Post on 09-Apr-2018
transcript
8/8/2019 Askari Bank Ratio Analysis
1/32
PROJECT
ON
Financial Management
Submitted By
Group NamesMBA (Banking & Finance) 2ndTerm
Session 2009-2011Name of the Students Class Roll No Exam Roll No Signatures
Romana Nargus A-1 462
Submitted To
Mr. ZAHID AWAN
Department of Business Administration Gomal University Page | 1
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
2/32
In The Name Of ALLAH
The Most Gracious,
Beneficial &
Most Merciful.
Department of Business Administration Gomal University Page | 2
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
3/32
ASKARI BANKLIMITED
Askari Commercial Bank Limited (ACBL) was incorporated in Pakistan on October 9, 1991, as a
Public Limited Company. It started its operations during April 1, 1992. The bank principally deals
with banking, as defined in the Banking Companies Ordinance, 1962. The Bank is listed on the
Karachi,Lahore & Islamabad Stock Exchanges and its shares are currently the highest quoted from
among the new private sector banks in Pakistan.
Askari Bank has expanded into a nationwide presence of 150 branches, and an offshore banking Unit
in Bahrain (wadi-e-kalam). A shared network of over 1,100 online ATMs covering all major cities in
Pakistan supports the delivery channels for customer service.
FUNCTIONS OF ASKARI BANK
Services
Askari Bank offers a wide range of services to its customers and recognizes the importance of efficient
business delivery and providing timely solutions.
Personal Banking
Mortgage Finance
Corporate & Investment Banking
Business Finance
ASKCAR - Car Finance
ASKCARD
Department of Business Administration Gomal University Page | 3
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
http://www.servinghistory.com/topics/Pakistanhttp://www.servinghistory.com/topics/Public_Limited_Companyhttp://www.servinghistory.com/topics/1962http://www.servinghistory.com/topics/Karachihttp://www.servinghistory.com/topics/Lahorehttp://www.servinghistory.com/topics/Islamabad_Stock_Exchangehttp://www.servinghistory.com/topics/Bahrainhttp://www.servinghistory.com/topics/Automated_teller_machinehttp://www.servinghistory.com/topics/Pakistanhttp://www.servinghistory.com/topics/Public_Limited_Companyhttp://www.servinghistory.com/topics/1962http://www.servinghistory.com/topics/Karachihttp://www.servinghistory.com/topics/Lahorehttp://www.servinghistory.com/topics/Islamabad_Stock_Exchangehttp://www.servinghistory.com/topics/Bahrainhttp://www.servinghistory.com/topics/Automated_teller_machine8/8/2019 Askari Bank Ratio Analysis
4/32
Travelers Cheques
Ask Smart
Profit / Markup Rates on Retail Products
Internet banking
Askari Bank has also introduced online banking. Customers are able to view their bank information
and use their accounts for money transfer and use other features.
Services
Personal Finance
ASKCARDS
Business Finance
Auto Financing
Travelers Cheques
Agriculture finance
Department of Business Administration Gomal University Page | 4
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
5/32
(1) (1) Kissan Ever Green Finance (2) Kissan Tractor Finance.
FINANCIAL STATEMENT
Financial statements are records (Written Report) that provide an indication of an individuals,
organizations, or business financial status. There are four basic types of financial statements: balance
sheets, income statements, cash-flow statements, and statements of retained. Financialstatements are
usually compiled on a quarterly andannual basis.
What is Financial Statement Analysis?
Analysis of financial statement means finding out the current position of the company through various
tools like ratio analysis, fund flow analysis. It also involves comparing the company figures with
regard to industry standards or over a period of time.
Data presented in financial statement is of significance to analyst. They develop the relation
among the various items of Balance Sheetand Income Statementand interpret their results in
theoretical perspective. For this analysis they adopt various tool and techniques.
Types ofFinancial Statement
Balance Sheet
Balance sheet also referred to as statement of financial position or condition, reports on a
company's assets, liabilities, and Ownership equity at a given point in time.
