report Preparation
(Flowchart for methods of data collection
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1.5 Significance of the Study
An internship is a very important part of a student's education. This internship program allowed
me to work in one of the best corporate environments and helped me learn a lot about how a
pioneer in the FMCG industry works. Reckitt's fast-paced work environment has made me
more confident and better at communicating. I've also learned how a company's costs work
from beginning to end.
Through this internship report, we will see how well Reckitt Benckiser is doing in the business
world and how well they are doing overall. This study will give a detailed overview of Reckitt
Benckiser by looking at its financial statements, liquidity, activity, debt ratios, and profitability
ratios. It will also give a lot of information about its well-known brands. The main objective of
this report was to understand how ratio analysis and financial statements work on a basic level.
The financial statements of a company make it easy to see immediately how it is doing
financially. These statements show information about the company's operations, performance,
and cash flow. Financial statements are important for any business because they show how
much a company makes, how much it spends, how profitable it is, and how much debt it has.
It is important to know how much money an organization has. The shareholders put their money
into a business that is not their own, so they don't know what goes on inside the business. Financial
statements are very important because through them we can find out how much revenue a
company makes, how much it spends, how profitable it is, and how much debt it has.
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1.6 Literature review
Through a company's financial statements, we can easily investigate its financial performance
analysis. The goal is to figure out how the company makes money (or loses money) and how
it spends, invests, and uses its money in general. Performance analysis looks at a company's
performance during a certain time, usually the most recent quarter or year. Financial
performance is a measurement of how well a company can use the assets of its main business
to bring in money. It is also a general way to measure how well a company has done over a
certain period and can be used to compare it to other companies in the same industry.
This paper looks at the performance and standing of a leading FMCG company by looking at
Reckitt Benckiser's financial statements from 2017 to 2021.
One of the biggest parts of Bangladesh's economy is the fast-moving consumer goods (FMCG)
sector. In the last few years, Bangladesh's fast-moving consumer goods (FMCG) industry has
grown a lot. The market has been tough for the FMCG industry in the past few years. In some
categories, brands that used to be popular are no longer available or are stuck between category
leaders and cheaper brands (Ullah & Prince, 2012). Reckitt Benckiser (Bangladesh) has been
doing a little better than its main competitors in FMCG, COVID and PDMA, as they sell mostly
hygienic products. However, it is still behind its competitors, with less consistency in its market
growth. RB must increase its promotional efforts to increase market share. Rb got the highest
profit in the years 2020 and 2021 as the pandemic made everyone concerned about their health,
but its sales performance isn't consistent. To close the performance gaps, RB needs to pay close
attention to the holes that keep its products from reaching their full potential and spend a lot of
money on promotional activities. RB can improve its overall performance by taking the right
steps at the correct time. (Smith, G. (2012).
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Chapter-2
Overview of Internship and Overview of the Company
2.1 Student Information

Name: Pritu Bhowmick
Student ID: 18104037
Program: Bachelor’s in business administration
Major: Accounting,
Minor: Finance
2.2 Internship Information
2.2.1 Company Information
Company Name: Reckitt Benckiser (Bangladesh) PLC

Department: Finance
Team: Core Finance
Address: The Glass House, 9th & 10th Floors, Plot-2, Block-SE (B),
38 Gulshan Avenue, Dhaka1212.
Period: Five months.
2.2.2 Supervisor Information
● Name: Natalia Sharmin Khan

● Post: Senior Officer- (Project Lead & Finance Analyst)
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2.3 Job Scope
I started working as an intern in my company's finance department, which is located on the 9th
floor of Gulshan Glasshouse. My employment has been a source of satisfaction for me from
day one. It is indeed a great pleasure to say that the Core Finance team at Reckitt Benckiser
(Bangladesh) PLC treated me as more than just an intern; they valued my contributions to the
team and the company. There is a wide range of responsibilities handled by the core financial
team. So that I may learn about and participate in all aspects of the Core Economic Team's
operations, our team leader and company secretary have divided my responsibilities among
three supervisors, one of whom is the head supervisor.
2.4 My job responsibilities and contributions
A significant part of my internship at Reckitt Benckiser (Bangladesh) PL Involved assisting

the Core Finance team. During my internship, I was responsible for a wide range of duties that
ultimately benefited the organization. Because of the company's size, Reckitt Benckiser
(Bangladesh) PLC receives monthly deliveries from a vast array of suppliers. Working with
the Core Finance group, I was responsible for issuing VDS and TDS certificates to our
suppliers. Part of my job description also included working with the AMC consultant the
company had hired to assist with VAT and tax certificate creation from the start, per my
supervisor's directions. In addition, I was responsible for processing vendor invoices and
obtaining necessary approvals from senior staff. Since the office had been closed for so long
because of the epidemic, there was a tremendous backlog of work when I arrived for my
internship. My superiors appreciated having an intern because it allowed them to delegate me
more menial jobs so they could focus on more pressing matters. I did everything in my power
to quickly master the assignments provided to me and lighten my team's workload.
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2.5 My learnings and difficulties I have faced
My internship with Reckitt Benckiser (Bangladesh) PLC has greatly benefited my professional
development. My time as an intern gave me insight into the inner workings of a multinational
corporation. This internship gave me a hands-on understanding of how a business's financial
department operates. In addition, I was able to learn about and acclimatize to the culture of a
multinational corporation. Having the chance to learn from three different people in charge of
various aspects of the Core Finance team was a significant benefit of working under three
distinct supervisors. I learned about the ins and outs of the financial department's VAT & Tax,
Payables, Legal, and Compliance operations. In addition, my superiors assigned me specific
special projects that went beyond the scope of my regular work, and I was able to finish them
successfully, providing me with valuable experience that will motivate me in the coming years.
My time at Reckitt Benckiser (Bangladesh) PLC was a career highlight. This internship gave
me an excellent opportunity to gain experience in various areas. The management team was
friendly and helpful as they directed me through the procedure. My only challenge during that
period was juggling multiple tasks at once. There were sometimes conflicts between my duties
because I had to report to three managers. The number of employees also wasn't sufficient to
deal with the volume of work. Finally, it could become tedious and repetitive to enter a large
amount of data or handle many bills.
2.6 Observation
A career with Reckitt Benckiser Bangladesh (PLC) is gratifying. The staff here is diligent and
intelligent. Insightful information was gained from them. The following are some of the things
I've noticed about the company's work environment:
 Friendly and helpful coworkers create a positive work environment. And workers are
enthusiastic and focused on their tasks. The best thing I have found about them is that
no one in my team leaves their desk without an absolute necessity.
 Though the office is closed on Saturdays, there are periods when it is open to handle
peak work, and if work is excessive, every team member is required to come on
weekdays.
 . The regular workday consists of 9 a.m.–6 p.m. It's not uncommon for workers to stay
later than that to get everything done on their to-do lists. And my team has worked
mostly lately because of the volume of work.
 The duties specified by GM are followed and completed per each person's allocated
responsibilities.
 Everyone is accommodating towards each other.
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2.7 My recommendation
Reckitt Benckiser's internship program was above average, although there was room for
improvement. Before bringing on an intern, it's essential to have a clear vision of what the
company wants to accomplish together. The intern's potential won't be realized if this doesn't
happen. Furthermore, the internship's expected duties and obligations should be specified.
While gaining valuable experience in the field, the intern's daily working hours should be stated
explicitly and strictly enforced so that the intern of the department does not feel exploited by
working overtime.
2.8 Overview of the Company
Figure 1: Reckitt Benckiser Logo
2.9 Reckitt Benckiser history
Reckitt Benckiser (Bangladesh) PLC is a multinational consumer products firm in Slough,

