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Calculated by m.

khalid lala :D:P


Ratio Analysis of bank Alfalah
1-Net Profit Margin
Formula
(Net profit after taxation / net sale) * 100
Year 2008

Year 2009

Year 2010

1,301,301 /30,966,638*100

897,035 / 35,561,312*100

968,452 /37,530,256 *100

= 4.20 %

= 2.52%

= 2.58 %

Working
2008, 2009
Annual report 2009, page-18 profit and loss a/c
2010
Annual report 2010, page-17 profit and loss a/c
Graphical Presentation
Net Profit Margin

4.5
4
3.5
3
2.5

Net Profit Margin

2
1.5
1
0.5
0

2008

2009

2010

Interpretation
Net profit margin has been decreased over the year but in year 2009 and 2010 it is
relatively stable in values.

2-Gross spread ratio


Formula
Net interest margin / mark-up earned
Year 2008

Year 2009

Year 2010

10,472,283 / 30,966,638

10,907,132/ 35,561,312

13,674,808/ 37,530,256

=0.34 times

=0.31 times

=0.36 times

Working
2008
Net income margin = mark-up earned mark-up expanses
= 30,966,638-20,494,355=10,472,283
Page-18 2009 profit and loss account
2009
Net income margin = mark-up earned mark-up expanses
= 35,561,312-24,654,180=10,907,132
Page-18 2009 profit and loss account
2010
Net income margin = mark-up earned mark-up expanses
= 37,530,256-23,855,448=13,674,808
Page-17 profit and loss account
Graphical presentation
Gross Spread Ratio

0.36
0.35
0.34
0.33
0.32

Gross Spread Ratio

0.31
0.3
0.29
0.28

2008

2009

2010

Interpretation
Gross spread ratio is decrease in 2009 and then it is increase in 2010.
3-Non interest income to total income ratio
Formula
Non interest income / total income
Year 2008

Year 2009

Year 2010

11,751,850/42718488

12,017,858/ 47579170

14,122,586 / 51652842

=0.27 times

=0.25 times

=0.27 times

Working
2008
Total income=interest earned + non mark-up income
=30,966,638+11,751,850 =42718488
2009
Total income=interest earned + non mark-up income
=35,561,312 +12,017,858 = 47579170
Page -18 of 2009 profit and loss account
2010
Total income=interest earned + non mark-up income
=37,530,256+ 14,122,586 = 51652842
Page - 17 of 2010 profit and loss account
Graphical presentation
Non Interest Income to Total Income Ratio

0.27
0.265
0.26
Non Interest Income to
Total Income Ratio

0.255
0.25
0.245
0.24

2008

2009

2010

Interpretation
Non interest income to total Income ratio is decrease in 2009 and then increase in 2010.
4-Spread ratio
Formula
Interest earned / interest expenses
Year 2008

Year 2009

Year 2010

30,966,638 / 20,494,355

35,561,312 / 24,654,180

37,530,256 / 23,855,448

=1.51 times

=1.44 times

=1.57 times

Working
2008, 2009
Page #18
2010
Page # 17
Graphical presentation
Spread Ratio

1.6
1.55
1.5
Spread Ratio
1.45
1.4
1.35

2008

2009

2010

Interpretation
Spread ratio is decrease in 2009 as compare to 2008 and then increase in 2010.

5-Return on Assets
Formula
(Earning before income tax / total assets) * 100
Year 2008

Year 2009

Year 2010

22289075/ 348,990,764
*100

25923448/ 389,070,055
*100

25224193/ 411,483,839
*100

=0.06 %

=0.07 %

=0.06 %

Working
2008
EBIT = profit before tax + interest expenses
=1,794,720 + 20,494,355
=22289075 page-18 2009 profit and loss account
2009
2009- EBIT = profit before tax + interest expenses
=1,016,316+ 24,907,132
=25923448 page-70 2009 profit and loss account
2010
2010- EBIT = profit before tax + interest expenses
=1,368,745 + 23,855,448
=25224193 page-81 profit and loss accounts
Graphical Presentation

Return on Assets

0.07
0.068
0.066
0.064
0.062

Return on Assets

0.06
0.058
0.056
0.054

2008

2009

2010

Interpretation
Return on asset is increasing and then stable in its value in 2010.
6-DuPont Return on Assets
Formula
(Net income / sale) * (sale / total assets) * 100
Year 2008
(0.042022*0.088732) * 100
=0.37 %

Year 2009
(0.0252250*0.091400) *
100
=0.23 %

Year 2010
(0.0272333*0.086422) *
100
=0.23 %

Working
2008
Net income =1,301,301 page-18 2009 profit and loss account
Sales = 30,966,638
Total assets = 348,990,764page-17 2009 balance sheet
DuPont return on assets = (Net income / sale) * (sale / total assets) * 100
= (1,301,301/30,966,638 * 30,966,638 / 348,990,764) * 100
= (0.042022*0.088732) * 100
2009
Net income = 897,035 page-18 2009 profit and loss account
Sales = 35,561,312
Total assets = 389,070,055page-17 2009 balance sheet

