Ratio Analysis of Top 5 Banks in Pakistan

CORPORATE FINANCE
ASSIGNMENT
ON
ANALYSIS OF FINANCIAL STATEMENTS

SUBMITTED TO:
SIR ATIF IQBAL

SUBMITTED BY:
FAHAD AHMED KHAN
HASSAN ALI KHAN
MEF SEC (A)
UNIVERSITY OF KARACHI
NANCE
TATEMENTS
HAN
ANALYSIS OF FINANCIAL STATEMENTS

Financial statement analysis is defined as the process
of identifying financial strengths and weaknesses
of the firm by properly establishing relationship between the items of thebalance sheet and the
profit and loss account.

OR
Financial Statement Analysis is the process of understanding the risk and profitability of the firm through
analysis of reported financial information , by using different accounting tools and techniques.
Financial Statements are prepared to meet external reporting obligations and also for decision
making purposes.They play a dominant role in setting the framework of managerial decisions.But the informati
provided in Financial Statementsis not an end in itself as no meaningful conclusion can be drawn from these statements
alone.However, the information provided in the financial statements
is of immense use in making decisions through ana
and interpretaion of financial statements.
TOOLS OF FINANCIAL STATEMENT ANALYSIS:

Following are the most important tools of financial statement analysis.
1) Horizontal and vertical analysis.
2) Ratio analysis.
1. Horizontal and Vertical Analysis:

Horizontal Analysis or Trend Analysis:
Comparison of two or more year's financial data is known as horizontal analysis,
or trend analysis. Horizontal analysis is facilitated by showing changes between years in both
Rupees and %age form.

Trend Percentage:
Horizontal analysis of financial statements can also be carried out by computing trend percentages.
Trend percentage states several years' financial data in terms of a base year.
The base year equals 100%, with all other years stated in some percentage of this base.
Vertical Analysis:
Vertical Analysis is the procedure of preparing and presenting common size statements.
Common size statement is one that shows the items appearing on it in percentage form as well as in
Rupees form.Each item is stated as a percentage of some total of which that item is a part.Key financial changes
and trends can be highlighted by use of common siize statements.
2. Ratios Analysis:
The ratio analysis is the most important tool of financial statement analysis.Ratios simply means one number expressed
in term of another.A ratio is statistical yardistick by means of which relationships between two or various figures can be
compared or measured.Ratios show how one number is related to another.
Advantages of Ratios Analysis:

1) Simplifies financial statements.
2) Facilitates inter-firm comparison.
3) Helps in planning.
4) Makes inter-firm comparison possible.
5) Help in investment decisions.
There are various ratios which can analyse any particular financial statement of any firm,some important ratios are given belo
1) CURRENT RATIO :
Current ratio may be defined as the relationship between current assets and current liabilities.
This ratio is also known as "working capital ratio ". It is a measure of general liquidity and is most widely
used to make the analysis for short term financial position or liquidity of a firm.
it is calculated by dividing the total of the current assets by total of the current liabilities.
Current Assets
Current Liabilites
2) QUICK RATIO :
Liquid ratio is also termed as "Liquidity Ratio", "Acid Test Ratio" or "Quick Ratio".
It is the ratio of liquid assets to current liabilities.
The true liquidity refers to the ability of a firm to pay its short term obligations as and when they become due.
Current Assets-Inventories
Current Liabilities
3) FIXED ASSET TURNOVER RATIO:
This ratio measures the efficiency and profit earning capacity of the concern.
Higher the ratio, greater is the intensive utilization of fixed assets.
Lower ratio means under-utilization of fixed assets. The ratio is calculated by using following formula:
Net Income/ Profit after tax

Net Fixed Asset
4) TOTAL ASSET TURNOVER RATIO:
The final asset management ratio, the total assets turnover ratio, measures the
turnover of all the firms assets.It measures the ability of a company to use its assets efficiently.
This ratio considers all assets, current and fixed.
Net Income/ Profit After Tax

Total Assets
5) DEBT RATE/RATIO :
A ratio that indicates what proportion of debt a company has has relative to assets. The measures gives an idea
to the leverage of the company along with the potential risk the company faces in terms of its debt load.
A debt ratio of greater than 1 indicates that a company has more debt than assets,
meanwhile, a debt ratio of less than 1 indicates that a company has more assets than debt. Used in conjunction with other
measures of financial health, the debt ratio can help investors determine a company's level of risk.
Debt Ratio = Total Liabilities x 100

Total Assets
6) TIMES INTEREST EARNED RATIO:
Times interest earned (also called interest coverage ratio) is the ratio of earnings before interest and tax (EBIT)
of a business to its interest expense during a given period. It is a solvency ratio measuring the ability of a business to pay off i
EBIT*
Interest charges
*EBIT= Earning before interest and tax
7) BASIC EARNING POWER (BEP) :
This ratio shows the raw earning power of the firms assets before the influence of tax and debts, and it is useful when compa
firms with different debts and tax situation.
The higher the BEP ratio, the more effective a company is at generating income from its assets.
Using EBIT instead of operating income means that the ratio considers all income earned by the company,
not just income from operating activity. This gives a more complete picture of how the company makes money.
BEP is useful for comparing firms with different tax situations and different degrees of financial leverage.
EBIT
x 100
Total Asset
8) RETURN ON COMMON EQUITY :
It is the ratio of net profit to share holder's investment. It is the relationship between net profit (after interest a
and share holder's/proprietor's fund.
This ratio establishes the profitability from the share holders' point of view. The ratio is generally calculated in p
Return on equity measures a corporation's profitability by revealing how much profit a company generates with the money s
Net income/Profit after tax x 100

