Professional Documents
Culture Documents
Submitted to
SEMCOM
THE CVM UNIVERSITY
as a requirement of
Accountancy
BY:-
LIQUIDITY
• Current ratio = Current Assets / Current Liabilities
MANAGEMENT SKILL
• Total Asset Turnover = Sales / Total Assets
FINANCIAL RISK
• Debt Ratio = Debt / Assets
• Times Interest Earned = Net Operating Income /
Interest Expense
Leverage and interest-paying ability - used for financials.
Depository Institutions -
Banks, S&L, Credit Unions
Financial Statements
• National-charter banks must submit uniform accounting
statements to the Comptroller of the Currency.
• State charter banks submit accounting statements to their
state regulator.
PROFITABILITY
Interest Margin to Earning Assets =
(Interest Income-Interest Expense)/Earning Assets
• Profit Margin = Net Income/Total Operating Income
• Return on Earning Assets = Net Income/Earning Assets
• Return on Equity = Net Income/Equity
FINANCIAL RISK
Examine
Examine
Investments Investments
Sell Securities, Assets Working Capital
From Subsidiaries Capital Investments
Financing Financing
Issue Securities Pay Interest & Dividends
Obtain Loan Repay Loans and Bonds
Retire Equity