PROFITABILITY: Return on Capital employed Net Profit Margins SHORTTERM LIQUIDITY: Current ratio Cash ratio RATIOS INVESTMENT RATIOS: Earning per share Earnings yield LONGTERM LIQUIDITY RATIOS: Debt ratio Interest cover Current ratio Cash ratio RATIOS PROFITABILITY: Return on Capital employed Net Profit Margins SHORTTERM LIQUIDITY : INVESTMENT RATIOS: Earning per share Earnings yield RATIOS PROFITABILITY: Return on Capital employed Net Profit Margins SHORTTERM LIQUIDITY: Current ratio Cash ratio LONGTERM LIQUIDITY RATIOS: Debt ratio Interest cover INVESTMENT RATIOS: Earning per share Earnings yield RATIOS PBIT/Capital employed x 100 =-901,176/2,078,448 x 100 PBIT/Sales x 100--901,176/1,200,776 x 100 PROFITABILITY: Return on Capital employed Net Profit Margins SHORTTERM LIQUIDITY: Current ratio Cash ratio Currents Assets/Current liabilities-3,369,150/3,300,011 Cash/Current Liabilities-1,950,873/3,300,011 INVESTMENT RATIOS: Earning per share Earnings yield BASIS OF CALCULATION Total assets-Total Equity/Total Assets 9,219,254-496,509/9,219,254 PBIT/Capital employed x 100 =-901,176/2,078,448 x 100 PAT-Preference shares/Total assets x 100-815,200/9,219,254 x 100 Earnings per share/Market price x100-0.180/580,919 x 100 BASIS OF CALCULATION (GHS in '000) PBIT/Capital employed x 100-1,006,699/1,359,222 x 100 PBIT/Sales x 100-1,006,699/1,200,294 x 100 Currents/Current liabilities 1,455,221,643/2,092,033,671 Cash/Current Liabilities-963,960,922/2,092,033,671 LONGTERM LIQUIDITY RATIOS: Debt ratio Interest cover Total assets-Total Equity/Total Assets-5,437,022,118-1,028,565,337/5,437,122,118 PBIT/Capital employed x 100 = 1,006,699/1,359,222 x 100 PAT-Preference shares/Total assets x 100-904,329,633/5,437,022,118 x 100 Earnings per share/Market price x100-0.70/317,060 x 100 BASIS OF CALCULATION (GHS in '000) PBIT/Capital employed x 100 = 441,630,022/825594,888x100 PBIT/Sales x 100-441,630,22/648,945,652x 100 Currents Assests /Current liabilities-4,8907,884,350/4,289,611,463 Cash/Current Liabilities-1,361,983,610/4,289,612,463 Total assets-Total Equity/Total Assets-5,115,206,352-925,594,889/5,115,206,352 PBIT/Capital employed x 100 = 441,630,022/825594,888x100 PAT-Preference shares/Total assets x 100-324,208,915/5,115,206,352 x 100 Earnings per share/Market price x100-0.87/203,365x 100 BASIS OF CALCULATION (GHS in '000) PBIT/Capital employed x 100-376,691,351/801,861,431 x100 PBIT/Sales x 100-376691,351/609,056,356 x 100 LONGTERM LIQUIDITY RATIOS: Debt ratio Interest cover Currents/Current liabilities-5,151,040,791/4,606,196,449 Cash/Current Liabilities 1,195,640,731/4,606,196,449 Total assets-Total Equity/Total Assets-4,443,909,209-801,961,431/4,443,909,209 PBIT/Capital employed x 100 =376,691,351/801,861,431 x100 PAT-Preference shares/Total assets x 100-223,542,186/5,543,909,209 x 100 Earnings per share/Market price x100-0.112/235,236 x 100 YEAR 2022 -29.27% -40.95% 2021 YEAR 0.946 -29.27% 1.021 0.6 -8.84% 0.00% 74.1% 72.41% YEAR 2020 0.7 0.5 YEAR 2019 0.8 74.1% 16.6% 0.0% 53.49% 68.0 1.1 0.3 -0.1 53.49% 6.34% 0.0% 46.98% 61.85% 0.001 0.26 0.82 6.34% 4.03% 0.00%

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.5.3MBA
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The image uploaded is the calculation of Cal Bank's Profitability ratios, shorter liquidity ratios, long-term liquidity ratios, and investment ratios for 2020, 2021, 2022. A base year of 2019 was also added. Evaluate the financial performance by comparing the three (3) years' financial performance that is 2020, 2021, and 2022 I have provided in the table with the base year. 

