Ratio Analysis

Balance Sheet Ratio Profit And Loss Account Ratio

Combined / Composite Ratios

Balance Sheet Ratio

Current Ratio

= Current Assets / Current Liabilities

Quick ratio

= Quick Asset /Quick liabilities

Balance Sheet Ratio

2008/2009
0.4

Current Ratio
2009/2010 0.4

IDEAL 2:1

As the ideal ratio 2:1 but public sector companies have very low current ratio as they have very little need for current assets But liquidity position of the bank is not good. Lesser the current ratio, less will be the firms ability to meet current obligations.

Balance Sheet Ratio

2008/2009
5.74

Quick ratio
2009/2010 9.07

IDEAL 1:1

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. Banks short term solvency is in better position.

Profit And Loss Account Ratio

Operating Ratio

=Operating Cost / Net Sales 100

Net Profit Ratio

= Net profit / Net Sales 100

Profit And Loss Account Ratio

2008/2009
22.91

Operating Ratio
2009/2010 27.61

IDEAL %

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.

Profit And Loss Account Ratio

2008/2009
11.92

Net Profit Ratio

2009/2010 10.66

IDEAL %

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.

Combined / Composite Ratios

Earnings per share

NPTA pref. Dividend / no of equity share

Dividend Per Share

Dividend Per Equity Share / Earning Par Share

Combined / Composite Ratios

2008/2009

Earnings Per Share Ratio

143.67

2009/2010 144.37

It measures the profit available to equity shareholders as par share basis. Bank had good return to the shareholder.

Combined / Composite Ratios

2008/2009

Dividend Per Share Ratio

29.00

2009/2010 30.00

The dividend paid to the shareholders on a per share basis in dividend per share . Thus dividend par share is the earning distributed to the ordinary shareholders divided by number of ordinary share outstanding. Bank paid good dividend for both year as par share.

Ratio Analysis

Balance Sheet Ratio

2008/2009 0.13

Current Ratio
2009/2010 0.14

IDEAL 2:1

As the ideal ratio 2:1 but private sector companies have very high current ratio. But liquidity position of the bank is not bad. Lesser the current ratio, less will be the firms ability to meet current obligations.

Balance Sheet Ratio

2008/2009
5.94

Quick ratio
2009/2010 14.70

IDEAL 1:1

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. Banks short term solvency is little in better position.

Profit And Loss Account Ratio

2008/2009
26.22

Operating Ratio
2009/2010 27.61

IDEAL %

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.

Profit And Loss Account Ratio

2008/2009
16.00

Net Profit Ratio

2009/2010 20.59

IDEAL %

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.

Combined / Composite Ratios

2008/2009

Earnings Per Share Ratio

33.76

2009/2010 36.10

It measures the profit available to equity shareholders as par share basis. Bank can give satisfactory return to the shareholder.

Combined / Composite Ratios

2008/2009

Dividend Per Share Ratio

11.00

2009/2010 12.00

The dividend paid to the shareholders on a per share basis in dividend per share . Thus dividend par share is the earning distributed to the ordinary shareholders divided by number of ordinary share outstanding. Bank paid satisfactory dividend as par share but still not satisfactory.

STATE BANK OF INDIA RATIO 2009 Current Ratio Quick ratio Operating Ratio Net Profit Ratio Earnings Per Share Ratio Dividend Per Share Ratio 0.04 5.74 22.91 11.92 143.67 29.00 2010 0.04 9.07 27.61 10.66 144.37 30.00 2009 0.13 5.94 26.22 16.00 33.76 11.00

ICICI BANK 2010 0.14 14.70 27.61 20.59 36.10 12.00