Financial Ratio Analysis -Reviewing the Financial Performance of ZANACO Bank (2013-2015)
This research set out to review the financial performance of ZANACO bank
from the year 2013 to 2015 using financial ratios. Three (3) ratios were adopted
to establish its financial soundness namely; the profitability, solvency and liquidity
ratio. The liquidity ratios used were the cash ratio, quick ratio and the current
ratio. The results from these ratios showed the bank was quite liquid and was able
to convert its assets to cash easily as the ratios were above one (1) except the
cash ratio. The profitability ratios used included the return on asset, return on
equity and the net profit margin. It was discovered that though the ratios were
not constant an average ratio of them showed the bank is making profits from its
services. The last but not the least ratio done was the solvency ratio. The solvency
ratios used included the debt to asset, debt to capital and the debt to equity ratios.
The ratios were in favour of the banking meeting its long-term obligations except
the debt to equity. All in all, all ratios suggested the bank was financially sound
during the period 2013 to 2015.
Keywords: Financial Ratios, Financial Statements, Financial
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