England. The corporation is a British public limited company that produces health, hygiene,
and household products. The British firm Reckitt & Colman PLC and the Dutch company
Benckiser N.V. merged to form the corporation in March 1999. This resulted in the formation
of the company we know today. The business has a rich history dating back over two centuries.
The year 1819 sees the construction of the Maud Foster mill by Thomas and Isaac Reckitt.
On the other hand, Johann A. Benckiser established Benckiser in 1823 as an industrial chemical
company in Germany. Benckiser was initially based there. Reckitt & Sons amalgamated with
J. & J. Colman in 1938, resulting in the formation of Reckitt & Colman in Germany. Benckiser
was initially based there. Reckitt & Sons amalgamated with J. & J. Colman in 1938, resulting
in the formation of Reckitt & Colman. Reckitt combined with Benckiser in 1999 to become the
company Reckitt Benckiser, half a century after it had merged with J & J Colman to form the
company J & J Colman.
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2.10 Reckitt Benckiser in Bangladesh and overview
Reckitt Benckiser (Bangladesh) Plc is one of the most well-known multinational corporations
doing business in Bangladesh. The establishment of the company's presence in the nation
predates the country's independence. On April 15, 1961, Reckitt Benckiser was formally
established within the borders of Bangladesh. The business was initially established in this
region under Robinson Foods (E.P.) Limited. The only product that the company produced at
the time was Robinson's Patent Barley. After Bangladesh attained its autonomy from Pakistan,
the name of the company was modified from Robinson's Food (Pakistan) Limited to Robinson's
Food (Bangladesh) Limited. The company changed its name again in 1978 to Robinson's
(Bangladesh) Limited. Because of the merger that took place in 1985 between Reckitt and J. &
J. Colman, the company's name was once again altered to Reckitt & Colman (Bangladesh)
Limited. Eventually, on November 9, 2000, the company was renamed Reckitt Benckiser
(Bangladesh) Limited because of the acquisition that took place on December 3, 1999, between
Reckitt & Colman PLC (U.K.) and Benckiser N.V. The combination took place with both
Reckitt & Colman PLC (U.K.) and Benckiser N.V. (Netherlands). Reckitt Benckiser
(Bangladesh) Limited changed its ownership from a limited to a public limited company in
June 2022. It is now Reckitt Benckiser Bangladesh PLC.
Since the company's beginning, it has experienced growth thanks to the strong image and brand
equity built up through the years. The company's primary focus remains on providing definitive
answers to the challenges faced by customers. To this end, it maintains a commitment to the
ongoing development of existing products, the launch of new ones, the cultivation of new
media opportunities, the enhancement of communication systems, the expansion of distribution
networks, and the development of novel concepts. And all these tasks are carried out by a group
of exceptionally skilled and talented workers who approach their work with a proactive
mindset. As a result, distributors play a significant role in Reckitt Benckiser (Bangladesh)
PLC's overall revenue generation.
Even though the company has a strong management team to ensure the highest quality
distribution, these managers have no direct influence over the company's sales. The distribution
channel is operating well thanks to a robust strategic marketing plan and the support coming
from other departments. However, if they adhere to the practices suggested in the section
labeled "suggestions," they will be able to improve the effectiveness of their distribution and
see an increase in the number of sales they make each day.
The date of incorporation for the company was April 15, 1961, and it took place in the territory
that is now known as Bangladesh.
Robinson Foods (E.P.) Limited was the predecessor to Reckitt Benckiser (Bangladesh) PLC
when it first began doing business in Bangladesh in 1962. During that period, the sole item that
was produced was Robinson's Patent Barley.
However, to fulfill the demands of the customer, goods such as barley, cherry blossoms, and
robin, among others, are being brought in from other countries.
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After 1971, the corporation began gradually building its own facility and stopped importing
any other products. Harpic, Dettol, Robin Blue, Mortein Liquid, Mortein Aerosol, and a few
other common household plants began to take root and grow over time. under joint-venture
agreements. New items such as Mortein Coil, Dettol Soap, and Robin Fabric Products Care
have been released.
Reckitt Benckiser has a presence in each of the worldwide core product categories discussed
earlier. On the other hand, not every product that falls under each category can be found in the
Bangladesh market.
The tastes and preferences of Bangladeshi consumers are considered while selecting which
international brands from various categories to offer them. This corporation operates primarily
according to the principles of a globally local strategy, and its marketing methods are backed
up by locally established patterns of customer behavior in addition to global plans.
Even though Reckitt is present in all the primary product categories, the most important
contributions to N.R. are made by pest control, lavatory care, antiseptics, and analgesics.
2.11 Brands:
Figure 2: Brand names of Reckitt
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Three primary classifications may be applied to the Reckitt Benckiser brands. These
are things related to health, cleanliness, and the home. Recently, the corporation
expanded its product line to include a new category that they call "nutrition." As a result,
every single one of RB's brands is in a one-of-a-kind position from which it caneffect
positive change in the globe. Individuals, families, and communities all have an easier
time living cleaner and healthier lives due to the ground-breaking products developed
by RB. The following is a list of RB's several brand names:
1. Dettol
2. Veet
3. Air Wick
4. Durex
5. Calgon
6. Cleanasil
7. Enfo
8. Cillit Bang
9. Finish
10. Gaviscon
11. Lysol
12. Harpic
13. Woo lite
14. Vanish
15. Scholl
16. Stprepsils
17. Nurofen
18. Nutramigen
19. Mucinex
20. Mortein
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2.12 Company profile
Reckitt Benckiser, which uses the slogan "Protect, heal, and nurture," is the leading company
in the FMCG industry worldwide. a company that manufactures cleaning products for the
home; this one is a genuine worldwide corporation with no single country of origin. It is one
of the market leaders in Bangladesh and has a dominant culture. The company works primarily
for the government. Management at Reckitt Benckiser is very mobile and adaptable. Their
exceptional products are focused on health, cleanliness, and the home. Performances,
managerial strategy, and the firm's belief that integrating brilliant people with varied
backgrounds will produce better results Reckitt has a true competitive edge because of their
professional and cultural experiences in the context of action-oriented terms. Benckiser
concentrates on the five product categories listed above and is highly serious about upholding
its reputation. Reckitt has standards for the quality of its goods.
They operate their business with a specific goal in mind: to guarantee that the group's
management, as well as all its employees, have a solid comprehension of the group's beliefs
and ethical standards, which the company is committed to maintaining.
2.13 Mission and vision
This company, like all other companies, has set its vision and goal, and it is followed by this
company as well. Reckitt Benckiser is driven by a desire to provide superior solutions to the
company's consumers and customers. They remarked that a world in which people are happier
and healthier and live longer is the aim. And how they want to accomplish this is by providing
individuals with cutting-edge solutions that will make their lives and homes happier and
healthier. The vision encompasses the entire organization and articulates Reckitt Benckiser's
purpose and value as a business. Dedication to product quality and safety, customer service,
innovative products, worldwide expansion, and corporate social responsibility.
2.14 Corporate Values:

"At RB, we desire to see everyone enjoy greater health and longer lives." According to Rakesh
Kapoor (Chief Executive Officer).
23
2.14.1 Corporate Values:
"At RB, we desire to see everyone enjoy greater health and longer lives." According to Rakesh
Kapoor (Chief Executive Officer).
2.14.2 Our Purpose:

