SECTOR-1 (BANKING & FINANCE INDUSTRY SECTOR)
INDUSTRY ANALYSIS:
INRODUCTION:
Indian banking and financial services industry is strong and robust among the world economies. Over the previous years, financial markets have witnessed a significant deepening and broadening of services with the introduction of new instruments and products in banking, capital markets space and insurance.
Insurance Sector:
The life insurance sector collected new business premiums of Rs 11,742.7 crore (1.92 billion USD) for April-May 2013, as per the data from Insurance Regulatory and Development Authority. Life insurers collected Rs 1,07,010.7 crore (17.47 billion USD) of new premiums for the financial year ended March 2013.
Banking Services:
According RBI’s 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks', March 2013, Nationalised Banks accounted for 52.4% of the aggregate deposits, while SBI and its Associates accounted for 22%. The share of Old Private Sector Banks, New Private Sector Banks, Foreign Banks, and Regional Rural Banks in aggregate deposits was 5.1%, 13.6%, 4% and 2.9% respectively.
Nationalised Banks accounted for the highest share of 51% in gross bank credit followed by State Bank of India and Associates (22.7%) and New Private Sector Banks (14%). Foreign Banks(4.9%), Old Private Sector Banks(5%) and Regional Rural Banks(2.5%).
Mutual Funds Industry in India
India's asset management companies witnessed growth of 0.7% in August 2013 wherein their average assets under management stood at Rs 7.66 lakh crore (125.10 billion USD).
Private Equity, Mergers & Acquisitions in India
Private equity (PE) and venture capital (VC) firms remained bullish about India's services and consumer goods sector. PE and VC investme...
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... on net worth of company has shown a continuous upward and downward trend. Return on long term funds is showing an increasing trend.
In payout ratios, the dividend payout ratio of the company was approximately similar till 2011 then a decline is observed till 2013.
In leverage ratio, a sudden decrease is seen in 2011 which increases in 2012 and again shows a slight decline. Also it is high when compared to ideal ratio which is 2:1 so company should concentrate more on equity instead of debt.
In per share ratios, the EPS and DPS of company show an increase from 2009 to 2013 which is good. The book value to EPS shows a downward and upward movement.
CONCLUSION:
From the above table and the interpretation it could be observed that company has improved a lot and have good performance in 2012 which is also maintained in 2013. Thus it could be a better investment option.
...ck trends past performance is an indicator of future performance. Therefore, investors should proceed with caution when investing in Champion Enterprise.
...s are doing well and over the many years have gone up. The company has not lawsuits currently pending which is good. The company as a whole seems to be growing even when the market is down.
During 18 years development, CC&L it had been growing to a top 10 Canadian pension funds, and the total asset under management (AUM) had been growing to 19 billion, with pension asset under management accounting for 64%, as at December 2000.
The analytical formats used in response to question number 3 are threefold; 1) trend analysis, 2) common size analysis and 3) percentage change analysis. The rationale for this three-fold approach is that all other ratio analysis is derived from these three. The utilization of trend analysis aids in giving clues as to the financial status of the company is likely to improve or deteriorate. Likewise, the common size analysis relates to the fact that all income statement items are divided by
Return on sales is decreasing and is below the industry average, but the goods news is that sales and profits have been increasing each year. However, costs of goods are increasing and more inventory is left over each year causing the return on sales to decrease. For 1995, it was 1.7% which is less than the average of 2.44% but is a lot higher than the bottom 25% of companies as seen in exhibit 3, which actually have negative sales return of 0.7%. Return on equity is increasing each year and at a higher rate than industry average. In 1995, it was 20.7%, greater than the average of 18.25% and close to the highest companies in exhibit 3, of 22.1% showing that the return in investment in the company is increasing, which is good for the owner.
Cash ratio – Big drop (from .35 to .087) in year 2002. In 2003 the rate grew from .087 to .460. The reason of drop in 2002 is decreased in Cash and big increase in Liabilities. The increase in 2003 occurs because of big increase in Cash and slight increase in Liabilities.
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%).
The rising trend in the gross profit margin shows that the firm is selling its inventory at a higher percentage of profit. Likewise, higher profit margin in 2014 as compared to 2013 means that the firm is earning more profits from its sales. Similarly, the rising trend in ROCE value means that it is earning higher profits for the invested capital. Moreover, the declining trend in debtor days means that it is collecting cash quickly from debtors. The similar declining trend n creditor days shows that the firm is taking utmost advantage of the available trade credit. Next, the declining trend in gearing ratio shows a low amount of debt to equity, which means lower financial risk to its business. Finally, lower stock turnover ratio reflects good inventory management within the firm(Finch,
In terms of financial performance both companies have performed well. This brief review will focus on the financial performance such as profitability, solvency and liquidity.
The ratio of 1.7 for the last two years indicates consistency, although a lower number is preferred. As a company produces high value product, this could be a satisfactory ratio. By comparing it to 2011 when a ratio was 2.9, in the last two years a ratio improved
[6] Kripalani, Majeet & Egnardio, Pete. The Rise Of India. Business Week Online. December 8, 2003. http://www.businessweek.com/magazine/content/03_49/b3861001_mz001.htm
In 1993 the Debt to Equity Ratio was .45. In 1994 it was .68 and in 1995 it was .73. This is a trend that Clarkson will have to take into consideration as he refinances his company.
The basic earnings per ordinary share in 2016 is RM19.14 and RM14.30 in 2015. This shows that the ordinary share had been increased RM4.84 compare to 2016 based on 2015. In the other hand, this company had declared a first interim single-tier dividend of 10 sen per ordinary share amounting to RM22.88 million in respect of the financial year ended 31 December 2016. They sold their ordinary shares of RM400,000,000 units of RM0.50 per each in 2016 and RM200,000,000 units of RM0.50 per each in 2015 to their shareholders. It is increased from 2015 to 2016 with 200,000,000 units. The other investments that available for sale is RM1000 same as in 2015 and 2016.
The fourth largest sector in the Indian economy is all set for 16% growth during 2008-09, from a base of Rs. 85470 crores, as predicted by FICCI. Going forward, as anticipated by CRISIL, FMCG sector will touch around Rs. 140000 crores by 2015 (33.4B$).
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.