DuPont return on assets = (897,035/ 35,561,312 * 35,561,312 / 389,070,055) * 100


= (0.0252250*0.091400) * 100
2010
Net income = 968,452 page17 profit and loss account
Sales = 37,530,256
Total assets = 411,483,839 page16 balance sheet unconsolidated
DuPont return on assets = (968,452 / 35,561,312 * 35,561,312 / 411,483,839) * 100
= (0.0272333*0.086422) * 100

Graphical Presentation
DuPont Return on Assets

0.4
0.35
0.3
0.25
DuPont Return on
Assets

0.2
0.15
0.1
0.05
0

2008

2009

2010

Interpretation
DuPont return on assets has been decrease over the years. It is due to the increase in the
net income as compared to the sales.

7-Return on Total Equity


Formula
(Net income / total equity) * 100
Year 2008

Year 2009

Year 2010

1,301,301/ 14,608,523 *
100

897,035/ 19,770,260 * 100

968,452 / 19,726,556 * 100

= 8.91 %

=4.54%

=4.91 %

Working
2008 (page18 2009 profit and loss account)
(page 17 2009 balance sheet)
2009
(page 18 2009 profit and loss account)
(page 17 2009 balance sheet)
2010
(page16 profit and loss account)
(page17 balance sheet)
Graphical Presentation

Return on Total Equity

9
8
7
6
5

Return on Total Equity

4
3
2
1
0

2008

2009

2010

Interpretation
Return on total equity is decrease over the year and this is not good trend for the
organization, it should be increase for business profitability.
8-Debt Ratio
Formula
Total Liabilities / Total Assets
Year 2008

Year 2009

Year 2010

331,946,025 / 348,990,764

366,936,635 / 389,070,055

389,178,295 / 411,483,839

= 0.95 Times

= 0.94 Times

= 0.94 Times

Working
2008
(page17 2009 balance sheet)
2009
(page17 2009 balance sheet)
2010
(page16 2010 balance sheet)
Graphical Presented

Debt Ratio

0.95
0.948
0.946
0.944
0.942

Debt Ratio

0.94
0.938
0.936
0.934

2008

2009

2010

Interpretation
Debit ratio has been decrease over the years.

9-Debt / Equity Ratio


Formula
Total liabilities / total share holder Equity
Year 2008

Year 2009

Year 2010

331,946,025 / 14,608,523

366,936,635 / 19,770,260

389,178,295 / 19,726,556

=22.72 Times

=18.56 times

=19.72 times

Working
2008
(page17 2009
2009
(page69
2010
(page 16
Graphical Presentation

Debt to Equity Ratio

25
20
15
Debt to Equity Ratio
10
5
0

2008

2009

2010

Interpretation
Debt/ equity ratio has been decrease in 2009 and then increase in 2010.

10-Times Interest Earned


Formula
Earning before Income Tax (EBIT) / Interest Expenses
Year 2008

Year 2009

Year 2010

22289075 / 20,494,283

25923448 / 24,654,180

25224193 / 23,855,448

=1.08 times

=1.05 times

=1.05 times

Working
2008
EBIT = profit before tax + interest expenses
=1,794,720 + 20,494,355
=22289075 (page#18 2009 profit and loss account)
Interest expenses =20,494,283
2009
EBIT = profit before tax + interest expenses
=1,016,316+ 24,907,132
=25923448 (page#70 2009 profit and loss account )

Interest expenses =24,654,180


2010
2010- EBIT = profit before tax + interest expenses
=1,368,745 + 23,855,448
=25224193 (page#81 profit and loss accounts )
Interest expense = 23,855,448
Graphical Presentation
Times Interest Earned

1.08
1.075
1.07
1.065
1.06

Times Interest Earned

1.055
1.05
1.045
1.04
1.035

2008

2009

2010

Interpretation
Time interest has decrease over the years.
11-Advance /deposit ratio
Formula
Advance / deposit
Year 2008

Year 2009

Year 2010

191,790,988/300,732,858

188,042,438/324,759,752

207,152,546/354,015,311

=0.64 times

=0.58 times

=0.58 times

Working
2008, 2009
Page # 17 of 2009
2010
Page # 16 of 2010
Graphical presentation

Advance to Deposit Ratio

0.64
0.63
0.62
0.61
0.6

Advance to Deposit
Ratio

0.59
0.58
0.57
0.56
0.55

2008

2009

2010

Interpretation
Advance to deposit ratio is decrease over the period and it is worthy for the company.

