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 deliver
Excellence 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 to
deliver 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 has
estabilished 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 critical
dimensions of the economic performance of the entity. $ncreasingly, ratios are a tool that
managers 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 the
economy 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.
/
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.

'
$ %ears &inancial 'ihlihts:
No
:
Name of Item 2001 2002 2003 2004
1
&et 5orking 0apital "
67((,/78,))9:
"6(97,87;,89<: "6<7',89/,=;8: "
6/,';),;9/,'7/:
2
0urrent *atio .8'7= .=8= .8<)= .=((8
3
Debt *atio 89.7(> 87.</> 8(./8> 8(.;'>
4
Debt #quity *atio ';.8< ').<<( /9.')< /;.8(
5
Total Assets Turnover .)/8( .)')9 .)/=9 .)'')
6
Operating .rofit 3argin '.'( '.(( '.(< '.)('
7
&et .rofit 3argin ;=./> 78.7> 98.<> 7;.7>
8
*eturn on Assets 6*OA: /.7'> /.'<> /.<> /.<>
8
*eturn on #quity 6*O#: (<.8'> '9./9> ''.'<> '(.)<>
<
(! )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) ?
;,<<=,'9=,999
(,)=8,<9/,;7= ?
(,777,</8,;'/
(,;7),(;<,9(; ?
7,/)<,(<7,7'9
9,8'',7)/,87( ?
=,/8<,'9<,')7
012$$3(243..56 01$523457345/6 01/2-345(38746 01(3-7.375(3-2(6
+omment:
The net working capital means reserve cash of a company. This reserve is used to meet
the daily working transaction of the bank. $n Dhaka Bank net working capital is negative
over the four years. This represents a negative trend. 4o, the bank borrows from other
sources to operate the day to day transaction.
-! +urrent Ratio:
The 0urrent *atio determines short"term debt"paying ability. The relationship of current
assets to current liabilities is an attempt to show the safety of current debt holders@ claim
in case of default.
(
The 0urrent *atio computes as follows,
+urrent Ratio ,
s Liabilitie !""ent
#ssets !""ent
-..( -..- -../ -..$
999 , '9= , <<= , ;
99) , /)8 , ;8( , 9
;'/ , </8 , 777 , (
;7= , <9/ , )=8 , (
7'9 , (<7 , /)< , 7
9(; , (;< , ;7) , (
')7 , '9< , /8< , =
87( , 7)/ , 8'' , 9
!4-28 !848 !4/.8 !8$$4
+omment:
This ratio means that for every dollar of current liabilities, Dhaka Bank has .TA. .8'7=, .
=8=, .8)<=, .=((8 of current assets in '))/, '))', '))<, '))(. $t means the bank has not
adequate money to meet its current liabilities. 5ithin these four years in '))< B '))/
Dhaka Bank could meet the current liabilities better than the rest of the years.
/! Debt Ratio:
The debt ratio measures the percentage of the total assets provided by creditors. This ratio
indicates the company@s degree of leverage.
The Debt *atio computes as follows,
Debt Ratio C
#ssets $otal
%ebt $otal
-..( -..- -../ -..$
;(/ , /=; , /'7 , /8
'<) , )7/ , (9( , /=
97< , 79= , /)< , /8
(/; , /'/ , ')= , /=
/7; , 9'< , =/7 , ')
<() , 9(= , 9)7 , /8
;9< , )8( , /;= , '=
()/ , '); , 98) , '9
45!2$9 42!/(9 4$!(49 4$!7-9
+omments:
This ratio means that creditors have provided that percentage of Dhaka Bank@s total
assets in '))/, '))', '))<, and '))(. The higher the ratio, the grater the likely risk for
the lenders.
$! Debt :quity Ratio:
The debt equity ratio is an attempt to show, the relative proportions of all lenders@ claims
to ownership claims, and it is used as a measure of debt eposure. The measure is
epressed as either a percentage or as a proportion.
The &et 5orking 0apital computes as follows,
7
Debt :quity Ratio ,
E&!it' "s ()a"e)ol*e
%ebt $otal
-..( -..- -../ -..$
7// , /<9 , 99/
'<) , )7/ , (9( , /=
'<9 , ((; , =87
(/; , /'/ , ')= , /=
=/; , 8;( , ')8 , /
<() , 9(= , 9)7 , /8
<9' , ==; , (=; , /
()/ , '); , 98) , '9
-7!4/ -.!//$ (5!-./ (7!4$
+omments:
This ratio implies that Dhaka bank@s total debt is ';.8<, ').<<, /9.'), /;.8( times to its
equity capital in '))/, '))', '))<, '))(.Alternatively stayed, Dhaka bank@s credit
financing equals Tk. ';.8<, ').<<, /9.'), /;.8( for every Tk./ of equity financing.
