Bank of Baroda and Canara Bank's financial ratios are compared. Canara Bank has more favorable current and quick ratios, indicating it has more liquid assets to meet short-term obligations. Bank of Baroda has a higher net profit margin as its operating and non-operating expenses are lower. Both banks have the same total asset turnover ratio, implying they utilize assets equally well to generate revenue. Canara Bank has higher return on net worth and return on asset ratios, showing it is more efficient in generating profits from shareholder equity and assets. Canara Bank's debt-equity ratio is also higher, which shareholders prefer as it benefits from creditor funds, while Bank of Baroda's lower ratio is preferred by creditors for
Bank of Baroda and Canara Bank's financial ratios are compared. Canara Bank has more favorable current and quick ratios, indicating it has more liquid assets to meet short-term obligations. Bank of Baroda has a higher net profit margin as its operating and non-operating expenses are lower. Both banks have the same total asset turnover ratio, implying they utilize assets equally well to generate revenue. Canara Bank has higher return on net worth and return on asset ratios, showing it is more efficient in generating profits from shareholder equity and assets. Canara Bank's debt-equity ratio is also higher, which shareholders prefer as it benefits from creditor funds, while Bank of Baroda's lower ratio is preferred by creditors for
Bank of Baroda and Canara Bank's financial ratios are compared. Canara Bank has more favorable current and quick ratios, indicating it has more liquid assets to meet short-term obligations. Bank of Baroda has a higher net profit margin as its operating and non-operating expenses are lower. Both banks have the same total asset turnover ratio, implying they utilize assets equally well to generate revenue. Canara Bank has higher return on net worth and return on asset ratios, showing it is more efficient in generating profits from shareholder equity and assets. Canara Bank's debt-equity ratio is also higher, which shareholders prefer as it benefits from creditor funds, while Bank of Baroda's lower ratio is preferred by creditors for
Ratio Bank of Baroda Canara Bank Interpretation and Comparison
Current ratio 0.05 0.06 Bank of Baroda have less current
assets as compared to Canara Bank to pay off its current liabilities. This means canara bank is in more favourable condition than bank of Baroda. Quick ratio 21.94 26.78 Canara bank has more favourable ratio than bank of baroda. Canara bank will pay off its short term obligations very easily as compare to bank of baroda because of availability of more liquid assets. Also the ratio of baroda bank affects because of it’s a/c receivable lag period is more. Net Profit 0.86 0.74 Net profit ratio of Baroda bank is Margin better than canara bank. This is happens because baroda bank operating & non-operating expenses are less. They will earn more income than canara bank. Total Asset 0.07 0.07 This ratio is same for both banks. This Turnover ratio implies that both banks will utilise its assets efficiently to generate revenue Return on Net 0.94 1.16 This ratio assess whether the Worth company has been more efficient or less in generating the profit on shareholder’s equity over the years. Canara bank has more favourable ratio. This indicates the prudent use of shareholder’s money by Canara Bank. Low percentage ratio of baroda bank indicates less efficient deployment of equity resources Return on Asset 173.66 394.68 This ratio suggests that the income earned by the company after effective utilisation of assets. Canara bank have more favourable ratio. This indicates that canara bank can generate higher returns from its asset as compared to baroda bank. Higher ratio also indicates the ability of the company to returns the money to its investors. Debt-Equity ratio 15.37 21.53 Debt-Equity Ratio indicates the soundness of long term financial policies of a company. In this ratio there is two aspects : 1. According to the point of Creditors : Creditors usually like low debt-equity ratio because this indicates more protection of their money. In this case baroda bank has more favourable ratio. According to the point of shareholders : Shareholders usually like high debt-equity ratio because they like to get benefits from the funds provided by the creditors. Therefore, in this case Canara bank has more favourable ratio.