Income Statement
Income statement: also referred to as Profit and Loss statement (or a "P&L"), reports on a
company's income, expenses, and profits over a period of time. Profit & Loss account provide
information on the operation of the enterprise. These include sale and the various expenses
incurred during the processing state.
Statement of Retained Earnings
Statement of retained earnings explains the changes in a company's retained earnings over thereporting period.
Department of Business Administration Gomal University Page | 5
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
http://www.investorwords.com/5572/financial.htmlhttp://www.investorwords.com/4701/statement.htmlhttp://www.businessdictionary.com/definition/annual-basis.htmlhttp://www.businessdictionary.com/definition/annual-basis.htmlhttp://www.investorwords.com/5572/financial.htmlhttp://www.investorwords.com/4701/statement.htmlhttp://www.businessdictionary.com/definition/annual-basis.html8/8/2019 Askari Bank Ratio Analysis
6/32
Statement of Chas Flow
Statement of cash flows reports on a company's cash flow activities, particularly its operating,
investing and financing activities.
Tool of Analysis
1. Comparative Statement.
2. Absolute Increase/Decrease in % ages.
3. Trend Percentages.
4. Common Size Percentages.
5. Ratio Analysis.
1. COMPARATIVE STATEMENT
In this statement two or more than two years data is presented for comparison.
2. ABSOLUTE INCREASE/DECREASE
It is a type of Horizontal analysis. It gives changes in absolute data intern of Rupees amount. It
enables the analyst to point out the direction of business.
3. TREND PERCENTAGE
This is the second type of horizontal analysis. It is adopted to know the tendencies of business
position. In it one year is chosen as base year and item of financial statement of base year related with
other years relevant items.
4. COMMON SIZE PERCENTAGE
This method is for vertical analysis. It represents the change in percentages in relation to total assets,
total liabilities and owner equity. In this method we take total assets, liabilities and owner equity and
sales individually 100% and develop relationship with their relevant components.
5. RATIO ANALYSIS
Ratio is mathematical relationship of one item to other items. For analysis these ratios are compared
with other years relevant ratios or with the ratios of other companies of the same nature are industrial
Department of Business Administration Gomal University Page | 6
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
7/32
averages. Ratios are really adopted to know the liquidity, stability and profitability position of the
company.
RATIO ANALYSIS
Ratio analysis involves methods of calculating and interpreting financial ratio to analyze and monitor
the firm performances. The basic inputs to ratio analysis are the firms balance sheet and income
statement.
TYPESOF RATIO ANALYSIS
Cross Sectional Analysis
Comparison of two different firms financial ratios at the same point in the times is involves
comparing the firms ratios to those of other firms in its industry or to industry averages.
Time-Series Analysis
Evaluation of the firm s financial performance over time using financial ratio analysis means
comparison to current to past performance using ratios enables analyst to access the firmprogress.
Combined Analysis
A combined view makes it possible to access the trend in the behavior of the ratio in therelation to the industry.