Common equity
9) EARNING PER SHARE:
Earnings per share ratio (EPS Ratio) is a small variation of return on equity capital ratio and is calculated by dividing
the net profit after taxes and preference dividend by the total number of equity shares.
Net Income/Profit After Tax

No. Of shares
10) Price/Earning Ratio :
Price earnings ratio (P/E ratio) is the ratio between market price per equity share and earning per share.
The ratio is calculated to make an estimate of appreciation in the value of a share of a company
and is widely used by investors to decide whether or not to buy shares in a particular company.
Market Price per share

Earning per share
11) BOOK VALUE PER SHARE:
A measure used by owners of common shares in a firm to determine the level of safety associated with each
individual share after all debts are paid accordingly.
Should the company decide to dissolve, the book value per common indicates the dollar value remaining
for common shareholders after all assets are liquidated and all debtors are paid.
In simple terms it would be the amount of money that a holder of a common share would get if a company were to liquidate.
Book Value per share =
common equity
Shares outstanding
12) MARKET BOOK RATIO:

The ratio of a stocks market price to its book value gives another indication of
how investors regard the company. Companies that are well regarded by
investorswhich means low risk and high growthhave high M/B ratios.
A ratio used to find the value of a company by comparing the book value of a firm to its market value.
Book value is calculated by looking at the firm's historical cost, or accounting value.
Market value is determined in the stock market through its market capitalization.
Market price per share

Book Value per share
EMENTS
rengths and weaknesses
heet and the
rm through
for decision
l decisions.But the information
awn from these statements

in making decisions through analysis
ears in both
rend percentages.
ge form as well as in
y financial changes
ans one number expressed

o or various figures can be
e important ratios are given below.
ent liabilities.
uidity and is most widely
and when they become due.
following formula:
sures gives an idea

s debt load.
sed in conjunction with other
est and tax (EBIT)

ability of a business to pay off its debts.
bts, and it is useful when comparing
he company,
any makes money.
al leverage.
en net profit (after interest and tax)
io is generally calculated in percentage.
any generates with the money shareholders have invested.
calculated by dividing
are and earning per share.
of a company
lar company.
iated with each
e remaining
t if a company were to liquidate.
RATIO ANALYSIS OF HABIB BANK LIMIT

1) CURRENT RATIO :
Current Assets
Current Liabilites
Year
2011
2010
2009
Current Asset
Current Liabilities
1120386551
1024931117
1.09313
908544113
824166797
1.10238
847158125
778342915
1.08841
Current Ratio
1.09
1.10
1.09
1.11
1.10
1.10
1.10
1.09
1.09
1.09
1.09
1.09
1.08
1.08
1.08
1.07
2011
2010
2009
2008
2007
2) QUICK RATIO :
Current Liabilities
Year
2011
2010
2009
Current Asset
Current Liabilities
1120386551
1024931117
1.09313
908544113
824166797
1.10238
847158125
778342915
1.08841
Quick Ratio
1.09
1.10
1.09
1.11
1.10
1.10
1.10
1.09
1.09
1.09
1.09
1.09
1.08
1.08
1.08
1.07
2011
2010
2009
2008
2007

Net Fixed Asset
Year
2011
2010
2009
Profit After Tax

Fixed Asset
22333022
19167654
1.16514
17034380
16155290
1.05441
13400749
16766668
0.79925
Fixed Asset Turnover
1.16
1.05
0.79
1.4
1.2
1.16
1.05
1
0.79
0.8
0.73
0.73
2008
2007
0.6
0.4
0.2
0
2011
2010
2009

Total Assets
Year
2011
2010
2009
Profit After Tax

Total Assets
22333022
1139554205
0.01960
17034380
924699403
0.01842
13400749
863778621
0.01551
Total Assets Turnover
0.01
0.01
0.01
0.012
0.01
0.01
0.01
0.01
0.01
2011
2010
2009
2008
2007
0.01
0.008
0.006
0.004
0.002
0
Total Assets
Year
2011
2010
2009
Total Liabilities
Total Assets
1029967217
1139554205
90.38335
828448632
924699403
89.59113
779408823
863778621
90.23247
Debt Rate
90.38%
89.59%
90.23%
91.50%
91.05%
90.86%
91.00%
90.50%
90.00%
90.38%
90.23%
90.00%
89.59%
89.50%
89.00%
88.50%
2011
2010
2009
2008
2007

EBIT*
Interest charges
Year
2011
2010
2009
EBIT
Interest Charges
34321398
29934169
1.14656
27040030
25131510
1.07594
21381636
23358851
0.91535
Interest Earned Ratio
1.14
1.07
0.91
1.2
1.14
1.07
1
0.91
0.83
0.8
0.6
0.4
0.2
0
2011
2010
2009
2008
2007

EBIT
x 100
Total Asset
Year
2011
2010
2009
EBIT
Total Assets
34321398
1139554205
27040030
924699403
21381636
863778621
BEP
3.01183
2.92420
2.47536
3.01%
2.92%
2.47%
3.50%
3.01%
3.00%
2.93%
2.92%
2.47%
2.50%
2.18%
2.00%
1.50%
1.00%
0.50%
0.00%
2011
2010
2009
2008
2007

Common equity
Year
2011
2010
2009
Profit After Tax

Common Equity
22333022
100147132
22.30021
17034380
86842059
19.61536
13400749
75133715
17.83587
Return on common equity
22.30%
19.61%
17.83%
25.00%
22.30%
19.61%
20.00%
17.83%
17.19%
2009
2008
18.31%
15.00%
10.00%
5.00%
0.00%
2011
2010
2007

No. of shares
Year
2011
2010
2009
Profit After Tax

No. of shares
22333022
1102068
20.26465
17034380
1001880
17.00242
13400749
910800
14.71316
Earning Per Share
20.26
17
14.71
25
20.26
20
17
15
14.71
14.31
14.61
2009
2008
2007
10
5
0
2011
2010
10) Price/Earning Ratio :

