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Prepared For:
M. MorshedSection: 2
School Of BusinessNorth South University
Prepared By:
Taseen Mustafa TurjoId: 063 610 530
M Abul KasemId: 063 362 030
DATE OF SUBMISSION: - December 19, 2009
TABLE OF CONTENTS
CONTENTS PAGE NO.
EXECUTIVE SUMMARY ---------------------- 3
INTRODUCTION OF AB BANK ---------------------- 4
OBJECTIVES ---------------------- 6
METHODOLOGY ---------------------- 7
LIMITATIONS ---------------------- 9
AN OVERVIEW OF AB Bank Ltd ---------------------- 11
LITERATURE REVIEW ---------------------- 14
FINDINGS & ANALYSIS ---------------------- 18
RECOMMENDATIONS ---------------------- 26
CONCLUSION ---------------------- 27
BIBLIOGRAPHY ---------------------- 28
APPENDIX ---------------------- 29
2
EXECUTIVE SUMMARY
The following report is based on the financial performance
of AB Bank Limited, Bangladesh. The analysis is done for
year 2003 – 2008, utilizing all the supplementary materials
such as balance sheet, profit & loss a/c and all other
relative data we thought helpful in analyzing. We have used
different methodologies for calculating the performance of
the bank. Analysis is totally based on the fact and figures
achieved by formulating the values we have collected. The
report is divided into many parts which include: The
introduction, objectives, methodology, limitation, overview
of the bank.
Literature review sections provide the reader an overall
glance at the methodologies used for analysis and the
elaborate meaning of the uses of such methods for
calculation.
Findings & analysis section is one of the main part of these
report as it reveals all the facts with potential
understanding to an investor whether they should invest or
not. The risk & returns associated with the investment are
somewhat revealed. We have also taken the opportunity to
3
recommend the investors why they should invest or not
invest in AB Bank Limited.
Lastly, we have provided all the detailed calculations and
the financials used, in the appendix section.
INTRODUCTION OF AB BANK LIMITED
AB Bank Limited, the first private sector bank was incorporated in Bangladesh on 31st
December 1981 as Arab Bangladesh Bank Limited and started its operation with effect
from April 12, 1982. It is also known as one of leading bank of the country since its
commencement 27 years ago. It continues to remain updated with the latest products and
services, considering consumer and client perspectives. AB Bank has thus been able to
keep their consumer’s and client’s trust while upholding their reliability, across time.
During the last 27 years, AB Bank Limited has opened 74 Branches in different Business
Centers of the country, one foreign Branch in Mumbai, India and also established a
wholly owned Subsidiary Finance Company in Hong Kong in the name of AB
International Finance Limited. To facilitate cross border trade and payment related
services, the Bank has correspondent relationship with over 220 international banks of
repute across 58 countries of the World
In spite of adverse market conditions, AB Bank Limited which turned 27 this year,
concluded the 2008 financial year with good results. The Bank’s consolidated profit after
taxes amounted to Taka 230 cr which is 21% higher than that of 2007. The asset base of
AB grew by 32% from 2007 to stand at over Tk 8,400 cr as at the end of 2008.
4
AB Bank believes in modernization. The bank took a conscious decision to rejuvenate its
past identity – an identity that the bank carried as Arab Bangladesh Bank Limited for
twenty five long years. As a result of this decision, the bank chose to rename itself as AB
Bank Limited and the Bangladesh Bank put its affirmative stamp on November 14, 2007.
The Bank decided to change its traditional color and logo to bring about a fresh approach
in the financial world; an approach, which like its new logo is based on bonding, and
trust. The bank has developed its logo considering the contemporary time. The new logo
represents our cultural “Sheetal pati” as it reflects the bonding with its clientele and
fulfilling their every need. Thus the new spirit of AB is “Bonding”. The Logo of the bank
is primarily “red”, as red represents velocity of speed and purity. Our new logo innovates,
bonding of affiliates that generate changes considering its customer demand. AB Bank
launched the new Logo on its 25th Anniversary year.