We exist to protect, heal, and nurture in the relentless pursuit of a cleaner and healthier world.
We fearlessly innovate in this pursuit across our Hygiene, Health, and Nutrition businesses.
2.14.3 Our Fight:

We have a fight on our hands. A fight to make access to the highest quality hygiene, wellness
and nourishment a right and not a privilege. Information and products that promote good health
and hygiene are daily necessities for us all.
2.14.4 Our Compass
Our compass guides us. We use it to navigate the way we need to behave as individuals, as
teams, and as a company. Our culture builds on what has made us successful; and equips us for
sustainable growth so that we may continue to protect, heal, and nurture the generations to
come.
2.15 Reckis departments and employments
2.15.1 Departments
There are three primary divisions inside the organization. And these segments are
1. Finance
2. Marketing
3. Human Resources
24
The finance departments also have three segments, and these 3 departments works individually
as a team. the departments are
1. Commercial Finance
2. Core Finance
3. Supply Finance
2.15.2 Board of Directors:
Reckitt Benckiser (Bangladesh) PLC's board of directors consists of
1. Managing director
2. A chairperson,
3. four directors,
4. two independent members.
5. Company secretary
2.15.3 Hierarchy
Figure 4 Henchy of Reckitt Benckiser
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2.15.4 Effective Methods of Human Resources
The HR division's top priority is staffing the organization with enough competent people to
keep operations running smoothly.
Below is a list of what the HR department is responsible for:
1. The Training and Improvement Process

2. The Process of Hiring New Employees
3. Employee interactions.
4. upholding the company's ethos
5. administration of compensation and perks
6. Manage workplace safety measures and disciplinary actions
Employees' needs and well-being are top priorities at Reckitt Benckiser (Bangladesh) PLC.
The workplace is kept very secure and clean by the organization. The organization also has
high requirements when it comes to sustaining the company culture.
2.15 Methods of Marketing
The product offerings from Reckitt Benckiser (Bangladesh) Plc are extensive. The firm markets
and distributes a wide range of items in Bangladesh. The business uses digital media and
marketing platforms for product promotion.
1. The internal marketing team's primary responsibilities include Brand definition and
management.
2. Campaigning for a wide range of companies in marketing
3. Creating internal communications.
4. Acting as a media liaison.
5. Gathering market and customer data.
6. Managing third-party service providers and advertising firms
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2.17 Financial performance and Accounting Methods
The organization's core functions are in the finance division. The company's financial
resources, including money and the people who handle it, as well as the future use of
those resources, are the purview of the finance department. The finance team is
responsible for ensuring sound financial management and control. Reckitt Benckiser
(Bangladesh) PLC is a massive corporation with a vast network of external suppliers
serving its many divisions. These suppliers range from marketing agencies and human
resources consultancies to chartered accounting practices and raw material distributors.
The company's internal finance team manages all payments to and receipts from
external suppliers.
Here are a few more of the finance division's responsibilities:
1. Accurate record-keeping is essential for effective cash flow management.
2. Budgeting and forecasting Tax and Value-Added Tax Administration
3. Investment management for the company
4. Reporting and analysis of financial data
2.18 Supply Service Management
The supply services are critical to the success of the company's production process. The
company's supply services group handles all aspects of the supply chain, from the
procurement of raw materials to the final stages of production and distribution.
It is the responsibility of supply services to do the following: Monitor the flow of raw
materials.
Communicating with Raw Material Providers
When making a purchase, it is important to predict how much merchandise will be
needed.
Maintaining effective industrial resource management, consistent logistics, and asteady
stream of information.
2.19 Environmental Policy

To this purpose, Reckitt pledges to plan and carry out all of its operations sustainably,
focusing on maximizing the efficiency with which resources are used and minimizing
the likelihood of any adverse effects on the natural world.
The company has adopted the following environmental policies:
to ensure appropriate treatment of all effluents before release and to save natural
resources like water and energy for sustainable development and environmentally safe
procedures.
27
Maintain open lines of contact with stakeholders inside and outside the organization
regarding environmental concerns.
Raise the profile of environmental concerns among our staff and external partners.
Maintain technological innovation to guarantee eco-friendly trash disposal.
2.20 Competitive and industry analysis
The Reckitt Benckiser Group operates in over 60 countries, with product distribution
in nearly 200 more. As a business, this one has already made its impact on the
international scene. The firm is well-respected not only internationally but also in
Bangladesh. Therefore, the firm has a great deal of strength and can make good use of
a great deal of opportunity. However, the worldwide nature of the business means that
the company must compete with other global giants if it is to keep its position. Below
is a SWOT analysis of Reckitt Benckiser, outlining the company's current strengths,
weaknesses, opportunities, and threats:
2.21 Strengths, Weaknesses, Opportunities, and Threats (SWOT)
Reckitt Benckiser's SWOT is broken out into detail, along with the company's
opportunities and threats. One of Bangladesh's most successful businesses is Reckitt.
Because of this, a SWOT analysis should be conducted. The SWOT analysis is a
strategic method of analyzing the positives and negatives of a company. Factors within
an organization influence its strengths and shortcomings. Each company faces
opportunities and threats that are beyond its control. What follows is a brief overview
of Reckitt Benckiser's SWOT analysis findings:
2.21.1 Strengths
 Has a good brand value of promoting health and wellness to its clientele.
 Has an efficient distribution and supply system.
 Featuring an impressive array of reliable items and labels.
 Provides room for employee initiative, fostering creativity and new ideas.
 Possess a highly trained work force.
 Has a variety of products and a large business.
28
2.21.2 Weaknesses
 There should be more specialization at distribution and service hubs.

 Continues to charge excessive prices, resulting in dwindling sales.
 Customers lack knowledge about the product range.
 Fewer investors will be interested in a company with a low profit margin.
 Extreme reliance on well-known brands, which stifles innovation for new
products.
 A recent event in South Korea has harmed the company's reputation.
2.21.3 Opportunities
 The need for FMCGs is on the rise.

 Has a ton of expansion room in emerging markets.
 Capable of engaging in mergers and acquisitions to expand operations.
 Possibility of expanding into other markets, hence boosting earnings.
 More than 60 states around the world benefit from it.
 Boosting Economic Growth and Market Activity.
2.21.4 Threats
 Other Recognizable Consumer-Goods Companies

 Hygienic Essential items and equipment are subject to strict government
guidelines.
 The level of rivalry in the sector is rising steadily.
 Product demand may fall during an economic downturn.
 Instability in product demand is more pronounced in developing economies.
 Products that are both more affordable and of higher quality in other brands.
29
Chapter 3
Project Part: "Financial Performance and Financial Position Analysis"
3.1 Introduction
Reckitt Benckiser Bangladesh PLC's (the company's) financial performance is the

primary focus of this project. The purpose of this report is to examine and analyze the
company's financial records. Ratio analysis is a useful method for assessing the
strengths and weaknesses of a business or organization. Understanding the profitability
position and the strengths and weaknesses of a firm is essential, which is why ratio
analysis is so important. The following will be calculated from the financial statements:
1. Vertical Balance Sheet