Earning per share
Year
2011
2010
2009
Market Price Per Share

Earning Per Share
107.12
20.26
5.28727
119.5
17
7.02941
123.44
14.71
8.39157
Price/Earning Ratio:
5.28
7.02
8.39
18
16
14
12
10
10
8
6
4
2
0
2011
2010
2009
2008
2007

common equity
Shares outstanding
Year
2011
2010
2009
Common Equity
Shares Outstanding
100147132
11020680
9.08720
86842059
10018800
8.66791
75133715
9108000
8.24920
Book Value Per Share
9.08
8.66
8.24
9.2
9.08
9
8.8
8.66
8.6
8.4
8.32
8.24
8.2
7.98
8
7.8
7.6
7.4
2011
2010
2009
2008
2007

Year
2011
2010
2009

107.12
9.08
119.5
8.66
123.44
8.24
Market Book Ratio
11.79736
13.79908
14.98058
11.8
13.8
14.98
35
29.82
30
25
20
15
11.8
13.8
14.98
8.67
10
5
0
2011
2010
2009
2008
2007
BANK LIMITED
2008
2007
743177137
678793028
1.09485
678210966
625604092
1.08409
1.09
1.08
2008
2007
743177137
678793028
1.09485
678210966
625604092
1.08409
1.09
1.08
2008
2007
10864112
14751252
0.73649
10084037
13780555
0.73176
0.73
0.73
2008
2007
10864112
749806715
0.01449
10084037
691991521
0.01457
0.01
0.01
2008
2007
682747953
749806715
91.05653
628754092
691991521
90.86153
91.05%
90.86%
2008
2007
22034379
21936505
1.00446
15144617
18106321
0.83643
0.83
2008
2007
22034379
749806715
15144617
691991521
2.93867
2.18856
2.93%
2.18%
2008
2007
10864112
63179222
17.19570
10084037
55063125
18.31359
17.19%
18.31%
2008
2007
10864112
759000
14.31372
10084037
690000
14.61455
14.31
14.61
2008
2007
72.12
14.31
5.03983
238
14.61
16.29021
5.03
16.29
2008
2007
63179222
7590000
8.32401
55063125
6900000
7.98016
8.32
7.98
2008
2007
72.12
8.32
238
7.98
8.66827
29.82456
8.67
29.82
RATIO ANALYSIS OF MUSLIM COMMERC
1) CURRENT RATIO :
Current Assets
Current Liabilites
Year
2011
2010
2009
Current Asset
Current Liabilities
631245320
564430751
1.11838
546605073
488348404
1.11929
491208833
439483714
1.11770
Current Ratio
1.11
1.11
1.11
1.112
1.11
1.11
1.11
1.11
1.11
1.108
1.106
1.104
1.102
1.1
1.1
1.098
1.096
1.094
2011
2010
2009
2008
2007
2) QUICK RATIO :
Current Liabilities
Year
2011
2010
2009
Current Asset
Current Liabilities
631245320
564430751
546605073
488348404
491208833
439483714
Quick Ratio
1.112
1.11838
1.11929
1.11770
1.11
1.11
1.11
1.11
1.11
1.11
1.11
1.11
1.108
1.106
1.104
1.102
1.1
1.1
1.098
1.096
1.094
2011
2010
2009
2008
2007

Net Fixed Asset
Year
2011
2010
2009
Profit After Tax

Fixed Asset
19424906
22007903
0.88263
16873175
20947540
0.80550
15495297
18014896
0.86014
0.88
0.81
0.86
1.2
1.02
1
0.88
0.81
0.86
0.89
2009
2008
0.8
0.6
0.4
0.2
0
2011
2010
2007

Total Assets
Year
2011
2010
2009
Profit After Tax

Total Assets
19424906
653233223
0.02974
16873175
567652613
0.02972
15495297
509223727
0.03043
0.02
0.02
0.03
0.035
0.03
0.025
0.02
0.015
0.01
0.005
0
2011
2010
2009
2008
2007
Total Assets
Year
2011
2010
2009
Total Liabilities
Total Assets
564430741
653233223
86.40570
488348404
567652613
86.02945
439483714
509223727
86.30464
Debt Rate
86.40%
86.02%
86.30%
87.00%
86.82%
86.80%
86.60%
86.40%
86.40%
86.40%
86.40%
86.30%
86.20%
86.06%
86.02%
86.00%
85.80%
85.60%
2011
2010
2009
2008
2007

EBIT*
Interest charges
Year
2011
2010
2009
EBIT
Interest Charges
31483179
23620274
1.33289
26253075
17987767
1.45950
23154945
15837322
1.46205
1.33
1.46
1.46
3.5
3
2.5
2
1.5
1
0.5
0
2011
2010
2009
2008
2007

EBIT
x 100
Total Asset
Year
2011
2010
2009
EBIT
31483179
26253075
23154945
Total Assets
653233223
4.81959
567652613
4.62485
509223727
4.54711
BEP
4.82%
4.62%
4.55%
6.00%
5.00%
5.46%
4.82%
4.93%
4.62%
4.55%
2010
2009
4.00%
3.00%
2.00%
1.00%
0.00%
2011
2008
2007

Common equity
Year
2011
2010
2009
Profit After Tax

Common Equity
19424906
78915003
24.61497
16873175
69180011
24.39025
15495297
61075932
25.37055
24.61%
24.39%
25.37%
40.00%
34.73%
35.00%
29.43%
30.00%
25.00%
24.61%
24.39%
25.37%
2011
2010
2009
20.00%
15.00%
10.00%
5.00%
0.00%
2008
2007
2011
2010
2009
2008
2007

