Answer to Question #203846 in Finance for Jana awez

Question

Download the annual report of any commercial bank for year 2018 and 2019 and

perform liquidity and profitability analysis and interpret the result

Answer 1

A case of Bahrain

(a) liquidity analysis

Current ratio=current assets÷current liabilities

2018

=$\frac{12.1}{57.9}=0.209$

2019

$\frac{15.4}{62.3}=0.247$

The current ratio increased from 2018 to 2019 which means that the firm is able to meets it's short term obligations.

(b) profitability analysis

=sum of customer paid-(amortized fixed cost+variable cost)

2018

$70.2-(17.7+12.3)=40.2$

2019

$90.7-(22.1+10)=58.6$

The firm is thriving well as it's making profits.