...2 | Ratio Analysis of Jamuna Bank Limited 2009 | 2-3 | 3 | Ratio Analysis of Jamuna Bank Limited 2010 | 3-5 | 4 | Ratio Analysis of Jamuna Bank Limited 2011 | 5-6 | 5 | Compare Ratio Analysis of Jamuna Bank Limited -2009, 2010, 2011(Table no 1) | 6-7 | 6 | Comments | 7 | 7 | Ratio Analysis of Dutch Bangla Bank Limited 2009 | 8-9 | 8 | Ratio Analysis of Dutch Bangla Bank Limited 2010 | 9-10 | 9 | Ratio Analysis of Dutch Bangla Bank Limited 2011 | 10-11 | 10 | Ratio Analysis of Dutch Bangla Bank Limited-2009, 2010, 2011(Table no-2) | 11-12 | 11 | Comments | 12 | 12 | Ratio Analysis of Brac Bank Limited 2009, 2010, 2011 | 13-16 | 13 | Compare Ratio Analysis of Brac Bank Limited -2009, 2010, 2011(Table no-3) | 16 | 14 | Comments | 16 | 15 | Intangible Assets | 17 | 16 | Finding | 17 | 17 | Conclusion | 18 | Executive Summary: Ratio analysis is one of the techniques of financial analysis where are used as a yardstick for evaluating the financial condition and performance of a bank analysis and interpretation of various accounting ratios gives a better understanding of financial condition and performance of a bank The bank is showing high very progress in the area of ratio analysis so it is a golden opportunity for me to do project report on this topic. This term paper deals with the progressive aspect of bank Ratio analysis and intangible assets Of Dutch bangla, jamuna and brac bank. Ratio analysis includes...
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...Abstract The purpose of this assignment is to critically examine the performance of two companies using Ratio analysis over the a period of five years (2008-2012), in order to recommend the best company for investment, justified by the data collected, analysed using ratio analysis and interpreted The assignment, will compare two of the largest retail outlets in th UK in sainbury and Tesco. It will show that Tesco has higher Profitability, Liquidity and Gearing ratios than Sainsbury, While in investment ratios Sainsbury exceeds Tesco. However it will also show that over the five year period Sainsbury as more consistent ratio outputs than Tesco, whom go into a steep declines in various ratios during the 2012 period. This assignment will show that Sainsbury on the basis of consistence is a better investment option, while highlighting that the ratio cannot be the only tool used in analysing comparatively the two companies. Table of Contents Introduction1 Selection of companies2 3. Ratio Analysis3 3.1 Profitability Ratios4 3.1.1Return On Capital Employed4 3.1.2 Gross Profit Margin6 3.1.3 Profit Margin7 3.2 Liquidity Ratios8 3.2.1 Current8 3.2.2 Liquidity9 3.3 Gearing Ratio10 3.4 Investment Ratios12 3.4.1Dividen Yield12 3.4.2Pric to Earning13 4.0 Critical Analysis15 5.0 Conclusion16 APPENDIX17 Bibliography Table of Tables Table 1.1……………………………………………………………..4 Table 1.2……………………………………………………………..6 Table 1.3……………………………………………………………..7 Table 2.1……………………………………………………………...
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...FINANCIAL ANALYTICAL TOOLS Financial analysis involves evaluating the current financial statements of an organization in order to access the current profitability and also compare same with past performance (time series analysis) and the performance of other players within the industry. In other words, analyzing the financial statements assesses the financial health of a company. The major statistical tools used in financial analysis are ; • Ratio Analysis • Cash Flow Analysis • Common Size Analysis Ratio Analysis Investopedia describes ratio analysis as , ‘A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements’. Ratio Analysis can be viewed along the following lines; • Liquidity Ratios • Profitability ratios • Debt ratios • Operating performance ratios • Cash flow indicator ratios • Investment Valuation ratios In reviewing the liquidity ratios, the current ratio, also known as working capital ratio, is used to calculate the proportion of current assets that is available to cover current liabilities, the formula can be calculated as Current Ratio = Current Assets Current Liabilities Its limitation however rests in the fact that in assessing liquidity, it assumes all the company’s assets will be liquidated to cover this and no indication has been given to the amount of time required to liquidate these current considering an organization is a going concern and as such the key to liquidity...