No. of shares
Year
2011
2010
2009
Profit After Tax

No. of shares
19424906
836296
23.22731
16873175
760215
22.19527
15495297
691104
22.42108
Earning Per Share
23.22
22.2
22.42
27
26.17
26
25
24
24.47
23.22
23
22.2
22.42
22
21
20
2011
2010
2009
2008
2007
10) PRICE/EARNING RATIO:

Earning per share
Year
2011
2010
2009

Earning Per Share
134.6
23.22
5.79673
228.54
22.19
10.29923
219.68
22.42
9.79839
5.8
10.3
9.8
18
16
14
15.32
14
12
10.3
10
9.8
8
5.8
5.16
4
2
0
2011
2010
2009
2008
2007

common equity
Shares outstanding
Year
2011
2010
2009
Common Equity
Shares Outstanding
78915003
8362965
9.43625
69180011
7602150
9.10006
61075932
7602150
8.03403
9.44
9.1
8.03
10
9.44
9.1
8.03
7.56
7.53
2008
2007
7
6
5
4
3
2
1
0
2011
2010
2009

Year
2011
2010
2009

134.6
9.44
14.25847
228.54
9.1
25.11429
219.68
8.03
27.35741
Market Book Ratio
14.26
25.11
27.36
60
53.11
50
40
30
20
25.11
27.36
16.64
14.26
10
0
2011
2010
2009
2008
2007
IM COMMERCIAL BANK
2008
2007
426352171
385179850
1.10689
396818060
354874287
1.11819
1.1
1.11
2008
2007
426352171
385179850
396818060
354874287
1.10689
1.11819
1.1
1.11
2008
2007
15374600
17263733
0.89057
16441670
16082781
1.02232
0.89
1.02
2008
2007
15374600
443615904
0.03466
16441670
412900841
0.03982
0.03
0.03
2008
2007
385153625
443615904
86.82142
355353519
412900841
86.06268
86.82%
86.06%
2008
2007
21867586
11560740
1.89154
22526311
7858819
2.86637
1.89
2.87
2008
2007
21867586
22526311
443615904
4.92940
412900841
5.45562
4.93%
5.46%
2008
2007
15374600
52244865
29.42796
16441670
47338167
34.73238
29.43%
34.73%
2008
2007
15374600
628276
24.47109
16441670
628276
26.16950
24.47
26.17
2008
2007
125.81
24.38
5.16038
399.95
26.1
15.32375
5.16
15.32
2008
2007
52244865
6911045
7.55962
47338167
6282768
7.53460
7.56
7.53
2008
2007
125.81
7.56
16.64153
399.95
7.53
53.11421
16.64
53.11
RATIO ANALYSIS OF ALLIED BANK LIMITED

1) CURRENT RATIO :
Current Assets
Current Liabilites
Year
2011
2010
2009
Current Asset
Current Liabilities
497611928
466866535
1.06585
434571784
408461869
1.06392
405927583
382917353
1.06009
Current Ratio
1.06
1.06
1.06
1.065
1.06
1.06
1.06
1.06
1.055
1.05
1.045
1.04
1.04
1.035
1.03
1.03
1.025
1.02
1.015
2011
2010
2009
2008
2) QUICK RATIO :
Current Liabilities
Year
2011
2010
2009
Current Asset
Current Liabilities
497611928
466866535
1.06585
434571784
408461869
1.06392
405927583
382917353
1.06009
Quick Ratio
1.06
1.06
1.06
1.065
2007
1.065
1.06
1.06
1.06
1.06
1.055
1.05
1.045
1.04
1.04
1.035
1.03
1.03
1.025
1.02
1.015
2011
2010
2009
2008

Net Fixed Asset
Year
2011
2010
2009
Profit After Tax

Fixed Asset
10139681
18087011
0.56061
8225332
15359742
0.53551
7122167
12446748
0.57221
0.56
0.53
0.57
0.6
0.56
0.57
0.53
0.5
0.4
0.36
0.3
0.2
0.1
0
2011
2010
2009
2008
2007

Total Assets
Year
2011
2010
2009
Profit After Tax

Total Assets
10139681
515698939
0.01966
8225332
449931526
0.01828
7122167
418374331
0.01702
0.01
0.01
0.01
0.012
0.01
0.01
0.01
0.01
2011
2010
2009
2008
0.01
0.008
0.006
0.004
0.002
0
Total Assets
Year
2011
2010
2009
Total Liabilities
Total Assets
472359135
515698939
91.59591
413956699
449931526
92.00438
388414353
418374331
92.83895
Debt Rate
91.60%
92.00%
92.84%
94.50%
93.93%
94.00%
93.50%
93.00%
92.84%
93.78%
92.84%
93.00%
92.50%
92.00%
92.00%
91.60%
91.50%
91.00%
90.50%
90.00%
2011
2010
2009
2008
2007

EBIT*
Interest charges
Year
2011
2010
2009
EBIT
Interest Charges
15108482
14003346
1.07892
12343106
11810339
1.04511
10536120
9718918
1.08408
1.07
1.04
1.08
1.2
1.07
1.04
1.08
0.92
0.8
0.68
0.6
0.4
0.2
0
2011
2010
2009
2008

EBIT
x 100
Total Asset
Year
2011
2010
2009
2007
EBIT
Total Assets
15108482
515698939
2.92971
12343106
449931526
2.74333
10536120
418374331
2.51835
BEP
2.93%
2.74%
2.52%
3.50%
3.00%
2.93%
2.74%
2.52%
2.50%
1.86%
2.00%
1.62%
1.50%
1.00%
0.50%
0.00%
2011
2010
2009
2008
2007