Department of Business Administration Gomal University Page | 7
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
8/32
CATEGORIES (LIST) OF FINANCIAL RATIOS
Department of Business Administration Gomal University Page | 8
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
9/32
BALANCE SHEETS
OF THE HALF YEARS ENDED
(2008 2010)
Assets
(Rupee in Thousands) Year 2008 Year 2009 Year 2010
Current Assets
Cash and balances with
treasury banks 11766925 14879230 13356055
Balances with other banks 5550148 7333002 3497054
lending to financial institutions 10172242 8392950 14444143
Account receivable 85400018 76438647 34747780
Investments 25708194 28625915 39431005
Advances 85976895 99179372 100780162
Total current Assets I39174404 158410469 171508419
Fixed assets
operating fixed Assets 3192862 3810331 5128428 deferred tax 0 0 0
other Assets 2732641 3812788 5535038
Total Assets 145099907 166033588 182171885
Liabilities Current
Liabilities
Bills Payable 1315680 1839077 2627051
Borrowing 10562338 14964087 17553525
Deposits & other Accounts 118794690 131839283 143036707
Total Current Liabilities
130672
708
1486424
47 145099907
Non-Current
Liabilities
Sub-ordinate Loans 2999700 2998500 2997300
Liabilities against assets
Subject to finance lease 1459 0 0
tax liabilities 567217 736298 471519
other liabilities 2271393 2603113 3219796
Total Liabilities 136512477 154980358 169905898Share
Holders
Equity
Share Capital 1507018 2004333 3006499
Reserves(R.E) 5862074 5814754 6948336
Inappropriate income 0 1799979 2144810
Surplus on revaluation of
assets- net of tax 1218338 1434164 166342
Total Common Equity 8587430 11053230 12265987
Total Liabilities & Owner Equity
1450999
07 166033588 182171885
Department of Business Administration Gomal University Page | 9
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
10/32
INCOME STATEMENTS
OF THE HALF YEARS ENDED
(2008 2010)
(Rupee in Thousands) Year 2008 Year 2009 Year 2010
SALES
Mark-up/Return/Interest earned 8780698 12596921 15143241
COGS Mark-up/Return/Interest expensed 4278374 6977313 8685624
Provision against non-performing loans
and advances-net 638547 1128137 3920240
Provision /(Reversal) for diminution in
the value of investment-net -36555 376 1501
Bad debts Written off directly 0 0 0
3900332 4491095 2535876
OtherIncome Non-mark-up/interest income
Fee, commission, and brokerage income 838561 1013660 1072868
Dividend income 51143 109326 137079
Income from dealing in foreign currencies 356218 584344 655761
Income from sale and Purchase of securities 99825 112474 2361251
Unrealized loss on revaluation ofInvestments
Classified as held for trading-net 0 -2308 1728
Other Income 206819 321758 336809
5452898 6630349 7101372
Other
Expenses Non-Mark Up/Interest Expenses
Administrative Expenses 2591985 3277353 4789536
Provision against other assets-net 0 0 0
Other charges 1832 6141 12051
Extra-ordinary/unusual items 0 0 0
2593817 3283494 4801587Gross
Profit Profit Before Taxation (EBIT) 2859081 3346855 2299785
Taxation Taxation-Current 828774 983875 98535
-Prior Years -188247 0 -233950
-Deferred 196558 113006 -245812
Net Profit Profit After Taxation 2021996 2249974 2681012
Department of Business Administration Gomal University Page | 10
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
11/32
1. LIQUIDIT RATIO
Liquidity ratios measure of the amount of funds a company can quickly use to settle its debts.
Net Working Capital Ratio
Current Ratio
Quick(Acid test) Ratio
Net Working Capital Ratio
A measure of both a company's efficiency and its short-term financial health. The working capital
ratio is calculated as:
Formula = Total current assets Total current liabilities= NWC Ratio
2010 = 171508419 145099907 = 26408512
2009 = 158410469 148642447 = 9768022
2008 = I39174404 130672708 = 8501696
0
5 0 0 0 0 0 0
1 0 0 0 0 0 0 0
1 5 0 0 0 0 0 0
2 0 0 0 0 0 0 0
2 5 0 0 0 0 0 0
3 0 0 0 0 0 0 0
2 00 8 2 00 9 2 01 0
Percentage
Years
Interpretation
The analysis shows that Net Working Capital Ratio has increased in 2010 to 26408512 but it has
decreased in 2009 to 9768022, and in 2008 to 8501696.
Department of Business Administration Gomal University Page | 11
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
12/32
Current Ratio
It measures the firms ability to meet its short term obligation. The current ratio is the ratio of current
assets to current liabilities: It is expressed as follows.
Formula = Current Assets
Current Liabilities
2010 = 171508419 = 1.182%
145099907
2009 = 158410469 = 1.605%
1486424472008 = I39174404 = 1.065%
130672708
0
0.5
1
1.5
2
2 00 8 2 00 9 2 01 0
Percentage
Years
Interpretation
The analysis shows that Current Ratio has increased in 2010 to 1.182, but it has decreased to 1.605 in
2009, and in 2008 to 1.065.