2. Vertical income statement
3. Horizontal balance sheet
4. Horizontal income statements
5. Liquidity Ratio
6. Asset management ratios
7. Debt management ratios
8. Profitability Ratio
9. Stock market ratios
3.2. Objectives of this Report's Analysis
 Analyze Reckitt Benckiser Bangladesh PLC's financial strength and financial

position.
 by analyzing financial statements, liquidity, activity, debt ratios, and
profitability ratios of Reckitt Benckiser
 Analyze its share performance in the DSE to describe its core financial strength.
 Provide information on how the finance and planning activities are conducted
by the Company.
3.3 Methodology of this Ratio Analysis
This study is comprehensive and credible because it relies solely on secondary sources.
This report's financial information comes from the firm's 2018–2021 annual reports.
The company's yearly reports are posted on the company website for easy access by the
public. In addition, financial statements, including the balance sheet and income
statement, are mined for the firm's economic data.
30
Table number: 1
Here are the ratios we'll be working for Year 2017- 2021
Liquidity Ratios
Current Assets / current
Current Ratio liabilities
(Current Assets –
Acid Test Ratio / Quick Inventory) / Current
Ratio Liabilities
Efficiency Ratio/ Asset

Management Ratio
Inventory Turnover Ratio Sales / Inventory
Total Assets Turnover Sales / Total Assets

Ratio
Fixed Asset Turnover Sales / Fixed Assets

Ratio
Accounts Receivables /
Days Sales Outstanding (Sales / 360)
Debt Management Ratio
Debt to Asset Ratio Total Debts / Total Assets
Profitability Ratio
Gross Profit Margin Gross Profit / Sales
Operating Profit Margin Earnings Before Interest

and Tax / Sales
Net Profit Margin Net Profit after Tax / Sales
31
Return on Asset Net Profit after Tax / Total
Asset
Return on Equity Profit after Tax / Total

Common Equity
Return on Investment Net Profit after Tax / Total

Investment
Stock Market Ratio
Earnings per Share Net Profit after Tax /

Number of Common
Shares Outstanding
Price to Earnings Ratio Market Price per Share /

Earnings per Share
32
3.4 Findings and analysis
Table number 2:
Vertical balance sheet of Reckitt Benckiser (Bangladesh) PLC (December 31, 2021)
2018 2019 2020 2021

Assets
Property plant and 22.82% 21.36% 16.89% 18.63%
equipment
Right of use assets (ROU 3.57% 1.61% 5.46% 5.07%
Deferred tax assets 0.84% 0.53% 0.89% o.36%
Non-current assets 23.65% 21.89% 23.24% 24.05%
inventories 16.62% 18.92% 19.16% 19.07%

Trade and other 4.68% 1.84% 0.79% 2.25%
receivables
Advance deposits and 2.64% 1.11% 1.66% 1.49%
payments
Cash and cash equivalents 52.41% 56.24% 55.15% 53.13%
Current assets 76.35% 78.11% 76.76% 75.95%
Total assets 100.00% 100.00% 100.00% 100.00%
Equity
Share capital 2.61% 1.98% 1.46% 1.54%
Retained earnings 18.67% 26.28% 23.44% 29.38%
Total equity 21.28% 28.26% 24.90% 30.92%
Liabilities
Employee benefits 5.26% 5.80% 5.28% 2.30%
Lease liabilities 0.00% 0.53% 4.60% 5.01%
Non- current liabilities 5.26% 6.34% 9.88% 7.30%
Trade and other payables 65.66% 56.75% 56.65% 54.33%

Lease liabilities 0.00% 0.68% 0.56% 0.33%
Current tax liabilities 7.21% 7.55% 6.77% 6.11%
Unclaimed dividend 0.38% 0.04% 0.27% 0.10%
Current liabilities 73.46% 65.40% 65.22% 61.77%
Total liabilities 78.72% 71.74% 75.10% 69.08%
Total equity and 100.00% 100.00% 100.00% 100.00%
liabilities
Source: Reckitt Benckiser Annual report 2021, p. 25
33
Interpretations
Vertical analysis, also known as common-size analysis, is a useful tool for assessing
business health. Each account’s percentage of Reckitt Benckiser (Bangladesh) P’C's
total assets is shown in the vertical balance sheet. In this table, we can see the drastic
change in ratios of Reckitt Benckiser’s assets and liabilities and get a clear vision of
how much market position this company holds. There were ups and down in company’s'
total current and noncurrent assets. Where the company shows steady growth in
company equity from the year 2018 to 2021, which is positive for the company, and the
liability rate also decreases over the year, which is also a good sign.
Table 3
Vertical income statement of Reckitt Benckiser Bangladesh plc (31 December 2021)
2018 2019 2020 2021

Revenue 100.00% 100.00% 100.00% 100.00%
Cost of sales -49.29% -45.52% -43.45% -45.42%
Gross profit 50.71% 54.48% 56.55% 54.58%
Other income 0.11% 0.02% 0.01% 0.05%
Operation expense -35.94% -33.21% -36.27% 31.29%
Impairment loss reversal 0.02% 0.01% 0.00% 0.00%
on trade receivables
Operation Profit 14.89% 21.31% 20.29% 23.34%
Finance income 0.60% 1.12% 1.14% 0.29%
Finance costs 0.00% -0.05% -0.21% -0.23%
Profit before 15.50% 22.38% 21.22% 23.40%
contribution to WPPF
Contribution to WPPA -0.74% -1.07% -1.01% -1.11%
Profit before tax 14.76% 21.32% 20.21% 23.40%
Income tax expense -5.44% -6.31% -6.35% -5.94%
Profit for the year 9.31% 15.01% 13.85% 16.35%
Other comprehensive 0.00% 0.00% 0.00% 0.00%
income
Remeasurement of -0.24% -0.01% -0.36% -0.16%
defined benefit liability
Related tax 0.06% 0.00% 0.09% 0.04%
Other comprehensive -0.18% -0.01% -0.27% -0.13%
income/loss for the year,
Net of tax
Total comprehensive 9.13% 15.00% 13.58% 16.22%
income for the year
EPS 0.0000020% 0.0000032% 0.0000029% 0.0000035%
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Interpretations
On a vertical income statement, the sales or revenues figure are assumed to be 100%,
and all other components are expressed as a percentage of sales. By dividing Reckitt
Benckiser (Bangladesh) P’C's sales or revenue by each account’s respective total, the
Vertical Income Statement provides a percentage for each line item. From the vertical
income statement analysis, we can see the company had rapid growth in terms of sales
and profits through the year 2018- 2021. The increase in profit is very significant, and
in the year 2021, Reckitt earned the maximum profit.
Table 4
Horizontal balance sheet of Reckitt Benckiser Bangladesh plc (31 December 2021)
2018 2019 2020 2021

Assets
Property plant and 123.76% 152.45% 164.05% 170.96%
equipment
Right of use assets (ROU 100.00% -40.64% 173.43% 139.91%
Deferred tax assets 85.79% 71.31% 162.43% 61.48%
Non-current assets 121.85% 148.37% 214.32% 209.63%
inventories 109.61% 164.21% 226.27% 212.88%

Trade and other 65.06% 33.66% 19.55% 52.90%
receivables
Advance deposits and 71.96% 39.93% 81.17% 68.78%
payments
Cash and cash equivalents 132.97% 187.77% 250.46% 228.06%
Current assets 116.68% 157.09% 209.98% 196.36%
Total assets 117.86% 155.09% 210.97% 199.40%
Equity
Share capital 100.00% 100.00% 100.00% 100.00%
Retained earnings 131.96% 244.37% 296.52% 351.24%
Total equity 126.99% 2021.91% 265.95% 312.15%
Liabilities
Lease liabilities 100.00% 1171.90% 1205.06%
Non- current liabilities 108.54% 172.08% 365.15% 255.03%
Trade and other payables 113.99% 129.64% 176.03% 159.58%

