ratio analysis on dhaka bank

5/19/2018 Ratio Analysis on Dhaka Bank

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Mission:

To be the premier financial institution in the country providing high quality products and

services backed by latest technology and a team of highly motivated personnel to deliverExcellence in Banking.

Vision:

At Dhaka Bank, we drew our inspiration from the distant stars. Our team is committed to

assure a standard that makes every banking transaction a pleasurable eperience. Our

people, products and processes are aligned to meet the demand of our discerning

customer. Our goal is to achieve like the luminaries in the sky. Our prime ob!ective is todeliver a quality that demonstrates a true reflection of our vision " #cellence in Banking.

The Dhaka Bank care for our society. $t shares its pride with its surrounding. $t hasestabilished Dhaka bank %oundation, a philanthropic arm of our bank in &ovember '(,

'))'.

Ratio Analysis of Dhaka Bank

Ratio:

*atios are useful for financial analysis by investor because ratios capture criticaldimensions of the economic performance of the entity. $ncreasingly, ratios are a tool thatmanagers use to guide measure and reward workers. A ratio analysis isn+t !ust comparing

different numbers from the balance sheet, income statement, and cash flow statement. $t+s

comparing the number against previous years, other companies, the industry, or even theeconomy in general. *atios look at the relationships between individual values and relate

them to how a company has performed in the past, and might perform in the future.

Types of Ratio:

The different types of financial ratios include

-iquidity *atio. Activity *atio.

Debt *atio.

rofitability *atio.

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Liquidity Ratio:

Liquidity ratios measure a firms ability to meet its current financial obliations!

Liquidity Ratios include:

&et working capital

0urrent *atio

1uick *atio

Acti"ity ratio:

$nventory *atio.

Average collection eriod.

Total Assets Turnover.

Debt Ratio:

Debt *atio.

Debt #quity *atio.

$nterest 0overage *atio.

#rofitability Ratio:

2ross rofit 3argin.

Operating rofit 3argin.

&et rofit 3argin. *eturn on Total Assets.

*eturn on 4hareholders #quity.

'


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$ %ears &inancial 'ihlihts:

No

:

Name of Item 2001 2002 2003 2004

1&et 5orking 0apital "

67((,/78,))9:

"6(97,87;,89

4 Debt #quity *atio ';.8< '). 78.7> 98. 7;.7>

8 *eturn on Assets 6*OA: /.7'> /.' /. /.

8 *eturn on #quity 6*O#: ( ''.' '(.)


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(! )et *orkin +apital:The &et 5orking 0apital of a business is an indication of the short"run solvency of the

business.

The &et 5orking 0apital computes as follows

)et *orkin +apital , 0urrent Assets ? 0urrent -iabilities.

-..( -..- -../ -..$

9,;8(,/)8,99) ?;,


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The 0urrent *atio computes as follows

+urrent Ratio ,sLiabilitie!""ent

#ssets!""ent

-..( -..- -../ -..$

999,'9=,


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Debt quity Ratio ,E&!it'"s()a"e)ol*e

%ebt$otal

-..( -..- -../ -..$

7//,/


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;peratin #rofit Marin ,(ales

ofit+,e"ating.r

-..( -..- -../ -..$

'//,9/8,, '(, ')(.'> in

'))/, '))', ')) which isquite bad in comparison to other years.

7! )et #rofit Marin:&et profit margin, one of the most popular indicators of company health, measures thepercentage of sales revenue remaining after all epenses is paid.

The 0urrent *atio computes as follows

)et #rofit Marin ,(ales

ofitNet .r

-..( -..- -../ -..$

'//,9/8,


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-..( -..- -../ -..$

;(/,/=;,/'7,/8

(, /, / in '))/,'))', ')), '9./9>, ''.','(.) in '))/, '))', '))

ratio analysis on dhaka bank

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