Quick(Acid-Test) Ratio
It measures ability to meet short-term cash needs more rigorously by eliminating inventory.
Formula = Current Assets - Inventory
Current Liabilities
Department of Business Administration Gomal University Page | 12
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
13/32
2010 = 171508419 - 158152364 = 0.914%
145099907
2009 = 158410469 - 14351239 = 0.969%
1486424472008 = I39174404 - 127407479 = 0.090%
130672708
0
0.2
0.4
0.6
0.8
1
1.2
2 00 8 2 00 9 2 01 0
Percentage
Years
Interpretation
Analysis shows that Quick (Acid-Test) Ratio has decreased to 0.090 in 2008 as compared to 2010
which is 0.914. It again strengthened in 2009 to 0.969.
2. ACTIVITY RATIO
Activity ratios measure how quickly a firm converts non-cash assets to cash assets.
Account Receivable Turnover
Average Collection Period
Inventory Turnover
Average Age of Inventory
Total Assets Turnover
Account Receivable Turnover
Department of Business Administration Gomal University Page | 13
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
14/32
It gives the number of times accounts receivables is collected during the year.
Formula = Net Credit Sales
Average Account Receivables
2010 = 15143241 = 0.435 times
34747780
2009 = 12596921 = 0.164 times
7643864
2008 = 8780698 = 0.010 times
8540001
0
0.1
0.2
0.3
0.4
0.5
2 00 8 2 00 9 2 01 0
Times
Years
Interpretation
Analysis shows that Account Receivable Turnover Ratio has decreased to 0.010 in 2008 as compared
to 2009 which is 0.164. It again strengthened in 2010 to 0.435.
Average Collection Period
It measures the average amount of the time that needed to collect accounts receivables.
Formula = _______365 _______
Account Receivables Turnover
2010 = ___365 = 839.0 days
0.435times
2009 = ___365 = 2225.6 days
0.164 times
Department of Business Administration Gomal University Page | 14
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
15/32
2008 = ___365 = 35500 days
0.010 times
05 0 0 0
1 0 0 0 01 5 0 0 02 0 0 0 02 5 0 0 03 0 0 0 03 5 0 0 04 0 0 0 0
2 00 8 2 00 9 2 01 0
Days
Years
Interpretation
Analysis shows that Average Collection Period has decreased to 839.0 in 2010 as compared to 2009
which is 2225.6. It again strengthened in 2008 to 35500.
Inventory Turnover
It measures the activity or liquidity of the firms inventory.
Formula = Cost of Goods Sold
Average Inventory
2010 = 8685624 = 0.054 times
158152364
2009 = 6977313 = 0.486 times
14351239
2008 = 4278374 = 0.033 times127407479
Department of Business Administration Gomal University Page | 15
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
16/32
00.1
0.2
0.3
0.4
0.5
0.6
2 00 8 2 00 9 2 01 0
Days
Years
Interpretation
Analysis shows that Inventory Turnover has decreased to 0.033 times in 2008 as compared to 2010
which is 0.054 times. It again strengthened in 2009 to 0.468 times.
Average Age Inventory
Average inventory is determine by the beginning and ending and dividing by 2.
Formula = ______365_______
Inventory Turnover
2010 = ___365 = 6759 Days
0.054 times
2009 = ___365 = 751 Days
0.486 times
2008 = ___365 = 11060 Days
0.033 times
Department of Business Administration Gomal University Page | 16
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
17/32
02 0 0 0
4 0 0 0
6 0 0 0
8 0 0 0
1 0 0 0 0
1 2 0 0 0
2 00 8 2 00 9 2 01 0
Days
Years
Interpretation
Analysis shows that Average Age Inventory has decreased to 751 days in 2009 as compared to 2010
which is 6759 days. It again strengthened in 2008 to 11060 days.
Total Assets Turnover
It indicates the efficiency with which the firm uses it assets to generate sales.