Common equity
Year
2011
2010
2009
Profit After Tax

Common Equity
10139681
37620358
26.95264
8225332
31166452
26.39162
7122167
25857515
27.54390
26.95%
26.39%
27.54%
30.00%
26.95%
26.39%
27.54%
25.00%
20.00%
15.00%
10.00%
5.00%
22.15%
19.73%
5.00%
0.00%
2011
2010
2009
2008
2007

No. of shares
Year
2011
2010
2009
Profit After Tax

No. of shares
10139681
860311
11.78606
8225332
782100
10.51698
7122167
711000
10.01711
Earning Per Share
11.79
10.52
10.02
14
11.79
12
10.52
10.02
10
7.57
8
6.33
6
4
2
0
2011
2010
2009
2008

Earning per share
Year
2011
2010
2009

Earning Per Share
53.6
11.79
4.54623
67.8
10.52
6.44487
59.2
10.02
5.90818
4.55
6.44
5.91
2007
18
16.91
16
14
12
10
8
6.44
5.91
4.74
4.55
4
2
0
2011
2010
2009
2008
2007

common equity
Shares outstanding
Year
2011
2010
2009
Common Equity
Shares Outstanding
37620358
8603110
4.37288
31166452
7821009
3.98497
25857515
7110008
3.63678
4.37
3.98
3.64
5
4.5
4.37
3.98
3.64
3.21
3.5
3.42
3
2.5
2
1.5
1
0.5
0
2011
2010
2009
2008
2007

Year
2011
2010
2009

53.6
4.37
12.26545
67.8
3.98
17.03518
59.2
3.64
16.26374
Market Book Ratio
12.27
17.04
16.26
40
37.43
35
30
25
20
15
17.04
16.26
12.27
9.35
10
5
0
2011
2010
2009
2008
2007
D BANK LIMITED
2008
2007
355433792
341850022
1.03974
312054706
297227393
1.04989
1.03
1.04
2008
2007
355433792
341850022
1.03974
312054706
297227393
1.04989
1.03
1.04
1.04
2007
1.04
2007
2008
2007
4093861
11150129
0.36716
4078077
7551848
0.54001
0.36
0.54
0.54
2007
2008
2007
4093861
366583921
0.01117
4078077
319606554
0.01276
0.01
0.01
0.01
2007
93.78%
2008
2007
344348022
366583921
93.93430
299726393
319606554
93.77980
93.93%
93.78%
2007
2008
2007
6056922
8941491
0.67740
5956029
6434599
0.92563
0.68
0.92
2008
2007
0.92
2007
6056922
366583921
1.65226
5956029
319606554
1.86355
1.62%
1.86%
2008
2007
4093861
20744211
19.73496
4078077
18410310
22.15105
19.73%
22.15%
1.86%
2007
22.15%
2007
2008
2007
4093861
646364
6.33368
4078077
538637
7.57110
6.33
7.57
2008
2007
30
6.33
4.73934
128
7.57
16.90885
4.74
16.91
7.57
2007
16.91
2007
3.42
2007
2008
2007
20744211
6463644
3.20937
18410310
5386370
3.41794
3.21
3.42
37.43
2007
2008
2007
30
3.21
9.34579
128
3.42
37.42690
9.35
37.43
RATIO ANALYSIS OF UNITED BANK L

1) CURRENT RATIO :
Current Assets
Current Liabilites
Year
2011
2010
2009
Current Asset
Current Liabilities
781482307
709967062
1.10073
701737985
639302623
1.09766
616687829
561141366
1.09899
Current Ratio
1.1
1.09
1.09
1.105
1.1
1.1
1.095
1.09
1.09
1.09
1.085
1.08
1.075
1.07
1.07
1.065
1.06
1.055
2011
2010
2009
2008
2) QUICK RATIO :
Current Liabilities
Year
2011
2010
2009
Current Asset
Current Liabilities
781482307
709967062
1.10073
701737985
639302623
1.09766
616687829
561141366
1.09899
Quick Ratio
1.1
1.09
1.09
1.105
1.105
1.1
1.1
1.095
1.09
1.09
1.09
1.085
1.08
1.075
1.07
1.07
1.065
1.06
1.055
2011
2010
2009
2008

Net Fixed Asset
Year
2011
2010
2009
Profit After Tax

Fixed Asset
14667113
25722481
0.57021
11020925
24684566
0.44647
9487952
23734082
0.39976
0.57
0.45
0.4
0.6
0.57
0.5
0.45
0.4
0.42
0.4
0.3
0.2
0.1
0
2011
2010

2009
2008
Total Assets
Year
2011
2010
2009
Profit After Tax

Total Assets
14667113
807204788
0.01817
11020925
726422551
0.01517
9487952
640421911
0.01482
0.01
0.01
0.01
0.012
0.01
0.01
0.01
0.01
2011
2010
2009
2008
0.01
0.008
0.006
0.004
0.002
0
Total Assets
Year
2011
2010
2009
Total Liabilities
Total Assets
721284142
807204788
89.35578
651288371
726422551
89.65696
573131166
640421911
89.49275
Debt Rate
89.36%
89.67%
89.49%
92.50%
92.04%
92.00%
91.50%
91.00%
90.50%
90.00%
89.50%
89.67%
89.36%
89.49%
89.49%
89.36%
89.50%
89.00%
88.50%
88.00%
2011
2010
2009
2008

EBIT*
Interest charges
Year
2011
2010
2009
EBIT
Interest Charges
22078608
29934169
0.73757
19861194
25131510
0.79029
18911237
23358851
0.80960
0.74
0.79
0.81
0.82
0.8
0.81
0.81
2009
2008
0.79
0.78
0.76
0.74
0.74
0.72
0.7
2011
2010

