Ajman bank

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Ajman bank

Name

Affiliation

Name of Ratio

Formula

Solution

Year 1

Solution

Year 2

2014

2013

% Change /Increase or Decrease

Return on Total Assets

Net Capital ÷ Average Total Assets

1200/879

1580/1200

136%

132%

Decrease

Return on Equity

Net Capital available to Common

Stockholders ÷ Average Common

Stockholders’ Equity

2345/3400

3320/8500

68%

39%

Decrease

Age of Receivables

Average AR (net) x 365 ÷ Net Credit

Sales

124*365/310

124*365/310

23

45

Increase

Inventory Turnover

Cost of Sales ÷ Average Inventory

1890/320

1430/450

6.2

5.5

Decrease

Percentage change

in Sales

Current Year Net Sales – Prior Year Net Sales/Prior Year Net Sales

1050/450

1570/600

23%

28%

Increase

Gross Profit

Percentage

Net Sales – Cost of Sales ÷ Net Sales

910/6519

975/9033

13.5%

10%

Decrease

Operating Expenses as a Percentage of

Sales

Operating Expenses ÷ Net Sales

1976/5600

2300/9030

33%

21%

Decrease

Bad Debt as a Percentage of Sales

Bad Debt Expense ÷ Net Credit

Sales

180/710

250/980

31%

24.4%

Decrease

Repairs and

Maintenance as a Percentage of Net Fixed Assets

Repairs and Maintenance Expense ÷

Net Fixed Assets

2000/4500

2700/8000

20.9%

21.5%

increase

Current Ratio

Current Assets ÷ Current Liabilities

2600/23

3000/29

112%

116%

Increase

Quick Ratio

Current Assets – Inventory – Prepaid items ÷ Current Liabilities

465/128

700/200

40.5%

39.1%

Decrease

Debt Ratio

Debt ÷ Total Assets

1380/1000

1270/510

1.3%

3.6%

increase

Times Interest

Earned

Operating Capital ÷ Annual Interest

Payments

2077/1750

3400/830

21.67%

44.56%

increase

Debt Service

Coverage

Net Capital + Depreciation ÷ Annual

Principal Payments

170/530

190/400

35.2%

38.7%

Increase

Introduction

The ideas, uses and impediments of financial ratio analysis are clarified further down. A portion of the essential procedures of computing ratio investigation are inspected. The brief history of Ajman Bank open restricted organization and their future goals are encased. Budgetary proclamations are utilized to ascertain and investigated utilizing ratio examinations from financial specialist’s perspective. Finally, confinements of .............


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