Formula = _____Net Sales ____
Average Total Assets
2010 = 15143241 = 0.083%
182171885
2009 = 12596921 = 0.075%
166033588
2008 = 8780698 = 0.060%
145099907
Department of Business Administration Gomal University Page | 17
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
18/32
00.02
0.04
0.06
0.08
0.1
2 00 8 2 00 9 2 01 0
Percentage
Years
Interpretation
Analysis shows that Total Assets Turnover has decreased to 0.060 in 2008 as compared to 2009 which
is 0.075. It again strengthened in 2010 to 0.083.
Current Assets Turnover
It measures ability to meet short-term cash needs more rigorously by eliminating inventory.
Formula = _______ Sales ______
Average Current Assets
2010 = 15143241 = 0.088 times
171508419
2009 = 12596921 = 0.079 times
158410469
2008 = 8780698 = 0.063 times
I39174404
Department of Business Administration Gomal University Page | 18
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
19/32
00.02
0.04
0.06
0.08
0.1
2 00 8 2 00 9 2 01 0
Times
Years
Interpretation
Analysis shows that Current Assets Turnover Ratio has decreased to 0.063 in 2008 times as compared
to 2009 which is 0.079 times. It again strengthened in 2010 to 0.088 times.
Fixed Assets Turnover
It measures ability to meet short-term cash needs more rigorously by eliminating inventory.
Formula = _____ Sales _ _____
Average Fixed Assets
2010 = 15143241 = 0.083 times
182171885
2009 = 12596921 = 0.075 times
166033588
2008 = 8780698 = 0.006 times
145099907
Department of Business Administration Gomal University Page | 19
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
20/32
00.02
0.04
0.06
0.08
0.1
2 00 8 2 00 9 2 01 0
Times
Years
Interpretation
Analysis shows that Fixed Assets Turnover has decreased to 0.006 times in 2000 as compared to 2009
which is 0.075 times. It again strengthened in 2010 to 0.083 times.
3. LEVERAGE/DEBET/CAPTAL STRUCTURE RATIOS
Leverage/ Capital Structure/ Debt ratios measure the firm's ability to repay long-term debt.
Debt Ratio.
Debt/Equity Ratio.
Time Interest Earned.
Debit Ratio
It measures the proportion of the total assets financed by the firms credit.
Formula = Total Liabilities (Debt)
Total Assets
2010 = 169905898 = 0.932%
182171885
Department of Business Administration Gomal University Page | 20
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
21/32
2009 = 154980358 = 0.933%
166033588
2008 = 136512477 = 0.940%
145099907
0.928
0.93
0.932
0.934
0.936
0.938
0.94
0.942
2 00 8 2 00 9 2 01 0
Percentage
Year
Interpretation
Analysis shows that Debt Ratio has decreased to 0.932 in 2010 as compared to 2009 which is 0.933. It
again strengthened in 2008 to 0.940.
Debt Equity Ratio
It significant measure of solvency since a high degree of debt in the capital structure may make it
difficult for the company to meet interested charges and principles payments at maturity.
Formula = Total Liabilities
Total Stock Holders Equity
2010 = 145099907 = 11.82%
122659872009 = 148642447 = 13.44%
11053230
2008 = 130672708 = 15.21%
8587430
Department of Business Administration Gomal University Page | 21
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
22/32
02
468
10121416
2 00 8 2 00 9 2 01 0
Percentage
Year
Interpretation
Analysis shows that Debt Equity Ratio has decreased to 11.82 in 2010 as compared to 2009 which is
13.44. It strengthened in 2010 to 15.21.
Time Interest Earned /Interest Coverage Ratio
It measures
Formula = ______ EBIT ______
Interest (Expenses)
2010 = 2299785 = 5.93 times
42009 = 3346855 = 1.019 times
32008 = 2859081 = 0.886 times
2
Department of Business Administration Gomal University Page | 22
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
23/32
01
2
3
4
5
6
7
2 00 8 2 00 9 2 01 0
Times
Years
Interpretation
Analysis shows that Time Interest Earned /Interest Coverage Ratio have decreased to 0.155 in 2007
as compared to 2006 which is 0.184. It again strengthened in 2008 to 2.28 while dropped to 0.20 in
2009.