EBIT
x 100
Total Asset
Year
2011
2010
2009
EBIT
Total Assets
22078608
807204788
2.73519
19861194
726422551
2.73411
18911237
640421911
2.95293
BEP
2.74%
2.73%
3.00%
2.95%
2.95%
2.95%
2.90%
2.86%
2.85%
2.80%
2.75%
2.74%
2.73%
2011
2010
2.70%
2.65%
2.60%
2.55%
2.50%
2009
2008

Common equity
Year
2011
2010
2009
Profit After Tax

Common Equity
14667113
76269796
19.23057
11020925
66127210
16.66625
9487952
58194427
16.30388
19.23%
16.67%
16.30%
30.00%
25.00%
20.00%
19.23%
16.67%
16.30%
2010
2009
17.92%
15.00%
10.00%
5.00%
0.00%
2011
2008

No. of shares
Year
2011
2010
2009
Profit After Tax

No. of shares
14667113
1224179
11.98118
11020925
1224179
9.00271
9487952
1112890
8.52551
Earning Per Share
11.98
8.53
14
12
11.98
10
8.53
8.35
2009
2008
8
6
4
2
0
2011
2010

Earning per share
Year
2011
2010
2009

Earning Per Share
53.5
11.98
4.46578
65.7
9
7.30000
59
8.53
6.91676
4.47
7.3
6.92
25
20
15
15
10
7.3
6.92
4.47
4.2
0
2011
2010
2009
2008

common equity
Shares outstanding
Year
2011
2010
2009
Common Equity
Shares Outstanding
76269796
12241798
6.23028
66127210
12241798
5.40176
58194427
11128907
5.22912
6.23
5.4
5.23
6.23
5.4
5.23
4.66
5
4
3
2
1
0
2011
2010
2009
2008

Year
2011
2010
2009

53.5
6.23
65.7
5.4
59
5.23
Market Book Ratio
8.58748
12.16667
11.28107
8.59
12.17
11.28
60
50
40
30
20
12.17
10
8.59
11.28
7.5
0
2011
2010
2009
2008
TED BANK LIMITED
2008
2007
600780474
559317877
1.07413
527755481
492748872
1.07104
1.07
1.07
1.07
1.07
2008
2007
2008
2007
600780474
559317877
1.07413
527755481
492748872
1.07104
1.07
1.07
1.07
2007
2008
2007
8445251
19926915
0.42381
9237015
19065496
0.48449
0.42
0.48
0.48
2007
2008
2007
8445251
620707389
0.01361
9237015
546636506
0.01690
0.01
0.01
0.01
2007
2008
2007
571311725
620707389
92.04204
498745568
546636506
91.23898
92.04%
91.23%
91.23%
2007
2008
2007
17780935
21936505
0.81056
14510922
18106321
0.80143
0.81
0.8
0.8
2007
2008
2007
17780935
620707389
2.86462
14510922
546636506
2.65458
2.86%
2.65%
2.65%
2007
2008
2007
8445251
47121165
17.92242
9237015
38515055
23.98287
17.92%
23.98%
23.98%
2007
2008
2007
8445251
1011718
8.34744
9237015
809375
11.41253
8.35
11.41
11.41
2007
2008
2007
35.1
8.35
4.20359
238
11.41
20.85890
4.2
20.85
20.85
2007
2008
2007
47121165
10117188
4.65754
38515055
8093750
4.75862
4.66
4.76
4.76
2007
2008
2007
35.1
4.66
238
4.76
7.53219
50.00000
7.5
50
50
2007
RATIO ANALYSIS OF MEEZAN BA

1) CURRENT RATIO :
Current Assets
Current Liabilites
Year
2011
2010
2009
Current Asset
Current Liabilities
177851005
186899986
0.95158
133814350
146383899
0.91413
105258783
114997275
0.91532
Current Ratio
0.95
0.91
0.92
1
0.95
0.95
0.91
0.92
0.9
0.85
0.82
0.8
0.75
2011
2010
2009
2008
2) QUICK RATIO :
Current Liabilities
Year
2011
2010
2009
Current Asset
Inventories
Current Liabilities
781482307
4758438
186899986
701737985
2461097
146383899
616687829
0
114997275
4.155826256
4.777006848
5.362629932
4.16
4.78
5.36
Quick Ratio
10
9
7.58
8
7
6
5.36
4.78
4.16
4
3
2
1
0
2011
2010
2009
2008

Net Fixed Asset
Year
2011
2010
2009
Profit After Tax

Fixed Asset
1075378
24084717
0.04465
543500
25195661
0.02157
1025351
18922951
0.05419
0.04
0.02
0.05
0.08
0.07
0.06
0.05
0.05
0.04
0.04
0.03
0.03
0.02
0.02
0.01
0
2011
2010
2009
2008
2011
2010
2009
2008

Total Assets
Year
2011
2010
2009
Profit After Tax

Total Assets
1075378
201735722
0.00533
543500
158810011
0.00342
1025351
124181734
0.00826
0.005
0.003
0.008
0.016
0.014
0.012
0.01
0.008
0.008
0.006
0.007
0.005
0.004
0.003
0.002
0
2011
2010
2009
2008
Total Assets
Year
2011
2010
2009
Total Liabilities
Total Assets
186899986
201735722
92.64595
146383899
158810011
92.17549
114997275
124181734
92.60402
Debt Rate
92.65%
92.18%
92.60%
93.50%
92.99%
93.00%
92.65%
92.60%
93.00%
92.65%
92.50%
92.60%
92.18%
92.00%
91.50%
91.00%
90.50%
2011
2010
2009
2008