35
Lease liabilities 100.00% 112.26% 62.17%
Current tax liabilities 146.52% 201.82% 246.26% 209.96%
Unclaimed dividend 73.71% 9.58% 94.11% 32.40%
Current liabilities 116.16% 136.08% 184.59% 165.25%
Total liabilities 115.61% 138.65% 197.44% 171.64%
Total equity and 117.86% 155.09% 210.97% 199.40%
liabilities
Interpretation
We can revise a company’s financial statements of multiple years using horizontal

analysis, and the percentage growth of a company over the year is shown here. A
company’s development and financial standing can be compared to those of rivals
through a horizontal analysis. Horizontal analysis also susceptible to manipulation since
it allows for the selection of periods of bad performance from the past to be used as a
comparator, so making the current time look better.
The table shows there is clearly a growth in companies profit net assets and equity
which indicated the company is expanding its market and the total number of their
business over the last 4 years.
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Table 5
Horizontal income statement of Reckitt Benckiser Bangladesh plc (31 December 2021)
2018 2019 2020 2021

Revenue 97.06% 112.44% 145.35% 134.67%
Cost of sales 102.39% 109.54% 13%5.17 130.92%
Gross profit 92.40% 114.99% 154.29% 137.97%
Other income 100.00% 25.51% 14.61% 64.68%
Operation expense 91.75% 98.19% 138.64% 110.82%
Impairment loss reversal 100.00% 78.82% 16.10% -6.78%
on trade receivables
Operation Profit 94.82% 157.15% 193.42% 206.12%
Finance income 205.39% 445.19% 581.43% 139.01%
Finance costs 100.00% 511.62% 515.60%
Profit before contribution 96.84% 162.04% 198.57% 202.93%
to WPPF
Contribution to WPPA 96.84% 162.04% 198.57% 202.93%
Profit before tax 96.84% 162.04% 198.57% 202.93%
Income tax expense 119.82% 160.88% 209.49% 181.32%
Profit for the year 87.08% 162.54% 193.93% 212.11%
income
Remeasurement of 132.41% 4.60% 296.78% 124.43%
defined benefit liability
Related tax 100.00% 3.48% 224.14% 84.58%
income/loss for the year,
Net of tax
Total comprehensive 86.87% 165.31% 193.44% 214.12%
income for the year
EPS 87.09% 162.54% 193.95% 212.12%
Interpretation
By comparing precise financial data from one accounting period with that of other periods,
horizontal analysis provides insight into financial statements. Time series analysis is a type of
horizontal analysis that looks at data trends and shifts through time. The horizontal comparison
of enterprises enables the identification of growth trends, cyclicality, etc. Reckitt A horizontal
examination reveals that, except for 2018, Reckitt's revenue, gross profit, and EBIT were flat.
The above table represents the total income condition from the years 2018–2021 and it is
obvious that the company is doing quite well over the last 4 years and the net profit and earnings
per share have increased by almost 200%.
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3.5 Ratio analysis
Liquidity Ratios
To gauge whether a debtor can satisfy their present debt responsibilities without resorting to
additional borrowing, financial indicators known a“ "liquidity rati”s" are used. Indicators like
the current ratio, quick ratio, and operating cash flow ratio are used to determine a compa’y's
liquidity and thus its safety margin. Ratio of Liquidity The purpose of calculating financial
ratios is to assess how well a company can satisfy its immediate cash obligations. These ratios
try to ascertain whether a company can avoid financial difficulties soon. The Current Ratio and
the Quick Ratio are the two most crucial measures of liquidity (Besley & Brigham, 2007).
Ratio 2017 2018 2019 2020 2021

Liquidity Ratios
Current Ratio 1.035 1.039 1.194 1.170 1.230
Quick Ratio 0.795 0.813 0.905 0.884 0.921

Table 6: List of Liquidity Ratios
Current Ratio
To determine the Current Ratio, Current Assets must be divided by Current Liabilities. One
common measure of liquidity is the current ratio. It reveals whether the corporation has the
current assets to meet its near-term debts. It is a helpful predictor of future cash flow since it
evaluates a company’s capacity to satisfy its short-term liabilities using its short-term
resources. The timeliness of cash flows is not considered by the current ratio, which is its main
flaw.
Reckitt's current assets in 2017 were 1.035 of current liabilities, and the rate in 2021 was
1.230%. This is their best current ratio for the years included in the analysis (2017–2021) in
2021, Reckitt’s current ratio has improved from year 2017 to 2021. Even though the company
is expanding, the company does not have sufficient liquid cash to fully fulfill its current debts.
Current Ratio
1.230
1.250 1.194
1.200 1.170
1.150
1.100
1.035 1.039
1.050
1.000
0.950
0.900
2017 2018 2019 2020 2021
Figure 5 Current Ratio Analysis for the year 2017- 2021
38
Quick Ratio
The Quick Ratio takes into account the fact that many businesses have illiquid Inventories. If
the company needed to sell these stocks quickly to fulfill an order, it may have problems doing
so and would probably need to do so at a significant discount from the ite’s' realistic market
value (Besley & Brigham, 2007). A stricter measure of a compa’y's ability to meet its short-
term obligations without liquidating its assets. This is th“ "acid te”t" since it evaluates a
corporation based solely on its largest liquid assets (cash and short-term investments, not
inventories). A compa’y's capacity to satisfy its short-term liabilities using its most available
funds can be measured using a metric known as the quick ratio.
The quick ratio of Reckitt Benckiser has increased from 2017 to 2021, but ’t's important to
remember that this i’n't necessarily indicative of its financial health as a whole because large
investments made in anticipation of future expansion or the sale of unused assets can have a
dramatic impact on its liquidity very quickly. 2021 is their best year ever for current ratios. The
Quick Ratio for Reckitt Benckiser (Bangladesh) Plc in 2021 was 0.921, meaning that Current
Liabilities were covering Assets by that amount. During the years (2017-2021), this was their
higest . This ratio. In 2017, the percentage was lower than typical for the industry which was
only 0.795.
Quick Ratio
0.950 0.921
0.905
0.900 0.884
0.850
0.813
0.795
0.800
0.750
0.700
2017 2018 2019 2020 2021
Figure 6 Quick Ratio Analysis for the year 2017- 2021
Asset Management Ratios

The purpose of asset management ratios is to evaluate the effectiveness of a company’s
management of its assets in closing deals. These statistics can shed light on topics like the
effectiveness of the company’s credit strategy and stock administration, to name a couple.
Activity or Turnover Ratios are another name for these measurements (Besley & Brigham,
2007).
39
Ratio 2017 2018 2019 2020 2021
Asset Management
Ratios
Inventory Turnover 13.357 11.828 9.146 8.581 8.450
Total Assets Turnover 2.386 1.965 1.730 1.633 1.612
Fixed Assets Turnover 10.984 8.614 8.101 7.074 8.652
Day’s Sales
12.797 8.577 3.831 1.721 5.027
Outstanding
Table 7 List of Asset Management Ratios
Inventory Turnover Ratio:
Inventory turnover is a financial ratio that measures how frequently a business must get new
stock to keep up with sales. This is indicative of effective manufacturing and supply chain
management. When the ratio is high, goods are moving swiftly and there is little slack stock or
inventory shortage
It's a sign of stockpiling, obsolescence, or sales problems if the ratio is lower than the average.
So far in 2021, Reckitt Benckiser (Bangladesh) Plc has turned over their inventory 9.146 times.
The company's inventory turnover ratio in 2017 was an impressive 13.357. In 2021, the ratio
was higher than typical for the industry.
Stock turnover at Reckitt has slowed from 2017 to 2021, and a low inventory turnover ratio is
an indicator of insufficient liquidity, overstocking, and maybe obsolescence, as well as poor
sales performance or surplus inventory.
Inventory Turnover
15.000 13.357
11.828
10.000 9.146 8.581 8.450
5.000
0.000
2017 2018 2019 2020 2021
Figure 7 Inventory turnover Ratio Analysis for the year 2017- 2021
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Total Assets Turnover
With the assets turnover a company can easily measure how much revenue they
generate by selling their products and their productivity of their total investments. The
formula for this ratio is sales divided by total assets.
The ratio of a company's entire assets being turned over for new business includes all
forms of income, such as invoices, cash payments, and other sales. The total asset
turnover ratio is a measure of the value of sales to consumers over a given period, often
one year. How well a company turns its assets into hard dollars. If the ratio goes up,
that means the company is getting more use out of its resources.
Each taka in total assets at Reckitt Benckiser (Bangladesh) Plc resulted in 1.612 in sales
for the company in 2021. With a total assets turnover ratio of 2.386 in 2017. Decline in
Assets turnover indicates the company is inventing more and earning revenue less than
the previous years. So, it is to say in spite of generating higher profit compared to the
previous years the assets turnover rate of Reckitt is falling.
Total Assets Turnover