4. PROFITABILTY RATIO
Profitability ratios measure the firm's use of its assets and control of its expenses to generate anacceptable rate of return.
Gross Profit Margin.
Profit Margin.
Return on Total Assets.
Return on Common Equity.
Gross Profit Margin
It expresses the relationship of gross profit to net sales and is expressed in terms of percentage. This
ratio is a tool that indicates the degree to which selling price of goods per unit may decline without
resulting in losses.
Department of Business Administration Gomal University Page | 23
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
24/32
Formula = Gross Profit x 100
Net Sales
2010 = 2535876 x 100 = 0.167%
151432412009 = 4491095 x 100 = 0.356%
12596921
2008 = 3900332 x100 = 0444%
8780698
0
0.1
0.2
0.3
0.4
0.5
2 00 8 2 00 9 2 01 0
Percentage
Years
Interpretation
Analysis shows that Cash Ratio has decreased to 0.155 in 2007 as compared to 2006 which is 0.184. It
again strengthened in 2008 to 2.28 while dropped to 0.20 in 2009.
(Operating) Profit Margin
This ratio establishes a relationship between cost of goods sold plus other operating expenses and net
sales. This ratio is calculated mainly to ascertain the operational efficiency of the management in their
business operations.
Formula = Cost of goods sold + operating expenses
Net sales
2010 = 8685624 + 4801587 = 0.890%
Department of Business Administration Gomal University Page | 24
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
25/32
15143241
2009 = 6977313 + 3283494 = 0.814%
12596921
2008 = 4278374 + 2593817 = 0.782%
8780698
0.7
0.75
0.8
0.85
0.9
2 00 8 2 00 9 2 01 0
Percentage
Years
Interpretation
Analysis shows that Operating profit Margin has decreased to 0.782 in 2008 as compared to 2009
which is 0.814. It again strengthened in 2010 to 0.890.
Return On Total Assets
It measures the overall effectiveness of management in generating profits with its available assets
also at ROI.
Formula = Earning Available for Common Stockholders
Total Assets
2010 = 2681012 = 0.014%
182171885
2009 = 2249974 = 0.013%
166033588
2008 = 2021996 = 0.013%
145099907
Department of Business Administration Gomal University Page | 25
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
26/32
0.01240.01260.0128
0.0130.01320.01340.01360.0138
0.0140.0142
2 00 8 2 00 9 2 01 0
Percentage
Years
Interpretation
Analysis shows that Return on Total Assets has increased to 0.014 in 2010. While it again decreased
in 2009 to 0.013% while dropped to 0.013% in 2008.
Return On Total Equity
It measures the return earned on the common stock holders investment in the firms.
Formula = Earning Available for Common Stockholders
Common Stock Equity
2010 = 2681012 = 0.891%
3006499
2009 = 2249974 = 1.122%
2004333
2008 = 2021996 = 1.008%
2004333
Department of Business Administration Gomal University Page | 26
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
27/32
00.2
0.4
0.6
0.8
1
1.2
2 00 8 2 00 9 2 01 0
Percentage
Years
Interpretation
Analysis shows that Return on Total Equity has decreased to 0.891% in 2010 as compared to 2008
which is 1.008%. It again strengthened in 2009 to 1.112%.
Account Receivable Turnover
It measures ability to meet short-term cash needs more rigorously by eliminating inventory.
Formula = Current Assets - Inventory
Current Liabilities
2010 = 171508419 - 158152364 = 0.914%
145099907
2009 = 158410469 - 14351239 = 0.969%
148642447
2008 = I39174404 - 127407479 = 0.090%
130672708
Department of Business Administration Gomal University Page | 27
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
28/32
00.2
0.4
0.6
0.8
1
1.2
2 00 8 2 00 9 2 01 0
Percentage
Years
Interpretation
Analysis shows that ART Ratio ..has decreased to 0.155 in 2007 as compared to 2006 which is
0.184. It again strengthened in 2008 to 2.28 while dropped to 0.20 in 2009.
5.MARKET VALUE
Market ratios measure investor response to owning a company's stock and also the cost of issuing
stock. it relates a firm market value as erasure by its current share pries to certain accounting value.
