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CHAPTER 5
DATA ANALYSIS
TABLE 1
Descriptive Statistics
Mean Std. Deviation N
MC 7.2105 2.75805 9
MVA 7.0439 3.03403 9
MBV .1777 .77716 9
ROE 2.2422 .92574 9
QR -.2171 .77814 9
INTERPRETATION
The standard deviation is a measure of variability. In SPSS, you compute it by choosing Analyze/Descriptive Statistics/Descriptives.
The value of mean for:-
• Market capitalisation– 7.2105
• Market Value Added – 7.0439
• Market To Book Value - .1777
• Return On Equity – 2.2422
• Quick Ratio - -.2171
The standard deviation for:-
• Market Capitalisation – 2.75805
• Market Value Added –
5.1 Net Operating Profit After Tax
The NOPAT curriculum includes Interest Income, Other Income deducting interest on deposit and other operating expenses less tax so as to give an overall emphasis for Operating Profit.
Net Operating Profit is considered instead of Net Profit so as to highlight the economic value of a firm.
NOPAT = (Net Profit + Provisions and contingencies + Interest on Borrowings) less (Taxes)
TABLE 1
CALCULATION OF NOPAT (in Cr.)
NET OPERATING PROFIT
2012-2013 2011-2012 2010-2011
SBI 14,104.98 11,707.29 7,370.35
Bank of Baroda 4,480.72 5,006.96 4,241.68
ICICI 8,325.47 6,465.26 5,151.38
HDFC 6,726.28 5,167.09 3,926.40
TAX
2012-2013 2011-2012 2010-2011
SBI 4,231.49 3,512.18 2,211.10
Bank of Baroda 1,344.21 1,502.08 1,272.50
ICICI 2,497.64 1,939.57 1,545.41
HDFC 2,017.88 1,550.12 1,177.92
NOPAT
2012-2013 2011-2012 2010-2011
SBI 9,873.49 8,195.11 5,159.25
Bank of Baroda 3,136.51 3,504.88 2,969.18
ICICI 5,827.83 4,525.69 3,605.97
HDFC 4,708.40 3,616.97 2,748.48
GRAPH 1
NOPAT
INTERPRETATION
As per the above tables, the following interpretation has been made. By comparing all the four Banks (SBI, Bank of Baroda, ICICI, ...
... middle of paper ...
...ical Test:
Linear regression was used to test for correlation.
TABLE 15
SPSS STATISTICAL OUTPUT FOR PUBLIC AND PRIVATE BANKS
Correlations
EVA CLOSING_PRICE
EVA Pearson Correlation 1 .818
Sig. (2-tailed) .018
N 4 4
CLOSING_PRICE Pearson Correlation .818 1
Sig. (2-tailed) .018
N 4 4
INTERPRETATION
From the above correlation table the pearson correlation is 0.818 which is closer to 1, thus it means that there is a strong relationship between the two variables ( EVA and Share price). So if the one variable changes then it leads to the change in another variable also.
When we talk about statistical correlation (Sig. 2-tailed), the value which we get is 0.018 which is less than the alpha value (0.05), so the variables are strongly correlated to each other in this case. Therefore the null hypothesis will be rejected and the alternate hypothesis will be accepted.
For this statistical inference, the question was whether the means were truly different or could they have been samples from the same population. To do draw a conclusion, we must first assume normal distribution. We must also set the null hypothesis to m1 - m2 = 0. And per this assignment we must set the a-level at .05 and the hypothesis alternative to m1 - m2 ¹ 0; thus requiring a two-tailed test.
... value, however, depreciation affects such values as operating profit and value of the company’s assets. If the depreciation is ignored, the Net Income calculations will be erroneous.
the observed test statistic is the Z value on the that leads to a probability of 83/100 or .83
Descriptive statistics is a procedure of organizing sample data. This procedure allows readers to be able to understand and describe the data’s importance. Descriptive statistics allows an individual to quickly understand the data and make predict an individual score; however, descriptive statistics does not describe all data in the sample. Inferential statistics is a process that determines whether sample data accurately represented the relationship to the population. In other words, one uses inferential statistics to determine if the sample data is believable.
