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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