2! Total Assets Turno"er:
Total assets turnover measures how efficiently a company uses its assets to generate
sales. The resulting number shows the dollars of sales produced by each dollar invested in
assets.
The 0urrent *atio computes as follows,
Total Assets Turno"er Ratio ,
#ssets $otal
(ales
-..( -..- -../ -..$
;(/ , /=; , /'7 , /8
'// , 9/8 , <;/
97< , 79= , /)< , /8
/)' , )(< , <8(
/7; , 9'< , =/7 , ')
8;9 , /=< , <==
;9< , )8( , /;= , '=
/;; , ;7) , 9'/
!.(4$ !.-.5 !.(85 !.--.
+omments:
Total Assets turnover implies that how much sales is created by Dhaka Bank by using its
total assets. By analyDing this ratio $ can say that Dhaka Bank is generating ).)/8(, .
)')9, .)/=9, .)'') Tk. of sales by using the / Tk. of assets in '))/, '))', '))<, and
'))(.
5! ;peratin profit Marin:
Operating profit margin 6O.3: measures the percentage of sales revenue remaining after
all epenses.
The 0urrent *atio computes as follows,
9
;peratin #rofit Marin ,
(ales
ofit +,e"ating .r
-..( -..- -../ -..$
'// , 9/8 , <;/
'(/ , <89 , =<'
/)' , )(< , <8(
)=8 , )7' , 89<
8;9 , /=< , <==
'9) , /(' , 8(<
/;; , ;7) , 9'/
/;9 , =(' , '98 , /
--$9 -$$9 -$/9 -.$!-9
+omments:
The operating profit margins of the Dhaka Bank are ''(>, '((>, '(<>, ')(.'> in
'))/, '))', '))<, and '))(. Eere, Operating profit margin '))( is ')(.'> which is
quite bad in comparison to other years.

7! )et #rofit Marin:
&et profit margin, one of the most popular indicators of company health, measures the
percentage of sales revenue remaining after all epenses is paid.
The 0urrent *atio computes as follows,
)et #rofit Marin ,
(ales
ofit Net .r
-..( -..- -../ -..$
'// , 9/8 , <;/
(<9 , <8' , '8)
/)' , )(< , <8(
;'9 , </) , '<(
8;9 , /=< , <==
<=/ , )); , '98
/;; , ;7) , 9'/
=8( , 7;' , <7;
78!(9 24!29 54!/9 27!29
+omments:
This ratio indicates that the percentage of the net profit is generating from the sales of
Dhaka Bank. This ratio also shows that Dhaka Bank eperienced a quite bad eperience
because of the fleible percentage net profit margin.
8! Return on Assets:
An overall measure of profitability is return assets. $t measures a firm@s efficient at
generating profit with its assets.
The 0urrent *atio computes as follows,
Return on Assets,
#ssets $otal
ofit Net .r
;
-..( -..- -../ -..$
;(/ , /=; , /'7 , /8
(<9 , <8' , '8)
97< , 79= , /)< , /8
;'9 , </) , '<(
/7; , 9'< , =/7 , ')
<=/ , )); , '98
;9< , )8( , /;= , '=
=8( , 7;' , <7;
(!2-9 (!-/9 (!/9 (!/9
+omments:
The return on equity refers that how much percentage of the return the bank earns by
using the total assets. These imply that Dhaka Bank earns /7>, /'>, /<>, /<> in '))/,
'))', '))<, and '))( by using total assets. Eere Dhaka Bank@s earnings is quite
decreased in '))' than the other years.
4! Return on :quity:
*eturn on equity shows how many dollars of net income were earned for each dollar
invested by owners.
The *eturn on #quity computes as follows,
Return on :quity,
E&!it' "s ()a"e)ol*e
ofit Net .r
-..( -..- -../ -..$
7// , /<9 , 99/
(<9 , <8' , '8)
'<9 , ((; , =87
;'9 , </) , '<(
=/; , 8;( , ')8 , /
<=/ , )); , '98
<9' , ==; , (=; , /
=8( , 7;' , <7;
$/!4-9 -5!(59 --!-/9 -$!./9
+omments:
The return on equity refers that how much percentage of the return the bank earns by
using the total equity. These imply that Dhaka Bank earns (<.8'>, '9./9>, ''.'<>,
'(.)<> in '))/, '))', '))<, and '))( by using total shareholders equity. Eere Dhaka
Bank@s earnings are decreasing from '))/.
=