Review Of Literature On Financial Performance Analysis

Review Of Literature On Financial Performance Analysis-14
Practitioners use financial ratios, for instance, to forecast the future success of companies, while the researchers' main interest has been to develop models exploiting these ratios.Barnes (1982) shows how the non-normality of financial ratios can result from the underlying relationships of the constituents of the financial ratios.Gombola and Ketz (1983) include cash-flow based (adjusted for all accruals and deferrals) financial ratios in their factorization of 40 financial ratios for a sample of 119 Compustat firms for 1962-80.

Practitioners use financial ratios, for instance, to forecast the future success of companies, while the researchers' main interest has been to develop models exploiting these ratios.Barnes (1982) shows how the non-normality of financial ratios can result from the underlying relationships of the constituents of the financial ratios.Gombola and Ketz (1983) include cash-flow based (adjusted for all accruals and deferrals) financial ratios in their factorization of 40 financial ratios for a sample of 119 Compustat firms for 1962-80.

The bank has total assets of RMB 13,244,342 million, deposit of RMB 10,862,935 million and loans of RMB 6,433,399 million at the end of 2012.

Bank capital and non-performing loan ratio are 12.61% and 1.33% respectively.

Bank has four overseas branches and above five overseas representative offices.

It has nine domestic subsidiaries and three overseas subsidiaries. 84 in Fortune’s Global 500, ranked also at No. World Banks due to profit before tax in 2011.

In 2012 bank achieved a net profit of RMB 145,131 million.

Agricultural Bank of China has 23,472 domestic branches which includes Head office.A financial ratio is of the form X/Y, where X and Y are figures derived from the financial statements or other sources of financial information. In traditional financial ratio analysis both the X and the Y are based on financial statements.One way of categorizing the ratios is on the basis where X and Y come from (see Foster, 1978, pp. If both or one of them comes from the income statement the ratio can be called dynamic while if both come from the balance sheet it can be called static (see ibid.).uses cookies to personalize content, tailor ads and improve the user experience. By using our site, you agree to our collection of information through the use of cookies. Ratio analysis used for two purposes that are credit and managerial.In managerial approach profitability and in credit approach capacity of firm to pay debts is the main point of focus. Technically, financial ratios can be divided into several, sometimes overlapping categories.Later in 1970s Agricultural Bank of China specialized and wholly state-owned as a commercial Bank and subsequently controlled by Commercial Bank.In January 2009 the bank was restructured into a joint stock limited company, later bank was listed at the Stock Exchange of Shanghai and Hong Kong Stock Exchange in July 2010.Bird and Mc Hugh (1977) adopt an efficient Shapiro-Wilk small-sample test for the normality of financial ratios for an Australian sample of five ratios over six years.Like Deakin they find in their independent study that normality is transient across financial ratios and time.

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