Case Study Analysis : Company 's Financial Wealth And Position

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Toghrul Khalafov A4080865 togrul.khalafov@gmail.com Risk Management Report Bluehill Bank Written Coursework Assignment Ratio analysis is the best way of analysing the company’s financial wealth and position. It helps to understand the crucial financial figures of an entity pointing to weak and possibly risky parts of its finance. Using the results of the analysis managers can strengthen the financial position by determining and eliminating possible risks related to credits, operations and market fluctuations. One of the important cases that a company cares about is profitability. Undoubtedly it plays a great role in the overall performance of an entity and define the actions must be made to improve it. Being on of the indicators of profitability net margin indicates how well companies can convert their revenue into profit. According to the chart that shows changes over the period of 2008-2011 for three banks, Bluehill , HSBC and Deutsche, Bluehill Bank has a downward trend of net margin changes,from 36% in 2008 to 28.7% in 2011. Though there was a significant increase in revenues, impairment loses on loans and tax payments were increased enormously as well. That is why the net margin declined over the period but still remained the best among competitors that have only 20%,HSBC, and 12.44%, Deutsche Bank. In addition, the higher this ratio can be the better it will be for the entity. As a solution in this case managers should focus on impairment losses on
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