 

PROFITABILITY:
Return on Capital employed
Net Profit Margins
SHORTTERM LIQUIDITY
Current ratio
Cash ratio
RATIOS
INVESTMENT RATIOS:
Earning per share
Earnings yield
LONGTERM LIQUIDITY RATIOS:
Debt ratio
Interest cover
RATIOS
PROFITABILITY:
Return on Capital employed
Net Profit Margins
SHORTTERM LIQUIDITY:
Current ratio
Cash ratio
INVESTMENT RATIOS:
Earning per share
Earnings yield
RATIOS
PROFITABILITY:
Return on Capital employed
Net Profit Margins
SHORTTERM LIQUIDITY:
Current ratio
Cash ratio
Current ratio
Cash ratio
LONGTERM LIQUIDITY RATIOS:
Debt ratio
Interest cover
INVESTMENT RATIOS:
Earning per share
Earnings yield
RATIOS
PROFITABILITY:
Return on Capital employed
Net Profit Margins
SHORTTERM LIQUIDITY:
PBIT/Capital employed x 100 = -901,176/2,078,448 x 100
PBIT/Sales x 100 =-901,176/1,200,776 x 100
Currents Assets/Current liabilities=3,369,150/3,300,011
Cash/Current Liabilities=1,950,873/3,300,011
INVESTMENT RATIOS:
Earning per share
Earnings yield
BASIS OF CALCULATION
Total assets-Total Equity/Total Assets=9,219,254-496,509/9,219,254
|PBIT/Capital employed x 100 = -901,176/2,078,448 x 100
PAT-Preference shares/Total assets x 100 =-815,200/9,219,254 x 100
Earnings per share/Market price x100-0.180/580,919 x 100
BASIS OF CALCULATION
(GHS in '000)
PBIT/Capital employed x 100-1,006,699/1,359,222 x 100
PBIT/Sales x 100 = 1,006,699/1,200,294 x 100
Currents/Current liabilities=1,455,221,643/2,092,033,671
Cash/Current Liabilities-963,960,922/2,092,033,671
LONGTERM LIQUIDITY RATIOS:
Debt ratio
Interest cover
Total assets-Total Equity/Total Assets=5,437,022,118-1,028,565,337/5,437,122,118
PBIT/Capital employed x 100 = 1,006,699/1,359,222 x 100
PAT-Preference shares/Total assets x 100 =904,329,633/5,437,022,118 x 100
Earnings per share/Market price x100=0.70/317,060 x 100
BASIS OF CALCULATION
(GHS in '000)
PBIT/Capital employed x 100 = 441,630,022/825594,888x100
PBIT/Sales x 100=441,630,22/648,945,652x 100
Currents Assests /Current liabilities-4,8907,884,350/4,289,611,463
Cash/Current Liabilities-1,361,983,610/4,289,612,463
Total assets-Total Equity/Total Assets=5,115,206,352-925,594,889/5,115,206,352
PBIT/Capital employed x 100 = 441,630,022/825594,888x100
PAT-Preference shares/Total assets x 100-324,208,915/5,115,206,352 x 100
Earnings per share/Market price x100-0.87/203,365x 100
BASIS OF CALCULATION
(GHS in '000)
PBIT/Capital employed x 100 = 376,691,351/801,861,431 x100
PBIT/Sales x 100 = 376691,351/609,056,356 x 100
LONGTERM LIQUIDITY RATIOS:
Debt ratio
Interest cover
Currents/Current liabilities=5,151,040,791/4,606,196,449
Cash/Current Liabilities 1,195,640,731/4,606,196,449
Total assets-Total Equity/Total Assets-4,443,909,209-801,961,431/4,443,909,209
PBIT/Capital employed x 100 = 376,691,351/801,861,431 x100
PAT-Preference shares/Total assets x 100-223,542,186/5,543,909,209 x 100
Earnings per share/Market price x100=0.112/235,236 x 100
YEAR
2022
-29.27%
-40.95%
0.946
-29.27%
YEAR
2021
-8.84%
0.00%
2020
1.021
0.6
YEAR
74.1%
72.41%
0.7
0.5
YEAR
2019
0.8
74.1%
16.6%
0.0%
53.49%
68.0
1.1
0.3
-0.1
53.49%
6.34%
0.0%
46.98%
61.85%
0.001
0.26
0.82
6.34%
4.03%
0.00%