The main contributing factor to the decline in the return on stockholders’ equity (25.37% to 8.73%) was the decline in the profit margin (11.79% vs. 5.08%). The decrease in asset turnover (1.11 to 1.00) made a small contribution to the decline, as did the decline in the debt ratio (48.4% to 41.8%).
Over the previous five years, the return of the ProIndex fund have outperformed the S&P 500 index, as the 5-year-return is nearly 3 times than the benchmark and the annualised return is nearly 2 times than the benchmark. It means ProIndex fund has a significant increase in value within that period. However, the ProIndex Fund has a higher standard deviation which means it is more risk than the S&P 500 index. Especially for the annualised standard deviation, it is approximately 10% higher than the benchmark. The correlation coefficient between the ProIndex and benchmark is about 0.65 which means both two variables are positive changing consistently, but there are still some other factors which have impacts on the relationship between two variables as the correlation is less than 1. Furthermore, the higher beta, 1.0132, which is more than 1 and it may be one of the reasons for high risk as well since it is more sensitive to the market change. It means that the ProIndex fund would increase by 1.0132% if the market increased by 1%.
A researcher determines that 42.7% of all downtown office buildings have ventilation problems. Is this a statistic or a parameter; explain your answer.
Standard Deviation is a measure about how spreads the numbers are. It describes the dispersion of a data set from its mean. If the dispersion of the data set is higher from the mean value, then the deviation is also higher. It is expressed as the Greek letter Sigma (σ).
Scatter plots are similar to line graphs in that they both use horizontal and vertical axes to plot data points. The closer the data aims to making a straight line, the higher the correlation between the two variables, or the stronger the relationship(MSTE,n.d) The scatter plot above does not have a straight line formation, so that showing that there is not a strong relationship between the two variables of GPA and final.
Null hypothesis (pg. 49) – a type of hypothesis in which there is no relationship between the measured variables, and offers no support to the original hypothesis. An example of a null hypothesis would be that there was no relationship between time played and the number of concussions sustained by players who had high playing times.
Therefore, the amount of profit obtained is somewhat arbitrary. However, cash flow is an objective measure of cash and it is not subjected to a personal criterion. Net cash flow is the difference between cash inflows and cash outflows; that is, the cash received into the business and cash paid out of the business (Fernández, 2006). Whereas, net profit is the figure obtained after expenses or cost of resources used by the business is deducted from revenues generated from the business operations activities. Nonetheless, the figure for revenue and cash are not entirely cash, some of the items may be sold on credit and some of the expenses are not paid up
We can observe from the table above that there is no relationship between PREMARSX and DEGREE. The chi-square value is 12.30 and is not significant at the .05 level. The Cramer's V indicates that there is a negligible association between the variables with a value of .077.
This picture, probably the only one in existence of all my friends together, has more meaning than it seems. At first, it appears to be nothing more than a happy congregation of teenagers, all from the ages of fifteen to sixteen. In the background you can see a fence enclosing a sand volleyball court. My friends that are kneeling on the bottom row are Shawn (who is affectionately known as Goose because of his long neck and his last name being Gosselin) and Paul. The ones on the top row are, from left to right, Brad, Matt, Kayla, Charlie, Jenny, Greg, Brent, and Daniel. I am at the far right side. You can tell by the expressions on some of their faces, especially Paul's, that they weren't quite ready for the picture to be taken, for more reasons than one. First, there was someone else taking a picture at the same time. Also, most of them never could have guessed that the picture would have to be taken in the first place. After all, I was supposed to be with them forever, right? Wrong. This was my going-away party.
Hence in nonprofit managerial analysis, the revenue side of the analysis is usually not as relevant as it is in for-profit organizations.
A variety of groups are concerned in bank profitability for various reasons. The bank shareholders would want to know if the value of their investments is high or low. The investors also use current and past performance to predict future price of the banks’ shares traded on the stock exchanged. The management of the bank as trustee of the shareholders is evaluated and compensated on the basis of how well their decisions and planning have contributed to growth in assets and profits of their banks. Employees of bank also are concerned with profits, since their salaries and promotions are frequently tied to the profitability performance of their banks. Depositors use bank performance and profitability as indicators of security for their deposits in the banks. Finally, business community and general public are concerned about their banks’ performance to the extent that their economic prosperity is linked to the success or failure of their banks.