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...Financial Analysis of Apple Inc: Financial Analysis of Apple Inc Subject: Financial Management Group Members : Ms. Ouch Kanika Ms. Hour Kimhun Mr. Pen Vanndarong Lectured by: Mr. Sok Ousa Academic Year: 2011-2012 1 Table of Contents: Table of Contents Introduction Horizontal Analysis Vertical Analysis Ratio Analysis – Profitability Ratio Analysis – Efficiency Ratio Analysis – Liquidity Ratio Analysis – Leverage Conclusion & Recommendation Limitations of the Analysis 2 Introduction: Introduction Corporate Facts: Name: Apple Inc. Founded: April 1976 Founders: Steve Jobs Steve Wozniak Ronald Wayne Head Office: Cupertino, California Industry: Computer hardware Computer software Consumer electronics Digital distribution Products: iPhone , iPad , iPod, iMac, Mac Books and other related hardware and software Marketing: Direct: retail and online stores Indirect: resellers & cellular network carriers 3 Introduction: Introduction Reportedly, Apple is one of the most successful technology companies in the world. Apple business strategy focuses on research & development in order to compete in technology world. Based on Forbes (April 2012), Apple’s market capitalization worth $546 billion, which is: Almost twice of Microsoft ($273.5 billion) More than twice of IBM ($238.7 billion) More than twice of General Electric ($213.7 billion) More than twice of Wal-Mart ($208.4 billion) More than twice of Google ($203.2 billion) More than thrice of Coca Cola ($158.8 billion)...
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...ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS: CASE STUDIES THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF Bachelor of Technology in Mining Engineering By SUDIP DAS Roll: 10605038 DEPARTMENT OF MINING ENGINEERING NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA 2010 ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS: CASE STUDIES THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF Bachelor of Technology in Mining Engineering By SUDIP DAS Roll: 10605038 Under the guidance of Prof. D.P.TRIPATHY DEPARTMENT OF MINING ENGINEERING NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA 2010 National Institute of Technology Rourkela CERTIFICATE This is to certify that the thesis entitled “ANALYSIS AND INTERPRETATION FINANCIAL STATEMENTS: CASE STUDIES” submitted by Sri Sudip Das, Roll No: 10605038 in partial fulfillment of the requirements for the award of Bachelor of Technology degree in Mining Engineering at the National Institute of Technology, Rourkela (Deemed University) is an authentic work carried out by him under my supervision and guidance. To the best of my knowledge, the matter embodied in the thesis has not been submitted to any other University/Institute for the award of any Degree or Diploma. Date: (Prof. D.P. TRIPATHY) Dept. of Mining Engineering National Institute of Technology Rourkela-769008 ACKNOWLEDGEMENT I wish to express my deep sense of gratitude and indebtedness...
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...ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS: CASE STUDIES THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF Bachelor of Technology in Mining Engineering By SUDIP DAS Roll: 10605038 DEPARTMENT OF MINING ENGINEERING NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA 2010 ANALYSIS AND INTERPRETATION OF FINANCIAL STATEMENTS: CASE STUDIES THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF Bachelor of Technology in Mining Engineering By SUDIP DAS Roll: 10605038 Under the guidance of Prof. D.P.TRIPATHY DEPARTMENT OF MINING ENGINEERING NATIONAL INSTITUTE OF TECHNOLOGY, ROURKELA 2010 National Institute of Technology Rourkela CERTIFICATE This is to certify that the thesis entitled “ANALYSIS AND INTERPRETATION FINANCIAL STATEMENTS: CASE STUDIES” submitted by Sri Sudip Das, Roll No: 10605038 in partial fulfillment of the requirements for the award of Bachelor of Technology degree in Mining Engineering at the National Institute of Technology, Rourkela (Deemed University) is an authentic work carried out by him under my supervision and guidance. To the best of my knowledge, the matter embodied in the thesis has not been submitted to any other University/Institute for the award of any Degree or Diploma. Date: (Prof. D.P. TRIPATHY) Dept. of Mining Engineering National Institute of Technology Rourkela-769008 ACKNOWLEDGEMENT I wish to express my deep sense of gratitude and indebtedness to Dr. D.P.Tripathy, Department of...
