Ratio Analysis of Bank Asia Bangladesh Ltd | 2004-2008

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The financial performance is being measured by analyzing all the financial ratios which are applicable for this organization. | 2nd August 2009 |

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Financial Ratio Analysis of Bank Asia Bangladesh Ltd.

Submitted to:

Mir Sohrab Hossain

Lecturer

Submitted by:

Julekha Nushrat 050301

Sanjida Khondokar 050307

Sabrina Afrin 050314

Nazia Refat 050319

Rakibunnesa Jenny 050347

Md. Noor Hossain 050348

Course name:

Financial Analysis and Control

Course code:

Fin-409

2nd August, 2009

Summary of the Articles

Summary: 01

Financial Ratio Analysis is the calculation and comparison of main indicators - ratios which are derived from the information given in a company's financial statements. It involves methods of calculating and interpreting financial ratios in order to assess a firm's performance and status. This Analysis is primarily designed to meet informational needs of investors, creditors and management. The objective of ratio analysis is the comparative measurement of financial data to facilitate wise investment, credit and managerial decisions. Ratios are not predictive; as they are usually based on historical information notwithstanding ratios can be used as a tool to assist financial analysis.

However they do not reflect the future perspectives of a company, as they ignore future action by management. They can be easily manipulated by window dressing or creative accounting and may be distorted by differences in accounting policies. Comparisons with industry averages are difficult for a conglomerate firm since it operates in many different market segments. Seasonal factors may distort ratios and thus must be taken into account when making ratios are used for financial analysis. Not always easy to tell that a ratio is good or bad. Must be always used as an additional tool to back up or confirm other...