Transcribed Image Text:PROFITABILITY: Return on Capital employed Net Profit Margins SHORTTERM LIQUIDITY Current ratio Cash ratio RATIOS INVESTMENT RATIOS: Earning per share Earnings yield LONGTERM LIQUIDITY RATIOS: Debt ratio Interest cover RATIOS PROFITABILITY: Return on Capital employed Net Profit Margins SHORTTERM LIQUIDITY: Current ratio Cash ratio INVESTMENT RATIOS: Earning per share Earnings yield RATIOS PROFITABILITY: Return on Capital employed Net Profit Margins SHORTTERM LIQUIDITY: Current ratio Cash ratio Current ratio Cash ratio LONGTERM LIQUIDITY RATIOS: Debt ratio Interest cover INVESTMENT RATIOS: Earning per share Earnings yield RATIOS PROFITABILITY: Return on Capital employed Net Profit Margins SHORTTERM LIQUIDITY: PBIT/Capital employed x 100 = -901,176/2,078,448 x 100 PBIT/Sales x 100 =-901,176/1,200,776 x 100 Currents Assets/Current liabilities=3,369,150/3,300,011 Cash/Current Liabilities=1,950,873/3,300,011 INVESTMENT RATIOS: Earning per share Earnings yield BASIS OF CALCULATION Total assets-Total Equity/Total Assets=9,219,254-496,509/9,219,254 |PBIT/Capital employed x 100 = -901,176/2,078,448 x 100 PAT-Preference shares/Total assets x 100 =-815,200/9,219,254 x 100 Earnings per share/Market price x100-0.180/580,919 x 100 BASIS OF CALCULATION (GHS in '000) PBIT/Capital employed x 100-1,006,699/1,359,222 x 100 PBIT/Sales x 100 = 1,006,699/1,200,294 x 100 Currents/Current liabilities=1,455,221,643/2,092,033,671 Cash/Current Liabilities-963,960,922/2,092,033,671 LONGTERM LIQUIDITY RATIOS: Debt ratio Interest cover Total assets-Total Equity/Total Assets=5,437,022,118-1,028,565,337/5,437,122,118 PBIT/Capital employed x 100 = 1,006,699/1,359,222 x 100 PAT-Preference shares/Total assets x 100 =904,329,633/5,437,022,118 x 100 Earnings per share/Market price x100=0.70/317,060 x 100 BASIS OF CALCULATION (GHS in '000) PBIT/Capital employed x 100 = 441,630,022/825594,888x100 PBIT/Sales x 100=441,630,22/648,945,652x 100 Currents Assests /Current liabilities-4,8907,884,350/4,289,611,463 Cash/Current Liabilities-1,361,983,610/4,289,612,463 Total assets-Total Equity/Total Assets=5,115,206,352-925,594,889/5,115,206,352 PBIT/Capital employed x 100 = 441,630,022/825594,888x100 PAT-Preference shares/Total assets x 100-324,208,915/5,115,206,352 x 100 Earnings per share/Market price x100-0.87/203,365x 100 BASIS OF CALCULATION (GHS in '000) PBIT/Capital employed x 100 = 376,691,351/801,861,431 x100 PBIT/Sales x 100 = 376691,351/609,056,356 x 100 LONGTERM LIQUIDITY RATIOS: Debt ratio Interest cover Currents/Current liabilities=5,151,040,791/4,606,196,449 Cash/Current Liabilities 1,195,640,731/4,606,196,449 Total assets-Total Equity/Total Assets-4,443,909,209-801,961,431/4,443,909,209 PBIT/Capital employed x 100 = 376,691,351/801,861,431 x100 PAT-Preference shares/Total assets x 100-223,542,186/5,543,909,209 x 100 Earnings per share/Market price x100=0.112/235,236 x 100 YEAR 2022 -29.27% -40.95% 0.946 -29.27% YEAR 2021 -8.84% 0.00% 2020 1.021 0.6 YEAR 74.1% 72.41% 0.7 0.5 YEAR 2019 0.8 74.1% 16.6% 0.0% 53.49% 68.0 1.1 0.3 -0.1 53.49% 6.34% 0.0% 46.98% 61.85% 0.001 0.26 0.82 6.34% 4.03% 0.00%
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