AB Bank has continuously invests into its biggest asset, the human resource to drive
forward with its mission “to be the best performing bank in the country.” The bank has
introduced Dress Code for its employees. Male employees wear designed ties and
females wear Sharee or Salwar Kamiz, all the dresses are consisted with the unique AB
Bank logo.
AB is recognized as the people’s choice, catering to the satisfaction of its cliental. Their
satisfaction is AB’s success.
Mission Statement
“To be the best performing bank in the country”.
Vision Statement
“To be the trendsetter for innovative banking with excellence & perfection.”
5
OBJECTIVES
The main objective of this project is to analyze the performance of AB bank Limited
from year 2003 – 2008 in terms of:-
1. Liquidity
2. Leverage
3. Activity ( Efficiency )
4. Profitability
5. Market position.
We will be analyzing whether the performance of the bank is improving or fading and
will be revealing the necessary reasons for each scenario. We will also be analyzing the
overall performance in terms of the existing and potential investor’s viewpoint. Lastly we
should identify whether the rate of return is adequate or not and whether the investors
should invest in AB Bank or not.
6
METHODOLOGY
PROFITABILTY RATIOS : -
Return on Equity (ROE) = Net Income after Tax/ Total equity Capital
Return on assets (ROA) = Net Income after Tax/ Total Assets
Net Interest Margin = ( Interest Income from loans and security investments-
Interest expenses on deposits and on other deposits) / Total Assets
Net Non- interest Margin = (Non-Interest Revenues – Non-interest Expenses /
Total Assets
Net Bank Operating Margin = ( Total Operating revenues – Total Operating
Expenses) / Total Assets
Earnings Per Share = Net Income after Tax / Common Equity Shares Outstanding
LEVERAGE RATIOS : -
Debt to Equity Ratio = Total liabilities / shareholders equity.
7
Time Interest Earned = EBIT / Interest Expense
Debt Ratio = Total liabilities / Total assets.
LIQUIDITY RATIOS
Current Ratio = Current Asset / Current Liabilities
ACTIVITY RATIO (EFFICIENCY RATIO)
Operating Efficiency Ratio = Total Operating Expense / Total Operating Revenue
Employee Productivity Ratio = Net Operating Income/ Number Of Full- time
employees
MARKET POSITION RATIO
Dividend Payout Ratio = annual dividends per share / net income.
Dividend Yield = annual dividends per share / price per share.
Earnings per Share (EPS) Growth Rate = (EPS at end of period - EPS at beginning of period) / EPS at beginning of period
Price Earnings (P/E) Ratio = market price per share / Earnings per share.
8
LIMITATIONS
Changes in accounting policy
Changes in accounting policy may affect the comparison of results between different
accounting years as misleading. The problem with this situation is that the directors may
be able to manipulate the results through the changes in accounting policy. This would be
done to avoid the effects of an old accounting policy or gain the effects of a new one. It is
likely to be done in a sensitive period, perhaps when the business’s profits are low.
Creative accounting
The businesses apply creative accounting in trying to show the better financial
performance or position which can be misleading to the users of financial accounting.
Historical costs not suitable for decision making
9
ASB Conceptual framework recommends businesses to use historical cost of accounting.
Where historical cost convention is used, asset valuations in the balance sheet could be
misleading. Ratios based on this information will not be very useful for decision making.
Interpretation of the ratio
It is difficult to generalize about whether a particular ratio is ‘good’ or ‘bad’. For example
a high current ratio may indicate a strong liquidity position, which is good or excessive
cash which is bad.
Price changes
Inflation renders comparisons of results over time misleading as financial figures will not
be within the same levels of purchasing power. Changes in results over time may show as
if the enterprise has improved its performance and position when in fact after adjusting
for inflationary changes it will show the different picture.
