SUBMITTED TO:
SIR HABIB-UR-REHMAN
SUBMITTED BY: MUHAMMAD UMAIR SHEIKH STUDENT ID: NI-F7-BBA-212 ASSIGNMENT: INTRO-BUSINESS FINANCE TOPIC: HORIZONTAL & VERTICAL ANALYSIS OF THE “ASKARI BANK LIMITED”
Askari Commercial Bank Limited was founded in 1992, and in the 15 years since, their growth and success patterns have far outgrown industry standards. It is a matter of pride for them to be able to offer one of the widest arrays of products to their customers through their extensive branch network all over the country. However, history has shown that change is the only constant and that with time, always becomes change. Just like innovation brings them improvement, and progress offers the promise of perfection. We are evolving, and their desire to grow with time coupled with their firm commitment to maintaining excellent standards of banking quality and services has enabled them to realize that we need to evolve from within. You may already have seen their advertising campaign and the new look of their branches, but they take pleasure in sharing with us their new identity: Their shorter, smarter name, crisper new colours and fresh new look are an insight to their views on banking. They aim to provide innovative financial solutions to their customers, with the security of knowing they are dealing with one of the strongest financial institutions in the country. Their new slogan
reflects our customer service philosophy – we’re Askari Bank, ask us!
Horizontal analysis
The process of dividing each expense item of a given year by the same expense item in the base year. It allows assessment of changes in the relative importance of expense items over time and the behavior of expense items as sales change.
Formula
(Present year – Past year) / Past year X 100 = percentage %
For Example
(125000-100,000) / 100,000 X 100 = 25 %
Vertical analysis
Dividing each expense item in the income statement of a given year by net sales to identify expense items that rise more quickly or more slowly than a change in sales. For example, an analyst may study a firm's balance sheet to compare the level of current assets with the level of current liabilities in order to measure liquidity. Analysts often study a firm's income statement to compare net income with total sales.
Formula
Operating Expense X 100 = percentage % Total
For Example
1020 X 100 = 55.6 % 1835
Horizontal Analysis
2004
6,016,093 Base Year %
2005
43
2006
29
2007
11
2008
-4
8,587,430 11,053,230 12,265,987 11,735,710