Annual Rreport Analysis Coursework Example | Topics and Well Written Essays - 1000 words

Annual Rreport Analysis - Coursework ExampleMore signifi stomachtly, fiscal summary measures the financial performance of a society as in preconditions of profitability and investment ratios in its operations. As a result, financial analysis of a company, through the financial ratio allows the management to transfer out twain firms performance and the trend analysis performance for specific years. Sources of Finance More than often, companies feed to seek sources of financing requires funds to purchase fixed summations, to finance growth and expansion and to increase its functional capital. Nevertheless, these sources of long-run financing are not easily accessible beca determination they include a fixed term contract and large amounts of fund (Brigham & Ehrhardt, 2011). As a result, companies opt to raise semipermanent capital by issuing shares to shareholders from the public. There are two types of shareholders including equity shareholders who are directly involved in co mpany affairs and the preference shareholders who are entitled to profits before equity shareholders (Davies & Pain, 2011). In addition, companies can social function long-term loans as sources of finance from financial institutions. These loans could either be from government or private financial institutions who give long-term loans at reasonable sum up of interest and repayment period (Gowthorpe, 2011). More so, the companies can use debentures as there sources of finance that are issued to the public. ... Financial Analysis of TCB bank and brink of gallium As financial services provider institutions, both the TCB bank and Bank of Georgia seek these sources of long-term finance to increase their business lines and boost their working capital. As a result, the two companies have shareholders both equity and the preference shareholders who are entitled to profits from the companys proceedings. In addition, the financial institutions use debentures as there sources of finance fr om the public who make up the creditors of the companies (Nikolai, Bazley & Jones, 2010). As other financial institutions, the two companies source out for long-term loans as sources of finance from other financial institutions within reasonable rate of interest and repayment period. In addition, the two companies have funds from their retained earnings as sources of long-term finance (Fields, 2011). 1) Profitability Ratio 2011 2010 Return on assets= crystalize income/ = 91,625 /2783901=0.033 49,435/2002900.5=0.025 TCB Bank Total average asset Return on assets= Net income/ = 138973/ 4182165=0.033 78043/ 4004922=0.019 Bank of Georgia Total average asset Return on equity=Net income/ = 91,625 / 423026.5 =0.217 49,435/352007.5=0.140 TCB Bank Average stockholders equity Return on equity=Net income/ = 138973/918677.5=0.151 78043/812,603=0.096 Bank of Georgia Average stockholders equity Net Profit margin= Net Income/ Sales = 91,625 /209,081=0.438 49,435/162,814=0.304 TCB Bank (TCB Bank, 2 012) Net Profit margin= Net income/ Sales = 138973/360,215=0.386 78043/413673=0.189 Bank of Georgia piggish Profit margin= Gross Income/ Sales = 209,081/ 360,215=0.580 162,814/ 271,805=0.600 TCB Bank Gross