Technology changes
When comparing performance over time, there is need to consider the changes in
technology. The movement in performance should be in line with the changes in
technology. For ratios to be more meaningful the enterprise should compare its results
with another of the same level of technology as this will be a good basis measurement of
efficiency.
Some other limitations that we had to face in doing these projects are as follows:-
Access to information
Access to resources
10
Time management
Access to experts for editing and guidance
Support from organizations and participants
An overview of AB Bank Ltd
AB Bank Ltd is one of the competitive banks providing wide range of services compared
to all other banks. They have been proving quality customer services and serving the
locality with their financial needs.
AB Bank Ltd. bears a unique history of its own. The organization started its journey in
the financial sector of the country as an investment company back in 1982. The aim of
the company was to be the best performing bank in the country. During the last 27 years
AB Bank LTD has operated in 74 branches and one foreign branch in Mumbai, India also
it established a finance company in Hong Kong.
AB Bank commits to nation to take a lead in the Banking sector through not only its
strong financial position, but also through innovation of products and services. It also
ensures creating higher value for its respected customers and shareholders. The bank has
focused to bring services at the doorstep of its customers, and to bring millions into
banking channels those who are outside the mainstream banking arena. Some of the
services provided by AB Bank LTD are provided below:-
11
1. Retail Banking
Personal Loan
Auto Loan
Easy Loan (For Executives)
Gold Grace - Jewellery Loan
House/Office Furnishing/Renovation Loan
Staff Loan
Education Loan
2. Corporate Banking:
Project Finance
Working Capital Finance
Trade Finance
Cash Management
Syndicated Finance, both onshore & off-shore
Equity Finance, both onshore & off-shore
Corporate Advisory Services
3. SME Loan: SME Sectors in which AB Bank has participated so far:
Agro machinery
Poultry
Animal Feed
Dairy Product
Fruit Preservation
Hotel & Restaurants
Garments Accessories
Leather products
Plastic product
12
Furniture : Wooden & Metal
Ink
Paint
Printing & Packaging
Wire & Cable
Aluminum
Cement and Lime Plaster
Clinics and Hospitals
Engineering & Scientific Instruments
4. Deposit Products
Current A/C
Savings Bank Deposit A/C
Short Term Deposit A/C
Special Savings Scheme
Special Fixed Deposit Scheme
NFCD
RFCD
5. Cards
Debit Card
Credit Card
6. Locker Service
7. Investment Banking
Merchant Banking
Custodial Service
Brokerage Service
13
Future Products
8. Money Transfer
Western Union
LITERATURE REVIEW
Return on EquityThe return on common equity ratio shows the return to common stockholders after factoring out preferred shares.
Return on Assets (ROA)The return on assets ratio provides a standard for evaluating how efficiently financial management employs the average dollar invested in the firm's assets, whether the dollar came from investors or creditors.
Net Interest Margin
Net Interest Margin (NIM) is a measurement of the difference between the interest income generated by banks or other financial institutions and the amount of interest paid out to their lenders (for example, deposits). It is considered similar to the gross margin of non-financial companies.
It is expressed as a percentage of what the financial institutions are earning (its interest often from borrowing from other financial institutions like the Federal Reserve) minus the interest that it pays on borrowed funds to its investors.
Net interest margin is similar in concept to the net interest spread; the net interest spread expresses the nominal average difference between the borrowing and the lending rates, without compensating for the fact that the earning assets and the borrowed funds may be
14
different instruments and differ in volume. The net interest margin can therefore be higher or lower than the net interest spread.
Net Non Interest margin
How efficiently assets are utilized to generate net non interest margin.
Net Bank operating margin
How efficiently assets are utilized to generate net bank operating margin.
EPS
The portion of a company's profit allocated to each outstanding share of common
stock. Earnings per share serve as an indicator of a company's profitability.
LEVERAGE RATIOS: -
Time interest earned
The times interest earned indicates the extent of which earnings are available to meet
interest payments.