EBIT
x 100
Total Asset
Year
2011
2010
2009
EBIT
Total Assets
4121435
201735722
2.04299
2443282
158810011
1.53849
1739723
124181734
1.40095
BEP
2.04%
1.54%
1.40%
2.50%
2.04%
2.00%
1.54%
1.50%
1.40%
1.16%
1.00%
0.50%
0.00%
2011
2010

Common equity
2009
2008
Year
2011
2010
2009
Profit After Tax

Common Equity
1075378
3964302
27.12654
543500
11746417
4.62694
1025351
9090535
11.27933
27.13%
4.63%
11.28%
30.00%
27.13%
25.00%
20.00%
15.00%
11.28%
10.00%
9.80%
4.63%
5.00%
0.00%
2011
2010
2009
2008

No. of shares
Year
2011
2010
2009
Profit After Tax

No. of shares
1075378
802993
1.33921
543500
698255
0.77837
1025351
665004
1.54187
Earning Per Share
1.34
0.78
1.54
3
2.5
2
1.54
1.5
1
1.34
1.26
0.78
0.78
0.5
0
2011
2010
2009
2008

Earning per share
Year
2011
2010
2009

Earning Per Share
17.38
1.34
12.97015
16.9
0.78
21.66667
15.74
1.54
10.22078
12.97
21.67
10.22
25
21.67
20
15
17.05
12.97
10.22
10
5
0
2011
2010
2009
2008

common equity
Shares outstanding
Year
2011
2010
2009
Common Equity
Shares Outstanding
3964302
8029933
0.49369
11746417
6982550
1.68225
9090535
6650048
1.36699
0.49
1.68
1.37
1.8
1.68
1.6
1.37
1.4
1.29
1.2
1
0.8
0.6
0.49
0.4
0.2
0
2011
2010
2009
2008

Year
2011
2010
2009

17.38
0.49
35.46939
16.9
1.68
10.05952
15.74
1.37
11.48905
Market Book Ratio
35.47
10.06
11.49
40
35.47
35
30
25
20
16.65
15
10.06
11.49
10
5
0
2011
2010
2009
2008
EEZAN BANK
2008
2007
65366556
79301092
0.82428
54001108
61471903
0.87847
0.82
0.88
0.88
2007
2008
2007
600780474
0
79301092
527755481
0
61471903
7.575942006
8.585312236
7.58
8.59
2008
2007
621187
19909514
0.03120
963501
13177451
0.07312
0.03
0.07
8.59
2007
0.07
2007
2007
2008
2007
621187
85276070
0.00728
963501
67178559
0.01434
0.007
0.014
0.014
2007
2008
2007
79301092
85276070
92.99337
61471903
67178559
91.50524
92.99%
91.51%
91.51%
2007
2008
2007
992311
85276070
1.16365
1269188
67178559
1.88928
1.16%
1.89%
1.89%
2007
2008
2007
621187
6341097
9.79621
963501
5719910
16.84469
9.80%
16.84%
16.84%
2007
2008
2007
621187
492596
1.26105
963501
377989
2.54902
1.26
2.55
2.55
2007
2008
2007
21.48
1.26
17.04762
38.55
2.55
15.11765
17.05
15.12
2008
2007
6341097
4925961
1.28728
5719910
3779897
1.51324
1.29
1.51
15.12
2007
1.51
2007
2008
2007
21.48
1.29
16.65116
38.55
1.51
25.52980
16.65
25.23
25.23
2007
RATIO ANALYSIS OF BANK ISLAMI

1) CURRENT RATIO :
Current Assets
Current Liabilites
Year
2011
2010
2009
Current Asset
Current Liabilities
49755702
53508676
0.92986
37619120
40269317
0.93419
27212561
29546478
0.92101
Current Ratio
0.93
0.93
0.92
0.98
0.97
0.96
0.96
0.95
0.94
0.93
0.93
0.93
0.92
0.92
0.91
0.9
0.89
2011
2010
2009
2008
2) QUICK RATIO :
Current Liabilities
Year
2011
2010
2009
Current Asset
Current Liabilities
49755702
53508676
0.92986
37619120
40269317
0.93419
27212561
29546478
0.92101
Current Ratio
0.93
0.93
0.92
0.98
0.97
0.96
0.96
0.95
0.94
0.93
0.93
0.93
0.92
0.92
0.91
0.9
0.89
2011
2010
2009
2008

Net Profit/Loss After Tax
Fixed Asset
Year
2011
2010
2009
Profit/Loss After Tax

Fixed Asset
409556
9416007
0.04350
46550
7416583
0.00628
-478939
7323923
-0.06539
0.044
0.006
-0.065
0.06
0.044
0.04
0.02
0.006
0
2011
2010
2009
-0.02
-0.04
-0.06
-0.08
-0.065
2008
-0.009
2007
-0.009
-0.08

Total Assets
Year
2011
2010
2009

Total Assets
409556
58821314
0.00696
46550
45035703
0.00103
-478939
34286771
-0.01397
0.007
0.001
-0.014
0.01
0.007
0.005
0.001
0
2011
2010
2009
2008
-0.003
-0.005
-0.01
-0.015
-0.014
-0.02
Total Assets
Year
2011
2010
2009
Total Liabilities
Total Assets
53508676
58821314
90.96818
40269317
45035703
89.41643
29546478
34286771
86.17457
Debt Rate
90.97%
89.42%
86.17%
100.00%
90.00%
80.00%
90.97%
89.42%
86.17%
72.80%
80.00%
72.80%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2011
2010
2009
2008

EBIT
x 100
Total Asset
Year
2011
2010
2009
EBIT
Total Assets
608587
58821314
1.03464
44543
45035703
0.09891
-562909
34286771
-1.64177
BEP
1.03%
0.10%
-1.64%
1.50%
1.03%
1.00%
0.50%
0.10%
0.00%
2011
2010
2009
2008
-0.50%
-1.00%
-1.20%
-1.50%
-2.00%