3.000
2.386
2.500
1.965
2.000 1.730 1.633 1.612
1.500
1.000
0.500
0.000
2017 2018 2019 2020 2021
Figure 8 Total Asset Turnover Ratio Analysis for the year 2017- 2021
Fixed Assets Turnover
How effectively a business turns its fixed assets into revenue is measured by the fixed
asset turnover ratio. If the ratio is high, then means the company is making good use of
its fixed assets.
There isn't an ideal number or range that can tell you how well a company has been
successful at earning revenue from capital investment, although a higher turnover ratio
is indicative of more efficiency in this regard. Because of this, it is essential for analysts
and shareholders to compare the most up-to-date ratios of a firm to both its own
41
historical proportions and the ratio values of its industry peers and perhaps the average
ratios for the company's industry.
A high FAT ratio provides little insight into whether a company can sustainably turn a
profit or create positive cash flow. Reckitt Benckiser (Bangladesh) Plc saw an increase
in revenue of 8.652 taka for every taka invested in fixed assets in 2021. The turnover
of the firm's fixed assets was very high in 2017, at 10.984 times In 2019.
Fixed Assets Turnover

12.000 10.984
10.000 8.614 8.652

8.101
8.000 7.074
6.000
4.000
2.000
0.000
2017 2018 2019 2020 2021
Figure 9 Fixed Assets Turnover Ratio Analysis for the year 2017- 2021
Day’s Sales Outstanding
Day’s sales outstanding is a statistic that indicates how long it typically takes a business to
collect payments when the sale has been completed. Day sales outstanding that are on the lower
end of the spectrum indicate that it takes less time for the company to recover money owed to
it from customers. If a company’s Day sales outstanding is high, it means it is selling products
on credit and is taking too long to get paid by those clients.
The average number of days it took Reckitt Benckiser (Bangladesh)Plc to collect payments
from consumers in 2017 was 12.797. In 2019, the Reckitt's DSO falls short. In 2021, the ratio
got higher to 5.027.
42
Day's Sales Outstanding
14.000 12.797
12.000
10.000 8.577
8.000
6.000 5.027
3.831
4.000
1.721
2.000
0.000
2017 2018 2019 2020 2021
Figure 10 Days Sales Outstanding Ratio Analysis for the year 2017- 2021
Debt Management Ratios
Ratio 2017 2018 2019 2020 2021
Debt Management
Ratios
Debt to Asset Ratio 0.802 0.787 0.717 0.753 0.691
Table no 8 Debt Management Ratios
Debt to Asset Ratio
The debt ratio measures how much of an organization's assets are financed by debts of
various kinds. It's a representation of how a company's finances are set up. When a
company's debt ratio increases, it exposes itself to greater financial risk. During the last
five years, the debt-to-income ratio has been relatively steady, yet the debt-to-income
ratio decreased by by 0.111 percentage points over the five years as the percentage
decreasing over in the last five years, which is a very positive sight the business.
For Reckitt Benckiser (Bangladesh)Plc,2017 sees a greater debt ratio of 0.802 percent
compared to 2021's 0.691 percent. According to this, debt is financing only 0.691
percent of the asset debt accounted for total assets. Debt as a percentage of total value
has been going down lately which is good for the company.
43
Debt to Asset Ratio
0.850
0.802
0.787
0.800
0.753
0.750 0.717
0.691
0.700
0.650
0.600
2017 2018 2019 2020 2021
Figure 11 Debt to asset Ratio Analysis for the year 2017- 2021
Profitability Ratios
Ratio 2017 2018 2019 2020 2021
Profitability Ratios
Gross Profit Margin 53% 51% 54% 57% 55%
Operating Profit
15% 15% 21% 20% 23%
Margin
Net Profit Margin 10% 9% 15% 14% 16%
Return on Assets
24% 18% 26% 22% 26%
(ROA)
Return on Equity
123% 84% 92% 90% 85%
(ROE)
Return on Investment
22% 19% 33% 31% 36%
(ROI)
Table no 9 list of Profitability Ratios
44
Gross Profit Margin
The gross profit margin shows how much money was made before any costs were deducted.
The bigger the margin, the more efficient the company's management is in turning a profit. The
gross profit margin can be calculated by contrasting the entire revenue with the direct expenses
of the period. It decreased dramatically between 2017 and 2018, but then increased slightly
between 2019 and 2021 as selling expenses rose.
Time series analysis shows that Reckitt's rising gross profit is due to rising sales: for every
BDT 100 in revenue, the company earned BDT 55 in 2021. There is fluctuation in their earnings
ratios throughout the year. The gross profit margin for Reckitt Benckiser (Bangladesh) PLC in
2017 was 53 taka for every 100 taka in sales. The 2020 ratio was higher which 57 taka which
again fell in 2021 was.
Gross Profit Margin

58% 57%
56% 54% 55%
54% 53%
52% 51%
50%
48%
46%
2017 2018 2019 2020 2021
Figure 12 gross profit margin Analysis for the year 2017- 2021
Operating Profit Margin
Profitability and efficiency in the business's core operations is measured by the operating
margin. It is calculated as a percentage of sales after variable costs have been deducted but
before fixed costs like interest and taxes are deducted (EBIT). In general, higher profit margins
are preferred over lower ones, and direct comparisons across businesses in the same industry
can be made if the margins are otherwise comparable. We can determine our operating margin
by dividing the operating income (profits) by total revenue (revenues). For Every 100 taka in
revenue in 2021 resulted in 23 taka in operational profit for Reckitt Benckiser (Bangladesh)
Plc. This represents the highest operating profit margin they've seen during the years of 2017
and 2021.
45
Operating Profit Margin
25% 23%
21% 20%
20%
15% 15%
15%
10%
5%
0%
2017 2018 2019 2020 2021
Figure 13 Operating profit margin Analysis for the year 2017- 2021
Net Profit Margin

Measured as a proportion of revenue, net profit margin reveals how much money is made after
all expenses have been deducted. It measures how profitable a company or business unit is
relative to its total sales. This ratio can be used to gauge a company's profitability. It reveals
the percentage of gross sales or revenues that an organization retains as profit.
A large net profit margin is indicative of a company's ability to either keep expenses low or
charge high prices for its products and services. Therefore, the following can contribute to a
high ratio: Efficiency in administration. Every 100 taka in sales in 2021 resulted in a net profit
of 16 taka for Reckitt Benckiser (Bangladesh) Plc. They had their highest net profit margin
ever between 2017 and 2021.
Net Profit Margin

18% 16%
16% 15%
14%
14%
12% 10%
10% 9%
8%
6%
4%
2%
0%
2017 2018 2019 2020 2021
Figure 14 Net profit margin Analysis for the year 2017- 2021
46
Return on Assets (ROA)
This Return On asset reveals how efficiently a company has made use of its resources.
Profitability is measured by return on assets (ROA), where a higher percentage indicates greater
efficiency in turning assets into cash flow. Measured by subtracting operating expenses from
total assets, we get the return on assets (ROA). Every 100 taka in Reckitt’s assets resultedin 26
taka in net profit in 2021. In year 2019 and 2021 they had the highest ROI they'd seen from
2017-2021. As their ROA is increasing, it means the company has made good investments, is
spending accordingly, and is in danger.
Return on Assets (ROA)

30% 26% 26%
24%
25% 22%
20% 18%
15%
10%
5%
0%
2017 2018 2019 2020 2021
Figure 15 Return on Assets Analysis for the year 2017- 2021
Return on Equity (ROE)

Return on equity quantifies the financial benefit to stockholders from an organization's
operations. The greater the proportion, the greater the investors' gains. The common
stockholders of Reckitt received 85 taka in profit this year. The return on equity fell in 2018,
from 123 in 2017 but it's expected to rise steadily. In 2019, the ratio was higher than last two
years now we can observe that Reckitt’s efficiency has decreased from 2017- 2021 by
comparing their Return on Equity (ROE) to that of other companies. However, it is lower in
2021 than it was in 2017.
Return on Equity (ROE)

140% 123%
120%
100% 92% 90% 85%
84%
80%
60%
40%
20%
0%
2017 2018 2019 2020 2021
Figure 16 Return on Equity Analysis for the year 2017- 2021
47
Return on Investment (ROI)
One of the most common ways to measure an investment's success is through its return on
investment (ROI). The return on investment (ROI) is a monetary measure of how much money
was made back from an initial investment. Comparing and ranking investments across projects
or assets is made much simpler with the help of return-on-investment calculations.
For every 100-taka invested in Reckitt in 2021, the company made 36 taka in profit. From
2017-2021, this was their highest ROI. In 2021.
Return on Investment (ROI)

40% 36%
33% 31%
30%
22%
19%
20%
10%
0%
2017 2018 2019 2020 2021
Figure 17 Return on Investment Analysis for the year 2017- 2021
Stock Market Ratios
2017 2018 2019 2020 2021
Stock Market
Ratios
Earnings Per
79.255 68.847 131.013 153.308 169.701
Share (EPS)
Price-Earning
18.99 26.16 16.64 25.58 33.502
(P/E) Ratio
Table 10 List of Stock Market Ratios
48
Earnings per Share (EPS)
EPS measures how much of a company's profit will be distributed to shareholders. The price
of a company's stock can be roughly calculated from its EPS. Investor confidence is boosted
when earnings per share (EPS) are high, which is good news for stockholders. Due to a loss in
2017 and 2018 Reckitt’s earnings per share (EPS) were lower (BDT 79.255 and 68.847)
compared to they are now in. However, they have made a tremendous recovery, and their EPS
in 2021 was BDT 2169.701. Earnings per share for common shareholders of Reckitt Benckiser
(Bangladesh) Plc were 131.013 taka in 2019. This was the company's best EPS in the period
2016-2019. In 2021, earnings per share were higher than previous years.
Earnings Per Share (EPS)

169.701
153.308
131.013
79.255 68.847
Figure 18 Earnings per Share Analysis for the year 2017- 2021
Price-Earning (P/E) Ratio
The P/E Ratio measures how expensive a company's stock is in comparison to its earnings per
share (EPS). Growth stocks tend to be associated with companies that have a high Price
Earnings Ratio. As a result, investors are more optimistic about the company's long-term
prospects and ready to pay a premium for the stock. If their stock prices are low compared to
their underlying value, then they are undervalued.
Reckitt's reported earnings in 2021 were 33.502 taka per share, thus investors expected a return
of 1 taka. Price-to-earnings ratio for the company is Highest in 2021 compared with the last 5
years.
Price-Earning (P/E) Ratio

40.00 33.502
30.00 26.16 25.58
18.99
20.00 16.64
10.00
0.00
2017 2018 2019 2020 2021
Figure 19 Price Earnings Ratio Analysis for the year 2017- 2021
49
Chapter 4:
Summary, Recommendation, and conclusion
4.1 Summary
Reckitt Benckiser (Bangladesh) PLC is a well-known multinational corporation in the country.

Customers come first in this business. The company's growth has resulted in the introduction
of several brands and products that all work to improve society. The corporation values its
workers just as much as it does its consumers. The corporation cares about its workers and
offers them several perks as a result. The firm's well-defined organizational structure has helped
it expand successfully. The company's mission is to safeguard, heal, and nourish peopleand the
environment so that everyone may enjoy a safer and more wholesome environment. When it
comes to this goal, the company's Hygiene, Health, and Nutrition divisions all show no fear in
terms of innovation.
In terms of money, the firm has been doing fantastically. Over the past Five years, the firm's
revenues, gross profits, operating profits, and net profits have all increased by an average of
212%. The company's total assets grew by an average of 199% and its total equity by an average
of 312% throughout the period of analysis, while its total liabilities grew by an average of
171%. (2017 – 2021).
The company's profitability ratio is above average in the business world. The company has
confirmed a gross profit margin of 55%, an operational profit margin of 23%, a net profit
margin of 16%, a return-on-investment margin of 26%, a return on equity margin of 85%, and
a return on investment of 36%. The company's asset management ratio is higher than the
average in its field.
50
4.2 Findings and recommendations
We have every reason to be proud of Reckitt, as it is one of the most successful businesses in
this FMCG industry in Bangladesh, and as it is striving mightily to meet the needs of millions
of people. Reckitt Benckiser, however, has its own set of defaults that must be addressed in the
same way they must be in any other system. By analyzing Reckitt.'s financial ratios, I was able
to come up with suggestions like:
4. Since of Reckitt Benckiser (Bangladesh) Plc is a growing group, it needs invest

in more feasible businesses in order to alleviate its debt concerns.
5. The lower of Reckitt Benckiser (Bangladesh) Plc Days Payable Outstanding
(DPO) is, the better the company's relationship will be with its creditors, such
as its suppliers, who provide the company with the high-quality raw materials it
needs to remain competitive.
6. Although Reckitt is doing business here from long period of time, not all their
products are making it to their clients. There are a lot of people out there who
aren't aware that products even exist. That being the case, they need to increase
the number of trained professionals responsible for dispersing the goods around
the country.
7. Although Reckitt is in a financially stable position at present, it would be wise
for the company to keep a close eye on its debt management to reduce any
potential dangers to its future success.
8. A higher return on investment (ROI) and net profit margin can be achieved by
keeping an eye on how assets are managed.
9. Sales on credit should be restricted so that Days Sales Outstanding can be
reduced. They need to speed up the conversion of sales into cash by reducing
the number of days sales are outstanding (DSO).
10. Reckitt is in good financial standing; the company should increase its working
capital investments in new business to increase its financial liquidity.
11. By keeping a closer eye on expenses, the business can perhaps boost its gross
profit margins.
12. The corporation can enhance its Liquidity Ratios and Stock Market Ratios.
13. To reduce the burden on the current staff, the company can increase its
workforce.
14. There are a lot of mundane jobs being done by hand that might be simply
automated with some custom software development. The business should put
more effort into automating these currently laborious processes.
51
4.3 Conclusion
In Bangladesh, Reckitt Benckiser Plc enjoys an excellent reputation as a business. The

