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 Financial Ratio Analysis Of Standard Chartered Bank,
               Bank Al Falah and JS Bank


                                  Financial Ratio
                                   Main Bank: Standard Chartered Bank


Standard Chartered Bank                         Bank Al Falah                                   JS Bank
                                  Analysis Of Standard
                                           LIQUIDITY RATIOS
Current Ratio is 27.62                   Current Ratio is 32.34                      Current Ratio is 46.10
The current ratio of SCB is
less than both the banks. It
is because of very less
                                  Chartered Bank, Bank
                                         Ratio is greater than SCB
                                         but less than JS. It is
                                         good sign of good
                                                                                     Its current ratio is high. But
                                                                                     overall its financial position is
                                                                                     not good than BAF and SCB.
current assets among our
portfolio banks and SCB
could be good for Long Term
                                  Al Falah and JS Bank
                                         financial position. The
                                         bank is better than JS in
                                         Short Term and better
                                                                                     JS is good for short term but
                                                                                     bad for long term.

Investments.                      For The Period 30 September 2009
                                         than SCB in Long Term.
                                                   Current Ratio

                                                 Bank Al Falah       SCB   JS Bank


                                  50                                       JS Bank, 46.1

                                          Bank Al Falah,
                                  40
                                             32.34          Submitted To
                  Current Ratio




                                                           SCB, 27.62
                                  30

                                  20
                                                            Ms. Munazza
                                  10

                                  0
                                                          Date   1

                                                     December 14, 2009
                                                            Banks




                                              DEBT RATIOS
Debt To Equity Ratio is                  Debt To Equity Ratio is                     Debt To Equity Ratio is 3.6%
5.97%                                    16.01%
Debt To Equity Ratio of SCB              This ratio is very high                     The liabilities and equity is
is low than BAF but higher               among banks we have                         less than the SCB and BAF.
than JS.                                 chosen. Because it has                      It could be because of new
                                         Lower liabilities and                       entrance in the market.
                                         equity than other banks.
                                                                                              Submitted By:
                                        Khawaja Naveed Haider                                   073605-085
                                   Syed Hassan Askari                                           073605-098
                                        Raja Qasim Jamil                                        073605-086
Total Debt Ratio Is 86%                    Total Debt Ratio Is 93%           Total Debt Ratio Is 77%
Banking is all about finances              As described above that           It is all because of new entry
whether in form debts or                   bank has more liabilities         in the market and don’t have
credits. 86% assets are                    and equity and as well as         much assets and debts as
financed by Debts.                         assets. 93% Assets are            compared to BAF and SCB.
                                           financed by Debt.                 77% assets are finance by
                                                                             Debt.
                                                Total Debt Ratio

                                                 SCB     Bank Al Falah JS Bank
                                                          Bank Al Falah,
                                    100%                      93%
                                              SCB, 86%
                                                                      JS Bank, 77%
                                    80%
                  Debt Percentage




                                    60%

                                    40%

                                    20%

                                     0%
                                                               1
                                                            Banks




                                           PROFITABLITY RATIOS
EPS Ratio Is 0.003                         EPS Ratio Is 1.16          EPS Ratio Is –0.57
Though EPS is low than BAF,                Even the issued capital is JS bank is showing loss in
but one more thing is that                 low than JS and SCB but    the net profit/loss.
the issued capital is very       still it has high EPS
high.                            because of its high net
                                 profit that shows good
                                 financial position.




ROA Is 0.04%                     ROA Is 0.13%                ROA Is -1.16%
There is a great difference in   As compared to SCB, BAF     JS bank is suffering loss due
Net Profit ratio between SCB     has high net profit         to heavy interest expense
and BAF. But slight              compared with assets to     that the bank has to pay as
difference in Total Assets.      SCB’s net profit with       compared to both the banks.
It is better than JS but worst   assets. It is better than
than BAF.                        both the banks.
ROE Is 0.30%                   ROE Is 4.48%                  ROE Is -5.40%
It is because of Common        Common stock equity is        Common stock equity is low
Stock Equity. SCB has about    about 3 times less than       and bank is also facing
3 times more Common Stock      SCB and net profit as         losses in its operations due
Equity than BAF. The ratio     compared to equity is the     to heavy expenses.
with net income is low.        reason for high ROE.




                                   MARKET RATIO
Price Earning Ratio Is 23      Price Earning Ratio Is 40     Price Earning Ratio Is 9.5
Investors are willing to pay   Investors are willing to      Investors are willing to pay 9
23 rupees when EPS is          pay 40 rupees which is        rupees because it’s EPS is
increases by one rupee.        very high as it is growing.   not good and will take time.
Market/Book Value Is 0.91      Market/Book Value Is 8.1     Market/Book Value Is 0.4
Book value is 10 that can be   The book value is very       JS’s market value is very low
said like normal. But it is    low that is 1 and it shows   that is about 5 rupees
negative here due to slight    the good financial
decrease in market value.      position.
              Over All Analysis Graph




                                    DuPont Analysis

              2.5                         ROE 2.23
                2
              1.5
                1
     Values




                                                                      ROA
              0.5        ROE 0.28    ROA 0.13              ROE 0.18
                     ROA 0.04                                         ROE
                0
              -0.5     Standard       Bank Alfalah       JS Bank
                       Chartered
               -1
              -1.5                                    ROA -1.16
                                         Banks


Bank Al Falah is Better Than Standard Chartered Bank and JS Bank in September
                                   30, 2009.

				
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posted:11/22/2012
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