Table of Contents
1-Return on Equity:2
2-Return on Assets:3
3-Equity Multiplier:4
4-Asset Utilization Ratio:5
5-Tax Ratio:6
6-Efficiency Ratio:6
7-Expense Ratio:7
8-Spread:8
9-Burden:9

1-Return on Equity:

ROE = Net Income/Average Total Equity
YEAR| 2006| 2007| 2008|
Net Income| 12700315| 10084037| 15614020|
Average Total Equity| 38949430.5| 50120394.5| 63172013.5| | 0.032 | 0.020| 0.024|

Analysis: This trend of return of asset is similar to return on equity. Its basic reason is that the numerator that is net income is the same. The ROA has almost decreasing trend. In the year 2006 the ROA should decrease due to increase in denominator, contrary to this the ratio was decreased due to increase in Net income. Net Income = NII-Burden-PLL+SG-T

2-Return on Assets:
ROA = Net Income/Average Total Assets
YEAR| 2006| 2007| 2008|
Net Income| 12700315| 10084037| 15614020|
Average Total Assets| 559592686.5| 641141494.5| 724959955| | 2.27%| 1.57%| 2.15%|

Analysis: Return on assets decreased in 2007 and 2008 and it was maximum in 2006. This is because HBL used more debt financing in 2006 as compared to 2007 and 2008 which resulted in more interest cost and brought the Net income down.

3-Equity Multiplier:
EQ = Average Total Assets/ Average Total Equity
YEAR| 2006| 2007| 2008|
Average Total Assets| 559592686.5| 641141494.5| 724959955| Average Total Equity| 38949430.5| 50120394.5| 63172013.5| | 14.37| 12.88| 11.48|

Analysis: This decreasing trend shows that the dependence of banks on deposits was decreasing during the period.

4-Asset Utilization Ratio:
AU = Total Revenue/Average Total Assets
YEAR| 2006| 2007| 2008|
Total Revenue| 52175236| 60504185| 79683844|
Average Total Assets| 559592686.5| 641141494.5| 724959955| | 9.32%| 9.44%| 10.99%|

...Financial ratioanalysis
A reading prepared by Pamela Peterson Drake
OUTLINE
1.
2.
3.
4.
5.
1.
Introduction
Liquidity ratios
Profitability ratios and activity ratios
Financial leverage ratios
Shareholder ratios
Introduction
As a manager, you may want to reward employees based on their performance. How do you know
how well they have done? How can you determine what departments or divisions...

...
RATIOANALYSIS
Financial ratios are useful indicators of a firm's performance and financial situation. Most ratios can be calculated from information provided by the financial statements. Financial ratios can be used to analyze trends and to compare the firm's financials to those of other firms. In some cases, ratioanalysis can predict future bankruptcy.
Financial ratios can be...

...
RatioAnalysis
Cynthia Nelson
HCS/571
September 2 2013
Joseph Rudd
RatioAnalysis
Financial ratioanalysis is the calculation and comparison of ratios pulled from the information in a company’s financial statements (Cleverly & Song, 2011). The financial report is used by organization to determine the financial health and stability of an organization. The ratios...

...RatioAnalysisRatioanalysis is used to evaluate relationships among financial statement items. The ratios are used to identify trends over time for one company or to compare two or more companies at one point in time. Financial statement ratioanalysis focuses on three key aspects of a business: liquidity, profitability, and solvency.
Liquidity Ratios
Liquidity...

...
Ratioanalysis – Shinepukur Ceramics Versus RAK Ceramics
Current ratio
Shinepukur: From 2009 to 2010, current ratio of Shinepukur has increased by 0.24 because of increase in total current assets and decrease in total current liabilities. The increase in total current has occurred for increase in accounts-and-other-receivables, advances-deposits-and-prepayments and cash. Among these elements, the increase in...

... 4
Chapter 1. Introduction 5
1.1 Theoretical background 8
1.1.1 Use and significance of RatioAnalysis 8
1.1.2 Limitations 11
1.1.3 Classifications of ratios 13
1.2 Research Methodology 33
1.2.1 Need for the study 33
1.2.2 Scope of the...

...Financial Reporting II
Review of RatioAnalysisRatioanalysis is a useful tool for analyzing financial statements. Calculating ratios will aid in understanding the company’s strategy and in understanding its strengths and weaknesses relative to other companies and over time. They can sometimes be useful in identifying earnings management and in understanding the effect of accounting choices on the firm’s reported...

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