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...|Financial Statement Analysis | |Working Capital | |Working Capital is more a measure of cash flow than a ratio. The result of this calculation must be a positive number. It is calculated | |as shown below: | |Working Capital = Total Current Assets - Total Current Liabilities | |Bankers look at Net Working Capital over time to determine a company's ability to weather financial crises. Loans are often tied to | |minimum working capital requirements. | |Accounting Ratios and its utility | |A relationship between various accounting figures, which are connected with each other, expressed in mathematical terms, is called | |accounting ratios. | |According to Kennedy and Macmillan, "The relationship of one item to another expressed in...
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...Internship Report on “An Analysis of Financial Performance of BRAC Bank Ltd” Supervised By: Sk. Habibur Rahaman Senior Lecturer Manarat International University Prepared by: Al Sukran ID-1413MBA50346 Manarat International University Department of Business Administration Manarat International University Date of Submission: January 30, 2015 Internship Report on “An Analysis of Financial Performance of BRAC Bank Ltd” Supervised By: Sk. Habibur Rahaman Senior Lecturer Manarat International University Signature of Supervisor Prepared by: Al Sukran ID-1413MBA50346 Manarat International University Department of Business Administration Manarat International University Date of Submission: January 30, 2015 LETTER OF TRANSMITTAL January 30, 2015 To Sk. Habibur Rahaman Senior Lecturer Department of Business Administration Manarat International University Subject: Submission of Internship Report on “An Analysis of Financial Performance of BRAC Bank Ltd” Dear Sir, With due respect to state that I am AL SUKRAN, ID-1413MBA50346 is a student of Masters of Business Administration of Manarat International University. I am delighting to submit here with a copy of internship report for your kind evaluation and appreciation. I have given my best effort to prepare the report with relevant information that I have collected from BRAC BANK LTD and from other sources during my internship program...
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...THE ROLE OF FINANCIAL ANALYSIS Another important aspect of analyzing a case study and writing a case study analysis is the role and use of financial information. A careful analysis of the company's financial condition immensely improves a case write-up. After all, financial data represent the concrete results of the company's strategy and structure. Although analyzing financial statements can be quite complex, a general idea of a company's financial position can be determined through the use of ratio analysis. Financial performance ratios can be calculated from the balance sheet and income statement. These ratios can be classified into five different subgroups: profit ratios, liquidity ratios, activity ratios, leverage ratios, and shareholder-return ratios. These ratios should be compared with the industry average or the company's prior years of performance. It should be noted, however, that deviation from the average is not necessarily bad; it simply warrants further investigation. For example, young companies will have purchased assets at a different price and will likely have a different capital structure than older companies. In addition to ratio analysis, a company's cash flow position is of critical importance and should be assessed. Cash flow shows how much actual cash a company possesses. Profit Ratios Profit ratios measure the efficiency with which the company uses its resources. The more efficient the company, the greater is its profitability. It is useful to compare...