Earning Per Share.
Price/Earnings Ratio.
Book Value Par Share.
Dividend Yield
Dividend Payout.
Earning Per Share
It measures ability to meet short-term cash needs more rigorously by eliminating inventory.
Formula = Net Income Proffered Dividends
Common Stock Standing
Department of Business Administration Gomal University Page | 28
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
29/32
2010 = 2681012 - 0 = 0.891%
3006499
2009 = 2249974 - 0 = 1.122%
2004333
2008 = 2021996 - 0 = 1.341%
1507018
00.20.40.60.8
11.21.41.6
2 00 8 2 00 9 2 01 0
percentage
year
Interpretation
Analysis shows that Cash Ratio has decreased to 0.891% in 2010 as compared to 2009 which is
1.112%. It again strengthened in 2008 to 1.341%.
Pries /Earning Ratio
It relates earnings per common share to the market price at which the stock trades, expressing the
multiple that the stock market places on a firms earnings.
Formula = Market Price Per Share
Earning Per Share
2010 = 182171885 = 59.43%
3006499
2009 = 166033588 = 82.83%
2004333
Department of Business Administration Gomal University Page | 29
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
30/32
2008 = 145099907 = 96.28%
1507018
0
2 0
4 0
6 0
8 0
1 001 20
2 00 8 2 00 9 2 01 0
Percentage
Year s
Interpretation
Analysis shows that Price Earning Ratio has decreased to 0.155 in 2007 as compared to 2006 which is
0.184. It again strengthened in 2008 to 2.28 while dropped to 0.20 in 2009.
Dividend Yield
It shows the relationship between cash dividends and market price.
Formula = Divided Per Shares
Market Price Per Share
2010 = 3370000 = 60.47%
5573149
2009 = 2694106 = 69.06%
3901279
2008 = 1638357 = 54.13%
3026550
Department of Business Administration Gomal University Page | 30
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
31/32
7 5 0 0 0 0 08 0 0 0 0 0 0
8 5 0 0 0 0 0
9 0 0 0 0 0 0
9 5 0 0 0 0 0
1 0 0 0 0 0 0 0
2 00 8 2 00 9 20 10
Percentage
Years
Interpretation
Analysis shows that Dividend Yield has decreased to 54.13% in 2008 as compared to 2010 which is
60.47%. It again strengthened in 2009 to 69.06%.
Dividend Payout
It determined by the formula cash dividends per share divided by earnings per share.
Formula = Dividend per Shares
Earning Per Share
2010 = 3370000 = 60.47%
5573149
2009 = 2694106 = 69.06%
3901279
2008 = 1638357 = 54.13%
3026550
Department of Business Administration Gomal University Page | 31
Khyber.Pakhton.Khwa (Dera Ismail Khan) Pakistan
8/8/2019 Askari Bank Ratio Analysis
32/32
7 5 0 0 0 0 0
8 0 0 0 0 0 0
8 5 0 0 0 0 0
9 0 0 0 0 0 0
9 5 0 0 0 0 0
1 0 0 0 0 0 0 0
2 00 8 2 00 9 2 01 0
Percentage
Years
Interpretation
Analysis shows that Dividend Payout has decreased to 54.13% in 2008 as compared to 2010 which is
60.47%. It again strengthened in 2009 to 69.06%.
Text References
1. Managerial Finance by JAE K. SHIM, JOEL g. SIEGEL.
2. Principle of Managerial Finance 11th Edition by Lawrence J.Gitman.
3. Askari Bank Quarterly Report March of (2010) of ACBL.
References
www.google.com
www.pakistanimbajimdo.com
www.Scribd.com
www.shlideshare.net
k ib k
http://www.google.com/http://www.pakistanimbajimdo.com/http://www.scribd.com/http://www.shlideshare.net/http://www.askaribank.com/http://www.google.com/http://www.pakistanimbajimdo.com/http://www.scribd.com/http://www.shlideshare.net/http://www.askaribank.com/