Ratio Analysis for Measuring Overall Performance of Five DSE listed PCBs

Abstract

This Paper has shown the comparative performance evaluation of five listed private commercial banks in DSE and an analysis of board attributes, board size, and ownership. Financial ratios have been employed to measure the profitability, capital adequacy, asset situation, liability situation, liquidity performance of five listed banks. Comparing the financial ratios, I was capable to decide which year’s overall performance is either up to the mark or not. That’s why I calculated quite of a few ratios but some ratios were already given at once on annual report. ROI stands for Return on Investment which is versatile and simple. If an investment’s ROI is net positive, it is in all likelihood worthwhile. So, I could effortlessly find out and decide from my excel workings which banks ratios are overall good. ROE stands for Return on Equity. From the calculation of ROE, the shareholder or others traders on bank can easily see if they are getting desirable return on their money, whilst a financial institution can consider how efficiently they are utilizing the firm’s equity and it should be compared to the historic ROE and industry’s ROE average. EPS denotes Earning per share and it is the component of the company’s income that is allocated to each and every share of the stock. ROCE stands for Return on Capital Employed and it determines profitability and how effectively its capital is made of. In this report, Board size, Religion, Board Attributes, and Ownership Attributes are Independent variables. Board Attributes have some parts –Board size, Females on Board, Foreign member, Family member on board. Ownership Attributes have some parts- Foreign Ownership, Family ownership. Religion part shows which bank observes Islamic banking Gadget and which bank doesn’t observe Islamic rules. Leverage Ratio is categorical Debt/ Total Asset. The debt to asset is normally used via analyst, investors and creditors to determine the overall performance of the company.