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  • Ratio Analysis Before and After Provision

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    Qasim Saleem
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    This document compares key financial ratios for a company before and after accounting for a provision. The ratios show that after the provision, the return on equity decreases from 47.7% to 16%, return on assets decreases from 13.64% to 8%, gearing increases from 244% to 316%, operating profit margin decreases from 10.20% to 6%, and earnings per share decreases from 2.86 to 0.58. Formulas for calculating each ratio are also provided.

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    Ratio Analysis Before and After Provision.xlsx

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    This document compares key financial ratios for a company before and after accounting for a provision. The ratios show that after the provision, the return on equity decreases from 47.7% to 16%, return on assets decreases from 13.64% to 8%, gearing increases from 244% to 316%, operating profit margin decreases from 10.20% to 6%, and earnings per share decreases from 2.86 to 0.58. Formulas for calculating each ratio are also provided.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views2 pages

    Ratio Analysis Before and After Provision

    Uploaded by

    Qasim Saleem
    This document compares key financial ratios for a company before and after accounting for a provision. The ratios show that after the provision, the return on equity decreases from 47.7% to 16%, return on assets decreases from 13.64% to 8%, gearing increases from 244% to 316%, operating profit margin decreases from 10.20% to 6%, and earnings per share decreases from 2.86 to 0.58. Formulas for calculating each ratio are also provided.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Ratio Analysis Before Ratio Analysis After

    Ratios
    Provision Provision

    ROE 47.7% (Typo Error) 16%


    ROA 13.64% 8%
    Gearing 244% 316%
    Operating Profit Margin 10.20% 6%
    EPS 2.86 0.58
    Formula

    Profit Before Tax /Capital + Reserves


    Operating Profit / Avg Net Assets
    Debt/ Equity
    Operating profit / Revenue
    Profit for the Year / No of Shares

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