Rumon

Interpretation: - The cash position indication ratio of MERCANTILE BANK LTD is quite good comparing to the last 4 year. Only it is similar with the cash position indication ratio of 2008 of the bank otherwise it is better than the last 3 year. The bank is carrying a higher ratio of liquidity position than the last few years.

Interpretation: - MERCANTILE BANK LTD has a very high liquid indication ratio comparing to the last 4 years. It means the bank has a greater proportion of govt. securities which results into the liquidity of the bank. AS far as liquid indication ratio is concerned the bank has been going through a good liquidity position in this year than the last 4 years.

Interpretation:- MERCANTILE BANK LTD has a low rate of capacity ratio comparing to the last 4 years which indicates a positive aspect for the bank. It is determining the proportion of loan and leases of the total asset. Last 4 year the proportion was too high but the present year is showing a reducing proportion of loan and lease of the total asset.

Interpretation:- The demand composition ratio of MERCANTILE BANK LTD varies from year to year. In 2010 the demand/time deposit was very high comparing to the present year. But in 2008 and 2011 the need of liquidity was less than that of 2012. The ratio was a bit high in 2009 than 2012.

Interpretation: - Debt ratio indicates risk. MERCANTILE BANK LTD has a high risk level regarding borrowing funds in 2012. The bank had a very low rate of debt ratio for the year 2011 and 2010 which was positive for the bank. But the risk level was very high in year 2009 and 2008. The present condition of best ratio is not satisfactory. It should be reduced.

Interpretation: - MERCANTILE BANK LTD has a low rate of Equity multiplier ratio in 2012 than that of 2009 and 2008. It means the company is relying on its own asset rather than depending on debt for financing. But comparing to 2011 and 2010 the dependency on debt is higher. It is not a...