Trend analysis

Faysal Bank limited

For the years 2007, 2008 & 2009
Performance Area 2007 2008 2009
a) Liquidity Ratios
Current Ratio
0.85 0.67 0.25
Sales to Working Capital (6.37) (2.82) (0.62)
Working Capital (1,822,299) (4,759,681) (27,515,220)
b) Leverage Ratios
Time Interest Earned 1.36 1.21 1.11
Fixed Charges Coverage 1.36 1.21 1.11
Debt Ratio 0.89 0.92 0.93
Debt to Equity 7.74 11.83 13.15
Current Worth / Net worth -0.11 -0.44 -2.15
Total Capitalization Ratio 0.86 0.90 0.88
Fixed Asset to Equity 8.09 11.92 13.45
Long term Assets to Long term Debt 1.16 1.14 1.31
Debt Coverage Ratio 0.08 0.08 0.08
c) Profitability Ratios
Gross profit Ratio 35.75 36.92 29.43
Return on Assets 1.77 0.80 0.75
DuPont Return on Assets 1.61 0.81 0.66
Operating Income 87.48 76.48 78.24
Operating Assets Turn Over 112.79 92.89 69.13
Return on Operating Assets 17.35 8.95 10.24
Sale to Fixed Assets 0.09 0.10 0.10
Return on Total Equity 14.06 10.35 9.39
Net Profit Margin 19.57 8.32 7.08
d) Activity Ratios:
Total Asset Turnover 0.08 0.10 0.09
e) Market Ratios:
Dividend per Share. 1.34 1.43 0.00
Earning per Share. 4.29 1.83 1.97
Price/ Earning Ratio. 15.37 3.44 4.52
Dividend Payout Ratio 0.31 0.78 0.00
Dividend Yield Ratio 1.34 1.43 0.00
Book Value Per Share. 3.05 2.03 2.10
f) Statement of cash flow
Operating Cash flow/ Total Debt 0.06 0.01 0.08
Operating Cash Flow per Share 13.75 3.13 22.95
 Trend

Over All Lower Liquidity

Specially in 2009 1
2
Lower liquidity in 2008 3

Lower since 2008 4

Leverage remain same 5
Drops in leverage in 2008 6
Higher in 2006 7
Lower during 2008 8
Drops in leverage in 2006 9
Lower coverage in 2006 10
11
12

Lower profitability during 2007 13

Increased Profitability since 14
Lower ROA 2008
during 2007 15
Lower efficiency since 2008 16
Lower efficiency in 2007 17
No change in last 3 years 18
19
20
21

Higher efficiency since 2008 22

Good market perceptions 23

Higher In 2008 24
Lower in 2008 25
Good market perceptions 26
Lower in 2006 27
Good market perceptions 28

Lower in 2006 29
Increased during 2007 30
 Trend analysis
Meezan Bank Limited
For the years 2007, 2008 & 2009
Performance Area 2007 2008 2009
a) Liquidity Ratios
Current Ratio 3 1 1
Sales to Working Capital 2 3 3
Working Capital 5,765,811 2,043,171 3,930,264
b) Leverage Ratios
Time Interest Earned 1.52 1.32 1.35
Fixed Charges Coverage 1.52 1.32 1.35
Debt Ratio 0.92 0.93 0.93
Debt to Equity 10.77 13.27 12.52
Current Worth / Net worth 1.01 0.34 0.43
Total Capitalization Ratio 0.91 0.93 0.92
Fixed Asset to Equity 10.13 13.08 12.03
Long term Assets to Long term 1.00 1.05 1.05
Debt
Debt Coverage Ratio 0.06 0.05 0.06
c) Profitability Ratios
Gross profit Ratio 46.39 54.60 50.80
Return on Assets 1.70 0.81 0.98
DuPont Return on Assets 1.43 0.73 0.83
Operating Income 81.36 59.98 66.42
Operating Assets Turn Over 227.53 132.13 159.02
Return on Operating Assets 9.26 6.91 6.38
Sale to Fixed Assets 0.08 0.09 0.09
Return on Total Equity 16.84 9.80 11.28
Net Profit Margin 21.07 9.13 10.15
d) Activity Ratios:
Total Asset Turnover 0.07 0.09 0.09
e) Market Ratios:
Dividend per Share. 1.25 4.48 2.88
Earning per Share. 1.96 1.22 1.71
Price/ Earning Ratio. 15.12 17.60 9.20
Dividend Payout Ratio 0.64 3.67 1.68
Dividend Yield Ratio 1.25 4.48 2.88
Book Value Per Share. 1.51 1.29 1.37
f) Statement of cash flow
Operating Cash flow/ Total Debt 0.12 0.04 0.12
Operating Cash Flow per Share 15.15 6.52 23.31
2009
Trend

Lower liquidity in
Increase in
Lower liquidity in 2008

Lower since 2008

Leverage remain same
Drops in leverage in 2008
Higher in 2006
Lower during 2008
Drops in leverage in 2006
Lower coverage in 2006

Lower profitability during 2007

Increased Profitability since
Lower ROA 2008
during 2007
Lower efficiency since 2008
Lower efficiency in 2007
No change in last 3 years

Higher efficiency since 2008

Good market perceptions

Higher In 2008
Lower in 2008
Good market perceptions
Lower in 2006
Good market perceptions

Lower in 2006
Increased during 2007