12-Operating cash flow ratio


Formula
Operating cash flow / current liabilities
Year 2008

Year 2009

Year 2010

7,403,300/329166391

25,279,776/359186603

18,112,043/381495184

=0.02 times

=0.07 times

=0.05 times

Working
2008
Current liabilities = bill payable + borrowing + deposit +other liabilities
=3,452,031+13,690,222+300,732,858+11,291,280
=329166391
(Page#17 2009)
2009
Current liabilities = bill payable + borrowing + deposit +other liabilities

=3,766,144+20,653,921+324,759,752+10,006,786
=359186603
(Page#17 2009 balance sheet)
2010
Current liabilities = bill payable + borrowing + deposit +other liabilities
=4,521,533+13,700,124+354,015,311+9,258,216
=381495184
(Page#16 2010 balance sheet)
Graphical presentation
Operating Cash Flow Ratio

0.07
0.06
0.05
0.04

Operating Cash Flow


Ratio

0.03
0.02
0.01
0

2008

2009

2010

Interpretation
Operating cash flow ratio first increase in 2009 this is not good for the company and then
in year 2010 it is relatively stable.
13-Dividend Per share
Formula
Total dividend / no. of outstanding shares
Year 2008

Year 2009

Year 2010

975,000/799500

0 / 1349156.3

1,079,325 / 1349156.3

=1.22 Rs.

=0.00 Rs.

=0.80 Rs.

Working
2008
Dividend paid = 975,000(page20 2009 cash flow)
No. of outstanding shares = 7,995,000/10=799500
2009

Dividend paid = 0 (page20 2009 cash flow hence there is no dividend paid amount in
2009 )
No. of outstanding shares = 13,491,563/10=1349156.3 (page 62 2009 share capital note
19.)
2010
Dividend paid = 1,079,325(page19 2010 cash flow)
No. of outstanding shares = 13,491,563/10=1349156.3 (page61 2010 share capital note
19.)
Graphical Presentation
Dividend per Share

1.4
1.2
1
0.8
Dividend per Share

0.6
0.4
0.2
0

2008

2009

2010

Interpretation
Dividend per share of the organization is fluctuation over the year it is depend open the
company policy.
14-Earning per share
Formula
Net income / number of outstanding
Year 2008

Year 2009

Year 2010

1,301,301 / 799500

897,035 / 1349156.3

968,452 / 1349156.3

=1.63 Rs.

=0.66 Rs.

=0.72 Rs.

Working
2008
Net income = 1,301,301
No. of outstanding shares = 7,995,000/10=799500

2009
Net income =897,035
No. of outstanding shares = 13,491,563/10=1349156.3 (page 62 2009 share capital note
19.)
2010
Net income = 968,452
No. of outstanding shares = 13,491,563/10=1349156.3 (page61 2010 share capital note
19.)
Graphical Presentation
Earning per Share

1.8
1.6
1.4
1.2
1

Earning per Share

0.8
0.6
0.4
0.2
0

2008

2009

2010

Interpretation
Earning per share has increasing over the years which is good trend for the company.
15- Price / Earning Ratio
Formula
Market value per share / earning per share
Year 2008

Year 2009

Year 2010

21.32 / 1.63

16.41 / 0.66

16.53 /0.72

=13.07 Rs.

=24.86 Rs.

=22.95 Rs.

Working
2008
Market value per share = 21.32 (page 11 share information 2009)
Net income = 1,301,301
No of out standing shares = 7,995,000/10=799500

Earning per share = 1,301,301 / 799500


= 1.63
2009
Market value per share = 16.41 (page 11 share information 2009)
Net income = 897,035
No of out standing shares = 13,491,563/10=1349156.3
Earning per share = 897,035/ 1349156.3
= 0.66
2010
Market value per share = 16.53 (page 10 share information 2009)
Net income = 968,452
No of out standing shares =13,491,563/10=1349156.3
Earning per share = 968,452 / 1349156.3
= 0.72

Graphical Presentation
Price / Earning Ratio

25
20
15
Price / Earning Ratio
10
5
0

2008

2009

2010

Interpretation
Price earning ratio of the company has been increase over the years. It is good sign for
the company.

Dear shano
I have make it my own it is very difficult and I am tired now coz me
doing work on ratio almost 20 hours any ways
Shano u must do comparison with some one because may b there is some
mistake because it is totally different working and report as we compare it
with MCB ratios or financial reports.
Please es ko verify lazmi kar lena kesi sy comparison lazmi kar lena ..
Or ha jo ratios red color sy highlight hy yar ma en ratios main 100% sure
nahi ho magar phir b main ny apni tarf sy sara kam teek teek karny ke kosis
ke if there is any mistake then I am sorry ..
Or ha plz ho saky ro calculation 1 bar check kar lena lazmi q k main ny 1 bar
he sari calculation ke hy or 2nd tym revise nahi ke
Its all complete package in which include graphical presentation and the
interpretation also
Khush raho pari bahna or bahi k liy dua karna
ALLAH HAFIZ
m.khalid lala

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