Debt to Equity Ratio
Debt to Equity Ratio is also referred to as Debt Ratio, Financial Leverage Ratio or
Leverage Ratio. The debt to equity (debt or financial leverage) ratio indicates the extent
to which the business relies on debt financing.
Debt Ratio
The debt ratio is also known as the debt to capital ratio, debt to equity ratio or financial
leverage ratio. The debt ratio shows the reliance on debt financing.
15
LIQUIDITY RATIOS
Current RATIO
The current ratio is used to evaluate the liquidity, or ability to meet short term debts. High
current ratios are needed for companies that have difficulty borrowing on short term
notice.
WORKING CAPITAL
Working capital is the liquid reserve available to satisfy contingencies and uncertainties. A high working capital balance is needed if the business is unable to borrow on short notice. Banks look at working capital over time to determine a company's ability to weather financial crises.
QUICK RATIO
The quick ratio is used to evaluate liquidity. Higher quick ratios are needed when a company has difficulty borrowing on short term notice
ACTIVITY RATIO (EFFICIENCY RATIO)
Operating Efficiency Ratio
A company’s operating expense divided by its operating revenue.
Employee Productivity Ratio
Employee efficiency ratio shows how much each employee has contributed to net
income.
MARKET POSITION RATIO:
DIVIDEND PAYOUT RATIO
16
The dividend payout ratio shows the portion of earnings that are paid out in dividends. A
low dividend payout ratio indicates that a large portion of the profits are retained and
likely invested for growth.
DIVIDEND YIELD
The dividend yield is the yield a company pays out to its shareholders in terms of
dividends.
Price Earnings (P/E) Ratio
A valuation ratio of a company's current share price compared to its per-share earnings.
Earnings per Share (EPS) Growth Rate
The earnings per share growth rate indicate the amount of growth for investors.
This ratio helps determine the multiplier used in calculating the company's market value.
A higher ratio yields a higher multiplier.
The trend in this ratio indicates whether growth is steady , sporadic, accelerating or
declining.
17
FINDINGS & ANALYSIS
2003 2004 2005 2006 2007 2008PROFITABILTY RATIO
Return on Equity (ROE) 1.53% 7.24% 10.64% 20.6% 42.3% 34.2%
Return on assets (ROA) 0.05% 0.27% 0.49% 1.11% 2.995% 2.7%
Net Interest Margin 1.54% 1.57% 2.09% 1.28% 2.58% 2.75%
Net Non- interest Margin 3.4% 3.5% 3.3% % % %
Net Bank Operating Margin 0.50% 1.11% 2.28% 1.48% 5.23% 5.11%
Earnings Per Share 3.63 18.19 31.26 93.08 85.37 103.18
LEVERAGE RATIO
Debt to Equity Ratio 28 25.1 20.7 17.6 13.1 11.5
Debt Ratio 0.97 0.96 0.95 0.95 0.93 0.92
18
Return On Equity (ROE)
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%
2003 2004 2005 2006 2007 2008
Time interest earned 0.09 0.23 0.48 0.26 0.86 0.81
LIQUIDITY RATIO
Current Ratio 1.036 1.04 1.048 1.057 1.076 1.087
ACTIVITY RATIO (EFFICIENCY RATIO)
Operating Efficiency Ratio 0.874 0.753 0.559 0.732 0.286 0.301
Employee Productivity Ratio 10684.429 52182.27 106526.9 334708.4 1103474.7 1275289.2
MARKET POSITION RATIO
Earnings per Share (EPS) Growth Rate -37.7% 401.10% 71.85% 66.4% -9.03% 17.26%
Price Earnings (P/E) Ratio 53.89 20.95 11.68 9.59 30 7.97
The ROE in 2003 was 1.53%, which then rise to 7.24% in 2004. In 2005 it was 10.64% and started to rise as time passed by, but in 2008, the ROE was 34.20%. It seems like the bank is not improving as their return decreased from 2007. So we think it’s not a good sign from the investor’s point of view.
