CITIZEN DEVELOPMENT BANK

CITIZEN DEVELOPMENT BANK

I.

Liquidity ratios

Current Ratio It measures the firms ability to meet its short term obligation. The current ratio is the ratio of current assets to current liabilities: It is expressed as follows. Formula = Current Assets Current Liabilities 2010 = 171508419 = 1.182% 145099907 2009 = 158410469 = 1.605% 148642447 2008 = I39174404 = 1.065% 130672708

Interpretation

The analysis shows that Current Ratio has increased in 2010 to 1.182, but it has decreased to 1.605 in 2009, and in 2008 to 1.065.

Quick(Acid-Test) Ratio It measures ability to meet short-term cash needs more rigorously by eliminating inventory. Formula = Current Assets - Inventory Current Liabilities 2010 = 171508419 - 158152364 = 0.914% 145099907 2009 = 158410469 - 14351239 = 0.969% 148642447 2008 = I39174404 - 127407479 = 0.090% 130672708

Interpretation
Analysis shows that Quick (Acid-Test) Ratio has decreased to 0.090 in 2008 as compared to 2010 which is 0.914. It again strengthened in 2009 to 0.969.

II.

Activity ratios

Account Receivable Turnover It gives the number of times accounts receivables is collected during the year. Formula = Net Credit Sales Average Account Receivables 2010 = 15143241 = 0.435 times 34747780 2009 = 12596921 = 0.164 times 7643864 2008 = 8780698 = 0.010 times 8540001

Interpretation

Analysis shows that Account Receivable Turnover Ratio has decreased to 0.010 in 2008 as compared to 2009 which is 0.164. It again strengthened in 2010 to 0.435.

Average Collection Period It measures the average amount of the time that needed to collect accounts receivables. Formula = 365

Account Receivables Turnover 2010 = 365 = 839.0 days

0.435times 2009 = 365 = 2225.6 days

0.164 times 2008 = 365 = 35500 days

0.010 times

Interpretation

Analysis shows that Average Collection Period has decreased to 839.0 in 2010 as compared to 2009 which is 2225.6. It again strengthened in 2008 to 35500. Inventory Turnover It measures the activity or liquidity of the firms inventory. Formula = Cost of Goods Sold Average Inventory 2010 = 8685624 = 0.054 times 158152364

2009 = 6977313 = 0.486 times 14351239 2008 = 4278374 = 0.033 times 127407479

Interpretation
Analysis shows that Inventory Turnover has decreased to 0.033 times in 2008 as compared to 2010 which is 0.054 times. It again strengthened in 2009 to 0.468 times. Average Age Inventory Average inventory is determine by the beginning and ending and dividing by 2. Formula = ______365_______ Inventory Turnover

2010 =

365

= 6759 Days

0.054 times 2009 = 365 0.486 times 2008 = 365 = 11060 Days = 751 Days

0.033 times

Interpretation

Analysis shows that Average Age Inventory has decreased to 751 days in 2009 as compared to 2010 which is 6759 days. It again strengthened in 2008 to 11060 days.

III.

Leverage ratios
Debt Equity Ratio

It significant measure of solvency since a high degree of debt in the capital structure may make it difficult for the company to meet interested charges and principles payments at maturity. Formula = Total Liabilities Total Stock Holders Equity 2010 = 145099907 12265987 2009 = 148642447 = 13.44% 11053230 2008 = 130672708 = 15.21% 8587430 = 11.82%

Interpretation
Analysis shows that Debt Equity Ratio has decreased to 11.82 in 2010 as compared to 2009 which is13.44. It strengthened in 2010 to 15.21.

Time Interest Earned /Interest Coverage Ratio It measures Formula = ______ EBIT ______ Interest (Expenses)

2010 = 4 2009 = 3 2008 = 2

2299785 = 5.93 times

3346855 = 1.019 times

2859081 = 0.886 times

Interpretation
Analysis shows that Time Interest Earned /Interest Coverage Ratio have decreased to 0.155 in 2007 as compared to 2006 which is 0.184. It again strengthened in 2008 to 2.28 while dropped to 0.20 in 2009.

IV.

Profitability ratios.

Gross Profit Margin

It expresses the relationship of gross profit to net sales and is expressed in terms of percentage. Thisratio is a tool that indicates the degree to which selling price of goods per unit may decline without resulting in losses.

Formula = Gross Profit x 100 Net Sales

2010 = 2535876 x 100 = 0.167% 15143241 2009 = 4491095 x 100 = 0.356% 12596921 2008 = 3900332 x100 = 0444% 8780698 Interpretation Analysis shows that Cash Ratio has decreased to 0.155 in 2007 as compared to 2006 which is 0.184. It again strengthened in 2008 to 2.28 while dropped to 0.20 in 2009. Return On Total Assets It measures the overall effectiveness of management in generating profits with its available assets also at ROI. Formula = Earning Available for Common Stockholders Total Assets 2010 = 2681012 = 0.014% 182171885

2009 = 2249974 = 0.013% 166033588 2008 = 2021996 = 0.013%

Interpretation
Analysis shows that Return on Total Assets has increased to 0.014 in 2010. While it again decreased in 2009 to 0.013% while dropped to 0.013% in 2008.145099907.

Earning Per Share It measures ability to meet short-term cash needs more rigorously by eliminating inventory. Formula = Net Income Proffered Dividends 2010 = 2681012 - 0 = 0.891% 3006499 2009 = 2249974 - 0 = 1.122% 2004333 2008 = 2021996 - 0 = 1.341% 1507018

Interpretation
Analysis shows that Cash Ratio has decreased to 0.891% in 2010 as compared to 2009 which is 1.112%. It again strengthened in 2008 to 1.341%.

Text References
I.M PANDAYS FINANCIAL MANAGEMENT BOOK RELETED WEB SITES.