Bank of Baroda is a $5.6 billion Indian investment bank and financial services company with operations in 24 countries. It provides various banking and financial services like credit cards, corporate banking, investment banking, loans, and wealth management. The document then analyzes 10 financial ratios of an unnamed company for the years 2012 and 2013. Most ratios declined over this period, indicating deteriorating liquidity, profitability, and financial position. Key ratios like current ratio, quick ratio, and debt-to-equity ratio were below satisfactory levels, suggesting the company faces liquidity and debt issues.

1. Prepared By:
MBA Sem-1
Group No:- 21 Sec - C
Thummar Vivek
Enrollment No:147110592126
Jayprakash Tiwari
Enrollment No:147110592127
Subject: Accounting for Management
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2.  Since Bank of Baroda as we know it come into being on july
20th 1908.
 Bank of baroda is a $ 5.6 billion investment banking bringing
and financial service.expertise under has been designated as a
profit making public sectore undertaking .
 Extensive investment banking offshore infrastructure and
network of officer in 24 country.
 Providing credit cards, consumer banking, corporate banking,
finance and insurance, investment, banking, mortgage loans,
private banking, private equity and wealth management.
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Ratio
No
RATIO Slide No
1 Current Ratio 5
2 Quick Ratio 6
3 Absolute Liquidity Ratio 7
4 Intrust coverage ratio 8
5 Operating Profit Ratio 9
6 Debt Equity Ratio 10
7 Total Assets to Debt Ratio 11
8 Price Earning Ratio 12
9 Return On Capital Employed 13
10 Dividend layout Ratio 14

5. (1)Current Ratio:-
 Interpretation:-
  The liquidity ratio should be 2:1
 The company current ratio in 2012 is 0.58 and increases in 2013 to 0.97
 The company liquidity is not good.
5
Year 2012 2013
Ratio
(2:1)
0.58:1 0.97:1

6. (2) Quick Ratio:
 Interpretation:-
The liquidity of the company should be 1:1.
 The company Quick Ratio in 2012 is 0.84 and increased in 2013 is 0.90.
 The company Q.R is not 1:1 then company liquidity position is not
good.
6
Year 2012 2013
Ratio
(1:1)
0.84:1 0.90:1

7. (3) Absolute Liquidity Ratio:-
 Interpretation:-
 The liquidity should be 1:1.
 The company Absolute Liquidity Ratio is 0.87:1 in 2012 and decreased in
0.60:1
7
Year 2012 2013
Ratio
(1:1)
0.87:1 0.60:1

8. (4) Intrust Coverage Ratio:-
Intrust Coverage Ratio= Net profit before tax /fixed intrust change*100
 Interpretation:-
The company Net profit ratio in 2012 is 69.54% and decrease to 71.68%
in 2013.
8
Year 2012 2013
Ratio % 69.54% 71.68%

9. (5) Operating Profit Ratio:-
Operating Profit Ratio= Operating Cost / Net Sale * 100
 Interpretation:-
The company Operating profit ratio in 2012 is 44.48% and decrease to
20.25% in 2013.
9
Year 2012 2013
Ratio % 44.48% 20.25%

10. (6) Debt Equity Ratio:-
 Interpretation:-
The company Debt Equity Ratio in 2012 is 1.57:1 and decrease to 0.85 in
2013.
The Company satisfactory Ratio should be 2:1
10
Year 2012 2013
Ratio
(2:1)
1.57:1 0.85:1

11. (7)Total Assets to Debt Ratio:-
Total Assets to debt ratio = Total Assets / Long Term Debt
 Interpretation:-
 Normal Level Ratio should be 2:1
The company Total assets to debt ratio in 2012 is 1.50:1 is increased to
1.74:1 in 2013.
The financial position of the company or security is in risky.
11
Year 2012 2013
Ratio
(2:1)
1.50:1 1.74:1

12. (8) Price earning Ratio:-
Price Earning ratio= Profit after tax/no. of equity share.
 Interpretation:-
The company Fixed Assets Turnover Ratio in 2012 is 29.45% times and
it increased to 20.84% times in 2013
12
Year 2012 2013
Ratio 29.45% 20.84%

13. (9)Return on Capital Employed Ratio:-
Return of Capital Employed Ratio=
Net profit after tax / Average Capital employed * 100
 Interpretation:-
 The company ROCE in 2012 is 81.11% and decreased to 81.06% in
2013.
 The company has to maintain his Capital employed.
13
Year 2012 2013
Ratio 81.11% 81.06%

14. (10) Dividend payout Ratio:-
Debtors payout Ratio=
Equity share capital/net profit after tax*100
 Interpretation:-
The company Debtors Turnover Ratio of 2012 is 20.33% and decreased
to 20.21% in 2013.
In the absence of information regarding credit sales & cash sales, we
assume the Total Net Sales as Credit Sales
14
Year 2012 2013
Ratio 20.33% 20.21%

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