19
Return On Asset (ROA)
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
2003 2004 2005 2006 2007 2008
Return on assets (ROA) is primarily an indicator of managerial efficiency. The bank smartly managed to achieve a good portion of return from using its assets. The ROA started to rise since 2003; it rose to 0.05% to 0.27% in 2004. Again in 2005 it rose to 0.49% to 1.11%. In 2007, it was noticed the ROA was 3%.But in 2008 it decreased and we think the bank is not improving and again from the investor’s point of view, it is not a good sign for investment.
Net Interest MarginThe net interest margin ranged was 1.54% to 5.75% in the last 6 years. It was almost same % in year 3 & 4.It increased in to 2.09% from 1.57% in year 5. But it dropped in year 6 and again it rose in year 7 and also in year 8.
20
Net Interest Margin (NIM)
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2003 2004 2005 2006 2007 2008
Net Bank Operating Margin
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
2003 2004 2005 2006 2007 2008
Net Non- interest MarginThe bank was able to maintain a good net non interest margin in the last 5 years. In 2004 it was 3.18% and it rose to 3.43% by the end of 2008.
Net Bank Operating MarginThe bank was able to maintain a good net non interest margin from 2003 and it started to rise since a drop in year 6 but again a high increased in year 7 of 5.23%. In year 8 a slight drop which lead the operating margin to 5.11%
21
EPS
0
20
40
60
80
100
120
2003 2004 2005 2006 2007 2008
Debt to Equity Ratio
0
5
10
15
20
25
30
2003 2004 2005 2006 2007 2008
EPSThe EPS was 3.63 in 2003 and then it started to rise and never fall since 2008.
Debt to
equity RatioIn year 2003 debt to equity ratio was 28 and from then it never rose.
Debt RatioThe bank was able to maintain a constant debt ratio in the last 6years. The debt ratio for the bank is less than 1 which is a very good sign.
22
Debt to Ratio
0.89
0.9
0.91
0.92
0.93
0.94
0.95
0.96
0.97
0.98
2003 2004 2005 2006 2007 2008
Time Interest Earned
00.1
0.20.3
0.40.50.6
0.70.8
0.91
2003 2004 2005 2006 2007 2008
Time Interest EarnedIn 2003 it was 0.09 it rose to 0.23 in 2004 and again in 2005.But it decreased in 2006 and again increased in 2007.In 2008 again TIE has fall
23
Current Ratio
1.01
1.02
1.03
1.04
1.05
1.06
1.07
1.08
1.09
1.1
2003 2004 2005 2006 2007 2008
Operating Efficency Ratio
00.1
0.20.3
0.40.50.6
0.70.8
0.91
2003 2004 2005 2006 2007 2008
Current RatioIn 2003 it was 1.036 and from then it never falls
Operating Efficiency RatioThe operating ratio for the bank gradually decreased from 2003 to 2005. In 2006, it increased to 0.732 from 0.559.In 2007 it falls to 0.286 and slightly increased in 2008.
Employee productivity Ratio
24
EPS Growth
-100.00%
-50.00%
0.00%
50.00%
100.00%
150.00%
200.00%
250.00%
300.00%
350.00%
400.00%
450.00%
2003 2004 2005 2006 2007 2008
Employee Productivity Ratio
0
200000
400000
600000
800000
1000000
1200000
1400000
2003 2004 2005 2006 2007 2008
The productivity ratio has been increasing for the bank from 2003 to 2008, which means the productivity of the employees has been increasing. This may have caused may be due to technological change or may have caused to increase in skilled workers. In 2008, it was $12752899.2, which is a good sign for the bank.
Dividend AB bank did not pay dividend from the year 2003 to 2008
EPS (growth rate)The growth rate was -37.70% in 2003 it remain positive from 2004 to 2006 but in year 7 it became negative and in 2008 it was 17.26%.