Common equity
-1.64%
Year
2011
2010
2009

Common Equity
409556
5143560
7.96250
46550
4734004
0.98331
-478939
4702433
-10.18492
7.96%
0.98%
-10.18%
10.00%
7.96%
8.00%
6.00%
4.00%
0.98%
2.00%
0.00%
2011
-2.00%
2010
2009
2008
-1.02%
-4.00%
-6.00%
-8.00%
-10.00%
-10.18%
-12.00%

No. of shares
Year
2011
2010
2009

No. of shares
409556
527967
0.77572
46550
527967
0.08817
-478939
527967
-0.90714
Earning Per Share
0.78
0.09
-0.9
1
0.8
0.78
0.6
0.4
0.2
0.09
0
-0.2
-0.4
2011
2010
2009
2008
-0.1
-0.4
-0.6
-0.8
-1
-0.9

Earning per share
Year
2011
2010
2009

Earning Per Share
3.1
0.78
3.97436
3.63
0.09
40.33333
7.25
-0.9
-8.05556
3.97
40.33
-8.05
60
40.33
40
20
3.97
0
2011
-20
2010
-40
2009
-8.05
2008
-60
-80
-72.5
-100
-120
-140
-160

common equity
Shares outstanding
Year
2011
2010
2009
Common Equity
Shares Outstanding
5143560
5279679
0.97422
4734004
5279679
0.89665
4702433
5279679
0.89067
0.97
0.9
0.9
1
0.98
0.98
0.97
0.96
0.94
0.92
0.9
0.9
2010
2009
0.9
0.88
0.86
0.84
2011
2008

Year
2011
2010
2009

3.1
0.97
3.19588
3.63
0.9
4.03333
7.25
0.9
8.05556
Market Book Ratio
3.2
4.03
8.06
18
16
14
12
10
8.06
8
6
4
3.2
7.4
4.03
2
0
2011
2010
2009
2008
NK ISLAMI
2008
2007
13369547
13896779
0.96206
10324281
10602747
0.97374
0.96
0.97
0.97
2007
2008
2007
13369547
13896779
0.96206
10324281
10602747
0.97374
0.96
0.97
0.97
2007
2007
0.009
2008
2007
-52930
5719053
-0.00926
-37023
4123192
-0.00898
-0.009
-0.009
Series1
2008
2007
-52930
19088600
-0.00277
-37023
14447473
-0.00256
-0.003
-0.003
2007
-0.003
2008
2007
13896779
19088600
72.80146
10602747
14447473
73.38825
72.80%
73.39%
73.39%
73.39%
2007
2008
2007
-229152
19088600
-1.20047
-100463
14447473
-0.69537
-1.20%
-0.70%
2007
-0.70%
1.20%
2008
2007
-52930
5181372
-1.02154
-37023
3154623
-1.17361
-1.02%
-1.17%
2007
-1.17%
2008
2007
-52930
527967
-0.10025
-37023
320000
-0.11570
-0.1
-0.12
2007
-0.12
2008
2007
7.25
-0.1
-72.50000
16.2
-0.12
-135.00000
-72.5
-135
2007
-135
2008
2007
5181372
5279679
0.98138
3154623
3200000
0.98582
0.98
0.99
0.99
2007
2008
2007
7.25
0.98
7.39796
16.2
0.99
16.36364
7.4
16.36
16.36
2007

Ratio Analysis of Top 5 Banks in Pakistan

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Ratio Analysis of Top 5 Banks in Pakistan

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CORPORATE FINANCE

ANALYSIS OF FINANCIAL STATEMENTS

SIR ATIF IQBAL

ANALYSIS OF FINANCIAL STATEMENTS

of identifying financial strengths and weaknesses

profit and loss account.

TOOLS OF FINANCIAL STATEMENT ANALYSIS:

1. Horizontal and Vertical Analysis:

Rupees and %age form.

compared or measured.Ratios show how one number is related to another.

Advantages of Ratios Analysis:

Net Income/ Profit after tax

Net Income/ Profit After Tax

Debt Ratio = Total Liabilities x 100

7) BASIC EARNING POWER (BEP) :

Net income/Profit after tax x 100

Net Income/Profit After Tax

Market Price per share

Book Value per share =

12) MARKET BOOK RATIO:

Market price per share

rengths and weaknesses

heet and the

awn from these statements

ans one number expressed

e important ratios are given below.

and when they become due.

sures gives an idea

sed in conjunction with other

est and tax (EBIT)

bts, and it is useful when comparing

en net profit (after interest and tax)

io is generally calculated in percentage.

any generates with the money shareholders have invested.

are and earning per share.

iated with each

t if a company were to liquidate.

RATIO ANALYSIS OF HABIB BANK LIMIT

3) FIXED ASSET TURNOVER RATIO:

Profit After Tax

Fixed Asset Turnover

4) TOTAL ASSET TURNOVER RATIO:

Net Income/ Profit After Tax

Profit After Tax

Total Assets Turnover

6) TIMES INTEREST EARNED RATIO:

Interest Earned Ratio

7) BASIC EARNING POWER (BEP) :

8) RETURN ON COMMON EQUITY :

Profit After Tax

Return on common equity

9) EARNING PER SHARE:

Profit After Tax

Earning Per Share

10) Price/Earning Ratio :

Market Price Per Share

11) BOOK VALUE PER SHARE:

Book Value Per Share

12) MARKET BOOK RATIO:

Market Price Per Share

Market Book Ratio

RATIO ANALYSIS OF MUSLIM COMMERC

3) FIXED ASSET TURNOVER RATIO: