Sbi icici ratio analysis

RatioAnalysis

Balance Sheet Ratio

Profit And Loss

Account Ratio

Combined / Composite

Ratios

Balance Sheet Ratio

Current Ratio

Quick ratio

= Current Assets / Current Liabilities

= Quick Asset /Quick liabilities

Balance Sheet Ratio

Current Ratio

2009/2010

0.4

2008/2009

0.4

IDEAL2:1

•As the ideal ratio 2:1 but public sector companies have very low current ratio as they have very little need for current assets•But liquidity position of the bank is not good. Lesser the current ratio, less will be the firms ability to meet current obligations.

Balance Sheet Ratio

Quick ratio

2009/2010

9.07

2008/2009

5.74

IDEAL1:1

•It is more rigorous and penetrating test of the liquidity position of a firm. 1:1 is the satisfactory level to meet all current claims.•Banks short term solvency is in better position.

Profit And Loss Account Ratio

Operating Ratio

Net Profit Ratio

=Operating Cost / Net Sales ×100

= Net profit / Net Sales × 100

Profit And Loss Account Ratio

Operating Ratio

2009/2010

27.61

2008/2009

22.91

IDEAL%

•Bank operating profit is increasing as compare to previous year. It shows that it would ensure adequate return to owners in comparison to previous year.

Profit And Loss Account Ratio

Net Profit Ratio

2009/2010

10.66

2008/2009

11.92

IDEAL%

•As the net profit is goes down as compare to last year. It would not insure adequate return to owners as well as it enable the bank to with stand adverse economic conditions.

Combined / Composite Ratios

Earnings per share

Dividend Per Share

NPTA – pref. Dividend / no of equity share

Dividend Per Equity Share / Earning Par Share

Combined / Composite Ratios

Earnings Per Share

Ratio2009/2010

144.37

2008/2009

143.67

•It measures the profit available to equity shareholders as par share basis.•Bank had good return to the shareholder.

Combined / Composite Ratios

Dividend Per Share

Ratio 2009/2010

30.00

2008/2009

29.00

•The dividend paid to the shareholders on a per share basis in dividend per share .•Thus dividend par share is the earning distributed to the ordinary shareholders divided by number of ordinary share outstanding.•Bank paid good dividend for both year as par share.

Ratio Analysis

Balance Sheet Ratio

Current Ratio

2009/2010

0.14

2008/20090.13

IDEAL2:1

•As the ideal ratio 2:1 but private sector companies have very high current ratio.•But liquidity position of the bank is not bad. Lesser the current ratio, less will be the firms ability to meet current obligations.

Balance Sheet Ratio

Quick ratio

2009/2010

14.70

2008/2009

5.94

IDEAL1:1

•It is more rigorous and penetrating test of the liquidity position of a firm. 1:1 is the satisfactory level to meet all current claims.•Banks short term solvency is little in better position.

Profit And Loss Account Ratio

Operating Ratio

2009/2010

27.61

2008/2009

26.22

IDEAL%

•Bank operating profit is increasing as compare to previous year. It shows that it would ensure adequate return to owners in comparison to previous year.

Profit And Loss Account Ratio

Net Profit Ratio

2009/2010

20.59

2008/2009

16.00

IDEAL%

•As the net profit is increasing as compare to last year. It would insure adequate return to owners as well as it able the bank to with stand adverse economic conditions.

Combined / Composite Ratios

Earnings Per Share

Ratio2009/2010

36.10

2008/2009

33.76

•It measures the profit available to equity shareholders as par share basis.•Bank can give satisfactory return to the shareholder.

Combined / Composite Ratios

Dividend Per Share

Ratio 2009/2010

12.00

2008/2009

11.00

•The dividend paid to the shareholders on a per share basis in dividend per share .•Thus dividend par share is the earning distributed to the ordinary shareholders divided by number of ordinary share outstanding.•Bank paid satisfactory dividend as par share but still not satisfactory.

RATIO

STATE BANK OF INDIA ICICI BANK

2009 2010 2009 2010

Current Ratio 0.04 0.04 0.13 0.14

Quick ratio 5.74 9.07 5.94 14.70

Operating Ratio 22.91 27.61 26.22 27.61

Net Profit Ratio 11.92 10.66 16.00 20.59

Earnings Per Share Ratio

143.67 144.37 33.76 36.10

Dividend Per Share Ratio

29.00 30.00 11.00 12.00