25
P/E Ratio
0
10
20
30
40
50
60
2003 2004 2005 2006 2007 2008
P/E RatioThe P/E ratio has been up and down for the bank last 6 years. It was 53.89 in 2003 and in 2008 it dropped to 7.97.
RECOMMENDATIONS
After doing all the calculations and the findings, we can see that the bank is
performing well in terms of maximizing their profit. Their profit margin
gradually increased as years went by. The profitability ratios show that the
firm’s profit margin and the earnings per share are increasing. But the bank
is not paying dividend to its shareholders on regular basis. This is one thing
to consider for the investors before they invest into the bank. So, after, all
the necessary calculations done we can evaluate that AB Bank Limited is
showing consistent growth which is preferred by any investor but they are
lacking somewhat in efficiency. They have to maximize their efficiency and
minimize the potential risk for the investors if there is any. We recommend
26
AB BANK is not that much a good investment bank that you want to invest
all your money.
CONCLUSION
The safest form of investment is government bills, notes and bond. But they don’t bring
significant return because they have little or no risk associated with them. If you, as an
investor, are seeking for higher return by investing in a good quality security; the AB
Bank certainly fills up the requirement. However, due to its lack of efficiency, it will be
better to place the bank as a part of your portfolio.
27
BIBLIOGRAPHY
http://www.abbank.com.bd /
www.investopedia.com
www.investorwords.com
www.google.com
www.yahoosearch.com
Bank management & financial services (7th Edition)
28
Author: Peter S. Rose & Sylvia C. Hudgins
Published by: McGraw – Hill
Banking practice and law
Author: Howladar & Syed Ashraf Ali
Published by: Agamee publications
Handouts & class notes
APPENDIX
The methodology used for findings are provided for year 2003- 2008
PROFITABILTY RATIO
ROE: (%) Net Income after Tax/ Total equity Capital
2003 = 17116455/1135977580 = 1.507
2004 = 90066599 / 1243576775 = 7.24
2005 = 162453608 / 1526879837 = 10 .64
2006 = 532186349 / 2582762912 = 20.6
2007 = 1903493845/4511589265 = 42.3
2008= 2300621640/ 6722505347 = 34.2
29
ROA (%) Net Income after Tax/ Total Assets
2003 = 17116455 / 32969450675 = 0.05
2004 = 90066599 / 32513479426 = 0.27
2005 = 162453608 / 33065402555 = 0.49
2006 = 532186349 / 47989337222 = 1.11
2007 =1903493845/ 63549864403 = 2.995
2008 = 2300621640 / 84053612585 = 2.7
Net interest margin (%) :( Interest Income from loans and security investments- Interest expenses on deposits and on other deposits) / Total Assets
2003 = 506980977 / 32969450675 = 1.54
2004 = 510904574 / 32513479426 = 1.57
2005 = 691405768 / 33065402555 = 2.09
2006 = 615504605 / 47989337222 = 1.28
2007 = 1439281171 / 63549864403 = 2.26
2008 = 2030693938 / 84053612585 = 2.42Net non interest margin (%): (Non-Interest Revenues – Non-interest
Expenses) / Total Assets
2003 = 1/ 32969450675 = 0.06
2004 = 19374793 / 32513479426 = 0.06
2005 = 20067414 / 33065402555 = 0.06
2006 = 177051500 / 47989337222 = 0.36
2007 = 1305338922- 696776012 / 63549864403 = 0.957
2008 = 1759019171- 1008675512 / 84053612585 =0.89
30
Net Bank Operating Margin (%) :( Total Operating revenues – Total
Operating Expenses) / Total Assets
2003 = 163346815 / 32969450675 = 0.49
2004 = 360066599 / 32513479426 = 1.11
2005 = 755027462 / 33065402555 = 2.28
2006 = 710686349 / 47989337222 = 1.48
2007 = 3325293845 / 63549864403 = 5.23
2008 = 4298388155 / 84053612585 = 5.11
EPS: Net Income after Tax / Common Equity Shares Outstanding
2003 = 17116455 / 4715.3 = 3.63
2004 = 90066598 / 4950129 = 18.19
2005 = 162 453 608 / 5197636 = 31.26
2006 = 532186349 / 5717400 = 93.08
2007 = 1903493845 / 22911577.3 = 83.08
2008 = 2300621640 / 22297166.51= 103.18
LEVERAGE RATIO
Debt to Equity Ratio: Total liabilities / shareholders equity
2003 = 31833473095 / 1135977580 = 28.0
2004 = 31269902651 / 1243576775 = 25.15
2005 = 31538522718 / 1526879837 = 20.66
2006 = 2032200664 / 2582762912 = 0.78
2007 = 59038275138 / 4511589265 = 13.08
31
2008 =77331107238 / 6722505347 = 11.5
Debt to Asset Ratio: Total liabilities / Total assets.