company's financial operations are running without a hitch. They've been able to keep going
because they've done a fantastic job of keeping track of and investing in the company's assets.
To learn about a company and its stock's performance, financial analysis is essential. Reckitt
has been found to be financially sound across the board. There is great potential for Reckitt to
grow its operations and increase its positive impact on Bangladesh's economy.
Despite some of its some flaws Reckitt Benckiser (Bangladesh) Plc is providing a service that
no other FMCG industry in Bangladesh can match. Reckitt's forward-thinking management
will help mitigate these innovations' inherent dangers while also bolstering the areas of most
need, paving the way for the company to not only gain the loyalty of domestic consumers but
also expand its operations internationally.
52
4.4 Reference and Appendix
Reference
1. Reckitt (2022, November 6) Reckitt | Protect, heal and nurture | reckitt.com
2. Reckitt (2022, November 6) In Wikipedia Reckitt - Wikipedia
3. Dhaka Stock Exchange Ltd (2022 November 6) Display Company Information | Dhaka
Stock Exchange (dsebd.org)
4. Annual Report and Financial Statements. (2017). Reckitt Benckiser (Bangladesh)
Limited.

Limited.
Limited.
7. Reckitt. (2020). Annual Report and Accounts. Reckitt.
8. RB Annual Report. (2021). Seeking New Opportunities. reckitt.

9. Kabir, M. R., & Shirin, A. Financial Position Comparison among Pharmaceutical
Companies: The Case of Bangladesh. Prime University Journal, 97.
10. Barnes, P. (1987). The analysis and use of financial ratios. Journal of Business Finance
dan Accounting, 14(4), 449.
11. Bhunia, A., Mukhuti, S. S., & Roy, S. G. (2011). Financial performance analysis-A
case study. Current Research Journal of Social Sciences, 3(3), 269-275.
53
4.5 Appendix
Calculation of Ratio Analysis.
Ratio 2017 2018 2019 2020 2021

Liquidity Ratios
1185857331/1 1383618800/13 1862813796/15 2512190047/2 2328543980/1

Current Ratio
146129599 31308486 59699681 137776295 894017067
(1185857331- (1383618800- (1862813796- (2512190047 (2328543980

Quick Ratio 274725678)/11 301129697)/13 451118392)/15 -621618191)/ -584823587)
46129599 31308486 59699681 2137776295 1894017067
Asset
Management
Ratios
Inventory 3669620066/2 3561898791/30 4126150222/45 5333883576/6 4942046045/5

Turnover 74725678 1129697 1118392 21618191 84823587
Total Assets 3669620066/1 3561898791/18 4126150222/23 5333883576/3 4942046045/3

Turnover 537664541 12306673 84783624 266160536 066040010
Fixed Assets 3669620066/3 3561898791/41 4126150222/50 5333883576/7 4942046045/5

Turnover 34101173 3497375 9344345 53979489 71184280
25500945/(53 69006591/(49
Day's Sales 130441911/(36 84863618/(356 43905926/(412
33883576/360 42046045/360
Outstanding 69620066/360) 1898791/360) 6150222/360)
) )
Debt
Management
Ratios
Debt to Asset 1233949599/1 1426628486/18 1710819180/23 2458449688/3 2117983897/3

Ratio 537664541 12306673 84783624 266160536 066040010
54
Profitability
Ratios
Gross Profit 1954926485/3 1806260767/35 2247946783/41 3016175839/5 2697182732/4

Margin 669620066 61898791 26150222 333883576 942000000
Operating Profit 559516141/36 530517876/356 879300441/412 1082205263/5 1153250912/4

Margin 69620066 1898791 6150222 333883576 942046045
Net Profit 374480277/36 325300745/356 619036257/412 724380404/53 801836265/49

Margin 69620066 1898791 6150222 33883576 42040000
Return on Assets 374480277/15 325300745/181 619036257/238 724380404 / 801836265/

(ROA) 37664541 2306673 4783624 3266160536 3066040010
Return on Equity 374480277/30 325300745/385 619036257/673 724380404/80 801836265 /

(ROE) 3714942 678187 964444 7719848 948056113
Return on
374480277/17 325300745/175 619036257/187 724380404/ 801836265 /
Investment
14693581 5638024 8203439 2317707737 2244863313
(ROI)
Stock Market
Ratios
Earnings Per 374480277/47 325300745/472 619036257/472 724380404/ 801836265 /

Share (EPS) 25000 5000 5000 4725000 4725000
Price-Earning 2179.79/131.01
1505.1/79.255 1801.3/68.847 3999.9/156.38 5729.9/171.03
(P/E) Ratio 3
Table 11 Calculation of ratio Analysis
55

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"Financial Performance and Financial Position Analysis of Reckitt

Benckiser (Bangladesh) PLC”

BRAC Business School

© 2022, BRAC University

Student’s Full Name & Signature:

Supervisor’s Full Name & Signature:

Dr. Faruk Bhuiyan

Dr. Faruk Bhuiyan

Subject: "Financial Performance and Financial Position Analysis: A Study on Reckitt

2.4 My job responsibilities and contributions… .....................................................17

2.13 Mission Visson… ........................................................................................... 23

Chapter 3 [Project part] .......................................................................................................... 32

Figure 2: Brand names of Reckitt ............................................................................................21

Figure 4: Henchy of Reckitt Benckiser ..................................................................................25

Table 1 [ formula of total Ratios we’ll be working with] ................................................. 31

VAT- Value Added Tax

Introduction of the report

1.1 Background Information:

1.2 Objectives of the Study:

 To analyze the performance of the company over the years.

Select Topic and Collect Data

Classify, Analyze and Present Data

Interpretations and comparison

Final Report Preparation

(Flowchart for methods of data collection

Overview of Internship and Overview of the Company

2.1 Student Information

2.2 Internship Information

2.2.1 Company Information

Company Name: Reckitt Benckiser (Bangladesh) PLC

2.2.2 Supervisor Information

● Name: Natalia Sharmin Khan

2.4 My job responsibilities and contributions

A significant part of my internship at Reckitt Benckiser (Bangladesh) PL Involved assisting

2.8 Overview of the Company

Figure 1: Reckitt Benckiser Logo

2.9 Reckitt Benckiser history

Reckitt Benckiser (Bangladesh) PLC is a multinational consumer products firm in Slough,

Figure 2: Brand names of Reckitt

2.13 Mission and vision

2.14 Corporate Values:

2.14.2 Our Purpose:

2.14.3 Our Fight:

2.14.4 Our Compass

2.15 Reckis departments and employments

2.15.2 Board of Directors:

Reckitt Benckiser (Bangladesh) PLC's board of directors consists of

Figure 4 Henchy of Reckitt Benckiser

1. The Training and Improvement Process

2.15 Methods of Marketing

2.18 Supply Service Management

2.19 Environmental Policy

2.20 Competitive and industry analysis

2.21 Strengths, Weaknesses, Opportunities, and Threats (SWOT)

 There should be more specialization at distribution and service hubs.

 The need for FMCGs is on the rise.

 Other Recognizable Consumer-Goods Companies

Project Part: "Financial Performance and Financial Position Analysis"

Reckitt Benckiser Bangladesh PLC's (the company's) financial performance is the