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...5 3. Financial Analysis 5 3.1. Profitability 5 3.2. Analysis of Investment Performance 13 3.3. Financial Condition 17 3.4. Dividend Policy 22 4. Conclusion 26 5. References 27 Introduction The analysis supplied within this report has been undertaken from the perspective of a current shareholder in Singapore Airlines (SIA). The report provides critical assessment of the company's overall performance, assessment that would be relevant and meaningful to shareholders. Two major airlines have been selected to provide competitor comparison throughout this report. The two competitor airlines - Japan Airlines Ltd and Qantas Airways - have been selected because they are representative of current commercial passenger aviation competition within SIA's predominant operating region (Asia Pacific region). It should be noted that the 2010 and 2011 reporting periods occurred during a time of major reorganisation for Japan Airlines. In February 2010 Japan Airlines Corporation was de-listed from the Tokyo stock exchange and, after corporate reorganisation proceedings, was re-listed in 2012 as Japan Airlines Co. Ltd. Thus, financial information during this period is unavailable. We have utilised a number of analysis tools to generate a transparent position of the financial position of SIA and measured this position against competitor airlines operating in the same region and flying similar routes. Executive Summary This report provides an analysis of Singapore Airlines...
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...Course Work Financial Statement Analysis on ESPRIT HOLDINGS LTD By: Zahoor Soomro INDEX Sr No CONTENTS Page No. 1. 2. 3. 4. Executive Summary Company Profile Introduction A framework for Evaluating Company Main Ratios (Table) 1 2 3 3 3 4 4 5 5 6 6 7 7 7 7 8 8 8 9 9 10 10 11 11 12 13 14 5. Profitability Ratios 5.1 Return on shareholders funds (ROSF) 5.2 Return On Capital Employed 5.3 Gross profit Margin Ratios 5.4 Net Profit Ratio 6. Efficiency Ratios 6.1 The average stock turnover 6.2 Average settlement period for receivables 6.3 The sales to capital employed 6.4 Average Payment Period 7. Liquidity Ratios 7.1 The current ratio 7.2 Quick Ratio 8. 9. Gearing Ratios Investment Ratio 9.1 Interest covering ratio 9.2 Dividend payout ratio 9.3 Earning per share 9.4 Price Earning Ratio (P/E) 10. 11. 12. Conclusion References Appendix Esprit Ratio Analysis 1. Executive Summary Esprit has been performing excellent in overall operations, demonstrating sustainable growth in turnover and earnings. The Group’s turnover reached HK$29.6 billion, an increase of 26.9%. With improving efficiency, the Group’s operating profit grew 31.4% to HK$6,259 million. This is a big plus in the upward trend in the growth. The ratio analysis is the effective and reliable evidence of the company’s success. There are several ratios that are calculated in the report. The significant success depicted in the profitability ratios which shows the gross profit margin...
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...Ratio analysis of Intel and Microsoft in 2013 LNU SWIBS Management 3 Ellie 126602308 The two companies I chose are Microsoft Inc.’s and Intel Corporation’s. Microsoft. Based on the compare with these ratios, we could do some fundamental analysis of risk level and profitability of Intel and Microsoft, to appraise the financial performance and financial position of two companies. The relative ratios of two companies are calculated as follows: Ratio | Intel | Microsoft | return on equity=net profitsharesholder's funds(equity)×100% | 962058256=0.17 | 496578944=0.06 | asset turnover=salessharesholder's funds(equity)×100% | 5270858256=0.90 | 1989678944=0.25 | net profit margin=net profit (before or) after taxsales×100% | 962052708=0.18 | 496519896=0.25 | gross profit=gross profitsales×100% | 3152152708=0.60 | 1429419896=0.72 | operating profit=operating profitsales×100% | 1229152708=0.23 | 607319896=0.31 | current ratio=current assetscurrent liability×100% | 3208413568=2.36 | 7491828774=2.60 | stock-holding period=inventorycosts of sales×365 | 417221187×365=71.8 | 19385602×365=126 | average debtors collection period=trade receivablessales×365days | 617652708×365=42.8 | 1911819896×365=350.7 | average creditors payment period=trade payablessales×365days | 1119121187×365=192.8 | 101825602×365=663.4 | gearing=all borrowingssharesholder;s funds(equity)×100% | 1316558256=0.23 | 1260178944=0.16 | The ratio will be analyzed from four areas of interest: profitability, liquidity...
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...It is defined as the weighted average rate of return a company must pay to its long-term creditors and shareholders for the use of their funds. When WACC is used as the discount rate, it serves as a screening device in net present value analysis. To calculate WACC we must first find the expected return on share i E(Ri), using the securities market line equation, as follows: E(Ri) = RF + βi (E(RM) - RF) = 3% + 1.2 (13% - 3%) = 15% E(Ri) = expected return on share i E(RM) = expected return on the market = (Market risk premium + the risk free rate of return) = 13% RF = risk-free rate of return = 3% βi = beta of share i =1.2 As such, WACC can be calculated using the following equation: WACC = [D/(D+E)*RD](1-T) + [E/(D+E)*RE] = [40%*6%(1-28%)] + [60%*15%] = 10.728% D = value of total debt E = value of shareholders’ equity RD = cost of debt RE = cost of equity T = corporate tax rate b) NPV, IRR, & Payback Period Assumptions: - Generally speaking, because of difficulties related to identifying costs with particular activities and determining the future benefits, all R&D costs are expensed when incurred. They do not become part of the capitalised investment asset. As such, the €20m OMG has spent on R&D will be excluded from the NPV calculations, since this cost will be incurred regardless of the decision to proceed with the project. - The scenario also implies that regulatory approval...
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...1 March, 2013 The Fundamental Analysis: An Overview Sónia R. Bentes#, Raúl Navas* ISCAL, Av. Miguel Bombarda 20, 1069-035 Lisbon, Portugal smbentes@iscal.ipl.pt * COPORGEST, SA, Av. da Liberdade 245, 9º C 1250-143Lisbon, Portugal rdnavas@gmail.com Abstract - In this paper we discuss the fundamental analysis by covering a number of studies in this field of research. This constitutes a useful tool to evaluate the companies’ financial performance. Particularly, the discussion in this paper illustrates how this kind of approach can help in analyzing a companies’ stock price. Additionally, a debate on its potentialities is also provided. Keywords – Fundamental Analysis, Return on Equity, Return on Investment, Price Earnings Ratio, Price to Book Value # foreign competition in a particular sector in order to identify the best company of the sector. ii) Bottom-up approach: in this method, the analyst starts the searching analysis within a specific sector irrespective of its industry/region. The fundamental analysis is carried out with the aim of predicting company’s future performance. It is based on the belief that the market price of an asset tends to move towards its “real value” or its “intrinsic value”. Thus, if the intrinsic value of an asset is higher than its market value, there may be a situation where it is time to buy. Otherwise, investors should sell. In the next section, the theoretical framework of the fundamental analysis is reviewed. The paper ends with a...
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...Simple Diagnostic Medicine – Financial Analysis Executive Summary Introduction This report provides an analysis and evaluation of the current and prospective profitability, liquidity and financial stability of Simple Diagnostic Medicine (SDM). The purpose of this analysis is to determine if SDM is a suitable investment opportunity. Methods include horizontal and vertical analyses as well as financial ratios examining SDM’s liquidity, solvency and profitability. Other calculations include rates of return on Shareholder’s Equity and Total Assets and Return on Investment. All calculations can be found in the appendices. This report is divided into three sections: the first section presents the financial analysis of SDM’s 1999 and 2000 fiscal year financial statements. The second section is a detailed examination of the financial statements notes and the third section presents our conclusions. Results of the financial statement analysis demonstrate that the company appears to be able to produce significant revenues and profit and is in a relatively good financial position. However, further analysis of the financial statement notes have identified significant areas of concern that weakens SDM’s financial position and profitability, and ultimately forms the bases of our recommendation not to invest in SDM at this time. 1. Financial Statement Analysis Horizontal and Vertical Analysis (Trend Analysis) A complete horizontal analysis for SDM shows significant increases...
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