2003 = 31833473095 / 32969450675 = 0.97
2004 = 31269902651 / 32513479426 = 0.96
2005 = 31538522718 / 33065402555 = 0.95
2006 = 2032200664 / 47989337222 = 0.04
2007 = 59038275138 / 63549864403 = 0.92
2008 = 77331107238 / 84053612585 = 0.92
Time interest earned: EBIT / Interest Expense
2003= 163346815 / 1691929956 = 0.09
2004= 360066599 / 1540836908 = 0.23
2005= 755027462 / 1571542000 = 0.48
2006= 710686349 / 2762833939 = 0.26
2007= 3325293845 / 3830623489 = 0.86
2008= 4298388155 / 5336153274= 0.81
LIQUIDITY RATIO
Current Ratio= Current Asset / Current Liabilities
2003 = 32969450675 / 31833473095 = 1.04
2004 = 32513479426 / 31269902651 = 1.04
2005 = 33065402555 / 31538522718 = 1.05
2006= 47989337222 / 45406574310 = 1.06
2007= 63549864403 / 59038275138 = 1.08
32
2008 = 84053612585 / 77331107238 = 1.09
ACTIVITY RATIO (EFFICIENCY RATIO)
Operating Efficiency Ratio: (Total Operating Expense / Total Operating Revenue)
2003 = 1129869124 / 1293215939 = 0.87
2004 = 1100290892 / 1460357491= 0.75
2005 = 822470807/ 1577498269 = 0.559
2006 =1939479724 / 2650166074 = 0.73
2007 = 1331287400 / 4656581245 = 0.28
2008 = 1850637722 / 6149025878 = 0.30
Employee Productivity Ratio: (Net Operating Income/ Number of Full-
time employees)
2003 = 17116455 / 1602= 10684.429
2004 = 90066599 / 1726= 52182.27
2005 = 162453608 / 1525 = 106526.9
2006 = 532186349 / 1590 = 334708.4
2007 =1903493845 / 1725 = 1103474.69
2008 = 2300621640/ 1804= 1275289.15
MARKET POSITION RATIO
33
Earnings per Share (EPS) Growth Rate (%): (EPS at end of period - EPS at beginning of period) / EPS at beginning of period
2003 = (3.63 – 5.78) / 5.78 = -37.7
2004 = (18.19 – 3.63) / 3.63= 401.10
2005 = (31.26 – 18.19) / 31.26 = 71.85
2006= (93.08 – 31.26) / 93.08 = 66.4
2007= (85.37 – 93.08) / 85.37 = - 9.03
2008= (103.18 – 85.37) / 103.18 = 17.26
Price Earnings (P/E) Ratio = market price per share / Earnings per share.
2003 = 195.6 / 3.63 = 53.89
2004 = 381.1 / 18.19 = 20.95
2005= 364 / 31.26 = 11.64
2006= 892.75 / 93.08 = 9.59
2007= 2561.25 / 85.37 = 30
2008 = 822.25 / 103.18 = 7.97
------------------------------------------------------x-------------------------------------------------
34
