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Sbi icici ratio analysis

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Sbi icici ratio analysis

  1. 1.
  2. 2. Ratio<br />Analysis <br />Profit And Loss Account Ratio<br />Balance Sheet Ratio<br />Combined / Composite Ratios<br />
  3. 3.
  4. 4. Balance Sheet Ratio<br />Current Ratio<br />= Current Assets / Current Liabilities<br />Quick ratio<br />= Quick Asset /Quick liabilities<br />
  5. 5. Balance Sheet Ratio<br />2008/2009<br />0.4<br />Current Ratio<br />IDEAL<br />2:1<br />2009/2010<br />0.4<br /><ul><li>As the ideal ratio 2:1 but public sector companies have very low current ratio as they have very little need for current assets
  6. 6. But liquidity position of the bank is not good. Lesser the current ratio, less will be the firms ability to meet current obligations.</li></li></ul><li>Balance Sheet Ratio<br />2008/2009<br />5.74<br />Quick ratio<br />IDEAL<br />1:1<br />2009/2010<br />9.07<br /><ul><li>It is more rigorous and penetrating test of the liquidity position of a firm. 1:1 is the satisfactory level to meet all current claims.
  7. 7. Banks short term solvency is in better position.</li></li></ul><li>Profit And Loss Account Ratio<br />Operating Ratio<br />=Operating Cost / Net Sales ×100<br />Net Profit Ratio<br />= Net profit / Net Sales × 100<br />
  8. 8. Profit And Loss Account Ratio<br />2008/2009<br />22.91<br />Operating Ratio<br />IDEAL<br />%<br />2009/2010<br />27.61<br /><ul><li>Bank operating profit is increasing as compare to previous year. It shows that it would ensure adequate return to owners in comparison to previous year.</li></li></ul><li>Profit And Loss Account Ratio<br />2008/2009<br />11.92<br />Net Profit Ratio<br />IDEAL<br />%<br />2009/2010<br />10.66<br /><ul><li>As the net profit is goes down as compare to last year. It would not insure adequate return to owners as well as it enable the bank to with stand adverse economic conditions. </li></li></ul><li>Combined / Composite Ratios<br />Earnings per share<br />NPTA – pref. Dividend / no of equity share<br />Dividend Per Share<br />Dividend Per Equity Share / Earning Par Share<br />
  9. 9. Combined / Composite Ratios<br />2008/2009<br />143.67<br />Earnings Per Share Ratio<br />2009/2010<br />144.37<br /><ul><li>It measures the profit available to equity shareholders as par share basis.
  10. 10. Bank had good return to the shareholder.</li></li></ul><li>Combined / Composite Ratios<br />2008/2009<br />29.00<br />Dividend Per Share Ratio<br />2009/2010<br />30.00<br /><ul><li>The dividend paid to the shareholders on a per share basis in dividend per share .
  11. 11. Thus dividend par share is the earning distributed to the ordinary shareholders divided by number of ordinary share outstanding.
  12. 12. Bank paid good dividend for both year as par share.</li></li></ul><li>Ratio Analysis <br />
  13. 13. Balance Sheet Ratio<br />2008/2009<br />0.13<br />Current Ratio<br />IDEAL<br />2:1<br />2009/2010<br />0.14<br /><ul><li>As the ideal ratio 2:1 but private sector companies have very high current ratio.
  14. 14. But liquidity position of the bank is not bad. Lesser the current ratio, less will be the firms ability to meet current obligations.</li></li></ul><li>Balance Sheet Ratio<br />2008/2009<br />5.94<br />Quick ratio<br />IDEAL<br />1:1<br />2009/2010<br />14.70<br /><ul><li>It is more rigorous and penetrating test of the liquidity position of a firm. 1:1 is the satisfactory level to meet all current claims.
  15. 15. Banks short term solvency is little in better position.</li></li></ul><li>Profit And Loss Account Ratio<br />2008/2009<br />26.22<br />Operating Ratio<br />IDEAL<br />%<br />2009/2010<br />27.61<br /><ul><li>Bank operating profit is increasing as compare to previous year. It shows that it would ensure adequate return to owners in comparison to previous year.</li></li></ul><li>Profit And Loss Account Ratio<br />2008/2009<br />16.00<br />Net Profit Ratio<br />IDEAL<br />%<br />2009/2010<br />20.59<br /><ul><li>As the net profit is increasing as compare to last year. It would insure adequate return to owners as well as it able the bank to with stand adverse economic conditions.</li></li></ul><li>Combined / Composite Ratios<br />2008/2009<br />33.76<br />Earnings Per Share Ratio<br />2009/2010<br />36.10<br /><ul><li>It measures the profit available to equity shareholders as par share basis.
  16. 16. Bank can give satisfactory return to the shareholder.</li></li></ul><li>Combined / Composite Ratios<br />2008/2009<br />11.00<br />Dividend Per Share Ratio<br />2009/2010<br />12.00<br /><ul><li>The dividend paid to the shareholders on a per share basis in dividend per share .
  17. 17. Thus dividend par share is the earning distributed to the ordinary shareholders divided by number of ordinary share outstanding.
  18. 18. Bank paid satisfactory dividend as par share but still not satisfactory.</li></li></ul><li>

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