4 Year Financial Analysis Of Meezan Bank 2005 To 2008

Liquidity Ratio It is the relationship between the current assets and current liabilities of a concern. Current Ratio = Current Assets/Current Liabilities

Year Current assets Current liabilities Current Ratio

2005 6812761 3242446 2.1

2006 10212269 4848440 2.10

2007 9373577 3607766 2.59

2008 7108685 5065513 1.4

Liquidity Current Ratio 3 2.1

2

2.59

2.1

1.4

1 0 1

2 2005

2006

3 2007

4 2008

Solvency Ratio

Debt equity Ratio = Debt liabilities/ Net assets

Year Debt liabilities Net assets Debt equity Ratio

2005 24408794 6812761 3.58

2006 36826824 10212269 3.60

2007 57864137 5706656 10.13

Debt Equity Ratio 20 10 0 Series1

1

2

3

4

3.58

3.6

10.13

12.4

2005

2006

2007

2008

2008 74325579 5974978 12.4

Profitability ratio

Year Net Profit margin Gross profit margin Return on capital employed

2005 18.5 43.83 .018

2006 17.80 45.86 0.0020

2007 16.27 46.39 .0022

Profitability ratio 0.02 0.01 0 Series1

1

2

3

4

0.018

0.002

0.0022

0.0024

2005

2006

2007

Return on capital employed =(PBIT / Capital employed)*100 PBIT = Core banking income before provision Capital Employed = Equity + Long term liabilities 2008

6341 + 11025091 = 11031432

2007

5720 + 57864137 = 57869857

2006

4763 + 36826824 = 36831587

2005

3821 + 24408794 = 24412615

2008

2008 8.27 54.61 .0024

Investment Ratio Year Earning Per Share Price Earning Ratio Dividend Per Share

2005 1.16 15.92 16

2006 1.88 10.51 10

2007 1.96 15.2 20

2008 1.26 17.03 8.6

Earning Per Share 4 2 0 Series1

1

2

3

4

1.16

1.88

1.96

1.26

2005

2006

2007

2008

In 2007 the per share earning is good but it decreases in 2008 1.96 to 1.26 so the management has to give attention here.

Price Earning Ratio 20

15.92

17.03

15.2 10.51

10 0 Series1

1

2

3

4

15.92

10.51

15.2

17.03

2005

2006

2007

2008

Here the management has recovered their position and improved.

Dividend Per Share 25 20 15 10 5 0

20

16 10

1 2005

2 2006

8.6 3 2007

4 2008

The dividend has decreased 20 to 8.6 R.s. This is very bad for company’s good will or stock market. Management has to focus over it other wise the company has to bear more loss in future.

Capital Adequacy Ratio (Capital to Risk (Weighted) Assets Ratio) Year Average Ratio Average Equity

2005 1.67 16.70

2006 1.57 15.64

2007 1.70 10.30

Average Ratio 2

1.67

1.5

1.7

1.57

1 0.5

0.82

0 1

2

3

4

2005 2006 2007 2008

Average Equity 20

16.7

15

18.39

15.64 10.3

10 5 0 1

2

3

2005 2006 2007 208

4

2008 .82 18.39